MANAGER'S REPORT
02/08/2023
Budget Position Report
Operational revenues for January were $74,680.42. Operational expenses were $66,316.20. So Operational revenues exceeded expenses by $8,364.22. In addition, there were capital expenditures of $126,934.16. So total expenditures exceeded total revenues by $118,569.94.
All of the capital expenditures relate to the Holbrook Lane/Schrader Lane water main repair.
Note that $128,537.25 was transferred from the Major Repair Fund to the General Maintenance Fund in order to present a balanced budget report.
The following Interfund transfers were made.
Out to Capital Replacement Fund: $ 6,423.00
In from Major Repair Fund: $128,537.25
Out to USDA Loan Reserve: $ 4,200.00
Unless we have an unplanned major event I expect that we can start re-building the Major Repair Reserve. My information at this point is that we can expect about $80,000 from FEMA for the Reynvaan Booster station. I don’t know when that will arrive.
See the discussion below regarding FEMA funding of the Holbrook Lane/Schrader Lane water main replacement.
I have included a complete Reconciled Budget Report for all funds including beginning and ending balances in your packets for you information.
Treasurer’s Report:
The good news is that I found the $18.77 imbalance. However, it will take a considerable amount of time to fix it as I will have to re-reconcile the EFT Clearing account and the General Maintenance account from May to the end of the year. I found the problem on Thursday (02/02) so did not have time to run that exercise.
Fund Balances:
Regular Maintenance Fund: $ 13,203.37
Capital Replacement Fund: $152,169.29
Major Repair Reserve: $294,492.89
General Facilities Fund: $157,961.82
Total Funds Available: $617,827.37
This is a considerable step back from the beginning of last year. The Major Repair Reserve is in dangerous territory, as is the Regular Maintenance Fund. By deferring any major expenses, and assuming no major unexpected events, we should be in much better condition by the end of this year.
It is going to be an anxious year as we do not have sufficient reserves to deal with a major breakdown.
We will need to be careful when we write the check to transfer January’s cash revenue to the Regular Maintenance Fund to ensure there is enough cash in the clearing account to cover the check. Cash receipts for January were $99,172.08. As of 01/31/23 the balance in the clearing account is $85,256.47. Actual billing for February was $86,027.75. So we should have sufficient deposits by the time the check is sent to the county to cover the check. I will keep an eye on it.
Monthly Utility Totals Report.
The actual February billing (Section 2) was $86,027.75. I know that the report says $105,288.75. However, two bills had crazy usage recorded (totaling $19,261.00) that was not accurate. We caught the problem after the data was sent to the printer but before those bills went out. So the crazy amount are included in the report. We will be sending those customers corrected bills.
Claims Request
The Claims Request is finally back into reasonable territory. After a couple of months of six figure requests, it is nice to see $16,192.28.
Water Bill Appeal
None pending
Receipt Register
Receipts for January were $99,172.08.
IT Issues
The new SCADA server is up and running well. Now it is time to get the administration computers properly configured and protected.
Chlorine (OSG)
No progress
Capital Asset Management
Nothing to report for January
Request for Public Information
Our process needs updating. I will be looking at this after dealing with the Risk & Resilience Certification.
No action in January.
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
As you know the county is transferring the responsibility for processing payroll to the district effective 01/01/24. I have been working on bringing our processes up to speed and am well along in the process.
There are just a couple of tweaks that need to be done. They should be in hand by the next cycle. Giving us several months to make sure all is working well.
Isolation Valves
No action in January
Production Data
I have conducted an analysis of production focused on the major leak we had in January of 2022 and the several leaks we had in July.
I determined that we lost about 4,430,000 Cubic Feet, which is about 100 Acre Feet. Subtract that 100 Cubic Feet from the 539 that we recorded, and our withdrawal is 65% of our water right.
Active Projects
Several projects are in process, but seem to be going slowly as preliminary work is moving forward.
GHC TRANSIT
No news in January
REYNVAAN EXTENSION
Deferred due to a lack of funds.
This is a sanitary survey item. But if we don’t have the money, we don’t have the money.
PAPE RETAIL CENTER
No news in January
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 January.
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.
This project will need to be deferred.
REYNAAN BOOSTER STATION
Construction is complete. Reimbursement from FEMA is on track.
HOLBROOK LANE/SCHRADER LANE MAIN BREAK
DOT is working on a means to stabilize the bank. They have requested (and we have delivered) to-date as-builts of the water main in hopes they can devise a plan that will not entail disturbing our new water main.
Frankly, I think there has already been some movement of our water main. But we can’t access the site to find out. Which is a bit of a moot point. It either has moved and we will need to deal with it, or it has not.
Obviously, reimbursement from FEMA is on hold until the project is complete.
AS-BUILTS UPDATE
No action in January. This project just keeps getting orphaned.
ASHLEY & KAYLA
Deferred. Leaks will be repaired as found.
PUMP HOUSE FLOOR
I have researched materials. There are several options, the most promising being open grid fiberglass. My next step is to identify vendors and get some idea of installed costs.
Depending on installed cost, this project may have to be deferred.
Hydrant Maintenance
No action in January.
Leak Repairs
A couple of service lateral leaks occurred. They were repaired in-house.
Rate Study
No effort expended in January.
New Regulations
I have acquired a weather station. Now we just need to find the time to install it.
Personnel
Scott Pena has been working out very well. We have word that Mick will be back sometime shortly after 02/23/23. Ken would like to take some vacation after Mick is back, so we may keep Scott on for awhile longer.
Maintenance Activity:
I have developed some other approaches to getting small jobs done. Primarily by re-defining the jobs.
The first example is the platform at the power entrance to the pump house. I have contacted Miller’s Smith & Losli for a bid to build a platform. Probably aluminum. Maybe galvanized.
Contractor Repairs/Assistance
No contractor assistance in January. I have extended the indefinite delivery contract with Brumfield for one year. That was a provision in the contract.
Shop Organization
Kenny and Scott are working wonders in the shop. We are finally getting an inventory of the parts we want to keep and what needs to be scrapped.
Unfortunately, any parts that contain brass and were manufactured before 2018 must be scrapped. They contain too high a lead content to use in drinking water. Likewise, parts that have previously been in the ground have to be scrapped, as well as parts that show significant corrosion.
Training/Certifications
Nothing new this month.
Safety
We have a mini safety meeting every morning.
Vehicles
I have finally established a workable vehicle numbering system. There has been some confusion.
Vehicle #1: 2015 HD2500 Service Truck
Vehicle #2: 2015 ½ Ton Pickup Truck
Vehicle #3: 2019 ½ Ton Pickup Truck
Vehicle #4: HD3500 Service Truck
I am going to get some stick-on numbers for each vehicle.
The tractor and the trailers do not require numbers...yet.
No vehicle issues in January.
Web Site
The January 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 January.
New Connections
A duplex on Fremont Drive.
Disaster Management Planning
No action in January. I need to bear down on this. EPA will be asking for the certification soon.
Long Distance Service Laterals
We have one with a leak, but it looks like all the neighbors will work together.
Respectfully Submitted:
Reg Hearn
General Manager