MANAGER'S REPORT
09/13/2023
Budget Position Report
Operational revenues for August were $115,908.22. Operational expenses were $73,532.36. So operational revenues exceeded operational expenses by $42,375.86. Capital expenditures in August were $16,472.40 for pump house flooring material. So cash in the door exceeded total cash out the door by $25,903.46.
We contributed $42,771.50 to reserves:
Out to Capital Replacement Fund: $ 6,711.00
Out to Major Repair Fund: $ 31,860.50
Out to USDA Loan Reserve: $ 4,200.00
In addition, the first check from FEMA has arrived from the Washington Military Department. This check, $99,706.04, covers the Reyvnaan Booster Station and will be posted to the Major Repair Reserve.
Operational expenses are ahead of the budget. Budget-wise we have used 65% of that line with 67% of the year behind us. We have collected 67% of our projected revenues.
I have included both a report for just the 401 General Maintenance Fund sans beginning balances, and a complete budget report, including beginning balances, for all of the funds.
Treasurer’s Report:
Fund Balances:
Regular Maintenance Fund: $ 13,671.64
Capital Replacement Fund: $179,109.45
Major Repair Reserve: $496,007.28
General Facilities Fund: $160,883.85
Total Funds Available: $849,672.22
Monthly Utility Totals Report.
September billing (Section 1) is $133,324.82.
Claims Request
$47,635.76
Water Bill Appeal
I have information that a customer will be coming in to appeal their bill. I have no details.
Receipt Register
Receipts for August were $97,863.35.
After discussing this issue with Scott, we will deposit the utility receipts and leave what is left of the FEMA reimbursement in place for the moment.
I am not exactly sure how this all works out. In theory, we should have $0.00 in the clearing account at the beginning of the month and the total receipts at the end of the month. Because of timing realities, it doesn’t work that way. Past history is that the balance in the account has run ahead of the current receipts. That is working in reverse at the moment.
We now have several income streams including cash and checks, credit card receipts in the office and over the phone, credit card receipts through Xpress Bill Pay, and eChecks through Xpress Bill Pay. To keep things from getting dull, credit card receipts go to Xpress Bill Pay, and then to a processing company that clears the payments and aggregates the deposits to the district’s clearing account.
The clearing account being behind the actual receipts has caused me some concern. I can’t do it every month, but this month I ticked and tied every transaction to make sure all the money that is supposed to land in the clearing account is actually being deposited. It is. The limitation is that some transaction hang over from the previous month, while others that technically occurred in the current month will not hit the bank until the following month.
It is a timing issue. I am not sure how we get ahead of the curve on this.
IT Issues
Migration to Office 365 was delayed due to the flooring replacement. I don’t have a re-schedule date yet.
Capital Asset Management
Nothing in August.
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
In your packets.
Payroll Responsibility Transfer
Implementation of the Springbrook payroll module has commenced. It is going well so far. The setup consultant is extremely helpful in making sure everything is set up properly.
We were able to compare our April input into the program with the county payroll reports. There are quite a few differences, some just a matter of pennies, others rather significant.
In comparing our results to the county’s, I am more confident in our process than the county’s. I keep finding little discrepancies in the county’s payroll process.
My next big concern is that the county has been handling the reports to Public Employees Benefits Board. I don’t know whether they will continue to do that, but I doubt it.
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. See below.
Cross Connection Control
Kenny has noticed that there are several service connections with possible CCC issues for which we have no record of backflow prevention devices having been installed or tested.
Kenny and Dali have teamed up to catch up the records and contact those services for which we have no records. There are quite a few. Initial letters with CCC surveys have gone out. Second letters are being sent to non-responders.
In this process we have discovered some service connections that are not appropriately billed. Primarily multi-family services. We are working to establish how many units are working off how many meters and what the charges should be. Notices will need to be sent to property owners prior to adjusting billing amounts.
We also discovered that not all property transfers were provided the service contract and a copy of the conditions of service. It is difficult to tell who signed contracts and who did not.
A part of this problem has been exacerbated by the fact that some properties have been rented out, with no notice to the district, while others have been sold with no notice to the district.
In extreme cases, some properties, which are tenant occupied without district notice, have been sold without district notification. The accounts are still in a previous owner’s name.
We have decided the best approach is to send notices, that include copies of the contract, to everyone that the contracts are required and need to be signed and returned to the district.
Production Data
The Production Summary is in your packets. Note that the Daily Average, compared to last year, is still down despite high temperatures in July and August.
For the month of August almost every day was lower than the same day last year.
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. I have included a copy of the six-year plan for the purposes of the WSP in your packets. This differs slightly from the district’s “official” six year budget, because we don’t really budget six years in advance.
GHC TRANSIT
No news in August. 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 August.
This project, and the GHC project, has some challenges. When LeMay built Phase I of their project they begged and pleaded to put the booster station on the northwest corner of the project.
The district’s original requirement was to place the booster station at the reservoirs. However, given the cost and difficulty of getting power to the reservoir site, the district acquiesced to the request to place the booster station at it’s current location.
LeMay is commencing work on Phase II of their project, which is to the west of the booster station. The district has informed Pape and GHT that a water main extension will be required from downstream of the booster station west to serve their properties. With the new LeMay project I have suggested to the LeMay design team that they coordinate with Pape and GHT in order to avoid duplication of effort.
In hindsight the district should have stuck to requiring the booster station at the reservoir site. I made the call.
No word in August.
SHOP FENCE
I have not yet contacted Frank Scherer, Deputy Fire Chief, for an introduction to the new fire chief.
No action in August.
ACCESS ROADS
Both the North Bank and the Clemons access road projects have been deferred.
REYNVAAN BOOSTER STATION
Construction and all paper work has been completed. The reimbursement from FEMA has arrived. We have the final project approval from the Department of Health.
HOLBROOK LANE/SCHRADER LANE MAIN BREAK
This project is complete. There is one more step in the process with FEMA. Estimates and submittals for management costs have not been completed or submitted. That will have a positive impact on the final reimbursement.
I am working with FEMA on that issue.
AS-BUILTS UPDATE
This project has to be moved to the head of the line. We have deferred this project for the past 11 years and the poor quality of our data has caused us problems on a regular basis.
I will be discussing with Northwest Water Systems, Inc, as they have indicated the most reasonable cost, in the days ahead.
ASHLEY & KAYLA
Deferred. Leaks will be repaired as found.
PUMP HOUSE FLOOR
This project is very close to being completed. A few more panels need to be fitted and the flushing provision for Well #6 (which has been deferred for several years) is almost ready to install.
I am very pleased with the result.
OFFICE FLOORING
This project is complete. While I am more than pleased with the result, the process did not go as smoothly as I had hoped.
POWER PANEL PLATFORM
The contract for this project has been signed around. I expect a schedule soon.
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.
Hydrant Maintenance
Some action in August. A lot of hydrants are getting tested and painted.
Leak Repairs
Kenny was on vacation or in training for much of August and work orders are a bit scarce. There were several small leaks addressed and one large leak (the City of Aberdeen service lateral) on Aberdeen Lake Road.
Rate Study
A fairly detailed effort has been made to update the six-year budget. Making projections is rather difficult at the moment.
New Regulations
None in August.
Personnel
Nothing new.
Maintenance Activity:
See enclosed report.
Contractor Repairs/Assistance
Aberdeen Lake Road and catching up paving patches.
Shop Organization
This is an ongoing project. Not only because there is quite a bit to do in terms of general organization, but bits and pieces, particularly scrap parts removed as a result of repairs, tend to accumulate.
The bins for small parts is working very well, though not fully implemented with record keeping in the computer. At least small parts are in dedicated bins so we can see what we have, or don’t have, so that we don’t over-order or find we are out of a critical piece at a crucial time.
Training/Certifications
Kenny attended the ERWOW fall conference. I will be attending the WASWD fall conference later this month.
Safety
We have a mini safety meeting every morning.
Vehicles
Vehicle #1: 2015 HD2500 Service Truck: New tires. Previous issues have not yet been addressed.
Vehicle #2: 2015 ½ Ton Pickup Truck: No Issues
Vehicle #3: 2019 ½ Ton Pickup Truck: Backup alarm
Vehicle #4: 2008 HD3500 Service Truck: Lights.
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 August.
New Connections
None.
Disaster Management Planning
No action in August. I need to bear down on this. EPA will be asking for the certification soon. There will also be some work on this plan in the process of working on the Water System Plan
Long Distance Service Laterals
No new issues pending.
Respectfully Submitted:
Reg Hearn
General Manager