GRAYS HARBOR COUNTY WATER DISTRICT #2

MANAGER'S REPORT

12/14/22

The approach of the end of the year always gets interesting. ​​ It seems that things are piling up, but that should improve as we wrap up major projects. ​​ 

Budget Position Report

Operational Revenues for November were $84,656.64. Operational Expenses were $106,459.92. ​​ Capital Expenses were $8,681.75. ​​ So expenditures exceeded revenues $30,485.03. The numbers, from a budget standpoint are a little deceiving. ​​ A couple of large expenses are actually for next year. ​​ The $24,260 for liability insurance and $13,656.35 of the software support are for next year’s services.  ​​​​ 

A total of $34,717.00 was transferred to reserves:

Capital Replacement Fund:   $ ​​ 5,320.00

Major Repair Fund:    $  ​​ ​​ ​​ ​​ ​​ ​​ ​​​​ 0.00

USDA Loan Reserve:    $29,397.00

The only transfer we don’t do if revenues exceed expenses is the transfer to the Major Repair Fund. ​​ We need to keep making these transfer in order to ensure the money is available when the expenses come up.

Of the $29,397.00 transferred to the USDA Loan Reserve, $25,297.00 is offset by a transfer in to the Regular Maintenance Fund from the USDA Loan Reserve to make the semi-annual payment. ​​ That bit of transfer-in/transfer-out activity is to keep the county’s records and the district’s records in balance. ​​ 

It also accounts for the actual distribution of cash within the report for the 401 Regular Maintenance Fund. ​​ I like to see all of the transactions pass through the 401 Fund. ​​ That way all transactions can be visualized in one report. I print out, and file, a Reconciled Budget Report for all funds. ​​ The commissioners can request a copy of that print out any time.

It has been a tough year. ​​ Practically everything is over budget except Capital Projects. ​​ And it will be over budget by the end of the year. Revenues for December would have to be just over $141,000 to meet the projection. ​​ That is not going to happen. The short version is, we are OK. ​​ Closer to the bone than I like to be, but we are able to meet all of our obligations without digging too deeply into reserves. I will have a detailed budget analysis ready for the January commissioners’ meeting.

Next year is going to be tough as well, even if we don’t have any major, unplanned projects similar to the Holbrook Lane/Schrader Lane main break. ​​ 

Treasurer’s Report:

Fund Balances:

 Regular Maintenance Fund:  $ ​​ 13,203.37

 Capital Replacement Fund:  $142,255.81

 Major Repair Reserve:  $498.841.17

 General Facilities Fund:  $157,344.14

Total Funds Available:   $811,644.49

While our Total Funds Available has decreased month over month, we are ahead for the year. ​​ In January the total was $762,042.07. ​​ So we are ahead, so far, $49,602.42. Not great, but pretty fair given the expenses we have had this year. ​​ The Regular Maintenance Fund is down due to the timing of receipts and transfer to the county treasurer from the clearing account. ​​ Section 2 has fewer connections and receipts tend to be about 80% of Section 1 receipts.

But we have some big expenses that don’t show on the financial statements yet (cash basis accounting), particularly the final invoice on the North Bank Reservoir re-coat. I am hopeful that we will see FEMA reimbursement for the Reynvaan Booster Station before the end of the year. ​​ That will put some money back into the Major Repair Reserve.

Monthly Utility Totals Report.

The December billing (Section 2) was $82,834.75. ​​ A total of 537 invoices were issued, 60 had past due balances with 37 over 30 days, 17 over 60 days and 6 over 90 days for a total of $26,413.14. ​​ That total dollar amount is a bit skewed because we have a couple of big past due accounts that are liened and are not being regularly billed.

Claims Request

The Claims Request is way higher than is typical. ​​ The big culprit this month is the final billing on the North Bank Reservoir re-coat. ​​ With the change order to modify the gutter system so that it works, $101,568.58.

We are also having adventures with the SCADA server upgrade. ​​ There has been a great deal of time spent working to get everything talking to each other. ​​ That should be resolved by the time you read this.

Water Bill Appeal

None pending

Receipt Register

Receipts for November were $107,925.95.

IT Issues

The memory for the SCADA server has arrived. ​​ Change over has not yet been completed. ​​ The process has gone on too long and cost too much money. ​​ I have leaned on the two vendors involved for a definite schedule and final cost. ​​ 

Chlorine

No progress

Capital Asset Management

Nothing to report for November

Request for Public Information

Our process needs updating. ​​ I will be looking at this after dealing with the Risk & Resilience Certification. ​​ 

No action in November.

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

In your packets.

The county, as predicted, is cutting us loose regarding the payroll process. ​​ Their contention is that the county is mandated to issue the district’s warrants, but it is not mandated to provide other payroll services. ​​ I can’t find the specific RCW that addresses this issue. I asked Scott for help on that.

Not that it makes a great deal of difference. ​​ I can see little point in contesting the issue.

In any event, starting in 2024 the district will need to be able to process all aspects of payroll except specifically issuing the warrants or making the direct deposits. ​​ The county treasurer will issue warrants based on the data the district provides. ​​ The district will be responsible for making all the necessary reports to the various government agencies. ​​ 

The upcoming year, 2023, will be a transition year. ​​ In that year we will need to decide how we are going to process payroll, test the process we decide on, and implement it by the first payroll of 2024.

I have been looking around and making inquiries. ​​ Based on my inquiries, and my past experience, I am coming down pretty heavily on the district processing payroll in-house. ​​ We are actually a long way toward having full capability. ​​ We had to find and implement a payroll process in order to track vacation and sick leave time and make the mandated reports to our employees. ​​ The process and software we have has complete capabilities. ​​ 

I am going to start out with the assumption that we will start using the capabilities of the software we have and see how it goes. ​​ 

We will still have to enter into the interlocal agreement with the county for payroll services through 2023. ​​ I don’t see how we can be completely up to speed by the end of 2022. ​​ 

Isolation Valves

No action in November

Production Data

The Daily Average as of 11/30/22 is 490,442 gallons. ​​ Part of the reason this average is so high can be attributed to the huge water main break in January, and the plethora of leaks in July and again in September. ​​ The Daily Average has actually gone done from October as we move further away from those big leaks.

In terms of total production, as of 11/30/22 we are 13,706,080 gallons over last year’s 12-month total.

That large a difference cannot be attributed entirely to breaks. ​​ It is clear that folks are using more water. ​​ 

Active Projects

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

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.

NORTH BANK RE-COAT

Completed. ​​ In addition, improvements were made to the gutter system. ​​ One of the problems with the past coating was standing water working it’s way under the coating. ​​ A change order and additional charges were necessary to correct that problem.

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 received a preliminary water plan for the site. ​​ There was some discussion regarding the point at which this project would access the water main.  ​​​​ 

I informed them that they would need to connect downstream from the booster station. ​​ They wanted to move the check valve that allows flow past the booster station to provide water (at reduced pressure) to the Readiness Center in the event of a power failure. ​​ Their engineer had difficulty understanding the purpose and location of that valve. ​​ I ended up having to just tell them the valve stays where it is. ​​ 

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.

No action in November.

ACCESS ROADS

Both the North Bank 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

Construction is complete. ​​ I am very pleased with the final product. The after-the-fact Project Report has been submitted to DOH.

There is an excellent chance we can receive FEMA funding for this project. ​​ All the information requested by FEMA has been provided. ​​ We should have a determination soon. ​​ Final cost on this project will be just over $96,000.

HOLBROOK LANE/SCHRADER LANE MAIN BREAK

The contract has been awarded to Rognlin’s, Inc. ​​ The contract amount is $117,790. ​​ Which is way below initial estimates. ​​ Thankfully.

The pre-construction meeting occurred on 12/07. ​​ Construction is scheduled to start on 12/12 and be finished (weather permitting) 12/23. ​​ A Christmas present.

There is an excellent chance for FEMA funding for this project, including the engineering costs of just shy of $30,000. ​​ FEMA reimburses 90%. ​​ 

AS-BUILTS UPDATE

I am having difficulty figuring out how to use the GPS receiver. ​​ At the WASWD conference I encountered someone who can provide help in figuring out how to use this thing. I haven’t had a chance to follow up.

SCADA COMPUTER UPGRADE

This project is still not complete. ​​ The new server is in place, but there have been some holdups in the change over. ​​ It seems the big problem is the version of one of the supporting applications, Java. I have hopes that the issues will be resolved by the time you read this.

PARTS SHED

The lighting for the shed should be in place by the time you read this. ​​ 

ASHLEY & KAYLA

No Action in November. ​​ A couple of leaks surfaced, again. ​​ We repaired them, and, yes indeed, failed nylon fittings. ​​ I think that we will need to address this issue as the leaks appear. ​​ Though I have reservations about that approach. ​​ The soils are fairly granular and I am concerned that leaks may go on for some time without being detected.

NEW PROJECTS

The floor in the pump house is wood. ​​ It is deteriorating badly due to the unavoidable moisture in the building and the presence of sodium hypochlorite (chlorine).  ​​​​ It is going to need to be replaced soon.

I need to explore possible materials. ​​ Obviously, wood is not particularly suitable. ​​ Steel also has problems. ​​ Mild steel will corrode, probably worse than wood, and stainless steel is probably prohibitively expensive. ​​ There may be some synthetic materials. ​​ 

I will start research.

Hydrant Maintenance

We have not found a suitable seasonal employee. ​​ In any event, the lead field tech has been very ill and would not have been able to supervise an additional employee. ​​ So quite a bit of work we hoped to get done before Winter have been deferred.

Leak Repairs

406 Hemlock Park Lane

3921 Aberdeen Lake Road

6701 Olympic Highway

106 York Drive

Reed Lane Water Main

Rate Study

No effort expended in November.

New Regulations

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

Personnel

See comments on Hydrant Maintenance. ​​ We are working to hire a couple of very short term temporaries to get some urgent tasks done. ​​ 

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 in your packets. ​​ The report by Maintenance Type seems to have been discontinued. ​​ 

Contractor Repairs/Assistance

The main use for Brumfield in November was the water main break on Reed Lane at the end of the month. ​​ PUD hit the water main. ​​ Our locate was off by about six feet. ​​ They also assisted in asphalt repairs.

Shop Organization

This project is finally moving forward. ​​ There is a lot of just plain junk in the shop. ​​ It is being sorted based on utility.

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.  ​​​​ 

Vehicles

Service Truck #1: Radiator Leak

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:  ​​​​  No Issues

Backhoe: ​​   No issues.

Service Truck #2: Needs lights and a trailer hitch, still. ​​ To many other priorities.

Web Site

The November 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. ​​ No follow up on this issue in November.

New Connections

None in November

Disaster Management Planning

No action in November. ​​ I need to bear down on this. ​​ EPA will be asking for the certification soon.

Long Distance Service Laterals

They are still out there.

Respectfully Submitted:

Reg Hearn

General Manager