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HomeMy WebLinkAbout01-26-2022MAR 14 2022 CITY CLERK MINUTES OF A REGULAR MEETING OF THE COMMISSIONERS OF WATERWORKS A meeting of the members of the Commissioners of Waterworks was held January 26, 2022, at in the Paducah Bank Community Room at the Chamber Center, 300 S. 3rd 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; Angela Copeland, Randy DeHart, Heather Pierce, Bill Shannon; David Guess, Ex Officio; 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 December 8, 2021, called meeting. Ms. Pierce made a motion to approve the minutes of the meeting as presented. Mr. Clayton seconded the motion, which carried unanimously by a vote of 7 — 0. Mr. Burnett reviewed the financial statements for November and December 2021. Water sales in November were 14% below budget. Operating revenue was also below budget by about $70,000, and operating expenses were below budget by about $81,000. Net Revenue Before Capital Contributions was approximately $12,000 over budget for the month. Mr. Burnett called attention to Maintenance — Grounds line item on page 4 of the November financial statements. This item exceeded the budget in November by approximately $6,000 due to the cost of resurfacing the pipe storage lot, which was expensed during the month but budgeted over the course of the year. He also noted an overage in the General Administration Expense line item on page 6. This item reflected the cost associated with annual membership dues to professional organizations (AW WA and WRF). December water sales and operating revenue were about 13% and $106,000 below budget respectively. Operating expenses were approximately $70,000 under budget for the month, while Net Revenue Before Capital Contributions stood at $168,000 over budget for the fiscal year. Mr. Burnett called attention to the Supplies & Expense — Chemicals line item on page 4 of the December financial statements, stating poor water quality in December led to increased chemical usage and costs. He also stated the Other Labor line item on page 5 was over budget due to numerous hours of non -working labor (holidays, vacations, illnesses) pay. On page 6, the General Administration Expense line item exceeded budget when the total cost for the staff Christmas party was paid all at once rather than being spread over a few months as in prior years. After review and discussion, a motion was made by Mr. Shannon to approve the financial statements for November and December 2021. The motion was seconded by Ms. Pierce. The motion carried unanimously by a vote of 7 — 0. GENERAL MANAGER'S REPORTS Monthly Drug Testing Mr. Petersen noted all results for December drugs screenings were negative. Results for the January drug screenings were incomplete on the date he submitted the General Manager's Report. However, results have since confirmed all testing conducted in January returned negative results. A year-end report for 2021 was also provided for board members to review. Safety Report Each department held safety meetings as required. Specific safety data, meeting topics and information were presented in the November and December Safety Reports, which were distributed prior to the meeting. General Manager's Summary Mr. Petersen discussed the GM Summary and handouts. Plant The treatment plant is still operating in "winter mode." Raw water temperature is 41 degrees and slowly falling. The water quality group continues to meet every Thursday. There is a significant amount of air on the filters but this has not yet effected operations. The aeration pilot study is ongoing. THM results were within regulatory limits but not as good as staff had hoped. Results were comparable to those seen on 2019. Miscellaneous • In-house presentations regarding PW's Lead Program are complete. • PW has implemented a new internal communication platform called Yodeck. • Two distribution laborers left PW. We are in the process of hiring replacements. • PW submitted formal comments in response to the US Army Corps of Engineers permit application for dredging and disposal of the sediment bar at the downtown transient dock. • PW purchased a 2021 %2 ton pickup truck at last year's bid price due to a unique opportunity. All other vehicle purchases are on hold due to price premiums and lack of availability. This was one of three %2 ton pickup trucks that was budgeted for FY 21/22. • PW provided GIS and distribution system assistance to Mayfield Electric and Water System after the December 10 tornado. Also, PW employees donated $1,400 for relief assistance. Project Reports Mr. Northington informed the board of the following: Cairo Road Elevated Tank — The foundation of the tank is complete. Phoenix Fabricators is onsite for shaft construction. • Cairo Road 16" Main Improvements — UPG has officially been sold to DCC Propane. There have been negotiations regarding the easement. • Madison Street — The project is moving toward completion, with approximately 30 services remaining to transfer to the new main. Mr. Northington shared a presentation detailing both the Aeration Pilot Study and the Cairo Road Tank construction. UNFINISHED BUSINESS Finance & Audit Committee Quarterly Meeting Report Mr. Shannon repotted the Finance & Audit Committee met for its quarterly meeting on .January 25, 2022, to review the check registers, new vendor listing, vendor summary, credit card statements and check detail report. The committee reported no inconsistencies or questionable findings in PW's financials. West McCracken Water District Merger Mr. Petersen stated the closing date of the merger is February 4, 2022. Denton Law Firm has prepared all closing documents and the process is moving forward. Surplus Property: Massac & St. John Tank Sites Mr. Petersen stated an ordinance has been prepared for City Commission review declaring the former Massac and Saint John tank sites as surplus properties. Upon on receiving approval from the City, PW will sell both properties. NEW BUSINESS Engineering Committee Meeting No. 2022-01 Randy DeHart, Committee Chair, reported the Engineering and System Development Committee met with Jason Petersen and Jacob Northington on January 18, 2022. The purpose of the meeting was to consider reallocation of $195,733 in unused FYI 9/20 funds. The remaining funds are from projects that were completed below the appropriated budgets. Staff and the Committee recommend funds reallocation as proposed. The Committee discussed the availability and pricing of materials. PW has increased its material inventory over the past 18 months to address long lead -limes of material orders. Pricing of pipe and other materials have increased significantly over the last year. PW's daily operations and capital program are proceeding as Staff are taking these issues into consideration. Also discussed was the status of economic development efforts of GPED and potential impacts that a J substantial industrial development may have on PW's treatment and distribution system. Staff continue to evaluate critical factors that will limit the available capacity of the treatment plant, such as the raw water pumps and air binding during cold -weather months. After discussion, Mr. Clayton offered a motion to accept the funds reallocation recommendation as presented. Ms. Copeland seconded the motion, which carried unanimously by vote of 7 — 0. 2022 Chamber Annual Dinner Mr. Petersen reminded the board that this event will be held at the Paducah -McCracken County Convention Center on Friday, January 28, 2022, beginning at 6:00 p.m. Seats at the PW table were still available for anyone who would like to attend. Executive Session At 5:55 p.m., Ms. Pierce moved that the board go into Closed Session for discussion of pending litigation, as permitted by KRS 61.810(I)(c). The motion was seconded by Mr. DeHart, and the motion carried unanimously with a vote of 7 — 0. By consensus, the board voted to end the Closed Session at 6:14 p.m. Ms. Pierce offered a motion allowing Paducah Water to proceed with the acquisition of an easement as outlined by the General Manager. Mr. Shannon seconded the motion, which carried unanimously by a vote of 7 — 0. ADJOURNMENT There being no further business, the meeting was adjourned at 6:18 p.m. This meeting was held in compliance with KRS 61.800 et seq. Secret. y Approved at a meeting of the Commissioners of Waterworks held on the 2.3 day of Fe6t..ar 2022. _ 'A _)O J Chair Vice Chair W Z EI�✓liy� ver Commissioner Commissioner Commissioner Commissioner Commissioner