06/13/18

Budget Position Report

Revenues for May were $45,949.62. Expenses were $30,086.90. So we contributed $16,253.31 to reserves.

The total contributed to reserves for so far this year is $63,144.32.

While some line items are in trouble, the overall budget is in pretty good shape. We are 41% through the year and have expended 39.6% of our budget. Revenues are a bit behind at 39%, but we haven’t hit the summer months. We are 38% behind our projected contributions to reserves, but that should pick up during the Summer if we can keep a lid on expenses.

Treasurers Report:

Everything balances, which indicates that everything has been properly accounted for. We have $391,340 in the Regular Maintenance Fund and $86,618 in the General Facilities Fund.

Financial System Explanation

Jim suggested we have a “working session” to go over the financial management system.

I concur. We can schedule one for a day when we are all in town and healthy.

As far as the State Auditor is concerned, the management of the finances and adherence to the open meetings rules are the biggest areas of accountability. This stuff is dry as dust, but the commissioners need to have a working knowledge of what all the reports mean.

We can set a date when Jim returns.

Hydrant 113 Damage

Someone left the road, it appears to be Hill Road, and struck Hydrant 113 on the corner of Hill and Grange Roads.

I have the basic information to follow up with a claim to the driver’s insurance company. I have passed what I have on to Scott.

I am accumulating the invoices related to the replacement of the hydrant.

2019 Budget

It is already that time of year when we need to start thinking about next year’s budget. I don’t want to get in to detail this month. I am providing the information so you have some time to go over the proposed budget at your leisure.

I have included only the 401 Regular Maintenance Fund since it is the only fund for which budgeting can be realistically accomplished.

The highlights of this proposal:

  • A 6% rate increase. I have included a proposed rate schedule.
  • A full time laborer/meter reader at $15/hr.
  • Two projects: The Reynvaan Extension and expanding SCADA controls. We may want to fund one of these projects, or both, from the General Facilities Fund. There is currently about $96,000 in that fund. The Reynvaan Extension is a compliance issue.
  • A forecast contribution to reserves of $105,711.

Billing System

The Banyon Data Systems billing software is giving us problems. To make that even more of an adventure, Banyon’s customer service has gone a long ways down hill.

The big problem with the software itself is that it will, at random, drop meter readings. Our calls to Banyon to fix this problem resulted in their staff telling us that the readings were not entered in the first place. That is an impossibility. You can’t generate bills without current readings, even if they are zero.

When other, more minor, problems crop up, it seems that our calls to them are a big bother.

Adding insult to injury, during the last go around it was revealed that the current version of the software is Version 10. We have been using Version 6. We were never informed about Versions 7, 8, 9 or 10. For this we are paying $886.00 a year.

The billing system is at the center of our revenue generating efforts.

Some of the other irritations include:

  • A Report Writer module that is way outside the bounds of “user friendly” and is very limited in the ability to format reports.
  • An abstruse interface with Databar.
  • The inability to print duplicate water bills.
  • An account history report that is difficult to read and almost impossible to interpret. When we have history questions I often build a spreadsheet so that we, and the customer, can understand the history.
  • No ability to track credit card receipts and reconcile the receipts with the Point & Pay deposits to our bank account. We do that separately.
  • An overly complex account numbering system.
  • We only have one “seat”. Acquiring a second seat involves essentially purchasing, at full price, another copy of the software. Currently, if there is work I need to do in the billing system, I have to kick Charli out of her chair.
  • I am not convinced that we are getting good water usage (on the sales side) numbers. Raw numbers still indicate an almost 40% water loss. I get that down for our Water Use Efficiency Report by including water we use but don’t sell, but I just don’t believe we are losing that much water. My indicator is that we average about 200 gallons per day per connection based on water pumped records. If the water loss is to be believed, our average consumption per connection would have to be about 150 gallons per day. I just don’t believe it.
  • One of the prime reasons for adopting this software was the low initial cost. I think we have gotten our money’s worth from the initial investment. But the $795/year seems like a definite waste of money to me.

My proposal is to switch to the Bias Software billing module that attaches to our accounting system. It fixes all of the above irritations, includes some features that would be very useful that we currently do not have, comes with the Bias support team (who are exceptional), and can be set up “hosted” rather than the District purchasing the software. It has the further advantage of interfacing with the accounting system.

Their proposal includes some substantial start up costs. But we would not use everything they are proposing. Specifically, we would not use the Cash Receipting module, and, most likely, would not request on-site set-up assistance. We did not require on-site assistance to set up the accounting system and that saved us a significant chunk of change.

Their proposal totals $4,930 if we leave out the Cash Receipting. I don’t know how much we would save by not having an on-site session. That is difficult to quantify. The set up includes basic set up plus importing our existing data into the new system. That amount also includes the first six months of “hosting” at $200 month.

We could use some variation of our current account numbers, so we would not have to go through the education process of new account numbers.

My big issue is customer support. While it might take a day or two to get Banyon to respond (and then reluctantly), Bias has always been available to answer questions and fix problems within a few minutes of our cries for help.

Water Usage

Please see the Production Summary included in your packets.

Multi-unit shut offs

We need a set policy on multi-unit shut-offs for non-payment.

In May we were faced with the possibility of shutting off the Hidden Valley Mobile Home Park, which has 88 homes. From a strictly legal standpoint, we are within our rights. And under the operating philosophy of everyone being treated the same, the shut down is justifiable.

But I fear that it would be a public relations train wreck. We need to think about this one.

Fortunately, the owner’s wife came in just about at the last minute and paid the bill.

I talked to Jim about the issue and he is of the opinion that we have the legal standing to follow the same procedure we have in place for single family dwellings, but terminating a substantial number of multi-unit residences would almost certainly lead to a PR disaster.

Central Park Elementary School Lead Problem

This crisis has disappeared below the waves. I suspect that the DOH office that handled the sampling, which was not done by the Office of Drinking Water, was unprepared for the consequences of their actions, which included improper sampling technique.

I have hopes that the processes and procedures are being reviewed in order to avoid the kinds of problems experienced in that last round.

Maintenance Activity:

Usual daily/weekly/monthly maintenance activity. See attached report.

Maintenance activity is beginning to be a critical issue. There is no lack of energy or efficiency on Kenny’s part, but maintenance items continue to pile up, and, more disturbingly, deferred. This situation is further complicated during meter reading, as critical repair items come up during that period and meter reading must be delayed while the repair is accomplished.

The “summer projects” routine is also falling behind. For a long time we could get the summer maintenance items completed with the help of a temporary employee. Even with the highly variable character of the summer help we were able to get the maintenance items completed during the summer months.

In the past two years, that has not been case. In the summer of 2016 we had a pretty good temporary, but had to extend the employment period into Fall. In 2017 we had a truly outstanding helper (Mick Peterson) AND we extended the employment period into the Fall, and quite a few of the Summer tasks had to be deferred.

At this point we have 13 work items for the upcoming Summer. Seven of the 13 are relatively critical. Just one of the items, hydrant maintenance, could occupy a moderately ambitious helper all Summer to complete. In addition, with the isolation valve exercise program added as a Sanitary Survey item we are under pressure to develop and implement a program. While development is something of an issue, I don’t know where we will find the time to implement (see additional discussion, below).

With the system continuing to age it simply takes increasing amounts of labor to stay ahead of maintenance and repair.

The point of this discussion is to draw attention to the need to be seriously thinking about additional field staff.

Another concern is our lack of depth in the office. Often, if Charli is ill or on vacation I can keep the office open and perform both Charli’s duties and my own. However, there are times when that simply cannot be done, either because my duties take me out of the office during office hours, or I am working on projects that require my undivided attention. Currently, at those times, we have no option but to close the office. While most of our customers seem to be understanding, as water rates continue to increase I expect many of those we serve will be expecting a higher level of service.

Our four most visible indicators of a positive customer service attitude are system reliability, the accuracy of our billing, the condition of the fire hydrants, and the service from the office.

I am working on the six year budget. I have always done so, but was never confident enough in my numbers to consider it a useful tool. With the implementation of the Bias software the budgeting process is both easier and more accurate. I will want to be working additional field into our six year plan. As noted above, I am proposing a laborer/meter reader for 2019.

Specific Summer Projects:

  • Strip and recoat North Bank Reservoir roof
  • Paint pumphouse plumbing
  • Paint pumphouse steps
  • Install Well #6 flush valve
  • Determine status of Devonshire Road transmission line
  • Install sampling station at Reynaan Reservoir DONE
  • Locate buried fire hydrant and water main isolation valves ONGOING
  • Paint and/or repaint fire hydrants
  • Install number plaques on remaining fire hydrants
  • Catch up fire hydrant maintenance UNDERWAY
  • Rearrange shop site to accommodate proposed fire station retention pond
  • Fix 117 Reynvaan Drive service lateral FIXED
  • Clean up well site

The above is in addition to the routine grounds maintenance. Lots of grass to mow.

Charli’s Computer

A new computer has been built and put in to service. I was able to load it up with Windows 7, so a purchase of Windows 10 was not necessary.

Contractor Repairs

Another of our fire hydrants has been hit by a vehicle. This one on the corner of Hill and Grange.

The hydrant broke off at the lower flange and had to be replaced.

Highway 12 hydrant

I have the accident report and have requested that Scott prepare an appropriate letter.

Hill Road Water Main

I am putting this project on hold. I just don’t see where we can squeeze out the money.

Well Site Fence

Along with some of the other nagging maintenance chores, the well site fence needs some work. Some of the barbed wire has fallen and the gate needs a bit of welding. I will be contacting a fence company to work on those items.

No action in May.

Highway 12 Meters

I have done some research into this project, and will need to do some more before I am ready to solicit estimates.

Currently I have information from two companies that would fill our need. I would like to have more.

I don’t intend to take any action on this item until the Fall WASWD conference when I can get a chance to talk to multiple vendors. So this project may get pushed off to 2019.

Highway 12 Re-paving Projects

The lion’s share of the work is being done on the inside lanes. We have no valves in those lanes.

Shop Plumbing

I have contacted Elway Plumbing. They have not come out to give us an estimate yet.

Shop Organization

We will start the inventory early in the Summer work season.

Training/Certifications.

Kenny has completed the first phase of the computer class. The second phase starts up in the fall.

I have taken the WDM4 preparation class. This test is going to be a tough one.

Safety

We have a mini safety meeting every morning. This time of year we focus on hydration issues and driving safety.

The focus on safety, and safety training, has reduced our accident rate to zero for many months now. Call that years. I intend to keep it that way.

Vehicles

Service Truck: No issues.

F-150: Needed a new battery.

S-10: No issues.

Pickup Truck: No Issues

New Connections

Three new connections:

24 Lutton Lane

28 Grace Lane

34 Grace Lane

Old Shop Building Gutters & Downspouts

No action in May. I need to move this item up on the priority list.

Shop Site South Fence

On hold until we see all that the fire station fencing will entail.

Alder Glen & Etc.

No news in May. We still have a few of these to check out. Hopefully, this summer.

Carl Way/Ridgeview: Not an issue

Hemlock Park

Lois Lane Not an issue

Waverly Court Not an issue

Garden Road: Not an issue

Walthom Lane: Not an issue

Greenbriar Court

Reynvaan Court

Madow Court

Reed Lane Not an issue

Blaine Road (End) Not an issue

Larson Lane Not an issue

Fremont Drive

Silkey Court

Lake Road

Hemlock Park

Fairway Park

River Road: Replaced

Alder Glen: Will need replacement.

Fairway Terrace: Will need replacement.

Filing System

Charli and I have started to sort through the archive boxes from the shop. So far the majority of the contents have been bill stubs.

We have found some material of historical significance, but not very much.

Except for the plans, I have found no documentation on either the old booster pump, or the reservoir and new booster station for Reynvaan. Very curious.

Renters

No action in May. As a reminder regarding this item…it is my intent to have two forms. One form that is completed by the tenant at the time they apply to have the billing in their name, and a second form that will be sent to the property owner informing them that the tenant is vacating. My thinking on the second form is that it will include a forwarding address for the tenant and will require acknowledgement by the property owner before the tenant’s deposit will be sent to the forwarding address.

While our policy of requiring a deposit for tenants is a service to the property owner, the primary objective is to remove the District from tenant/owner conflict. We are not a collection agency and have not intention of becoming one.

Armory

Somewhere in the background this project is moving forward. I know that the Armory engineer and the LeMay contractor have been coordinating some activities. They will be requesting domestic service in addition to the fire flow.

WASWD Fall Conference

I have made the initial reservations for my attendance. This is shaping up to be an excellent conference.

I am adding some time off at each end. I plan to leave early for the conference and visit the NWS corporate headquarters (now located in Colfax), and proceed to Helena, Montana after the conference to visit my cousin. So I plan to be out of the office from Monday, September 17th and back in the office Tuesday, September 25th. Which may extend into Wednesday if I find I can no longer drive 12 hours straight.

LeMay Project

Revised plans have been submitted and approved by us.

This project is moving forward. We helped with that by allowing LeMay to use C-900 pipe if bedded exactly to our specifications. The HDPE simply was not available.

I have been monitoring progress and the quality of the work. The progress is slow, but the quality of the work is first rate.

Fire Station

Leonard Johnson and I met to work out some of the details of the various easements. However, we discovered we do not have enough information from the Fire District’s engineer. Leonard is working on that.

Big Ridge Lodge

The Developer Extension Agreement has been renewed.

However, it appears they may be reducing the project further, to just six connections. If that is the case, I would propose dropping the requirement for an hydraulic analysis through the Deer Park community.

I have heard nothing about this project in May.

Reynvaan Site Security

Lighting and fencing have not been ordered.

As-Built Drawings

I am leaning towards handling this in-house with some limited assistance from consultants. But I have made no final decision yet, nor have I taken any action.

Disaster Management Planning

No action on the plan outline in May.

I really need to bear down on this. We are in pretty good shape for typical emergencies, but there are still holes in our ability to respond to a real catastrophe.

One item I want to investigate is the possibility of developing an intertie with the City of Aberdeen at Lake Aberdeen. That would provide us with a source of non-potable water in the event of an extreme event (earthquake/tsunami) that might render our wells inoperable. The water would have to be filtered and boiled in order to be “potable”, but residents could use it for toilet flushing and other, non-potable, sanitary uses. Coffee filters work for filtration and the water could be boiled for drinking and cooking.

A dream project would be to install powered shutoff valves at the reservoirs and tie those valves into SCADA. Water main breaks, inevitable in a large earthquake, can quickly drain the reservoirs. It is now possible to give 40 seconds to 4 minutes of warning of an impending large quake (bet you didn’t know that. It is closely held Emergency Management information. So don’t go spreading it around) during which time some emergency actions can be taken. Water in the reservoirs would be useful as an emergency supply. There is no money at the moment to address a danger that is a high hazard but low probability.

WAWARN

Nothing of immediate interest.

Red Flag Programs

We don’t have a plan. But we have run into a problem. When payments are being received over the phone we have to be on speaker phone so we have both hands free, and we have to read back the information.

The problem occurs when another customer is at the counter. They can hear all the information they need to steal someone’s credit card information.

Currently, all we can do is ask the person on the phone to hold until we take care of the customer at the counter and get them out the door.

This issue will probably force me to work on developing a formal plan.

Point & Pay

Issue resolved

Future Very Small Projects

We have a list of very small projects that need attention:

Strip and recoat North Bank roof (Scheduled for Summer 2018)

Install Well #6 Flush Valve

Repair Well #6 Shut Off Valve

Locate Isolation Valves in “The Swamp” area (MAIN may BE DRY)

Paint Hydrant Caps/Install Number Plates (Started Summer 2015)

Landscape Shop/Garage Area (ONGOING)

Install Sampling Stations stations to replace followup sites that are currently private addresses.

Clean and organize Shop ONGOING

We tackle these kinds of projects as Summer projects.

Install Sampling Stations at North Bank and Reynvaan

Completed

Isolation Valve Exercise Program

This is another Sanitary Survey item. It has been on my to-do list since 2012. Action has been slow for two reasons:

1. It is a complex problem that is going to require considerable planning.

2. I don’t know where we are going to find the time to do the exercising once we have a program in place.

3. It is dependent on the as-built project.

Summer Help

Mick has started and has hit the ground running.

Future and/or On-Hold Programs

Web Page

Email Bills

Unfunded “Dream” Projects

Include Reynvaan Pump Station in SCADA

Probably will require new controls, which are getting due anyway

Include Hirschbeck Pump Station in SCADA

Convert SCADA Communications to Cellular, or whatever

Repave Office Parking Lot (Over Jim’s dead body) THE WORST SPOT IS PATCHED.

Replace Office Carpet

Long Distance Service Laterals

Any thoughts would be welcome.

Respectfully Submitted:

Reg Hearn

General Manager