MANAGER'S REPORT
03/09/22
Budget Position Report
Revenues for February were $82,827.09. Operational expenditures were $59,816.89. So we took in $23,010.20 more than we spent.
There were no capital expenditures in February.
We transferred $24,010.20 to Reserves:
USDA Loan Reserve $ 4,200.00
Capital Replacement Reserve $ 4,771.00
Major Repair Reserve $ 15,039.20
Treasurer’s Report:
Regular Maintenance Fund: $ 81,331.51
Capital Replacement Fund: $ 59,455.18
Major Repair Reserve: $436,037.89
General Facilities Fund: $156,413.47
Total Liquid Reserves: $733,238.05
In addition, there is $112,453.55 in the clearing account to cover immediate operational expenses.
There are dedicated funds or refundable deposits:
USDA Final Payment Reserve: $59,455.18
USDA Current Payment Fund: $33,561.09
Refundable Deposits $46,265.95
Credit Card Receipts
Prior to the pandemic we had just a handful of customers who paid with a credit card. Typically averaging just one per day. Some days would see a few, other days none. Since the mandates hit that has changed dramatically.
I have included a copy of the Point&Pay statement for February in your packets. As you can see, the number of customers paying by credit card, either over the phone (the “Channel:Counter” section) or on the web site has increased by a large amount.
The Point&Pay process is difficult to work with for this amount of traffic. In addition, trying to reconcile this report with the bank statement is very nearly impossible.
Another factor is that we get quite a few inquiries/complaints about accessing account information on line. Addressing those questions has been a problem because if we set something up that has direct access to our account information, we have to set up an effective security program, which is very expensive.
There are emerging companies that can address those concerns. One such is XpressPay, from whom I have solicited a quote. They are attractive because they routinely work with Springbrook (ne Bios). There is a small cost to the district in set up ($2,500) and monthly support ($94/month). The big difference is that the transaction fee goes from 2.5% to 3.0% + $0.50 per transaction. Historically we have passed the transaction fee to the customer, which we must continue to do, as this is not a budgeted item.
I am attracted to this service. Not only does it offer customer access to their individual account information through a third party web site (we don’t have to increase security) but their process for monthly reconciliations seems to be much more straightforward. They also can process the eChecks we receive (a significant labor savings) and offer other services, such as AutoPay and payment reminders, to the customers on a per-transaction basis. We would recover the setup costs in reduced staff time in just a few months.
Another reality is that the demographics in the community have changed. There are more folks in the below 50 crowd. The ability to manage their affairs online is not a novelty, it is they way they run their lives. A reality in which the district is decidedly behind the curve.
I need to canvass the community before I make any positive moves. We get some blow back on the transaction fee. The district cannot afford to absorb that fee.
I have included a copy of their proposal.
IT Issues
We have had some problems with SCADA. The computers we use are at the end of their useful life. They are scheduled, in the Asset Management Program, to be replaced in October.
We are in talks about replacements. SeattleTechs originally proposed actual server type computers. Those are way more expensive, and capable, than I think we need. I believe I have convinced them we don’t need a huge server, but I haven’t seen the proposal yet. At issue here is security and recovery.
Other IT aspects are moving along. The main concerns are security and back ups.
Chlorine
Not an issue at the moment. But supplies are not yet as stable as they need to be.
Capital Asset Management
The SCADA computers are scheduled for replacement in October. As observed above, they need replacing now. We estimated $3,000 each to replace. It will be close to that.
My original impression was that we did not have anything scheduled for 2022, but, obviously, I did not review the program very carefully. I took another, careful, look and determined that the only scheduled replacement is the SCADA computers.
Request for Public Information
Our process needs updating. I will be looking at this after dealing with the Risk & Resilience Certification.
No action in February.
Small Parts Shed
About 1/3 of the bins are labeled. That is as far as I have gotten.
Sunset Road Water Main
No longer an issue. Though, at this writing, the new service laterals are not quite complete. It is a long run.
Payroll Report
Lots of overtime this period due to the power outages. There always seems to be something.
Pandemic
We are planning on opening the office to the public on Monday, March 14th. Office hours will be noon to 4:00PM Monday through Friday.
Isolation Valves
See comments on as-builts
Production Data
Production data is now up to date back to 2015. I have included a summary in your packets.
The daily average for 2022 is way up because we were blowing 1,700 gpm+ for almost three days.
Past Due Accounts
Collections are going well. A lot of past dues from Section 2 have been caught up. Several accounts have entered into payment agreements, and others have arranged payment through the Coastal Community Action Council. Those accounts that have not been caught up, entered a payment agreement, or arranged payment through CCAC and are more than two billing cycles past due are shut off. There are seven in that category.
We are working on Section 1 notifications now.
Projects
I have carved down the project list to only those projects were are currently working on.
Project | Status | Next | Estimated | Estimated |
|
| Step | Completion | Cost |
Small Parts Shed | Bins Installed | Label Bins | 01/31/22 | $7,000 |
Well #5 Source Meter | Awaiting Parts | Installation | 10/31/21 | $8,904 |
Dollar General | County Pre-App Completed | Meter Deposit | 09/01/21 | $0 |
Indefinite Delivery | 2022 Awarded to Brumfield | Underway | 12/31/21 | $50,000 |
North Bank Re-Coat | Solicitation Mailed | Receive Bids | 06/30/22 | TBD |
Pape Retail Center | County Pre-App Completed | Developer Extension Agreement | 12/31/22 | $0 |
Reynvaan Booster Pumphouse | In Planning | Installation | 03/31/22 | TBD |
Holbrook Main Break | Awaiting DOT | Engineering | TBD | $195,000 |
As-Builts Update | Awaiting Proposal | Engineering | 12/31/22 | TBD |
Several projects are in process, but seem to be going slowly as preliminary work is moving forward.
HOLBROOK LANE/SCHRADER LANE MAIN REPLACEMENT
The replacement of the water main between Holbrook Lane and Schrader Lane is moving forward. The next step is the geotechnical investigation and report. There is no way we can bore under that creek without a geotech report. It appears that the investigation is out about two weeks. I have included a tracking sheet for the project. So far, the only number we have is the estimate from the geotech. I have received no other bills or estimates. I expect we will see a proposed contract from Berglund/Schmidt in the near future.
NORTH BANK RECOAT
I extended the bid period. One of the bidders was requesting an equivalent product to the one specified.
REYNVAAN BOOSTER STATION
This project is moving along. We will do an as-built for the Health Department’s purposes. In view of the current operating condition, they are allowing us to handle this as an emergency project. Which it is.
American Pump is main contractor on the project. The weather, as well as supply problems, have slowed this down a bit. At this point we have agreed on a proposed pump house location, a hot tap has been installed on the downstream end so that we can do the eventual tie-in with no disruption to services. The upstream tie-in point has been identified, but we can’t hot tap that one. When the tie-in occurs there will be a couple hour lapse in service. That tie in will correspond with start up, so folks will have only one outage that will last about two hours.
AS-BUILTS
Getting this rolling has been a bit more involved than I hoped. JWM&A has turned the project down. There will be some survey aspects of the project and they referred us to Berglund/Schmidt. Mike and I are working on developing a strategy to develop the information we need for the lowest possible cost.
WELL #5 SOURCE METER
It is still on back order.
Highway 12 Meters
In the process of reverting to hand reading we discovered some problem reads, which lead to discovering some other problem reads. It started out as a big mess, but it is under control now. Some folks, even outside the highway 12 area, including Jim, will see some odd bills.
Ashley & Kayla
No Action in February
Hydrant Maintenance
See discussion on Maintenance Activity. The short version...not much due to the weather and holidays.
Rate Study
I am struggling with making the time to update the study. The uncertainty surrounding inflation going forward is contributing to the difficulty of providing a meaningful study.
New Regulations
We have been tapped for Unregulated Contaminants again by the EPA. I haven’t caught up on the details yet. If the past is an indicator, there will no cost to the district beyond the labor to take the samples.
Personnel
The biggest issue right now is finding the seasonal help. So far, only one applicant.
Maintenance Activity:
There has been some difficulty getting the reports from Liquivision on the tank cleaning. We did not have an application that could read their video files. That has been fixed.
NORTH BANK
Looks in generally good condition. Very light sedimentation.
There is an issue with the ladder that we need to address. I will be working on that. There is some cracking in the roof that we need to keep an eye on. I went back and looked at the report for 2014 and the cracking looked the same as it does in the latest report. We need to keep an eye on it. We do not need to fret over it.
REYNVAAN
No issues. Very light sedimentation.
CLEMONS
Light sedimentation. Some cracking, which is to be expected with concrete tanks.
Contractor Repairs/Assistance
Brumfield assisted with line repair on River Road
Brumfield assisted with the line break.
Shop Organization
See the discussion on the Small Parts Shed.
Training/Certifications
Ken is signed up for the annual ERWOW conference. I need to get signed up for the WASWD Spring conference.
We need flagger certifications renewed. We are having a bit of an adventure finding a class.
Safety
We have a mini safety meeting every morning.
Vehicles
Service Truck: No Issues
Pickup Truck 1: No Issues
Pickup Truck 2: No issues
Backhoe: No issues.
Web Site
The February Manager's Report is posted, along with a link to the financial statement.
New Connections
None in February.
Disaster Management Planning
No action in February.
Long Distance Service Laterals
Nothing new
Remote Work Capability
I can now access SCADA from anywhere. As long as I have my computer with me.
Respectfully Submitted:
Reg Hearn
General Manager