GRAYS HARBOR COUNTY WATER DISTRICT #2

MANAGER'S REPORT

08/10/22

July can be characterized as “leaks, leaks and more leaks”.

Budget Position Report

Operational revenues for July were $78,162.01, including late fees. ​​ Operational expenses were $64,995.30. ​​ In addition, we spent $5,976.32 in planned Capital Replacement Projects (SCADA computer upgrades). ​​ So we took in ​​ $7,190.39 more than we spent. ​​ We transferred $13,166.71 to reserves. ​​ We transferred more to reserves than the excess that we took in because of the various fund transfers, which would have resulted in an unbalanced Reconciled Budget Position report.

Capital Replacement Fund:   $ ​​ 6,114.54 ​​ 

Major Repair Reserve Fund:   $ ​​ 2,852.17

USDA Loan Reserve Fund:   $ ​​ 4,200.00

Any line item that shows 58% or less in the far right column is on or below budget. ​​ Any line item above 58%, obviously, is over budget.

We are about $30,000 below projected revenue. ​​ I am not concerned about that until after the August and September billings. ​​ Even the October billing will reflect some August usage.

Operational expenses are a concern, as we have used up 70% of our budget and are only 58% through the year. The major contributors are all of the Payroll line items and Parts and Supplies. ​​ There are others that are over quite a bit in terms of percentage but are not large dollar amounts, so have little impact individually, but in the aggregate contribute to expenditures.

The Payroll overage stems from the amount of work we are doing. ​​ The workload in the past couple of months has been considerably higher than in previous years. ​​ The result is a lot of overtime.

A good many of these small overages are the result of unanticipated cost increases. Inflation. ​​ Examples include Billing Expense, Office Supplies, Fuel, Telephone, etc. ​​ Though some of the billing expense reflects the transition from Point and Pay to Xpress Bill Pay. ​​ A partial element of that is I misunderstood how the set up expenses were to be paid, which resulted in a double payment. That is being corrected.

There is no concern about falling short of money for operations. ​​ However, if the trend does not change, we will not be able to contribute as much to the Major Repair Reserve as we had planned. ​​ 

I have included a complete budget report for all funds for your information.

Treasurer’s Report:

The Treasurer’s Report is still out of balance by $18.77. ​​ I am working on it.

Fund balances as of 07/31/22:

Regular Maintenance Fund:   $ ​​ 81,331.51

Capital Replacement Fund:   $129,666.43

Major Repair Reserve Fund:   $524,347.38

General Facilities Fund:   $156,599.77

Available Funds:    $891,945.09

There is money the district holds that is not available to operate and maintain the water system:

Revenue Bond Reserve (Final payment on the USDA Loan): $51,150.91

Refundable Deposits:       $46,483.95

There is somewhat of a change to the Treasurer’s Report. ​​ The reports from the previous credit card processing company made it difficult to track payments that had been received but had not made it into our bank at the end of the month. ​​ The reconciliation process with Xpress Bill Pay makes it much easier to account for those payments. ​​ They show up in the outstanding transactions columns and are listed on Page 3 of the report.

Monthly Utility Totals Report.

The report summarizes how many services we billed in the July billing, Basic Rate billing, Usage Billing, and total billed. ​​ It also summarizes what the district is owed by Section 1 customers.

The July billing was $126,423.54. ​​ Within the month, in other words, on time payments, we collected $90,443.54. ​​ As of this writing (08/03) an additional $9,275.83 came in. ​​ So collections for the July billing stand at $99,719.37. ​​ We can expect a few more payments to trickle in, but it will be difficult to differentiate as the August billing has gone out and there will be early payments from that billing.

The August billing (Section 2) was $97,501.

Past Due Accounts

In Section 1 there are 211 past due accounts totaling $31,547.58. ​​ Don’t try and work out the balance based on the Monthly Utility Totals Report as some of the “Past Due” accounts in the Past Due Accounts report are credit balances. ​​ It is just the way the software works.

Dali has done quite a bit of work in cleaning up account problems, both in terms of past due accounts, and problems with account information.

Water Bill Appeal

None pending

Receipt Register

Receipts for the month. ​​ This is the basis for the monthly check to the County Treasurer. ​​ The total may look a little strange this month. ​​ While preparing the end of the month reports for July, it came to my attention that receipts for late charges were being recorded in the Regular Maintenance Fund rather than the Revenue Clearing Fund. ​​ 

That situation has been corrected.

Credit Card Receipts

We are seeing a tremendous move to Xpress Bill Pay. ​​ On the flip side, we are receiving very few credit card payments in the office or over the phone and, it appears (though I can’t quantify it) that a significant number of folks are switching from checks and cash to online payment. ​​ Which is good news. ​​ These changes have significantly reduced the office work load.

IT Issues

The memory for the SCADA computer upgrade is not expected to arrive until sometime in October. ​​ Supply chain issues on this, and other projects, have been a real problem.

Chlorine

Not an issue at the moment. ​​ But supplies are not yet as stable as they need to be. ​​ The engineer has not had much time to devote to the question of On Site Generation (OSG). ​​ So I did a bit of my own research. ​​ I found a system that looks attractive and is in use locally. ​​ I am in discussions with that water system, though I have not been able to give it much attention in July.

I have developed a back up source for the NSF-60 sodium hypochlorite. ​​ There would be a delivery expense, but in a pinch, we have an alternative as long as transportation is available from Tumwater.

Capital Asset Management

The first billing for the SCADA computer upgrade arrived. ​​ Money was moved from the Capital Replacement Fund to the Regular Maintenance Fund to cover that expenditure. ​​ 

We have the new computer. ​​ It just doesn’t have any memory. ​​ 

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.

However, our general approach is, if someone wants public information, we provide it. The only problem with that approach is that it leaves us open to outrageous requests.

Payroll Report

As you will note on the Payroll report, there is a lot of over time this pay period. ​​ We had several significant leaks, along with some minor ones that kept the crews very busy. ​​ 

Isolation Valves

No action in July

Production Data

We had a SCADA glitch as result of a power outage and spent several days without Daily Reports from SCADA. ​​ I need to work on the production data before a summary sheet can be generated.

Active Projects

Several projects are in process, but seem to be going slowly as preliminary work is moving forward.

DOLLAR GENERAL

The unofficial word is that Dollar General has backed out. ​​ Nothing official yet.

GHC TRANSIT

Some work is moving forward on this project. ​​ The engineering seems to be underway as Berglund/Schmidt has requested that we mark the location of the water main in the area.

In order for this facility to have sufficient pressure, an extended water main will need to be installed from the “hot” side of the Gavett Lane Booster station. ​​ When the time comes, we will institute a Developer Extension Agreement.

NORTHBANK RE-COAT

This project is scheduled for completion in August. ​​ I do not have a specific date.

REYNVAAN EXTENSION

Deferred due to a lack of funds. ​​ We will know more about how we can move this project forward when we have a handle on how much the Holbrook Lane/Schrader Lane water main replacement is going to cost.

This is a sanitary survey item. ​​ But if we don’t have the money, we don’t have the money.

PAPE RETAIL CENTER

I have seen no action on this project yet.

SHOP FENCE

We really need to be sure our shop area is secured. ​​ Previous security measures were removed with the building of the new fire station. ​​ 

This project is complicated by the acquisition of a strip of land about 50 feet wide along the west side of district property that was acquired by the fire district from the adjacent (to the west) homeowner. ​​ The original plan was to place the storm water management pond in that location. ​​ That did not work out and the pond was placed elsewhere. ​​ 

Moving forward on a solution has been complicated by the departure of the chief. ​​ No replacement has been identified. ​​ I am in discussions with one of the commissioners.

ACCESS ROADS

Both the Northbank and the Clemons access road projects have been deferred. ​​ Until we know the total costs of the Holbrook Lane/Schrader Lane repair and the Reynvaan Booster Station, we can’t commit to spending money for these roads.

REYNAAN BOOSTER STATION

The new pumps are scheduled to be built on August 11th. ​​ No clear idea of actual delivery date. ​​ All the preliminary work has been completed.

There is a good chance we can receive FEMA funding for this project.

HOLBROOK LANE/SCHRADER LANE MAIN BREAK

This project is in engineering. ​​ The preliminary plan has been submitted to WSDOT for their review and (we hope) approval. ​​ 

There is a good chance we can receive some FEMA funding for this project as well as the Reynvaan Booster Station upgrade.  ​​​​ The process is byzantine in the extreme, but I am excited about getting some relief.

AS-BUILTS UPDATE

The state of our as-built information has been a problem since I got here. ​​ I have tried several approaches to fix the situation, none of which has worked out very well.

The current approach is to work with the County’s GIS staff. ​​ They have been very helpful so far. ​​ 

The major hold up on this has been the ability to acquire accurate location data suitable for use by the GIS staff. ​​ I have ordered a GIS level capable GPS receiver. ​​ It should be here by the time you read this.

It is my intention to enlist the aid of a community member who is always on the lookout for ways he can assist the district.

SCADA COMPUTER UPGRADE

This project has been very frustrating. ​​ Our IT consultant has been wonderful. ​​ One of the suppliers, and the manufacturers, not so much. ​​ 

We are waiting on replacement memory for the new computer. ​​ The originally ordered memory will not work with the alternative computer. ​​ Scheduled delivery of that memory is sometime in October.

The computer originally ordered went out of production.

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 job is complete.

Ashley & Kayla

No Action in July. ​​ A couple of leaks surfaced. ​​ We repaired them, and, yes indeed, failed nylon fittings.

Hydrant Maintenance

Getting done. ​​ Quite a few hydrants have been repainted and number plates added. ​​ Refurbishing cap paint is still in the future. ​​ 

Leak Repairs

At the top of this report I indicated a theme of multiple leaks. ​​ The number of leaks we addressed in July, some of them fairly significant, is unprecedented. ​​ Following is a list of the leaks, many of which required cutting into pavement and assistance from our on-call contractor. ​​ The addresses sometimes related to the service lateral, and sometimes are simply the closest location.

6221 Olympic Highway

 2” galvanized and PVC water main under pavement

 Cut and cover repair at edge of pavement

5806 Central Park Drive

 Cracked 1” service lateral under pavement

 Cut and cover repair at edge of pavement

201 Old Hill Road

 Cracked service lateral under the middle of the road

 Cut and cover repair across the road

6903 Central Park Drive

 Broken service later under the middle of the road

 Directional bore repair

601 School Road

 The school service connection

 Cut and cover edge of road and parking lot. ​​ 

 Replaced 2” PVC service lateral with HDPE

 New gate valve on service side of meter

6609 Central Park Drive

 Cracked service lateral under pavement

 Cut and cover repair

7016 Harrison

 Cracked service lateral at edge of pavement

 Repaired without cutting into pavement

106 York Drive

 Cracked PVC service lateral

 Repaired with HDPE with connection to PVC

303 Pioneer Road ​​ (two leaks)

 Broken internal water main in the mobile home park

 District fixed due to public health concerns

46 Ashley Lane

 Broken nylon fitting

 Replaced all the nylon fittings at this location with brass

1100 Mallard Lane

 Cracked service lateral.

 Easy repair

615 Greenacres Lane

 Cracked extended service line crossing neighboring properties

 Provided extensive leak detection

 Replaced 20’ of service lateral

Rate Study

Very little progress in July.

New Regulations

I have acquired a weather station. ​​ Now we just need to find the time to install it.

Personnel

With all the repair work going on, it has been difficult for the seasonal employee to concentrate on the usual Summer projects. ​​ 

We hope that eases up. ​​ Meanwhile, it is very beneficial to have the additional help on the other chores. ​​ Kenny insisted that Phillip become a qualified flagger. ​​ That has been very useful.

Maintenance Activity:

I have a new contact provided by Tom for small jobs. ​​ I haven’t followed up yet. ​​ 

The Closed Work Orders report is attached. ​​ It amazes me that, even with the Summer help, there is simply too much to do. ​​ 

Contractor Repairs/Assistance

Extensive assistance in July.

Shop Organization

I need to provide some motivation. ​​ The work orders have been issued. ​​ Other issues seem to take precedence.

Related to the office rather than the shop...the carpet is deteriorating fast. ​​ Not this year, with all that is going on, but we seriously need to address the problem. ​​ It has become a safety issue. I dread having to move things around in order to fix the problem, but it is going to have to be done.

I am leaning towards commercial vinyl. ​​ It looks good, is practically indestructible, is easy to keep clean, and is reasonably priced. ​​ Next year.

Training/Certifications

Nothing new this month.

Safety

We have a mini safety meeting every morning. ​​ We had one pulled shoulder incident.  ​​​​ 

Vehicles

Service Truck #1:  The intermittent slow starting has been identified. ​​ Whitney’s has determined it is the fuel pump. ​​ Just to polish my own apple, I predicted either a clogged fuel filter or a faulty fuel pump.

This truck has also suffered some dings and dents over the years. ​​ Some to the extent that the most cost effective approach may be to replace the service body. ​​ I am researching.

Pickup Truck 1: ​​  No Issues

Pickup Truck 2:  ​​​​  The battery was faulty. ​​ It has been replaced.

Backhoe: ​​   No issues.

Service Truck #2: Needs lights and a trailer hitch. ​​ Brumfield has offered to help with the installation of lights. ​​ But they have been run ragged lately and have not been able to follow up.

Web Site

The July Manager's Report is posted. ​​ 

I still need someone to improve our “Pay My Bill” button. ​​ A community member has volunteered to help, but is very busy at the moment, and the consultant I have used in the past has been somewhat non-responsive.

New Connections

There are a few new connections in the works, but not ready to connect yet. ​​ Two involve multiple connections. ​​ One on Fairview Drive and another fronting on Clemons Road. ​​ 

Disaster Management Planning

No action in July. ​​ I will be making a presentation on this subject at the WASWD Fall Conference as a consequence of our experiences with the Holbrook main break.

Long Distance Service Laterals

The long distance lateral leak situation off Grange Road (Greenacres Lane) has resolved. ​​ There is still the matter of some very long service laterals, across multiple properties. ​​ 

Respectfully Submitted:

Reg Hearn

General Manager