Loading...
HomeMy WebLinkAbout05-25-2022MINUTES OF A REGULAR MEETING OF THE COMMISSIONERS OF WATERWORKS A meeting of the members of the Commissioners of Waterworks was held May 25, 2022, in the Paducah Bank Community Room at the Chamber Center, 300 S. 31d Street, Paducah. Mr. Barker called the meeting to order at 5:00 p.m. A quorum was present. Those present were as follows: Commissioners Present— Ed Barker, Chair; Tom Clayton, Vice Chair; Randy DeHart; Bill Shannon; David Guess, Ex Officio; Commissioners Absent— Chip Bohle, Angela Copeland; Counsel Present — W. David Denton of Denton Law Firm; Paducah Water Personnel Present — Jason Petersen, Secretary/Treasurerand General Manager; Tillman Burnett, Office Manager/Controller; Jacob Northington, Engineering Manager; Scott Shrum, Distribution Superintendent; Tee -Tommy Vinson, Plant Superintendent; Clarissa White, Administrative Assistant. MINUTES Mr. Barker asked for a motion to approve the minutes of the April 27, 2022, regular meeting. Mr. Clayton made a motion to approve the minutes of the meeting as presented. Mr. Shannon seconded the motion, which carried unanimously by a vote of 5 — 0. FINANCIAL STATEMENTS Mr. Burnett reviewed the financial statements for April 2022. Water sales in April were approximately 8.0% below budget. Operating expenses also below budget by about $78,000, and operating revenue was under budget by approximately $41,000. Net Revenue Before Capital Contributions was approximately $42,000 over budget for the month, and about $184,000 over budget for the year. Mr. Burnett also stated operating expenses for the year thus far are approximately $455,000 under budget, which can be attributed in part to high employee turnover. In addition, major maintenance line items at the Treatment Plant and Distribution were lower than anticipated, which produced a cost savings. Mr. Burnett called attention to the Supplies and Expense — Chemicals line item on page 4 (Purification and Pumping). He explained the item was over budget due to very poor raw wafer quality which required more chemicals to be used for treatment. After review and discussion, a motion was made by Mr. Shannon to approve the financial statements for April 2022. The motion was seconded by Mr. DeHart. The motion carried unanimously by a vote of5-0. GENERAL MANAGER'S REPORTS Monthly Drug Testing Mr. Petersen noted all results for May were negative. Safety Report Each department held safety meetings as required. Specific safety data, meeting topics and information were presented in the April Safety Report, which was distributed prior to the meeting. General Manager's Summary Mr. Petersen discussed the GM Summary and handouts. Plant The Water Quality group continues to meet every Thursday. Raw water temperature is 68 degrees. Ohio River water quality was terrible in May. Miscellaneous • Keith Thomas filled that position of Operator at the Treatment Plant. • A Laborer in the Distribution department left PW to return to his previous employer. Efforts to fill this position are in progress. • The final filter rehab and media change -out is complete. • Phase I service line inventory work will begin on the Southside of Paducah in early to mid-June. • Several employees attended the KW WOA Conference in Owensboro May 15 — 17. • We received results from the 2022 bathymetric survey of the Ohio River intakes. Overall deposition appears to be mostly stable since 2021. Project Reports Mr. Northington informed the board of the following: • Cairo Road Elevated Tank —Phoenix Fabricators has completed the shaft. The steel crew is scheduled to arrive in mid-July. Tank fabrication is almost complete and steel pieces will be shipped to the site soon. • Cairo Road 16" Main Improvements — The crew is installing main near Coleman Road in an area that is especially muddy and difficult. However, main installation is progressing well. UNFINISHED BUSINESS Personnel Committee Report 2022-01 Personnel Committee Members Tom Clayton (Chair), Ed Barker and Chip Bohle met with Jason Petersen and Tillman Burnett on May 16. The purpose of the meeting was to discuss restructuring PW's nighttime hydrant flushing positions. Staff proposed converting a temporary full-time flushing position to a regular full-time flushing position. Staff also proposed adding a temporary seasonal (summer only) flushing position in order to maintain water quality during the summer months when doing so is most challenging. The Personnel Committee agreed with staff's recommendations. After discussion, Mr. Clayton offered a motion to convert a temporary full-time flushing position to a regular full-time flushing position, and to add a temporary seasonal (summer only) flushing position to PW's employment structure. Mr. Shannon seconded the motion, which carried unanimously by a vote of5-0. 911 Committee Funding Options Mr. Petersen informed the board that the 911 Committee is focused on the idea of adding a 911 funding fee to PW's bill. Should this happen, PW would charge the entity for this service. In addition, PW will pay close attention to how this new charge on the utility bill is presented to the public to ensure our customers that PW is not the source of this cost increase. Discussions continue and Mr. Petersen will keep the board informed. NEW BUSINESS Bid No. 22-05-03 — Chemicals for Water Treatment Mr. Vinson discussed the bids received for chemicals, stating that volatility in pricing caused PW to bid materials for six-month contracts instead of the usual one year. He also noted that costs presented have increased 30 — 35% since last year. Low bids for chemicals were received as follows: Company Chemical Quantity Unit Cost Chemtrade Aluminum Sulfate 70,000 1,000 gal $1,320.30 Corechem Sodium Chloride 175,000 Ib $0.1635 DPC Enterprises Sodium Hydroxide 10,000 1,000 gal $3,700.00 Mr. Vinson stated staff recommends acceptance of low bids as presented. Mr. DeHart made a motion to accept the low bids as presented. The motion was seconded by Mr. Clayton, and the motion carried unanimously with a vote of 5 — 0. May 4 Main Break Mr. Petersen stated the main break that occurred in West Paducah had a significant impact on the area. However staff efforts to mitigate the problem were tremendous, exhaustive and much -appreciated, as the break itself was very difficult to locate. The board and management agreed PW handled the entire situation very well and media coverage was fair and accurate. Material Availability 7, Mr. Petersen informed the board of the challenges PW and other water utilities face as they try to secure not only materials for routine use, but also those required for capital projects. Many items are unavailable, have extended lead times and/or have significantly increased in cost. Staff may have to make adjustments to the capital plan to accommodate. Budget Workshop June 17 at noon has been proposed for the Annual Budget Workshop, with June 24 as an alternate date. Ms. White will poll board members to determine which date is best. ADJOURNMENT There being no further business, the meeting was adjourned at 6:30 p.m. This meeting was held in compliance with KRS 61.800 et se Secret y Approved at a meeting of the Commissioners of Waterworks heldothe .2314L y of •� , 2022. IA Chair Okk, �— Vice Chair Commissioner Commissioner W � –�4may„ A-1,, Commissioner Commissioner Commissioner