MANAGER'S REPORT
08/09/2023
Budget Position Report
Operational revenues for July were $82,053.47. Operational expenses were $52,715.63. So operational revenues exceeded operational expenses by $29,337.84. Capital expenditures in July were
$13,624.35. So cash in the door exceeded total cash out the door by $15,713.49.
We contributed $30,654.90 to reserves:
Out to Capital Replacement Fund: $ 6,423.00
Out to Major Repair Fund: $ 20,031.90
Out to USDA Loan Reserve: $ 4,200.00
A total of $14,426.95 was transferred from the Major Repair Reserve and the Capital Replacement Reserve to cover expenses for the last Holbrook/Schrader Lane invoice (forwarded to FEMA) and the work on the Water System Plan.
Operational expenses are ahead of the budget. Budget-wise we have used 54% of that line with 58% of the year remaining. We have collected 67% of our projected revenues.
We had budgeted to contribute $137,311.00 to the Major Repair Reserve Fund in 2023. To date we have managed to contribute $184,307.44, over our annual goal by $26,964.54. However, we have had to take $142,676.15 out of the Major Repair Reserve Fund to cover the Holbrook Lane/Schrader Lane/Reynvaan Booster Station projects. The FEMA reimbursement process is still underway.
SCOTT: The interest we earn on the investment accounts go into the general accounts and not the investment accounts. So we are not earning compound interest. Can that be fixed?
Treasurer’s Report:
Fund Balances:
Regular Maintenance Fund: $ 43,811.94
Capital Replacement Fund: $182,447.85
Major Repair Reserve: $444,629.48
General Facilities Fund: $160,462.41
Total Funds Available: $831,351.68
Monthly Utility Totals Report.
August billing (Section 2) is $117,626.85.
Claims Request
$50,565.60. We took three major hits this month.
$ 5,811.20 to MB Electric due to a power failure at the pump house.
$10,697.18 to Pape Machinery for repairs to the tractor.
$16,797.33 to Grainger or flooring material for the pump house.
The MB Electric bill will be paid out of the Regular Maintenance Fund, the Pape bill will be paid out of the Capital Replacement Fund, and the Grainger bill will come out of the Capital Projects budget item in the Regular Maintenance Fund.
Water Bill Appeal
We have a sticky situation. A gentlemen purchased a property at auction from the county. The property has a large outstanding water bill (just shy of $7,000) and a lien was recorded. However, the lien has not been satisfied and since this did not go through escrow, the large water bill was a big surprise.
He stated that he had asked the county about any outstanding liens and he reports that the county represented that there were none.
I have encouraged him to attend the meeting.
Receipt Register
Receipts for July were $115,908.22. July’s billing was $117,626.85. Making collections 99% of billing! We have seen rising levels of collections as more folks sign up for Xpress Bill Pay.
IT Issues
Migration to Office 365 is expected to take place August 30th and 31st. Unfortunately, we have little choice. All Washington State offices, including the State Auditor and the Department of Health, are dedicated to Office 365 and it’s communication protocols. Email communications, vital to working with state agencies, and report filing have to be done through Office 365.
There are some advantages. It will be much easier for the various district computers to share information, archiving of information will be much easier, and security will be greatly improved.
The SCADA system and network will continue to be isolated from other office networks and will stay with Linux as the operating system.
Capital Asset Management
Next month the repairs for the tractor will be transferred from the Capital Replacement Fund to the Regular Maintenance 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 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
In your packets.
Payroll Responsibility Transfer
Implementation of the Springbrook payroll module has commenced. It is going well so far. The setup consultant is extremely helpful in making sure everything is set up properly.
We were able to compare our April input into the program with the county payroll reports. There are quite a few differences, some just a matter of pennies, others rather significant.
In comparing our results to the county’s, I am more confident in our process than the county’s. I keep finding little discrepancies in the county’s payroll process.
Isolation Valves
No action in July
Cross Connection Control
Kenny has noticed that there are several service connections with possible CCC issues for which we have no record of backflow prevention devices having been installed or tested.
Kenny and Dali have teamed up to catch up the records and contact those services for which we have no records. There are quite a few. Initial letters with CCC surveys have gone out. Second letters are being sent to non-responders.
In this process we have discovered some service connections that are not appropriately billed. Primarily multi-family services. We are working to establish how many units are working off how many meters and what the charges should be. Notices will need to be sent to property owners prior to adjusting billing amounts.
We also discovered that not all property transfers were provided the service contract and a copy of the conditions of service. It is difficult to tell who signed contracts and who did not.
A part of this problem has been exacerbated by the fact that some properties have been rented out, with no notice to the district, while others have been sold with no notice to the district.
In extreme cases, some properties, which are tenant occupied without district notice, have been sold without district notification. The accounts are still in a previous owner’s name.
We have decided the best approach is to send notices, that include copies of the contract, to everyone that the contracts are required and need to be signed and returned to the district.
Production Data
The Production Summary is in your packets. Note that the Daily Average, compared to last year, is way down. That might change some as we get into Summer, but it is holding up so far.
For the month of July almost every day was lower than the same day last year.
Active Projects
Several projects are in process, but seem to be going slowly as preliminary work is moving forward. There is a lot on my plate and the highest priority projects get first call on my attention.
WATER SYSTEM PLAN
The signed contract has been forwarded to the engineer. The work has started. This project will jump start my work on the rate study, as it requires a six-year budget.
GHC TRANSIT
No news in July. This project may drag on for some few years.
REYNVAAN EXTENSION
The signed engineering contract has been forwarded to Northwest Water Systems, Inc.
PAPE RETAIL CENTER
No news in July.
This project, and the GHC project, has some challenges. When LeMay built Phase I of their project they begged and pleaded to put the booster station on the northwest corner of the project.
The district’s original requirement was to place the booster station at the reservoirs. However, given the cost and difficulty of getting power to the reservoir site, the district acquiesced to the request to place the booster station at it’s current location.
LeMay is commencing work on Phase II of their project, which is to the west of the booster station. The district has informed Pape and GHT that a water main extension will be required from downstream of the booster station west to serve their properties. With the new LeMay project I have suggested to the LeMay design team that they coordinate with Pape and GHT in order to avoid duplication of effort.
In hindsight the district should have stuck to requiring the booster station at the reservoir site. I made the call.
No word in July.
SHOP FENCE
I have not yet contacted Frank Scherer, Deputy Fire Chief, for an introduction to the new fire chief.
No action in July.
ACCESS ROADS
Both the North Bank and the Clemons access road projects have been deferred.
REYNVAAN BOOSTER STATION
Construction has been complete for some time. FEMA reimbursement has to run through the Washington State Military Department. I don’t know why.
All the paperwork has been submitted.
HOLBROOK LANE/SCHRADER LANE MAIN BREAK
This project is complete. My understanding is that the approval is about to be forwarded to the Washington State Military Department.
A question arose from FEMA as to why the new line was not installed in the old line’s location. I provided a letter explaining the issues.
AS-BUILTS UPDATE
I have discussed this problem with Todd Krause of Northwest Water Systems. They are now offering GIS assistance. He is of the opinion that they can get us up and running for an initial cost of between $20,000 and $30,000 and ongoing support in the $100/month range.
The objective of the ongoing support is to keep the records up to date as changes are made or new information comes to light.
This is way below what others have estimated, by a factor of six or seven. I will be moving forward to explore this further with the objective of establishing a firm estimate.
No action in July
ASHLEY & KAYLA
Deferred. Leaks will be repaired as found.
PUMP HOUSE FLOOR
The decision was made to do this project in-house. The flooring has arrived, but the clips to secure the flooring has not. As soon as they do we will schedule the work.
OFFICE FLOORING
The contract has been signed around. No word on schedule.
POWER PANEL PLATFORM
Rognlin’s bundled this project with the pumphouse floor into one bid. I have requested a new bid for just the power panel platform.
ON-SITE CHLORINE GENERATION
No action in July. This project is on hold for a lack time to address and for a lack of funding.
Hydrant Maintenance
Some action in July. A lot of hydrants are getting tested and painted.
Leak Repairs
Service Lateral 1016 Fairway Drive
Service Lateral 3902 Aberdeen Lake Road
Grange Road Service Lateral
Rate Study
No effort expended in July. I will need to bear down on this in July as it will contribute data for the Water System Plan.
New Regulations
State Auditor’s Office is requesting transaction details for 2020, 2021, 2022, and to date 2023.
Personnel
Nothing new.
Maintenance Activity:
See enclosed report.
Contractor Repairs/Assistance
Grange Road
Shop Organization
This is an ongoing project. Not only because there is quite a bit to do in terms of general organization, but bits and pieces, particularly scrap parts removed as a result of repairs, tend to accumulate.
The bins for small parts is working very well, though not fully implemented with record keeping in the computer. At least small parts are in dedicated bins so we can see what we have, or don’t have, so that we don’t over-order or find we are out of a critical piece at a crucial time.
Training/Certifications
No training activities in July.
Safety
We have a mini safety meeting every morning.
Vehicles
Vehicle #1: 2015 HD2500 Service Truck: The passenger side window has ceased to function properly. This will go to the dealer. The repair will be funded from the Capital Asset Management Fund. No action in July. Will be addressed at the next regular service. We are going to have work lights installed on this truck in order to facilitate work after dark.
Vehicle #2: 2015 ½ Ton Pickup Truck: No Issues
Vehicle #3: 2019 ½ Ton Pickup Truck: Backup alarm
Vehicle #4: 2008 HD3500 Service Truck: Lights.
Vehicle #4 now has a hefty trailer hitch. All arrangements have been made with Wire-Works for emergency lights on Vehicle #4, backup alarm for Vehicle #3, work lights for Vehicle #1 and #4, and trailer brake controls for Vehicle #4.
The tractor’s repair has been completed. There was a long list of repairs. The tractor went in for routine maintenance and a “clicking” sound. The disassembly revealed more repairs that needed to be done. In addition to the clicking sound, which turned out to be sheared off heads from a couple of the bolts securing the bell housing to the block, causing a lot of damage in that area:
Failed steering cylinder
Inoperative Lights
Damaged Caution Triangle
Cracked Bucket Boom Mount Pins
Cracked Bucket Boom Mounts
Faulty Water Pump
Various Leaking Seals
Warn Final Drive Bearings and Seals.
Final Bill: $10,697.18
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. No follow up on this issue in July.
New Connections
None.
Disaster Management Planning
No action in July. I need to bear down on this. EPA will be asking for the certification soon. There will also be some work on this plan in the process of working on the Water System Plan
Long Distance Service Laterals
No new issues pending.
Respectfully Submitted:
Reg Hearn
General Manager