There are several additional reports that were used in the meeting that may be of interest.
MANAGER'S REPORT
01/11/2023
Happy New year. And we are off to a predicted difficult start.
Budget Position Report
Operational Revenues for December were $106,862.74. Operational Expenses were $61,838.40. Capital Expenses were $113,724.56. So expenditures exceeded revenues $68,700.22. The second month in a row that expenditures have exceeded revenues. That is not a sustainable trend. It is very likely that January will extend that trend. Once past January, the worst of the pain will be over. But we will have to drastically curtail capital expenditures for 2023 if we are to start rebuilding reserves.
For 2022, Operational Revenues were $1,069,787.18. Operational expenditures were $831,443.75. Capital expenditures were $224,108.15. So expenditures exceeded revenues $14,235.28. This is the first time in the last 11 years that the district’s expenditures have exceeded revenues for the year. Although, given the challenges, that is not that far from breaking even.
The Reconciled Budget Position Report shows a $68,128.14 deficit for the year, but that relates only to the 401 General Maintenance Fund. It includes transfers from the 401 Fund to other funds, not necessarily cash out the door.
We had major capital expenditures this year that are the main cause of the problem. Those expenditures are: Engineering and permitting costs for the Holbrook/Schrader Lane main break (contractor costs will appear in January); the North Bank Reservoir roof re-coat; and the Reynvaan Booster Station replacement. The first week in January has been a bit hectic. I will have exact numbers for these project at the February meeting. Or, I may have them available by the time of the January meeting.
There were some operational expenses that exceeded expectations, as well. Parts & Supplies exceeded the budget by almost 20%, primarily due to significantly increased cost of parts. Software and IT support were well above expectations; contributing factors were our efforts to increase security (far from complete) and unexpected difficulties in upgrading the SCADA servers. A 43% increase in general liability insurance. And a considerable increase in contractor assisted repairs: aging infrastructure is catching up to us at an ever increasing rate.
A total of $44,852.60 was transferred to reserves for December:
Capital Replacement Fund: $ 5,320.00
Major Repair Fund: $35,332.60
USDA Loan Reserve: $ 4,200.00
Despite having transferred money from the Major Repair Fund into the General Maintenance Fund, money was transferred back into the Major Repair Fund. Two things were accomplished: excess funds were returned to the Major Repair Fund; and the report shows a balanced budget for the month.
For the year, a total of $361,257.55 was transferred to reserves. However, a total of $240,359.01 was transferred from reserves to the General Maintenance Fund. Meaning we contributed $120,898.54 more to reserves than we used. That is quite positive given that actual money out the door exceeded money in the door by almost $15,000.
It has been a tough year. Almost all line items were over budget. I am confident (afraid?) that aging infrastructure and inflation are going to make 2023 a tough year, as well. We are going to have to continue to keep a close eye on expenses. I don’t expect that we will be able to pursue any significant capital expenditures in 2023. Which means more repair and upgrade projects will have to be deferred yet again.
One project we do need to start is the Water System Plan. The update is due in February 2024. The process takes a year. I am expecting the cost to be around $50,000. We will use the same engineer we used for the previous plan and there will be very few changes, so I have hopes that we can carve down on that number.
Treasurer’s Report:
Fund Balances: 12/31/22 01/01/22
Regular Maintenance Fund: $ 13,203.37 $ 81,331.51
Capital Replacement Fund: $145,746.29 $119,274.25
Major Repair Reserve: $423,030.14 $420,998.69
General Facilities Fund: $157,633.98 $156,406.45
Total Funds Available: $739,613.78 $778,010.90 -$38,397.12
The deficit appears greater here than the discussion in the budget report section because the balance in the USDA Payment Reserve, which came out of the Regular Maintenance Fund, is not reflected here because, though that money is not yet technically “out the door”, it is not available for district operations.
Monthly Utility Totals Report.
The December billing (Section 2) was $82,834.75. A total of 537 invoices were issued, 60 had past due balances with 37 over 30 days, 17 over 60 days and 6 over 90 days for a total of $26,413.14. That total dollar amount is a bit skewed because we have a couple of big past due accounts that are shut off and liened and are not being regularly billed.
Claims Request
The Claims Request is, again, way higher than is typical. The big culprit this month is the progress billing (90% complete) on the Holbrook/Scharder Lane water main replacement. There were some additional side projects related to this main project, including the replacement of the Schrader Lane isolation valve, and disconnecting the new main on the Holbrook Lane side (see “Projects” discussion).
The Claims Request looks a lot better if the progress billing from Rognlin’s for the Holbrook/Schrader Lane project (see “Projects” for further discussion) is taken out. Regular operational expenses then total $37,003.62.
Water Bill Appeal
None pending
Receipt Register
Receipts for December were $107,925.95.
IT Issues
There is still some fine tuning of the SCADA server. I expect that will be completed by the time you read this.
Chlorine (OSG)
No progress
Capital Asset Management
Nothing to report for December
Request for Public Information
Our process needs updating. I will be looking at this after dealing with the Risk & Resilience Certification.
No action in December.
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.
There was a lot of overtime in November. We have been working on cutting down the overtime, but situations develop evenings and weekends that have to be addressed. As a heads up, December will be high, as well. We had challenges over the Christmas weekend that required attention every day of the weekend, including Christmas Day.
We are going to need seasonal/temp help over the next month. I have a couple of leads.
Isolation Valves
No action in December
Production Data
The Production Summary Report is in your packets. For 2022 we pumped 80% of our water right. That may or may not be a cause for concern.
I have not yet conducted a study on known leakage. I do know there are two very major events. There was, of course, the Holbrook/Schrader Lane water main break. That break blew 1,700+ gpm for about 65 hours. That is a huge quantity of water. In addition, we had a lot of leaks in July, a couple of which were fairly major. I will be investigating all that in the next few weeks.
If we are in the 80% range of actual usage we will need to work on additional water rights. We can fold that into the work on the Water System Plan.
Active Projects
Several projects are in process, but seem to be going slowly as preliminary work is moving forward.
GHC TRANSIT
No news in December
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 December
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 December.
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
On 12/28/22 as the contractor was preparing to finish the project (we were within hours), it was discovered that the hill side is still moving. Major cracks in the soils and slumping near the edge of the highway were observed.
I immediately shut the project down. The connection of the new main had been made at the Holbrook Lane end. All that remained was to make the connection at the Schrader Lane end.
With concerns about the movement of the bank taking our new water main with it, I ordered the connection at the Holbrook Lane end disconnected so as not to cause damage to existing water facilities.
This project is on hold until the Department of Transportation stabilizes that hill side. We can expect a delay of several months, if not longer, before we can complete this project.
Obviously, reimbursement from FEMA is on hold until the project is complete.
I have included an after action report in your packets.
AS-BUILTS UPDATE
No action in December. I hope to get together with Sean Vance, GM of the Valley Water District, soon who can help me figure out the GPS receiver.
SCADA COMPUTER UPGRADE
Except for one small bug, this project is complete.
PARTS SHED
Complete
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 December.
Leak Repairs
None in December. That may be a first.
Rate Study
No effort expended in December.
New Regulations
I have acquired a weather station. Now we just need to find the time to install it.
Personnel
Discussion in executive session.
Maintenance Activity:
I have a new contact provided by Tom for small jobs. I haven’t followed up yet.
I am trying out the Closed Work Oder Graph rather than the list. My thinking it would be more useful than the detailed lists. Note that this reports the number of work orders, not the hours spent.
Contractor Repairs/Assistance
Brumfield assisted in asphalt repairs outstanding from previous leak repairs.
Shop Organization
With the workload we are under, I don’t expect much action in the next few months.
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: No issues
Pickup Truck 2: No Issues
Backhoe: No issues.
Service Truck #2: Needs lights and a trailer hitch, still. To many other priorities.
Web Site
The December 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 December.
New Connections
One at the lower end of Central Park Drive
Disaster Management Planning
No action in December. I need to bear down on this. EPA will be asking for the certification soon.
Long Distance Service Laterals
They are still out there.
Respectfully Submitted:
Reg Hearn
General Manager
SUMMARY OF PROJECT COSTS
AS OF 01/10/23
Holbrook/Schrader Lane Main Break:
90% Complete. On Hold. Awaiting DOT bank stabilization.
Berglund Schmidt $ 27,858.65
Landau & Associates $ 14,800.00
Rognlin’s, Inc. $121,342.91
Department of Transportation $ 150.00
Total: $221,610.21
Reynvaan Booster Station:
100% Complete
Jerome Morrisettte & Assoc. $ 10,742.28
American Pump & Electric $ 82,648.89
Peak Propane $ 6,632.30
Total: $100,023.47
North Bank Recoat:
100% Complete
Jerome Morrisette & Assoc. $ 500.40
Rognlin’s, Inc. $101,568.58
Total: $102,068.98
SCADA Server Replacement:
100% Complete
SeattleTechs: $ 7,859.86
Service Truck:
95% Complete. Needs lights & trailer hitch
Sun Auto & RV $ 8,890.56
Empire Transmission $ 6,339.75
Total: $ 15,230.30
Total for all projects: $446,792.82
HILL SIDE MOVEMENT AT THE HOLBROOK/SCHRADER LANE SITE
AFTER ACTION REPORT
INCIDENT DATE 12/28/22
All times 12/28/22
0920: Call from Lead Field Tech reporting cracks in the soil along the edge of the highway.
0930: GM on site, noted the cracks and further evidence of slumping.
0933: Attempted to notify Brent Schiller of DOT. Informed he was on leave.
0946: Made contact with the acting area superintendent.
0955: GM contacted Rognlin’s, Inc. (contractor on the site) to notify them of the development. His crews had already made contact. GHCWD2 and Rognlin’s made the decision to shut down and move off the site.
1000: Because some lines had been isolated in preparation for the final water main connection, it was necessary to issue boil water advisories for the affected residences.
1001: GM notified Commission President, Jim Redding.
12/29/22: The site has been cleaned, the Holbrook Lane connection to the new main has been removed, all activity on the project terminated.