This communication covers the following topics:

• District Staffing – Local Option Levy will go on November Ballot
• Updating Financial Policies to account for Multi-Family Houses
• Progress: One step back, a few steps forward

A. District Staffing – Local Option Tax Levy will go on November Ballot.

Since taking office a year ago, two situations have been of concern to us.  First is the operational status of the plants and equipment.  The lack of care and maintenance throughout the previous years have taken their toll creating a pretty dire situation.  In this year’s budget, we have identified a baseline set of projects and allocated monies to start the rejuvenation process.  This includes putting management and reporting mechanisms in place to ensure ongoing maintenance of the plants.  We will keep you updated monthly on the progress of these projects.

The Need

This year we are turning our attention to the staffing situation.  The current work load is being carried by one full-time employee (Matt), one part-time contracted bookkeeper (Teri), and 2 District Presidents with active hands-on support from several other Board members. Bottom line, the Districts are seriously understaffed. Our goal is to put in place the appropriate staffing levels and skills set to keep the Districts running at an acceptable and sustainable standard of operations.

There are two puzzle pieces that need to fit together.  One is how we staff the mission-critical function of plant management, operations and maintenance.  The other is how we staff the essential function of District Administration, i.e., Business and Financial Management and Forest-Watershed oversight.

The mission-critical function of plant management and operations, done correctly, is a full-time job for at least two people.  One person has to have the specialized, technical skill set to know what needs to be done and to get it done.  This requires a State mandated Level III certification, technical affinity, specific knowledge of the requirements to keep OUR plant/ equipment operating efficiently, know-how to do the hands-on work and some level of ability to manage priorities, projects and operations staff & contractors.  The second person provides the hands-on capability to help with and do the lion’s share of the routine work.  And both people respond to the unexpected 24 hours a day 365 days a years.

The essential function of district administration requires additional resources with a different skill set.    (Due to inadequate staffing, much of this work is currently being done by the two District Presidents whose terms end on June 30, 2025).   The responsibility of managing the business and administration of the Districts, to include Budgeting & Finance, Procurement/Contracting, Information Technology, Securing Grants/Loans, Legal and Community Outreach, is at  least a part-time job for a person that has relevant acumen and experience and a full-time job for someone who doesn’t.  And this role needs to be supported with bookkeeping, accounting and audit.

There is no way that a District Manager can do both the Plant-Operations Management function and the District Administrator function.  That expectation is unrealistic – there’s just too much work.  It didn’t work in the past and it won’t work in the future.  New roles/ job descriptions need to be defined.

The Direction

We are transitioning to a Plant-Operations Management position, to be filled by Matt Gardner, and an Interim District Administrator position – which will be contracted for two years starting July 1 2025.  Our intent is that the contracted Administrator will not only take on the work of District Administration but will also provide recommendations to the Board about ongoing staffing requirements and how they should be funded.

As has been done historically, the positions of Plant-Operations Management and Plant Operation will be funded through rates and fees.  Additional money will be needed to fund the contracted Interim Administrator.

The Sanitary District will be putting a Local Option Levy on the November ballot for a 2-year contracted Interim Administrator that will jointly serve the Sanitary and Water Districts.   (click here for Scope of Work for that position)  If the Levy passes, the Interim Administrator position will be paid for with taxes.  If the Levy fails, the Boards will be faced with paying for the position with rate increases, which will be more expensive for most rate payers than taxes.

We know that the Interim District Administrator will be an additional financial burden for ratepayers either in the form of taxes or  rate increases.  But the position is essential for ensuring the viability of the Districts, getting the administrative work done and allowing Matt to get the technical work done.

B. Updating Financial Policies to account for Multi-Family Houses

As you may or may not be aware, Clatsop County is proposing amendment to the Land Use Code.(click here for those amendments)  If those amendments are adopted by the County Commissioners, multi-family houses  (duplexes, triplexes, quadraplexes and cottage clusters) will be allowed to be built in Arch Cape and other rural areas.  Looking ahead, District financial policies may need to be updated.

Water and Sanitary District financial policies assume that only single-family houses will be built in the residential areas of Arch Cape.  As such, each new house being built is required to have a meter installed and the owner will be charged one System Development Charge (SDC). which helps to pay for continued investment in the plant infrastructures.

With the possibility of multi-family houses being built, the Water Board is considering updating those policies to require a separate meter along with an SDC for each dwelling unit.  That way, usage fees could be recorded and separately billing for each dwelling and each dwelling contributes their share of the infrastructure investment. 

C. Progress: One step back, a few steps forward

Like most months, progress was made addressing known issues and a new, somewhat urgent, challenge surfaced.

One Step Back

The water plant was designed with fans to vent the marine air and the chlorine gas that is used to purify the water.  Both of these elements, chlorine and marine air, are corrosive to metal components in mechanical valves, electrical circuits, etc.  As it turns out, since the new plant was brought on-line 10 years ago, the fans have never been run and as such have themselves started to corrode.  Furthermore, when a valve would begin to corrode, rather than replacing it,  the corroded value would just be swapped for another valve in the plant that is less corroded.  So, now we need to do three things; a) have the electrician wire the fans into an automated control process, b) replace all critically corroded valves and fan parts, and c) have the electrician inspect the thousands of electrical contacts to address any corrosion.

A few steps forward

In addition to standard operations tasks and addressing unexpected challenges that present themselves, we have started to undertake the District rejuvenation projects that have been planned and budgeted.   The detail table of projects will be kept current.  <<Click here for complete list with current status>>

Here are the statuses of note.

• Project 3: The contractor has been given the okay to proceed with the replacement of the Webb Lift Station and parts are being shipped.
• Project 7:  The inspection for lead of all water service line (an EPA requirement) is now 78% complete.
• Project 8:  The State has delayed the requirement to move the Asbury Creek intake for another year – giving us some needed breathing room.