MANAGER’S REPORT
04/13/22
REVISED 04/12/22
Note that there are other changes in addition to the comments on the Budget Position Report and Treasurer’s Report
Budget Position Report
Revenue for March was $87,562.84. Operational expenses were $41,000.55. So we spent $46,562.29 less than we took in. I expect operational expenses to increase as the warmer weather arrives.
We contributed $46,563.29 to reserves:
USDA Loan Reserve: $ 4,200.00
Capital Replacement Reserve: $ 4,771.00
Major Repair Reserve: $37,591.29
The first half of the USDA loan will be due in May. That will not have an impact on operational expenses as we have sufficient money in the USDA Loan Reserve to make the payment.
The ability we have had over the past few months to contribute to the Major Repair Reserve is a very good thing. The expenses for the Holbrook Lane/Schrader Lane main replacement project, the Reynvaan Booster Station upgrade project, and the North Bank Roof project will all be hitting a bit later in the year. Only the North Bank Roof project was planned.
Treasurer’s Report:
Usable fund balances as of 03/31/22:
Regular Maintenance Fund: $ 81,331.51
Capital Replacement Fund: $128,816.25
Major Repair Reserve: $473,629.18
General Facilities Fund: $156,421.05
Total usable funds: $840,197.99
In addition, there is $119,925.40 in the Revenue Clearing checking account some part of which is due to be transferred to the Regular Maintenance Fund. That money cannot be used until it is transferred to the Regular Maintenance Fund but it represents usable funds as that transfer will take place.
There is additional money, as shown in the Treasurer’s Report, but that money is in dedicated funds or deposit funds and is not available to operate the district. There is some money that will transfer from the Refundable Deposits Fund into the Regular Maintenance Fund next month.
The Revenue Clearing Fund shows a negative balance due to the timing issues involved in the credit card transactions.
In reflection, this is where we stood in April 2010:
Regular Maintenance Fund: $111,400.73
Capital Replacement Fund: $0.00
Major Repair Reserve: $0.00
General Facilities Fund: $161,134.61
Total expendable funds: $272,535.34
In the subsequent 36 months following April 2010 the General Facilities Fund was drawn down to nothing in order to make the USDA loan payments. Revenues were insufficient to operate the district and make the loan payments. The only option we had was to use reserves to make those first payments.
Receipt Register
I have included a copy of the Receipt Register for March. The difference between revenue and receipts is timing.
The revenue number in the Reconciled Budget Position Report derives from the previous month’s receipts. The March receipts will be April’s revenue.
Credit Card Receipts
The transition from Point and Pay to Xpress Bill Pay is under way. The contract has been signed.
IT Issues
The new SCADA server is not here yet. I spent some time with our IT folks while at the WASWD conference and they spent time on the phone with the vendor. The server should have been here some time ago.
The security upgrades to both SCADA and the office network have not yet been implemented. I want to get all the SCADA issues resolved before embarking on another endeavor.
Chlorine
Not an issue at the moment. But supplies are not yet as stable as they need to be.
Capital Asset Management
The new SCADA server comes in at $6,049.96, which includes the server, the operating system, multiple back up provisions, and security provisions.
The Asset Management Program budgeted $6,000 for replacement SCADA computers in this budget year. So this expense will not impact operational expenses. The money is already available, and planned, in the Capital Asset Replacement Fund.
Request for Public Information
Our process needs updating. I will be looking at this after dealing with the Risk & Resilience Certification.
No action in March.
Small Parts Shed
The bins have all been labeled. We need to get a work table in the small parts side. That should be in place by the time of the meeting. No action yet on brackets and shelving for the HDPE side.
Manager’s Tour
I have enclosed an outline summarizing what I saw on the monthly (most of the time) Manager’s Tour in the previous packet. I make these tours in order to focus on bits and pieces that need to be addressed.
I am out in the field on a routine basis for specific issues. The tour is meant to focus on each facility with attention paid to items/issues that need addressing.
The field crews receive copies of the outline and I generate work orders from what I see.
Payroll Report
Very routine this period.
Pandemic
The office is now open to the public. Though we have received very few visitors.
The pandemic has been downgraded (most places) to an endemic. Though here in Washington State the State of Emergency is still in place.
Isolation Valves
See comments on as-builts
Production Data
See the Summary sheet in the previous packet. The daily average for 2022 is way up. Bear in mind that for about 62 hours in the beginning of January we were blowing in excess of 1,700 gpm, plus, for most of the system, normal usage. The 1,700 gpm for 62 hours totals 6,324,000 gallons.
Normal daily usage has been around 250,000 to 300,000 gallons. But this year it is higher by about 80,000 to 90,000 gallons per day aside from the main break. I am looking into that. I suspect changing demographics. In year’s past very few accounts used more than the 1,200 cf during the Winter. Currently, a very significant number of accounts use above the allocated use all year.
Sometime this year we need to hold a public meeting dedicated to the Water Use Efficiency goals. I will arrange that.
Past Due Accounts
I have included print out of past due accounts for Section 1 with balances over $218.00 (two billing periods).
All of those with a balance in the 90+ days column are two or more billing periods past due. Because we bill every other month, the billing program gets a bit confused as it figures things in days rather than billing periods.
The ones I have marked with “E” are exempt from late fees. They are the ones with whom we have payment agreements. Those marked with “I” are inactive.
There are eight accounts that have payment agreements. All but one are current. That one will be shut off.
Projects
I have carved down the project list to only those projects were are currently working on. I have started a “Futures Project List” which I will maintain and present as an addendum to the Manager’s Report.
|
Project |
Status |
Next |
Estimated |
Estimated |
|
Step |
Completion |
Cost |
||
|
Small Parts Shed |
Bins Installed |
Work Desk |
4/15/22 |
$7,000 |
|
Well #5 Source Meter |
Awaiting Parts |
Installation |
10/31/21 |
$8,904 |
|
Dollar General |
County Pre-App Completed |
Meter Deposit |
09/01/21 |
$0 |
|
Indefinite Delivery |
2022 Awarded to Brumfield |
Underway |
12/31/21 |
$50,000 |
|
North Bank Re-Coat |
1 Bid Received |
Award Contract |
07/30/22 |
$88,300 |
|
Pape Retail Center |
County Pre-App Completed |
Developer Extension Agreement |
12/31/22 |
$0 |
|
Reynvaan Booster Pumphouse |
In Process |
Installation |
03/31/22 |
TBD |
|
Holbrook Main Break |
Geotech Drilling Complet |
Engineering |
TBD |
$195,000 |
|
As-Builts Update |
Awaiting Proposal |
Engineering |
12/31/22 |
TBD |
Several projects are in process, but seem to be going slowly as preliminary work is moving forward.
HOLBROOK LANE/SCHRADER LANE MAIN REPLACEMENT
The geotech drilling took place 03/23-24. The geotech report is next.
Most of the survey work is done, but there are still some outstanding issues. Berglund/Schmidt can’t give us an estimate of the engineering until the geotech report is complete.
We want the replacement to be as short as possible. But that is dependent on the maximum possible drill angle, which is dependent on the nature of the soils.
NORTH BANK RE-COAT
Only one bid was received. We need to review before we award a contract. The single bid came in much higher than I expected. The bidder proposes a less expensive product and process than originally specified. The less expensive process has been approved by the engineer.
I am not curious as to what the bid would have looked like with the more expensive product.
REYNVAAN BOOSTER STATION
As of this writing. The pump house is up insulated, and painted inside and out. The electrical conduit has been installed from the power pole to the pumphouse.
AS-BUILTS
I am still awaiting a proposed approach from Berglund/Schmidt. We are keeping them busy on the Holbrook Lane/Schrader Lane project.
WELL #5 SOURCE METER
It is still on back order.
Gutters/Downspouts
The downspouts on the pump house have corroded to junk and the gutters and downspouts on the office are, likewise, ready for replacement. The strong gusts we have had recently pretty much finished both of them off.
I have signed contracts for just under $1,000 for both.
Ashley & Kayla
No Action in March
Hydrant Maintenance
See discussion on Maintenance Activity. The short version…not much due to other work demands.
Rate Study
I have made progress in updating the study. It does not look pretty. I won’t have a clear picture of our expenditures for 2022 for some time. But the multiple hits of the Holbrook/Schrader main replacement, Reynvaan Booster Station upgrade, and the North Bank roof coating all coupled with the underlying inflation does not bode well for 2022.
All that makes anything like a responsible prediction for 2023 a major challenge. The picture will clear up somewhat as we progress through the year, I hope. One element that is clear is that we will need to budget for replenishment of our Major Repair Fund.
New Regulations
We have been tapped for Unregulated Contaminants again by the EPA. There will be no cost to the district.
The Lead & Copper rule has seen some modifications. Most of the modifications relate to water systems that have lead pipe in their service laterals. Few systems west of the Mississippi have the feature (bug). Certainly GHCWD#2 has no lead in it’s service laterals.
But there are some changes regarding date of construction of the residences from which the samples need to be taken. We have to review what information we have and make sure we are sampling in accordance with the regulations.
We are due for a large round of lead & copper sampling later this year.
Personnel
The biggest issue right now is finding the seasonal help. So far, only two applicants. I plan to hire in May.
Maintenance Activity:
Kenny and Mick have been working full days. We have had some sick days. Aside from those it is steady hard work every day, often with overtime worked in.
We continue to be behind in addressing all the work orders. One item that is piling up is small “handyman” type projects. In the past, we took care of those as a part of regular maintenance using district staff. But now they just keep getting shoved aside by higher priority projects. It seems the more we do, the more needs to be done.
Examples of these small projects include replacing the power panel steps at the pump house, fixing the sticking door on the Gavett Lane booster station pump house, Installing a proper roof hatch over Well #6, and other small tasks of a similar nature.
I am considering handing those out to small local contractors. I just haven’t figured out how to work it into the contracting and prevailing wage regulations. If all projects can be done by one person acting as an independent contractor it is pretty easy. But as soon as a second person may be needed it appears we get into the whole prevailing wage process which small contractors are not set up to manage.
I need ideas on this.
Contractor Repairs/Assistance
Working with Brumfield is going well. Most of their involvement has been the provision of a vac truck. They also assisted in the service lateral replacement on Sunset Road.
Shop Organization
We still have not managed to find the time to do an inventory of the cast iron pipe fittings that need to be surplused.
We are also finding it difficult to find the time to work on other aspects of getting the shop organized. The big circle problem. Having the shop better organized would save time, but we can’t find the time to organize the shop.
We contracted with Brumfield, as a maintenance item, to install some ecology blocks in order to organize the piles of materials. Currently the various sizes of rock that we use have just been piled wherever they fit on the shop site. The blocks will go a long way to cleaning up the shop site and easing the task of monitoring inventory.
Training/Certifications
Ken is signed up for the annual ERWOW conference. I am signed up for the Spring WASWD conference. I will be speaking briefly on the activities of the Small Districts Committee.
We need flagger certifications renewed. We are having a bit of an adventure finding a class.
It also occurs to me as I am writing this that we need our first aid training updated. I will tackle that issue upon my return from the WASWD conference.
Safety
We have a mini safety meeting every morning.
Vehicles
Service Truck: The Service Truck is still having starter issues.
Pickup Truck 1: No Issues
Pickup Truck 2:I managed to break a taillight lens.
Backhoe: No issues.
Small Truck: I have not found anything yet. I need to move on that very soon.
Web Site
The February Manager’s Report is posted, along with a link to the financial statement.
New Connections
21 Grace Lane
6902 Grange Road
Disaster Management Planning
No action in March. I will be making a presentation on this subject at the WASWD Fall Conference.
Lavao Letter
I defer to Scott.
Long Distance Service Laterals
We have a new, possibly developing issue on Sunset Road. A Sunset Road resident, whose meter is on Grange Road, is mapping out another person’s service lateral across his (the first person) property.
Respectfully Submitted:
Reg Hearn
General Manager