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HomeMy WebLinkAbout08-26-2026MINUTES OF A REGULAR MEETING OF THE COMMISSIONERS OF WATERWORKS The Waterworks Commissioners met on August 26, 2026, at the Paducah Water office, 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 in attendance were as follows: Commissioners Present — Dr. Chip Bohle, Chair; Dr. Kate Senn, Vice Chair; Benny Heady, Angela Copeland, David Hutcheson, Paul King, 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. MINUTES Dr. Bohle asked for a motion to approve the minutes of the July 29, 2026 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 7-0. FINANCIAL STATEMENTS Ms. Smith reviewed the financial statements for July 2026 and presented the following highlights: Water sales were approximately 7.35% under budget. Overall, operating revenue was 6.5% under budget, and operating expenses were 4.83% under budget. On Page 4, Purification and Pumping expenses were 6.45% under budget. The primary notable overage was in Water Quality, mainly due to final payroll and vacation payout for a retiring employee. On Page 5, Field Operations expenses were 2.04% under budget. Building Maintenance was slightly over budget due to the purchase of a new ice machine, while Maintenance—Hydrants reflected a timing -related overage. On Page 6, the Business Office expenses were 6.53% under budget, with no significant overages noted. Capital activity for the month included $55,827 in Distribution System Improvements. Miscellaneous capital additions totaled $89,400, consisting primarily of $80,562 for a new mini excavator, $7,682 for VFD pumps at the Cairo Road Station, and $1,155 for a raw water level detector. After review and discussion, Mr. Hutcheson made a motion to approve the July 2026 financial statements. Mr. King seconded the motion, which carried unanimously by a vote of 7-0. GENERAL MANAGER'S REPORT Monthly Drug Testing Mr. Petersen reported that all July 2026 results were negative. Safety Report Each department held the required safety meetings. The July Safety Reports, distributed prior to the meeting, included specific safety data, meeting topics, and other relevant information. General Manager's Summary Mr. Petersen discussed the following: Plant • Water temperature is approximately 78 degrees, and the source water quality continues to fluctuate. Miscellaneous • Efforts are underway to hire a Water Plant Operator. • H.B. Fuller announced plans to close in the first quarter of 2027. Staff are reviewing the Fire Main Policy to address unmetered fire mains. • The new MIOX generator has been installed and is operational. • Several PW employees experienced significant property damage from the prior week's storm, and PW also sustained equipment damage. Full operations were maintained despite some communication issues. Project Reports Mr. Northington reported the following: • Field Operations Building: Construction continues to progress. Delivery of the building package is expected this week, and the floor is anticipated to be poured in the next two weeks. • Kentucky Avenue West Watermain Replacement: The new watermain has been installed, and work is underway to swap services to the new main. • Forestdale Subdivision Main Replacement: Materials are being ordered, with construction anticipated to begin within the next four to six weeks. UNFINISHED BUSINESS None to report. NEW BUSINESS Engineering Report No. 2026-01 Mr. King reported that the Engineering and System Development Committee (Mr. King, Chair, and Mr. Thomas) and Dr. Bohle met on August 11, 2026, with Mr. Petersen and Mr. Northington. The purpose of the meeting was to consider the following items: A. Forrestdale Subdivision Main Replacement Change Order Bids recently received for this project were approximately $318,000 below the amount budgeted for construction. Staff recommended that the scope of the project be extended to replace a section of the existing water main from the Forrestdale Subdivision east along Woodville Road to Hobbs Road as part of PW's desired long-term improvements to this area of the distribution system. Staff estimates that this proposed change can be implemented within the current budget, as estimated below: Original Forrestdale Budget $740,000 D -Port Bid (original scope) $421,955 Net Remaining Budget $318,045 Proposed Change Order $250,000 New Contract Amount (est.) $671,955 Net Remaining Budget (est.) $68,045 Engineering Committee Recommendation: The Committee recommends proceeding with the additional project scope as proposed. B. Reallocation of Unused Canital Funds and City Fire Training Center PW staff recently met with representatives of the Paducah Fire Department (City) and BFW Engineers regarding a proposed Fire Training Center to be constructed at 1400 Tennessee Street. This facility will require an upgrade to PW's existing infrastructure to provide the necessary water flow for fire training purposes. PW was asked to participate in this improvement, recognizing the mutual benefit of replacing water mains over one hundred years old. PW staff proposed a Memorandum of Understanding (MOU) that was shared with the City and tentatively agreed upon, subject to approval by each governing body. Key elements of this MOU are as follows: 1. Approximately 1,750 feet (total) of existing 6" water main will be replaced with 8" water main along portions of 12th and Tennessee Streets. Additional 8" water main will be extended within the proposed facility. 2. The City's engineer, BFW, will design and procure the construction contract. All costs for BFW will be paid by the City. 3. PW will accept the role of Owner, administer the construction contract and provide construction inspection services for all water main construction at no cost to the City. 4. PW and the City will enter into a Reimbursement Agreement, under which PW will provide the first $280,000 toward construction costs and the City will reimburse PW for all costs in excess of $280,000. PW staff propose to utilize $280,000 by reallocating unused capital funds as follows: Harrison Street Replacement $150,000 (modified construction method) Lone Oak Road Phase 1 $130,000 (project has not yet been initiated) Total Reallocated Funds $280,000 Engineering Committee Recommendation: The Committee recommends reallocating the $280,000 in capital funds as proposed. The Committee also recommends authorizing the General Manager to develop and enter into a Reimbursement Agreement with the City that generally reflects the items outlined in the Memorandum of Understanding dated July 2, 2026. After discussion, Mr. Heady moved to accept the Engineering Committee's recommendations as presented. Dr. Senn seconded the motion, which carried unanimously by a vote of 7-0. MISCELLANEOUS Mr. Petersen provided an overview of PW's flushing program and explained its role in maintaining water quality. ADJOURNMENT There being no further business, the meeting was adjourned at 5:37 p.m. CDT / 6:37 p.m. EDT. This meeting was held in compliance with KRS 61.800 et seq. Secretary Approved at a meeting of the Commissioners of 026. Chair Vice Chair Commissioner Commissioner Commissioner Commissioner Commissioner