MANAGER'S REPORT
12/13/23
Budget Position Report
Operational revenues for November were $109,831.94. Operational expenses were $130,472.92. So operational expenses exceeded operational revenues by $20,640.98. We had a couple of big hits in November:
Software Support $21,888.73
Liability Insurance $30,020.00
These are both annual expenses for 2024 and should be considered to be amortized over the year. Which we cannot do using cash basis accounting.
Given how consequential these line items have gotten, I believe I will add them to the Asset Management program.
B&O Taxes were double because the payment for October ended up being recorded in November. The Contractor assistance represents several projects.
We contributed $10,911.00 to reserves:
Out to Capital Replacement Fund: $ 6,711.00
Out to Major Repair Fund: $ 0.00
Out to USDA Loan Reserve: $ 4,200.00
In order to ensure ongoing financial viability, we need to keep up with the contributions to Capital Replacement.
We have used 105% of our operating and capital expenditures budget and collected 106% of our projected revenues.
Treasurer’s Report:
Current EOY 2022
Fund Balances:
Regular Maintenance Fund: $ -17,985.75 $ 13,671.64
Capital Replacement Fund: $199,242.45 $152,169.29
Major Repair Reserve: $650,929.23 $294,492.89
General Facilities Fund: $162,165.92 $157,961.82
Total Funds Available: $994,351.85 $452,454.71
The Regular Maintenance Fund shows a negative balance because expenses exceeded revenues for November. I could have balanced that out by transferring money from reserve funds to the Regular Maintenance Fund. But I am anticipating revenues exceeding expenses in December. We have sufficient money to operate the district for the month of December. In our account at the County Treasurer, the Regular Maintenance Fund, the Capital Replacement Fund, and the Major Repair Reserve Fund are all, according to the County, in the General Maintenance Fund. We split the other funds out for our own records.
Monthly Utility Totals Report.
December billing (Section 2) is $88,741.83.
Claims Request
See enclosed Claims Request Form. It is a bit high again this month. The main culprit was an $8,557 bill from Brumfield.
The well site had gotten quite messy with a lot of clean spoils going to that site in the past couple of years. I engaged Brumfield to level out the site. It cost a bit more than I anticipated, but the site now looks presentable and we can mow without risking personal injury.
Water Bill Appeal
None of which I am aware.
Receipt Register
Receipts for November, per the Receipt Register, were $112,515.05. That figure includes receipts that are refundable deposits, which do not belong to the district.
The transfer check to the County has to be handled somewhat differently since some claims, even now, are coming out of the checking account.
The check to the County Treasurer is derived from the cash receipts (according to the bank statement), minus any claims payments, which includes fees to Xpress Bill Pay and payment of the B&O taxes. Starting in January, payroll expenses will be deducted from the check to the County Treasurer, as well.
See comments in the section about the payroll responsibility transfer.
IT Issues
I am going to have to seek some professional help for the web site.
Capital Asset Management
Nothing in November.
Request for Public Information
Our process needs updating. I will be looking at this after dealing with the Risk & Resilience Certification.
No action in November.
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
Because payments to employees and to the various taxing agencies need to come out of our checking account, that account changes from a strictly clearing account to an active checking account for the purposes of payroll.
I will need a resolution making me a signer on that account so I can authorize the ACH and EFT transfers.
The County will process the December payroll. I have always thought that payday was on the 1st of the month. It is not. It is on the 31st of the month. So we won’t be processing payroll until the end of January. That is a relief to me. Most things are nailed down, but a few things, notably reports to the Department of Retirement Services, need finalizing.
Scott will have a proposed resolution at the meeting.
Isolation Valves
A major break on Aberdeen Lake Road underscored the need to put organization of the district’s as-built information at top priority.
The proposed contract from NWS, Inc. is in your packets. See comments in the projects section.
Cross Connection Control
A great deal of progress has been made in updating our records and working with customers to get everyone into compliance.
Production Data
The Production Summary is in your packets. Note that the Daily Average, compared to last year, is still down despite high temperatures this Summer.
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
This is moving forward.
GHC TRANSIT
No news in November. 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 November.
SHOP FENCE
I have not yet contacted Frank Scherer, Deputy Fire Chief, for an introduction to the new fire chief.
No action in November.
ACCESS ROADS
Both the North Bank and the Clemons access road projects have been deferred.
HOLBROOK LANE/SCHRADER LANE MAIN BREAK
Rumor has it that the last bit of paperwork to FEMA has been submitted. I have not seen a release of funds yet.
Then we have to get through the Washington State Military Department process.
AS-BUILTS UPDATE
This project has to be moved to the head of the line. There is a copy of the proposed contract from NWS, Inc. in your packets.
I will need a vote on that proposal.
ASHLEY & KAYLA
Deferred. Leaks will be repaired as found.
POWER PANEL PLATFORM
The new platform is almost complete. See the photos.
I say “almost” because if you examine the photos closely you will see that someone did not read the shop drawings as carefully as they should have. One of the bottom beams is slightly too long and the other just a bit short. Drilling new bolt holes will provide a sufficient fix.
Rognlin’s hasn’t talked to me about this one. I think they are hoping to get it fixed before I notice.
I am confident that the fix, which can be as simple as drilling new bolt holes, will be in place by the time you read this.
GENERATOR TRANSFER SWITCH
I have requested a proposal from Richie at MB Electric. No response in November.
ON-SITE CHLORINE GENERATION
In the last couple of months the cost of chlorine has jumped from $7.10/gallon to $10.40/gallon, a 45% increase.
It may be time to take a serious look at this project.
LEAD SERVICE LINE INVENTORY
I think I will tackle this project myself.
DOLLAR GENERAL
This project is moving along quite rapidly. Except they haven’t finalized the water connection yet. The location for the connection seems to be pretty well defined. But they haven’t paid any fees yet.
Hydrant Maintenance
Some action in November. A lot of hydrants are getting tested and painted.
Leak Repairs
See the “Contractor Assistance” paragraph and the Closed Work Order Report.
Rate Study
Up to date for the moment, though expenses are a moving target thanks to inflation.
New Regulations
Nothing new
Newsletter
It is on the streets. I haven’t received any feedback yet.
Personnel
Announcement
Maintenance Activity:
See enclosed report.
Contractor Repairs/Assistance
Hill Road Main Break
Bryrwood Service Lateral Repair
Leveling the well site
Shop Organization
The crew did a good deal of work into the shop lately and it looks very good.
Training/Certifications
Nothing new. I need to bear down on my CEU’s.
Safety
We have a mini safety meeting every morning.
Vehicles
Vehicle #1: 2015 HD2500 Service Truck. The service body for this truck needs serious attention. I am investigating the possibility of having it repaired, but I don’t hold out much hope. There is a lot of corrosion. It may well need replacement. There is a problem with the driver side door. Wire-Works is taking a look at that problem. I should know more by the time of the meeting.
Vehicle #2: 2015 ½ Ton Pickup Truck: No Issues
Vehicle #3: 2019 ½ Ton Pickup Truck: Needs a backup alarm. Will go to Wire-Works.
Vehicle #4: 2008 HD3500 Service Truck: No Issues
Web Site
As noted above, the web site will require some professional assistance.
The site started out as another means of communicating with the community. Now, due to changes by the various agencies, it is a necessity. There are reports that we are required to post to our web site.
New Connections
4400 Aberdeen Lake Road
14 Putter Lane
Disaster Management Planning
Some new developments have increased the attractiveness of the electronic door locks. Not so much for disaster planning, but for day-to-day security.
Some items that had been stored in the shop have come up missing. Most of these items are things we only look at on rare occasions. As an example, our emergency response kit, which contains a number of items useful in the event of some form of disaster, has turned up missing. We only look at that kit once a year.
Key control is an ongoing project. We have routinely issued keys to our seasonal help, and they have all been returned. But that doesn't mean they have not been duplicated.
Not only do the electronic locks make unauthorized access more difficult, they retain a record of which key fob accessed the lock when and for how long. This is in addition to making it almost impossible to create a duplicate.
I have a proposal in hand, but it includes doing all of the locks throughout the district. I don’t think that is necessary, as an immediate priority, but I intend to move on the office and the shop. Conversion costs are about $500 per door.
Long Distance Service Laterals
No new issues pending.
Respectfully Submitted:
Reg Hearn
General Manager