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Home My WebLink About07-28-2023JUL 2 7 2023 MINUTES OF A REGULAR MEETING OF THE CITY CLERIC COMMISSIONERS OF WATERWORKS - A meeting of the members of the Commissioners of Waterworks was held June 28, 2023, at the Paducah Water office, 1800 North 8th Street, Paducah. Mr. Barker called the meeting to order at 4:59 p.m. A quorum was present. Those present were as follows: Commissioners Present — Ed Barker, Chair; Angela Copeland, Bill Shannon; Buz Smith, Ex Officio; Commissioners Absent — Tom Clayton, Vice Chair; Chip Bohle, Randy DeHart; Counsel Present — W. David Denton of Denton Law Firm; Paducah Water Personnel Present — Jason Petersen, Secretary/Treasurer and 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 May 31, 2023, regular meeting. Mr. Shannon made a motion to approve the minutes of the meeting as presented. Mr. Smith seconded the motion, and carried unanimously by a vote of 4 — 0. Mr. Smith motioned to approve the minutes of the June 21, 2023, called budget workshop as presented. The motion was seconded by Ms. Copeland, and carried by a vote of 3 — 0. Mr. Shannon abstained. FINANCIAL STATEMENTS Mr. Burnett reviewed the financial statements for May 2023. Water sales were about 3% over budget in May. Operating Revenue was over budget by approximately $4,000, and Operating Expenses were over budget by about $3,000 for the month. Interest income remains over budget by approximately $35,000 due to higher than expected interest rates and because of changing to Banterra Bank. Net Revenue Before Capital Contributions was over budget for the month by approximately $42,000, and $675,000 over budget for the fiscal year. Mr. Burnett called attention to page 4, Purification & Pumping Expense. The Supplies & Expense Pumping line item exceeded budget because of registration fees for several staff members to attend the Kentucky Water & Wastewater Operators Association (KW WOA) annual conference and because an operator participated state certification testing. He stated the Water Storage Facilities Expense line item was over budget due to an annual inspection of the Krebs Station storage tank. The Labor Purification line item exceeded the budget because the plant is currently employing an extra operator and because of increased amounts of overtime. The Supplies & Expense Chemicals line item was over budget because of higher chemical costs. The Maintenance Grounds line item was over budget due to snowing and landscaping costs. On page 5, Distribution & Engineering Expense, Mr. Burnett noted the Supplies & Expense Miscellaneous line item exceeded the budget because of registration fees for several staff members to attend the Kentucky Water & Wastewater Operators Association (KWWOA) annual conference and because operators participated state certification testing. On page 6, Business Office and Other Expense, the Billing Expense line item exceeded the budget due to an increase in postage costs. After review and discussion, a motion was made by Mr. Shannon to approve the financial statements for May 2023. The motion was seconded by Mr. Smith. The motion carried unanimously by a vote of 4-0. GENERAL MANAGER'S REPORTS Monthly Drug Testing Mr. Petersen noted all results for May 2023 were negative. Safety Report Each department held safety meetings as required. Specific safety data, meeting topics and information were presented in the May Safety Reports, which were distributed prior to the meeting. There was one accident in May, which is listed on the report. General Manager's Summary Mr. Petersen discussed the GM Summary and handouts. Plant/Treatment 7 • Water temperature is 76 degrees and rising. Demand has been high due to dry weather. Water quality is good overall. Miscellaneous • A significant main break occurred on June 16 at Broadway and 28`h Street. • Two employees will retire this summer: o Greg Whitis, Distribution Operator— July 31 o Darran Rankin, Engineering Technician —August 31 Scott Smith was promoted from Distribution Operator to Assistant Engineering Technician to succeed Darran. This will allow him to receive training from Darran before he leaves. Scott's promotion created openings in the Distribution department. The department is in the process of hiring two laborers to fill those positions. • The 2023 ISO evaluation was completed with good results. • The tank mixing and ventilation projects at IC Avenue and Forest Hills are nearing completion. Project Reports I Mr. Northington informed the board of the following: • Cairo Road Elevated Tank — The tank was placed in service on June 21. Finishing touches of the site and pipe room will be completed over the next two months. The project should be finalized under budget by approximately $100,000. • Harrison Street Replacement — PW continues to install new meters. Meter installation is approximately 50% complete. The project has gone very well. • Midtown Replacement — The contractor is doing a great job on this project. New main installation has been smooth and timely thus far. • Forest Hills Reservoir— Mixing and ventilation system installation is in progress. The vents located on the four corners of the reservoir are undergoing rehabilitation and will be encapsulated with custom-made stainless steel panels upon completion. UNFINISHED BUSINESS Budget for Fiscal Year July 1, 2023 to June 30, 2024 Mr. Petersen reported the Budget for the fiscal year ending June 30, 2024, was reviewed with the board at a workshop session on June 21, 2023. After review and discussion, the board recommended a 6.5% increase in rates for the upcoming fiscal year. Mr. Smith made a motion to adopt the budget. The motion was seconded by Ms. Copeland and carried unanimously by a vote of 4 — 0. Rate Increase Resolution Mr. Petersen reported a Statement of Need and Resolution was prepared based on a reasonable and necessary increase in rates, effective with bills rendered on or after July 1, 2023. He stated the increase was previously discussed with the board at the workshop session on June 23, 2023. Mr. Petersen reviewed the resolution with the members present. It was recommended that a sentence in the Resolution be amended to more accurately describe the increase. The board agreed. Mr. Smith offered a motion to adopt the resolution with the proposed modification. The motion was seconded by Mr. Shannon, and the motion carried unanimously by a vote of 4 — 0. The revised rates will be forwarded to Mayor Bray notifying the City of the increase. The same information will be sent to Paducah Economic Development for their records. A copy of the Statement of Need and Resolution document is attached and made a part of the minutes of this meeting. Election of Board Chair and Vice Chair Mr. Barker was the sole nominee for his current position as board chair. Mr. Clayton was the only nominee for the position of Vice Chair. Mr. Petersen distributed ballots for the position of Chair. He then collected and tabulated the ballots. Mr. Barker was unanimously elected to the position of Chair with a vote of 4 — 0. Mr. Petersen distributed ballots for the position of Vice Chair. He then collected and tabulated the ballots. Mr. Clayton was unanimously elected to the position of Vice Chair with a vote of 4 — 0. 911 Committee Funding Options Mr. Petersen stated there are no updates at this time. He will continue to keep the board informed. NEW BUSINESS 7 There was no new business to report. ADJOURNMENT There being no further business, the meeting was adjourned at 5:35 p.m. This meeting was held in compliance with KRS 61.800 Secretar Approved at a meeting of the Commissioners of Waterworks held on th Zoo day 'ffw 1! 2023. '-�/L Chair f--7 Vice Chair Commissioner Commissioner Commissioner we vw e� Commissioner Commissioner