The URL can be used to link to this page

Home My WebLink About07-29-2026MINUTES OF A REGULAR MEETING OF THE COMMISSIONERS OF WATERWORKS A meeting of the Waterworks Commissioners was held on July 29, 2026, at the Paducah Water office, located at 1800 North 8th Street, Paducah. Dr. Bohle called the meeting to order at 5:01 p.m. CDT / 6:01 p.m. EDT. A quorum was present. Those present were as follows: Commissioners Present — Dr. Chip Bohle, Chair; Dr. Kate Senn, Vice Chair (arrived at 5:13 p.m.); Benny Heady, David Hutcheson, Paul King; Commissioners Absent — Angela Copeland, Dujuan Thomas, Ex Officio; Counsel Present — 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; Guests — Jordyn Naranjo and Charles Hamilton. MINUTES Dr. Bohle asked for a motion to approve the minutes of the June 24, 2026 meeting. Mr. Heady made a motion to approve the meeting minutes as presented. Mr. King seconded the motion, which carried unanimously by a vote of 4 — 0. FINANCIAL STATEMENTS Ms. Smith reviewed the June 2026 financial statements and provided an overview of the annual year-end adjustments recorded to reflect actual balances as of June 30. These adjustments included accrued payroll, depreciation expense, unbilled revenue, pension liability, accrued sick and vacation leave, and inventory. The most significant adjustment was a $1,056,688 reduction in the net pension liability, based on the actuarially determined balance reported by CERS. This adjustment significantly reduced Other Benefit Expense across all departments and reflected continued improvement in the CERS pension system's funded status. Ms. Smith noted that an Adjusted Income Statement was included on page 2 to show what the June financial results would have looked like without the year-end adjustments. Excluding these adjustments, Net Revenue Before Capital Contributions would have been $109,536 over budget. After year-end entries, Net Revenue Before Capital Contributions totaled approximately $4.5 million, compared to a budget of $2.6 million, resulting in a favorable variance of approximately $1.9 million. This variance included approximately $1.037 million in favorable year-end adjustments. Excluding these adjustments, Net Revenue Before Capital Contributions for the fiscal year finished approximately $110,000 over budget. Ms. Smith then reviewed the June 2026 financial statements, highlighting the following: Water sales were approximately 1.15% above budget. Total water sales for Fiscal Year 2026 were 2.092 billion gallons, a 1.5% increase over Fiscal Year 2025. Donated Surplus totaled $922,532. This included proceeds from the PFAS Settlement, infrastructure accepted from private developments, and expenditures and accrued expenses associated with Draw 1 of the Aeration Project. Excluding year-end adjustments, Purification and Pumping expenses were 5.95% over budget in June, primarily due to chemical costs, a payout to a former employee, and payment for the annual inspection of the intake and discharge structures. Excluding year-end adjustments, Distribution expenses were 2.54% under budget in June. Maintenance—Hydrants exceeded budget due to mowing and spraying expenses, while Transportation remained over budget due to fuel costs and payment for painting the dump truck and trailer. Excluding year-end adjustments, Business Office expenses were 6.58% under budget in June. The only notable overage was Transportation Expense, driven by higher fuel consumption and fuel costs. Significant Plant Investment activity included the closeout of the Raw Water Pump Upgrade, completion of main replacement projects, acceptance of infrastructure from private developments, and routine capital additions. The disposal of four fully depreciated vehicles and equipment units resulted in a gain on the disposal of assets. After review and discussion, Mr. Hutcheson made a motion to approve the June 2026 financial statements. Mr. King 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 June 2026 were negative. Safety Report Each department held safety meetings as required. Specific safety data, meeting topics, and information were presented in the June Safety Reports, which were distributed prior to the meeting. General Manager's Summary Mr. Petersen discussed the following: Plant • Water temperature is approximately 84 degrees. Source water quality has been poor due to high organic loading but has improved recently. Quarterly DBP sample results were elevated compared to those from July 2025. Miscellaneous Staff attended the annual AWWA Water Professionals Conference in Lexington, where Paducah Water received the Kentucky AWWA Large Distribution System of the Year Award. Lab Technician Betty Downs will retire on July 31 after 28 years of service with Paducah Water. Efforts to fill the position will begin in fall 2026. The year-end FY 2025-2026 audit with WWL will begin on August 3. Project Reports Mr. Northington reported the following: • Field Operations Building: A&K is installing the foundations. MEP contractors have also been onsite working on foundation penetrations. • Construction has begun on the Kentucky Avenue West watermain replacement project. • The Clay Street abandonment project has been completed. UNFINISHED BUSINESS Finance & Audit Committee Quarterly Meeting Report Mr. Heady reported that the Finance & Audit Committee held its quarterly meeting on July 27, 2026, to review the check registers, new vendor listing, vendor summary, and check detail report. The committee identified no inconsistencies or concerns regarding PW's finances. The Committee also reviewed the revised Procurement & Purchasing Policy. NEW BUSINESS Procurement & Purchasing Policy Mr. Petersen explained updates to the Procurement & Purchasing Policy. The policy was updated to reflect electronic purchasing and approval processes, update organizational titles, incorporate cooperative purchasing methods permitted under state law, and revise statutory references related to the competitive bidding threshold. Mr. Heady offered a motion to accept the updated policy as presented. The motion was seconded by Dr. Senn and carried unanimously by a vote of 5 — 0. Bid No. 26-07-01: Forrestdale Replacement Mr. Northington presented the bid tabulation for the Forrestdale Replacement Project. The bids received were as follows: COMPANY AMOUNT -Port Directional Drilling & Utilities, LLC (D -Port Drilling) $421,955.00 Revell Construction Co., Inc. $478,371.00 Youngblood Excavating & Contracting, LLC $489,725.00 urtco Utility Services $642,311.50 Norris Brothers Excavating $1,403,577.00 Staff recommended accepting the lowest bid, submitted by D -Port Drilling. Mr. King made a motion to approve the recommendation and award the contract to D -Port Directional Drilling & Utilities, LLC. Mr. Hutcheson seconded the motion, which carried unanimously by a vote of 5 — 0. MISCELLANEOUS Mr. Hamilton addressed the Board regarding concerns related to a prior customer service matter. No action was taken. ADJOURNMENT There being no further business, the meeting was adjourned at 5:47 p.m. CDT / 6:47 p.m. EDT. This meeting was held in compliance with KRS 61.800 et seq. Secretary Approved at a meeting of the Commissioners of Waterworks held on the Uo day of A%lqu-St , 2026. Chair Vice Chair Commissioner Commissioner Commissioner Commissioner Commissioner 1 1