MANAGER'S REPORT
09/14/22
Budget Position Report
Operational revenues for August were $89,405.16 including late fees. Operational expenses were $62,068.22. So we took in $27,336.94 more than we spent. We transferred $27,336.94 to reserves.
Capital Replacement Fund: $ 5,464.53
Major Repair Reserve Fund: $17,672.41
USDA Loan Reserve Fund: $ 4,200.00
Any line item that shows 67% or less in the far right column is on or below budget. Any line item above 67%, obviously, is over budget.
We are about $55,686 below projected revenue.
I have included a complete budget report for all funds for your information. This report covers all transactions for all funds, including beginning balances. I use the report that includes only the 401 (Regular Maintenance) fund, without beginning balances, as my management tool since all revenue and expenses pass through that fund whether destined to, or from, one of the other funds.
Treasurer’s Report:
The Treasurer’s Report is still out of balance by $18.77. I will need assistance from our vendor to find this.
Fund balances as of 08/31/22:
Regular Maintenance Fund: $ 81,311.51
Capital Replacement Fund: $135,130.96
Major Repair Reserve Fund: $542,019.79
General Facilities Fund: $156,727.94
Available Funds: $915,190.20
Monthly Utility Totals Report.
The report summarizes how many services we billed in the August billing, Basic Rate billing, Usage Billing, and total billed. It also summarizes what the district is owed by Section 2 customers.
The August billing (Section 2) was $97,501.13. Within the month, in other words, on time payments, we collected $83,182.32. We can expect a few more payments to trickle in.
The September billing (Section 1) was $126,291.20.
Past Due Accounts
In Section 1 there are 153 past due accounts totaling $38,052.41.
Claims Request
This month’s claims request is a major attention-getter. This is, by a substantial margin the largest claims request that I ever submitted.
There are several reasons. Foremost is payment to American Pump for their work on the Reynvaan Booster Station. Since this is an expansion of capability, I am proposing to pull this money from the General Facilities Fund. This is one of the projects eligible for FEMA reimbursement. When that check arrives it will go back into the General Facilities Fund.
Another big one is Brumfield’s invoices against the indefinite delivery contract. We had a major rash of significant leaks in July and the invoices all landed at once. I am going to have to issue a change order to that contract, as the total expenditures have exceeded the original contract amount.
A third factor is vehicle repairs and maintenance. There are three contributors here. Somehow all of the keys for the 2015 ½ ton pickup got lost. Since new keys involve some programming of the vehicle’s computer, the truck had to be towed to Whitney’s, in addition to the new keys, of which Chevrolet is very proud. The second contributor is a new fuel pump for the white service truck. And the third involves the red service truck. Since we have no previous service records for the red truck I had B&B go through all the usual periodic service. In the process they located some items that needed repair.
As a wrap up observation, everything is costing more money.
2023 Budget
The proposed 2023 budget is in your packets. I have incorporated comments developed at the working session.
The 2022 Actual does not reflect some big expenditures that are almost certain to occur before the end of the year. The roof coating at North Bank is underway as I write this. That will be a $78,000 bill when the project is complete. We have solid hopes that the two biggest capital expenditures, the replacement of the water main through the Holbrook/Schrader canyon, and the replacement for the Reyvaan Booster Station will be reimbursed (90%) by FEMA. In the off-chance that does not occur, we will need to revisit the 2023 budget as those two projects can wipe out the bulk of our Major Repair Reserve Fund.
We do not have a firm number for the main replacement yet. It will involve about 800 feet of horizontal boring. The 1,200 feet of main replacement at the west end of the system in 2020 cost about $265,000, not including engineering. Given the overall increases in costs over the past year I expect this replacement to be in the area of $300,000. We won’t know until the bids come in.
The Reynvaan Booster Station is not yet complete. The basic cost from our contractor is just over $86,000. But there are some additional costs, engineering for DOH approval for instance, that will push the final cost in the area of $95,000.
The range of proposed rate increases does not cover the increasing costs in basic operating expenses we are experiencing in 2022 (15% increasing costs so far), but with some belt tightening I believe it is a realistic budget.
Water Bill Appeal
None pending
Receipt Register
Receipts for the month.
IT Issues
The memory for the SCADA server has arrived. At this writing I am awaiting an install date from SeattleTechs.
We have been having serial problems with SCADA lately that has contributed to this line item. The new server should alleviate a lot of periodic problems.
Chlorine
No progress
Capital Asset Management
The contribution to the Capital Asset Replacement Fund has decreased slightly. I entered the Reynvaan Booster Station into the program. I entered the entire station with an expected service life of 30 years. Which removes the old Reynvaan pumps, with their short life-expectancy, from the program.
The pumps will probably need replacing before then. But the replacement cost includes the pumphouse and all the labor associated with this replacement. So 15 years from now we will certainly have collected sufficient reserve to replace the pumps.
Request for Public Information
Our process needs updating. I will be looking at this after dealing with the Risk & Resilience Certification.
No action in August.
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
The report for August shows a drop in overtime from July. August was a much more civilized month than July.
Isolation Valves
No action in August
Production Data
The production report is in your packets. As you can see, our average production is running quite a bit ahead of previous years. One reason is the water main break at Holbrook/Schrader. A second is the flurry of leaks we had in September.
But those two factors do not fully explain the increased production. The simple truth is that the community is using more water. A brief example compares the billing for last July to the current year.
In 2021 the community consumed 96,099 cubic feet (ft3) in July. In 2022 126,423 ft3 was used. I have included the Monthly Utility Totals report for both months in your packets.
The demographics in the community have changed.
Active Projects
Project | Status | Next | Estimated | Estimated |
|
| Step | Completion | Cost |
Well #5 Source Meter | Parts Arrived | Installation | 10/31/21 | $8,904 |
Dollar General | Project Abandoned | Unconfirmed | 09/01/21 | $0 |
GHC Transit | County Pre-App Completed | Developer Extension Agreement | 12/31/25 | $0 |
Indefinite Delivery | 2022 Awarded to Brumfield | Underway | 12/31/21 | $50,000 |
On Site Chlorine Generation | Deferred | Deferred | 09/30/21 | $3,000 |
North Bank Re-Coat | Contract Awarded to Rognlins | Completion | 06/30/22 | $78,450 |
Reynvaan Extension | Deferred | Deferred | 07/30/22 | $75,000 |
Pape Retail Center | County Pre-App Completed | Developer Extension Agreement | 12/31/22 | $0 |
Shop Fence | Exploratory Stage | Discuss with Fire District | TBD | TBD |
Clemons Reservoirs Access | Deferred | Prepare Specification | 09/30/22 | TBD |
North Bank Access | Deferred | Prepare Specification | 09/30/22 | TBD |
Reynvaan Booster Station | In Construction | Completion | 03/31/22 | $86,140 |
Holbrook Main Break | Engineering | DOT Approval | 02/28/22 | $300,000
|
As-Builts Update | GPS arrived | Data Collection | 12/31/22 | TBD |
SCADA Computer Upgrade | Parts have arrived | Final Installation | 11/01/22 | $6,060 |
Several projects are in process, but seem to be going slowly as preliminary work is moving forward.
DOLLAR GENERAL
The unofficial word is that Dollar General has backed out. Nothing official yet.
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
Should be complete by the time you read this.
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 seen no action on this project yet. I have received a preliminary water plan for the site.
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 August.
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 should be completed by the time you read this, or very nearly so.
There is an excellent chance we can receive FEMA funding for this project.
HOLBROOK LANE/SCHRADER LANE MAIN BREAK
This project is in engineering. The preliminary plan has been submitted to WSDOT for their review and (we hope) approval.
DOT is requesting their permit fee ($150.00) before the will release approval. At this writing the check has been mailed off to DOT.
There is an excellent chance we can receive some FEMA funding for this project as well as the Reynvaan Booster Station upgrade. The process is byzantine in the extreme, but I am excited about getting some relief. The FEMA folks seem quite positive that the projects will be funded.
AS-BUILTS UPDATE
I am having difficulty figuring out how to use the GPS receiver.
SCADA COMPUTER UPGRADE
Completion of this project is tentatively scheduled for the week of 09/12.
Ashley & Kayla
No Action in August. A couple of leaks surfaced. We repaired them, and, yes indeed, failed nylon fittings.
Hydrant Maintenance
Getting done. Quite a few hydrants have been repainted and number plates added. Refurbishing cap paint is still in the future. Progress has been slowed by other demands on field staff time, though a good deal of catch-up is occurring in September.
Leak Repairs
August has been very quiet. A couple of small ones have surfaced.
Rate Study
The study has been updated at least for 2023. I had to do that in order to pull together some semblance of a budget proposal.
With so much instability, the study is pretty much something between gazing into a crystal ball and pin the tail on the donkey.
New Regulations
I have acquired a weather station. Now we just need to find the time to install it.
Personnel
With all the repair work going on, it has been difficult for the seasonal employee to concentrate on the usual Summer projects.
We hope that eases up. Meanwhile, it is very beneficial to have the additional help on the other chores. Kenny insisted that Phillip become a qualified flagger. That has been very useful.
Given the workload, I have extended Phillip through October.
Maintenance Activity:
I have a new contact provided by Tom for small jobs. I haven’t followed up yet.
I don’t have a closed work orders report. Kenny was on vacation or at conferences for much of August and the work order data is not up to date.
Contractor Repairs/Assistance
Very little assistance needed in August.
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: No issues.
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: We had to replace lost keys.
Pickup Truck 2: The battery was faulty. It has been replaced.
Backhoe: No issues.
Service Truck #2: Needs lights and a trailer hitch, still. To many other priorities.
The previous repairs addressed known issues. I had B&B go through the truck in detail and identify any other issues. Since we did not have service, records there was some routine maintenance that needed to be done simply because we did not know when it had last been done.
Web Site
The August 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 September.
New Connections
There are a few new connections in the works, but not ready to connect yet. Two involve multiple connections. One on Fairview Drive and another fronting on Clemons Road.
The two above are still in process. No other applications have been made.
Disaster Management Planning
No action in August. I will be making a presentation on this subject at the WASWD Fall Conference as a consequence of our experiences with the Holbrook main break.
Long Distance Service Laterals
They are still out there.
Respectfully Submitted:
Reg Hearn
General Manager