JULY 2024 MEETING MINUTES
Saturday, July 13th, 2024, 7:00 PM
Olga Community Center
1. Call to Order: 7:01 PM
a. Attendees:
i. OWUI Board Members, present:
1. Geoff Cunard, President
2. Dave Noneman, Vice President (telephonically)
3. Pat Boehm, Director of Operations
4. Paul Groeninger, Secretary
5. Guy Woods, Treasurer
b. OWUI Members, present:
i. Alexandra Gayek
ii. Peter and Joyce Schultz
iii. Mark Mayer
iv. Brian McMillen
v. Randall Burge
vi. Jess and Norene Nealy
vii. John Phillips
viii. Suzanne Myers
ix. Dan and Grace Gottlieb
c. Sue Min on behalf of Administration, present.
d. Sam Prado on behalf of Operator Eastsound Water Users Association (EWUA), absent
2. Approval of Minutes:
a. OWUI Treasurer Guy moved to approve June 2024 meeting minutes. OWUI Secretary Paul seconded. All members voted in favor. June meeting minutes were approved.
3. OWUI President’s Report:
a. Intertie Update:
i. Winter was a quiet period for intertie construction activity such as excavating, but OWUI was actively working on the intertie progress in the Spring.
ii. Challenge #1: Vault Installation
1. OWUI got the vault installed, which was a big positive development. With the vault in place, folks can work underground to put in valves and controls to get the water from Doe Bay Water Users Association (DBWUA) to OWUI.
2. Installment involved tying into DBWUA’s existing water main, which was worked on in May. Through a “hot tap” method, the subcontractor excavated the pipe and was able to install a valve.
3. Now, OWUI is very close to connecting. There are some leaks being detected, but OWUI is continuing to test for those leaks and adjust to resolve them.
iii. Challenge #2: Department of Health (DOH) Approval
1. OWUI cannot flow water through the intertie until this flow is approved by DOH. DOH is not able to approve until OWUI has an approved small water systems plan. OWUI is close to this goal. OWUI’s engineer, Barry Buchanan, has done a lot of work and will need to complete additional testing.
2. One main datapoint necessary for this process involves identifying OWUI’s largest use of water in one day and DBWUA’s as well for the year in order to assess treatment plant capacity. With this quantity for maximum daily demand, Barry Buchanan will be able to show DOH that the plant has the acceptable level of capacity to allow the flow. Barry Buchanan has received this new data, and he is waiting to hear back from DOH.
3. When DOH approves water systems plans for DBWUA and OWUI, we can proceed to turn things on.
b. Online Billing
i. In this year, OWUI transitioned to “online billing” by sending bills to Members via email. This has worked for the most part, and most Members were able to receive the OWUI bill and remit payment. Per OWUI President Geoff, OWUI will continue with this method of billing, as the Board believes it will save a lot of headache.
c. January Outage Recap
i. The outage in January 2024 was a challenging week and exposed vulnerability in OWUI’s system on the intake with at least 100 feet of above-ground pipeline. This is simply vulnerable infrastructure. But, if OWUI starting flowing through the intertie, which would run water uphill, OWUI will not be this vulnerable going forward.
ii. OWUI Operator Eastsound Water Users Association (EWUA) worked hard to get the outage resolved and did so in record time. OWUI Board is thankful for their efforts.
d. Sanitary Survey
i. OWUI had a Sanitary Survey completed, as DOH does this survey of OWUI’s treatment plant and distribution infrastructure every three years.
ii. As with previous surveys, DOH had a laundry list of items for OWUI to review or improve.
iii. One main takeaway from DOH: DOH said OWUI needs to charge its Members more.
iv. Taking care of OWUI’s infrastructure costs money. Over the past three years, OWUI Board has effected Assessments in the fees charged to the Membership, and those fees go to the infrastructure and modernizing as much as possible.
v. Overall: The Survey identified that OWUI has an old system with a long list of action items DOH would like OWUI to work on – about $1M in upgrades were suggested by DOH – but if OWUI closes its valve, this will accomplish most of what DOH is requesting.
e. Board Service Reminder
i. OWUI Board is looking for an OWUI Member to volunteer to become a OWUI Board Member. Please contact OWUI President Geoff with any interest.
4. OWUI Administrator’s Report
a. Sue presented the following on behalf of Administration:
i. Member Billing / Receivables:
1. Outstanding Member Accounts: 10 Member IDs still owe OWUI payment, amounting to roughly $27,240 outstanding billing to collect.
a. Admin to continue to monitor receipt of partial payments from Members and to follow up for collection efforts.
b. Please contact Admin to discuss payment options or receive another copy of the OWUI annual bill, if necessary.
2. 2024 Receivables to date: $219,530
3. Billing Reminder: When making payment, please identify OWUI Membership number(s) so Admin can expedite processing.
ii. Recent Admin Project involved:
1. OWUI Membership reconciliation for billing and distribution of annual mailing and ballots
iii. Future Admin Projects will involve:
1. Continued updates and maintenance of OWUI digital files
2. Improved Board access to OWUI archives and key documents
3. Live dashboard to communicate with OWUI Board about billing status updates and other Admin news
5. Treasurer/Financial Report
a. As Treasurer, Guy presented the following regarding OWUI’s finances:
i. Bank Accounts
1. Overall, OWUI currently has about $337,000 in total across its bank accounts, which is an improvement from last year:
a. OWUI’s operating budget for the remainder of 2024: Roughly $70,000
b. Completing the intertie: $60,000 to $70,000
2. OWUI has about $200,000 as true reserves. As noted in the Annual Letter, OWUI’s financial reserves are projected to reach $245,000 by the end of 2025.
3. Board will work on improving identification and communication about earmarking reserves for special projects such as tank replacement, leak repairs and pipeline replacement.
ii. New Rate and Fee Schedule
1. Base Fee:
a. OWUI Treasurer Guy explained how the Board calculated the new Base Fees, which factored in total operational costs as well as projected water purchase costs, divided across OWUI Members.
2. Assessment
a. OWUI Treasurer Guy explained that the new Assessments were intended to raise funds over three years for meter replacements, about $110,000.
iii. Financial Risk Mitigation
1. Going forward, when OWUI has to pay for the amount of water used due to the intertie, OWUI cannot afford to be leaking water. This emphasizes the importance of funding a meter solution that allows OWUI to see what is happening in the water system more than once a year and find leaks faster.
2. In addition to meters, OWUI will need to have its tank replaced. If OWUI has $300,000 in the tank fund, OWUI can use it to put a downpayment on a $1M loan for the tank replacement and move forward.
6. Operations Report
a. Meter Update
i. OWUI Director of Operations Pat presented the following:
1. DOH strongly advised to replace all the meters.
2. There are three types of meters:
a. Walk-by reading (current meter style): requires physical walk by the meter to read the meter, write down the number; labor intensive
b. Drive-by reading: you can drive within a specific distance from the meter and you can receive automatic meter reading
c. Cellular connection reading: This is problematic due to cell service coverage issues
3. OWUI also has been trying to collaborate with DBWUA for meters.
4. If OWUI does not have a large cell phone service area covered by the required cellular meter reading, then OWUI will likely go with a drive-by type of meter, which will allow OWUI to collect meter readings as frequently as once a month, which is also the type of reading DOH wants.
5. Monthly drive-by reading will also provide better data for OWUI to understand and identify system operation activity and issues.
6. OWUI Director of Operations Pat advised that the digital water usage communication device known as Flume is a great personal meter alternative/supplement for an individual homeowner, but it would not be suitable for OWUI’s operations.
7. OWUI Secretary Paul clarified that a Flume device is about $200, needs to be mounted on an individual meter, and connect to the home’s wifi.
8. OWUI President Geoff noted that OWUI will likely move forward with the drive-by type of meter.
9. After the Board receives a pending update from the cellular meter company, Badger, about the cellular coverage capacity for Olga, then the Board will look at final quantities and costs and proceed with the most economical purchase and overall meter operation.
10. Meter operation fees for new meters, such as upfront costs and monthly fees for software, will be part of the OWUI Membership Fees.
7. Member Comments/Questions
a. During President’s Report
i. Currently, OWUI runs water downhill but with the intertie system, water will run uphill – is this approved?
1. OWUI President Geoff noted that the Board will confer with OWUI Consultant Barry about this question.
ii. Has OWUI been invoiced for the winter freeze fix?
1. OWUI President Geoff noted that OWUI has not been billed.
iii. DBWUA’s plant is well taken care of and far ahead of OWUI. Key to the future is redundancy in OWUI’s water system.
1. OWUI President Geoff acknowledged that the Board hopes to “mothball” the current OWUI plant and have it standing by with a limited amount of water through its filters.
iv. Some small water systems have seasonal usage. If OWUI goes to seasonal usage, there are processes that need to be in place prior to shutdown/reactivation.
1. OWUI President Geoff expressed interest in researching this comment further.
v. Will the existing OWUI plant remain viable as a backup?
1. OWUI Director of Operations responded that the Board intends to keep a biosystem alive, which can be easily done by running water through at a minimal amount.
vi. Two years ago, OWUI made a big deal that 40-45% of the water flowing through the OWUI system may have been a leak downhill.
1. OWUI Director of Operations responded that OWUI has since addressed most of the major leaks.
vii. What happened to water that leaked away? We all pay for that water?
1. OWUI President Geoff clarified that OWUI Members currently only pay for the gallons of water that flow through their specific meter. Thanks to improved leak detection systems, OWUI has since found and resolved a good amount of leaks and overall has reduced the loss percentage. A year and a half ago, OWUI had over a million gallons produced at the OWUI plant. Now, OWUI is down to half a million gallons produced – this is an improvement made by fixing the leaks and is a continuing area of improvement.
viii. What is the “$90,000” OWUI Members will pay for water?
1. OWUI President Geoff clarified that the $90,000 is a projected “post-intertie” operating cost. After the intertie is completed and active, OWUI will be “purchasing” water from DBWUA.
b. During Admin Report
i. Will OWUI’s billing process become like OPALCO’s where you can just go online, click, and instantly see your usage or bill?
1. OWUI President Geoff responded that in a perfect world, that would be the ideal. With better tools such as modern drive-by meters, OWUI will be able to communicate better and keep better records. If OWUI Board decides to bill more than once a year, having these tools will make the process easier.
c. During Treasurer’s Report
i. Has OWUI received any requests lately for a new membership?
1. OWUI President Geoff responded that OWUI has not received such a request in a long time but new memberships are available.
ii. Has OWUI assessed the aging of its distribution plan and overall infrastructure?
1. OWUI President Geoff responded that investigating and establishing a water facilities/assets inventory for OWUI’s systems would be one of the first steps once OWUI has its water system plan approved by DOH.
iii. After OWUI’s water system plan is approved by DOH, it would be nice to let OWUI Members know what kind of funding from Washington State could be available to OWUI thanks to this major approval as well as the timeline to receive the funding to give OWUI Members peace of mind.
1. OWUI President Geoff acknowledged the comment and further noted that DOH wants OWUI to first establish that OWUI has reasonable financial stability and “money in the game.”
d. During Operations’ Report
i. When OWUI installs new meters, will there be different types of meters installed across the Membership (i.e., will some have a drive-by meter while other have a cellular type of meter?)?
1. OWUI President Geoff responded that it would be preferred if all meters were the same type.
ii. For EWUA Members, they have two types of water meters, most that are purely cellular and others that are drive-by types of water meters. Where there is a remote location for the member or bad cellular coverage, EWUA had to change the meter to a drive-by meter. The battery for such a meter may last 6-10 years.
1. OWUI Board expressed appreciation for this public comment regarding meter types
iii. Will the costs for the meter, such as battery replacement and other long term costs to maintain the meter system, be in the OWUI Membership Fee?
1. OWUI President Geoff responded that the drive-by meters may be lower in costs to operate and that the Board would assess costs and try to find the best value for Members.
e. Additional Member/Community comments or questions
i. Will the Assessment Fee continue to stay $225/year?
1. OWUI Treasurer Guy advised that at this time the Board intends to continue charging assessments as authorized under OWUI Bylaws with the intention to keep them as small as possible and for specific projects whenever possible, such as meters and raw line replacements.
2. OWUI President Geoff further noted that when OWUI is able to implement a comprehensive asset management/inventory, such as identifying specific valves or assets that need replacement, the Board may be able to further clarify why the Board is charging the Assessment.
ii. DOH’s Sanitary Survey indicated that OWUI should add more money to the reserves – any specific amounts?
1. OWUI President Geoff clarified that DOH simply told him that OWUI was not billing enough. Other water systems do bill more than OWUI, but OWUI looks better now financially than two years ago.
2. OWUI Treasurer Guy also noted that, technically, the OWUI Members are being charged more than before, which is what DOH advised.
iii. The OWUI Board’s presentations are outstanding. Great to see how much has been organized. Thank you for volunteering so much time and not asking too much of Members. You’re doing a great job.
1. OWUI President Geoff thanked the Member for the kind compliments and support.
iv. In light of Rosario’s water rights that were sold to the new owners of Rosario Resort, is OWUI in danger of losing water rights with the intertie? The Board should do everything it can to ensure OWUI Members are compensated for water rights. We should keep the water rights, but if we are forced to get rid of our water rights, OWUI Members should be compensated.
1. OWUI President Geoff noted that this was interesting and that the Board would consult with its water rights attorney, Tom Pors.
2. OWUI Director of Operations Pat also noted that if OWUI were to keep its biosystem alive, that may help OWUI maintain activity and its potable water could be used elsewhere.
v. If the OWUI plant runs seasonally, how much would OWUI’s water rights become pending?
1. OWUI Director of Operations Pat responded that this was undetermined at this time, but that there was a long ways before the plant were to start running seasonally.
vi. After the intertie is complete and some OWUI Members are inactive, would they remain inactive?
1. OWUI President Geoff responded that each Member would be served by DBWUA, active or inactive.
vii. Groundwater is increasing in the Olga area. Some Olga neighbors are not connected to OWUI and not part of the OWUI Membership. If they connect to OWUI, that will add additional revenue to OWUI. If OWUI has the capacity to expand membership, OWUI should reach out to prospective members, and this may help reduce groundwater issues.
1. OWUI President Geoff noted that OWUI has about nine (9) OWUI memberships available at this time.
viii. Good report regarding reserves status.
1. OWUI Treasurer Guy thanked the Member and noted that the Board does not wish to “sit” on the reserve money or build up an exorbitant amount as it is OWUI Member money – the Board intends to maintain reasonable reserves to cover operational costs.
ix. For Members who do not live on Orcas year round, will OWUI Board Meetings have Zoom capacity in the future?
1. OWUI President Geoff noted that he previously looked into using Selby’s conference room, which has wifi and could potentially support Zoom attendance; will look into this again.
x. Will the height of the plant provide enough pressure to Rosario?
1. OWUI President Geoff noted that this was undetermined at this time.
8. Public Access: As noted above.
9. Fee and Rate Schedule Vote:
a. 2024 Results
i. Fifty-Eight (58) Votes were received in response to OWUI Board’s proposed fee and rate schedule and conservation surcharge:
1. 57/58 in favor of the proposed 2026-2028 fee and rate schedule
2. 58/58 in favor of the proposed 2026-2028 conservation surcharge
b. With these results in favor of the OWUI Board, OWUI Board will make the proposed 2026-2028 fee and rate schedule and conservation surcharge effective accordingly.
10. Next Meeting Time: August 15, 2024, 6:00 PM
11. Adjournment 8:26 PM