MANAGER’S REPORT
02/13/2019
There are a lot of irons in the fire.
Budget Position Report
Revenues for January were $46,574.37. Expenses for January were $77,486.14. So we start the year spending $23,823.16 more than we took in. January, actually, December, was a very expensive month.
There is a large amount of software support recorded. That actually represents the lion’s share of that line item for the year. It is over budget because we did not anticipate converting to the Bias billing module when crafting the budget.
We had $23,514.76 in contractor repairs. Solki Road and the Highway 12 repair account for most of those expenditures.
We finally got the new gutters and downspouts on the Shop and we purchased the dump trailer (more on that later).
All of which was against our lowest revenue month of the year. Essentially, we are charging against the 2019 budget on the last of 2018 revenues. That ends with the next billing cycle.
I anticipate being able to meet our objectives, primarily in terms of reserves, but it is shaping up to be a busy and expensive year.
Treasurer’s Report:
This report is as it should be. Everything is accounted for and everything reconciles. In essentials, we have $534,154.13 in the Regular Maintenance Fund and the General Facilities Fund with which to operate, maintain, repair and upgrade the District.
EFT Clearing Account (This is a long explanation, but you need to know). The account will show up on next month’s Treasurer’s Report.
Reconciliation of the General Maintenance checking account became a problem when we switched to the Bias Cash Receipting module.
Prior to the switch, I logged all the day’s receipts in a spreadsheet. A report was generated from that spreadsheet that summarized the day’s receipts by Billing Section, total of checks, total of cash, and total of credit card receipts.
The report went to Charli, along with the bill stubs, the checks, and the cash. Charli prepared the bank deposit, including only checks and cash, and then entered each receipt into the customer’s account, cash, checks and credit card payments.
I recorded the deposit in the Bias General Ledger and looked up that day’s deposit from the credit card processing company (from the bank’s web site) and entered that deposit in the General Maintenance checking account. End of month reconciliations could be done in a matter of minutes.
That process changed with the implementation of the Bias Cash Receipting. I still log each day’s receipts, but it is done in the Cash Receipting module, not on a separate spreadsheet. Once the log is complete, it is reconciled to the actual receipts and closed. The closing of the log posts the receipts to each customer’s account. Charli no longer needs to do that. The deposit totals are also posted to the General Ledger and the General Maintenance checking account. That eliminates two more steps.
However, at the start of using the Cash Receipting module, the credit card receipts were being posted as deposits to the General Maintenance checking account.
The problem, that raises its ugly head at reconciliation time, is that the credit card receipts do not go directly into our checking account. The transactions are sent to the processing company, who then sends the transaction off to the individual credit card companies. The cash back to the processing company does not return to them in any order relating to the order the payments were received by the district. So the deposits to the bank from the processing company are practically impossible to directly tie to district receipts and processing company deposits.
The short version…the credit card transaction begins with the customer making the payment by card, but doesn’t end until the cash hits the bank several days later.
So the reconciliation ended up involving four moving targets…the deposit postings to the General Ledger, the deposits to the bank, the individual transactions to the processing company, and the deposits made by the processing company. Reconciliations consumed hours (even days) and actually were practically impossible.
The solution has been to create the EFT Clearing Account. This is somewhat of a “ghost” account. It exists entirely in cyberspace. There is no account at the bank, no deposit slips, and no checks. Though it has numbers in it, it doesn’t have any real cash. It is there to float the transaction between the time the customer makes the payment and the actual cash hits the bank.
When a credit card payment is logged in, instead of specifying that the receipt go to the General Maintenance checking account, it is posted in the EFT Clearing Account. That way it can be included in the log, and the receipt can be posted to the customer’s account., but the receipt is not recorded in the General Maintenance checking account.
As part of the process of preparing the daily log, I go to the bank’s web site and check for deposits made by the credit card processing company that day. If a deposit was made, I withdraw that amount from the EFT Clearing Account and record that amount as a deposit in the General Maintenance checking account.
At the end of the month I reconcile the processing company’s statement with the EFT Clearing Account, and the bank statement with the Bias General Ledger. Any balance left in the EFT Clearing Account at the end of the month must equal payments received by the processing company but not deposited in the bank prior to the end of the month, which is easily determined from the processing company’s monthly statement.
Instead of one huge, almost impossible, reconciliation, there are three interlocking reconciliations: The processing company’s receipts to their deposits; The processing company’s statement of deposits made with the bank statement; And the bank statement with the Bias records of the General Maintenance checking account.
Back to reconciliations in minutes.
Debt Service Fund:
Scott: I wonder if we can arrange with the County to include this fund in our investments? I further wonder if we can transfer any interest earned into the General Facilities Fund as repayment of the money we took out of that fund to make the early USDA payments?
Operational Issues
I have moved Operational Issues to a separate sheet. There is no need to wander through these at every meeting.
When new ones come up I will introduce them in the Manager’s Report. Once introduced they will get moved to the Operational Issues sheet.
Highway 12 Cast Iron Pipe Replacement
The engineer has the survey report, I have met with the engineer to go over the preliminary issues, and the engineering work is underway.
In the process of working on this project, we learned that WSDOT thinks it has a 60-foot right-of-way from centerline, but really only has 50 feet.
Hirschbeck Heights Booster Station
This is technically a February event, but it happened before this report was finalized.
The power outage we had on 2/5 blew out one of the pump controllers in the Hirschbeck booster station. It is being replaced as I write this 2/7. Please see comments under “Dream Projects”.
Billing System
The first cycles of the new billing system have been very stressful. As I expected. The second cycle was much less stressful than the first, but there is still a considerable learning curve.
We are still discovering new things about the Billing Module, and Bias in general. This is a very powerful application.
Water Usage
It is too early in the year to produce a meaningful report.
Reynvaan Reservoir
Repairs are awaiting dryer weather.
Maintenance Activity:
Usual daily/weekly/monthly maintenance activity. See attached report.
Contractor Repairs
No big repairs in January. The Solki Road repair ran just over $6,000. It was as big a project as the Highway 12 repair, but did not include the traffic control necessary on the highway.
As-Builts
I am recommending that we retain a vendor to bring our as-builts up to date. I have discussed JWM&A’s estimate ($15,000) with Steve Willie. There are several ways we can carve down on that.
First, we would use District staff (me) to do the lion’s share of the field work.
Second, JWM&A would use their technician for most of the in-office work, rather than an engineer.
I recommend that we go with JWM&A because of the their stability and they already have a base map of the system. Much of which needs verification rather than development from scratch.
With your blessing, I am hoping to meet with Steve Willie in the near future to outline a strategy. They just completed an as-built project for GHCWD#1, so have a solid idea of how to approach the project.
Hill Road Water Main
I am putting this project on hold. I just don’t see where we can squeeze out the money. It will remain in the report as a place holder.
Well Site Fence
I will solicit for estimates sometime soon.
Office Plumbing
The hot water heater in the office is in the process of packing it in. We have not had usable hot water in the office for some time due to objectionable odors. Now we are getting large amounts of rust. As far as I know, it has served since the office was built and shows every sign of having reached the end of it’s service life.
So I will be arranging to have it replaced. In addition, I am going to have cartridge carbon filters installed on the two sinks. It is important for the field crew to stay hydrated. Chlorinated water that has been sitting in a jug for awhile is most unpleasant. We have been relying on bottled water. That ends up costing a significant amount of money.
It is also inconsistent with my stance on tap water versus bottled water. My ongoing recommendation is that tap water is healthier than bottled water and that chlorine is easily removed with carbon filters.
In this instance the District should be putting it’s money where my mouth is.
Highway 12 Meters
Very nearly complete. The next step will be setting up the remote read process and training.
County
More “services” from Grays Harbor County. They mailed the W-2’s as usual. But they sent the District copies, which the District is to retain in case anyone needs a copy. In the past copies were available from the County. Not a big issue, but one more instance of the County divesting the management of special district finances.
Night Drop
New signs. There is some painting to be done and some trim work on the mail slot. But that can be done without inclusion in this report.
Hidden Valley Mobile Home Park
This MHP has been sold. The initial dealings with the new owner were not positive. They have improved.
The new owner is interested in metering the units individually. He is also interested in the District installing the meters.
We have done some pot holing in the park and discovered that their internal distribution system is in very poor condition. We are not interested in doing the install.
The least expensive approach for them would be to replace their internal distribution system. Which is what I will recommend to the owner. I would recommend that even if they were not considering installing meters.
Shop Organization
Ongoing, but slow at the moment due to other demands. The main issue of interest in this project is the inventory and disposal of the excess fittings that have been gathering dust for at least 10 years.
If we can get this project done and dispose of the fittings, we could move the HDPE and larger items that we use to repair/install service laterals into the shop from outside. Kenny has been lobbying for a shed to store those items, but I am pretty sure it would all fit in the space currently occupied by useless inventory.
Training/Certifications.
Kenny and Mick are both signed up for the flagger class, which happens in March.
Kenny has completed the AC pipe class. It appears that class covers all aspects of the asbestos problem. I am trying to sort out how much of the information actually applies to us.
The liability exposure for non-compliance is very large. So I really need to ensure we understand what we need to do.
Safety
We have a mini safety meeting every morning. We are covering the safety aspects of the dump trailer right now. There are several pages of warnings.
Generator
As discussed in January, for a variety of reasons, not the least of which is the changing demographics, we are bowing to the inevitable.
The discussion at the last meeting centered around the acquisition of a trailer mounted generator sufficiently sized to start Well #6 (75 HP). I think that is the best approach. My research indicates that, with VFD controllers, we need a 150KW generator.
Tom: Could you verify that?
To that end I have started the shopping process for a second hand unit. My first step was a discussion with Herc Rentals, from whom we rented generators in the past, regarding the availability of used units. They cycle units through on a three-year basis. We are on the list to be notified when they have a suitable unit available, but they typically sell the units to re-sellers. It appears that the local offices don’t have much say as to how
My target would be a brand name prime mover (Cat, Cummins, Izusu, etc.) with no more than 10,000 hours. Life expectancy of a diesel generator, depending on usage and care, is between 20,000 and 50,000 hours.
Nothing turns up on the government sites. I found no generators of any size and it seems heavy equipment is pretty well used up by a government agency before it parts with it. Which makes sense, given the differences between private sector and public sector accounting and taxation methods.
It appears that the best source is eBay. There are actually several currently available that would serve our needs. The downside is that they are not usually local. So we can’t go look at it before we buy. There is some protection through eBay’s guarantee and by looking at the reviews for the seller. There are suitable units ranging from $25,000 to $31,000. It would cost about $2,500 to get it here from just about anywhere.
An example:
Terex-Cummins 150KW on a trailer
Cummins Diesel
238 gallon fuel tank
8,894 hours
Tested under load
$24,900 + $2,350 shipping
For perspective, new 150KW trailer mounted generators run between $60,000 and $75,000.
Given the few hours we would put on a unit, I see no point in even considering new.
We could pull the trigger on a used unit any time.
Vehicles
Service Truck: No issues.
F-150: No Issues
S-10: No issues. Have not followed up on searching for a used seat.
Pickup Truck: No Issues
Dump Trailer: I was able to get a larger trailer than I anticipated. This trailer will make transporting spoils and bedding materials much easier and much less prone to injury.
It will, on some occasions, save us some money. Because we have had no suitable means to haul a significant amount of bedding material, Brumfield has always sent a dump truck and a front loader. The front loader is necessary because our small tractor can’t reach high enough to dump into a truck. All of which we pay for. For moderate sized work, which covers most of what we do, the dump trailer is sufficient. So no need for the truck, trailer and front loader.
My researches indicated that all we could afford was a 4’X6’. Bulldog Trailers had a Big Tex 5’X10’ for just about $400 over our budget. I also added the roll up cover to satisfy the requirements for secured loads. That was another $300.
New Connections
We have two Applications for Determination of Water Adequacy issued for Lutton Lane in January.
Shop Site South Fence
No progress in January.
Alder Glen & Etc.
No news in January. Work orders are still out for the dead end lines that have not been examined.
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
No action in January.
Armory
This project is complete with the exception of some paperwork. The owner needs to provide the easement assignment and the bill of sale. Our forms are being reviewed by the government’s legal team.
The as-built drawings have been delivered.
We have the meter. We are installing a remote read meter so that we don’t need to make special arrangements to gain access at the times the fence is closed.
LeMay Project
This project is nearing completion. The SCADA equipment is installed at the new booster station, but nothing has been done at our head end yet. The plan is to use a landline through Century Link.
We will see how that works out.
We discussed waiving the General Facilities Charge in view of the developer building a new booster station. I don’t believe a vote has been taken on that subject. It probably also needs a resolution.
Once up and running they will be charged for three commercial connections.
Fire Station
The Fire District is making changes to their plan, including reducing the size of the building.
Big Ridge Lodge
No actions in January.
Disaster Management Planning
No action on the plan outline in January.
Isolation Valve Exercise Program
This is another Sanitary Survey item. It has been on my to-do list since 2012.
Nothing new in January. See discussion on as-builts.
Future and/or On-Hold Programs
Email Bills
Online Bill Pay
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.
Replace Office Carpet DEFERRED
Remove carpet and paint concrete?
Pump Stations on SCADA
This is an item that needs to be moved from “dream” to figuring out how it can be done. The power outage on 2/5 blew one of the controllers on the Hirschbeck Heights booster station. We didn’t know about it until after a high demand period resulted in overdrawing the one operating pump and tripping its circuit breaker. With the attendant out of water calls.
Long Distance Service Laterals
Any thoughts would be welcome.
Respectfully Submitted:
Reg Hearn
General Manager