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HomeMy WebLinkAbout06-24-2026MINUTES OF A REGULAR MEETING OF THE COMMISSIONERS OF WATERWORKS A meeting of the Waterworks Commissioners was held on June 24, 2026, at the Paducah Water office, located at 1800 North 8th Street, Paducah. Dr. Bohle called the meeting to order at 5:00 p.m. CDT I 6:00 p.m. EDT. A quorum was present. Those present were as follows: Commissioners Present -Dr. Chip Bohle, Chair; Dr. Kate Senn, Vice Chair; Benny Heady, Angela Copeland, Paul King; Commissioners Absent -David Hutcheson, Dujuan Thomas, Ex Officio; Counsel Present -David Denton and Alex Blackwell of Denton Law Firm; Paducah Water Personnel Present -Jason Petersen, Secretary/Treasurer and General Manager; Lea Ann Smith, Director of Finance; Jacob Northington, Director of Field Operations; Tee-Tommy Vinson, Plant Superintendent; Sidney Scoville, Administrative Assistant. MINUTES Dr. Bohle asked for a motion to approve the minutes of the May 27, 2026 meeting and the minutes of the June 15, 2026 called meeting. Mr. Heady made a motion to approve the meeting minutes as presented. Ms. Copeland seconded the motion, which carried unanimously by a vote of 5 -0. FINANCIAL STATEMENTS Mrs. Smith reviewed the financial statements for May 2026 and presented the following highlights: Water sales for the month finished approximately 5.06% over budget. Total operating revenue also finished over budget, driven in part by residential connection fees, while operating expenses were 9.95% under budget. On Page 3 of the Income Statement, Net Revenue and Capital Contributions finished significantly over budget, driven by income exceeding budget, expenses finishing under budget, and interest income finishing well over budget. On Page 4, Purification and Pumping finished the month 7.65% under budget. Grounds maintenance exceeded budget due to additional mowing and herbicide application. Supplies and Expense also finished over budget due to license and certification renewals, A WWA Conference costs, and spring uniform purchases. These expenses were budgeted evenly throughout the year but paid in May, resulting in a timing variance. On Page 5, Field Operations finished the month 19.84% under budget. Hydrant Maintenance exceeded budget due to mowing and herbicide application. Miscellaneous expenses were also over budget due to license and certification renewals and A WWA Conference costs, which were budgeted monthly but paid in May. A Tyler system setup error that incorrectly charged project labor to Maintenance -Mains was identified and corrected. On Page 6, the Business Office finished the month 2.25% under budget overall. Transportation expense remained the primary overage due to increased fuel costs and the purchase of new tires. General Administration also finished over budget due to the annual ORSANCO payment, which was budgeted monthly but paid in May. On Page 7, capital investments for the month included Distribution System Improvements, completion of the Arc Flash Evaluation, the purchase of a turbidity analyzer, and reductions in miscellaneous capital resulting from the sale of Unit 169 and Trimble handheld units. After review and discussion, Dr. Senn made a motion to approve the May 2026 financial statements. Ms. Copeland seconded the motion, which carried unanimously by a vote of 5-0. GENERAL MANAGER'S REPORT Monthly Drug Testing Mr. Petersen reported that all results for May 2026 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. General Manager's Summary Mr. Petersen discussed the following: Plant •Water temperature is approximately 78 degrees and continues to rise gradually. Source water quality is typical, with significant variability between the Ohio and Tennessee rivers. Miscellaneous •Dalton Gilbert resigned from his position as a Control Systems Technician, effective June 12. 2026. Efforts to hire a replacement will begin in January 2027. •The Field Operations Department plans to go live with the Tyler Work Orders module at the end of June 2026. Full implementation of the Tyler ERP system is expected to be completed by December 2026. •LSI has completed an arc flash study. PFAS •Paducah Water received a disbursement check from the 3M settlement in the amount of $471,680.97 on June 15, 2026. •Paducah Water authorized a task order with Hazen for the design of a GAC facility. A design kickoff meeting was held on June I 0, 2026. Project Reports Mr. Northington reported the following: •Field Operations Building: BFW released the foundation drawings. A&K is mobilizjng, with foundation work expected to begin. UNFINISHED BUSINESS Budget for Fiscal Year Ending June 30, 2027 Mr. Petersen reported that the proposed budget for the fiscal year ending June 30, 2027, was reviewed with the Board during the June 15, 2026 budget workshop. After review and discussion, the Board recommended a 2.6% rate increase for the upcoming fiscal year. Mr. King made a motion to adopt the budget. The motion was seconded by Ms. Copeland and carried unanimously by a vote of 5 -0. Statement of Need/Resolution for Rate Increase Mr. Petersen reported that a Statement of Need and Resolution had been prepared to implement a reasonable and necessary rate increase, effective for bills rendered on or after July I, 2026. He noted that