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HomeMy WebLinkAbout01-25-2023G3C�C�I�f]�D FEB 2 4 2023 MINUTES OF A REGULAR MEETING OF THE COMMISSIONERS OF WATERWORKS C8TY Ca_ERK A meeting of the members of the Commissioners of Waterworks was held January 25, 2023, at the Paducah Water office, 1800 North 8th Street, Paducah. Mr. Barker called the meeting to order at 5:03 p.m. A quorum was present. Those present were as follows: Commissioners Present — Ed Barker, Chair; Chip Bohle, Angela Copeland, Randy DeHart, Bill Shannon; Commissioners Absent — Tom Clayton, Vice Chair (arrived at 5:10); Buz Smith, Ex Officio; Counsel Absent — 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; Tee -Tommy Vinson, Plant Superintendent; Clarissa White, Administrative Assistant; Paducah Water Personnel Absent — Scott Shrum, Distribution Superintendent. MINUTES Mr. Barker asked for a motion to approve the minutes of the December 7, 2022, called meeting. Mr. DeHart made a motion to approve the minutes of the meeting as presented. Mr. Shannon seconded the motion, which carried unanimously by a vote of 4 — 0. FINANCIAL STATEMENTS Mr. Burnett reviewed the financial statements for November and December 2022. Water sales in November were 14% over budget. Operating revenue was over budget by about $90,000, and operating expenses were over budget by about $37,000. Net Revenue Before Capital Contributions was approximately $85,000 over budget for in November and $530,000 over for the first five months of the fiscal year. Mr. Burnett called attention to several items on page 4. The Utility Expenses line item exceeded the budget due to increased pumping. There was 10% more water pumped in November 2022 than November 2021. Rebuilding a pump at the Southside Pump Station caused an overage in the Booster Stations Expense line item. The Supplies & Expense Chemicals line item exceeded budget slightly due to increased water production and increased chemical pricing. On page 5, Mr. Burnett noted an overage in the Maintenance -Distribution Mains line item, which was caused by a significant number of main breaks that occurred in November. Also on page 5, Transportation expenses exceeded the budget because of backhoe repairs and the cost of diesel fuel. Finally, the General Administration line item on page 6 was over budget because of annual membership dues paid to the American Water Works Association. December water sales were about 3% over budget. Operating revenue was approximately $17,000 over budget for the month, while operating expenses were approximately $31,000 over budget in December. Net Revenue Before Capital Contributions stood at $17,000 over budget for the month and $548,000 over budget for the fiscal year. Mr. Burnett called attention to the Utility Expenses line item on page 4. This item was over budget because of high demands on the distribution system during the extremely cold weather that occurred around Christmas. The Water Quality Control line item saw a slight overage due to the timing of ordering budgeted lab supplies. And again, the Supplies & Expense Chemicals line item exceeded budget due to increased demand and increased chemical pricing. He also stated the Supplies & Expense Miscellaneous line item on page 5 was over budget due to the payment of annual railroad easements to Omega Rail. On page 6, Mr. Burnett explained the General Administration Expense line item exceeded budget because of the county payroll tax correction. He reminded the board of a recent discovery that PW was incorrectly calculating payroll taxes from at least 2007 until September 2022. PW found the error during the process of converting the customer information system to cloud -based technology and reported the finding to the County Tax Department. The overage is the result of retribution to the county to correct the error. After review and discussion, a motion was made by Mr. Clayton to approve the financial statements for November and December 2022. The motion was seconded by Mr. DeHart. The motion carried unanimously by a vote of 5 — 0. GENERAL MANAGER'S REPORTS Monthly Drug Testing Mr. Petersen noted all results for November, December and the entire year of 2022 were negative. 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 current raw water temperature is 45 degrees. • Disinfection By -Products (DBP) compliance samples were collected on January 4. Results were as expected for this time of year. • Hyper'lonO 1000 coagulant trial, which began on January 17, is ongoing and results are promising. Miscellaneous • The extremely cold weather around Christmas proved very challenging for our system. With numerous main breaks, residential/commercial property leaks and precautionary faucet drips in homes/structures throughout our service area, the water supply became dangerously low. The treatment plant reached maximum production capability while combatting air binding on the filters. Water use was higher during this cold snap than at any time during the summer drought. Staff were mobilized to locate leaks throughout the system and turn meters off in order to conserve supply. This measure was possible because of cell -read meter notifications received by the customer service department. Thankfully, recent board approvals of the air binding and raw water pump upgrade projects will combat any future occurrences should there be similar weather conditions. Thanks to staff for their hard work during this significant weather event. • Public outreach to promote the EyeOnWater® customer portal is under development. • EPA plans to present a draft document explaining PFAS limits by the end of January. Dredging around the area of the transient boat dock is scheduled to begin on 1/26. The dredging company is aware of the location of PW's raw water intakes. Significant sediment at the intakes is not expected. PW is monitoring the situation closely. Project Reports Mr. Northington informed the board of the following: Cairo Road Elevated Tank — Weather conditions have caused delays in this project. The tank should be complete and in service in May. Total costs are projected to be below budget. Miller Drive Replacement — Main installation and tie-ins are complete. The tie-in at Merrydale Drive required redesign, adding approximately 120 if of 6 -inch water main to the project. • In addition to the project reports, Mr. Northington introduced the upgraded ARC -GIS mapping system. He also, per board interest at a prior meeting, shared a video that explained the process of directional drilling. UNFINISHED BUSINESS Finance & Audit Committee Quarterly Meeting Report Mr. Shannon reported the Finance & Audit Committee held its quarterly meeting on January 20, 2023, 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. 911 Committee Funding Options Mr. Petersen reported there has been no movement since the last board meeting. He will continue to keep the board updated. NEW BUSINESS Board Appointment/Reappointment Mr. Barker congratulated Ms. Copeland on being reappointed to the board. He also informed the board that City Commissioner Buz Smith has been appointed to the board as its Ex Officio member. en 0 N C4 0 N § d � rn ,7 ` M } { 0 « ¢\2 � py \\»\� � ! ¢� ; \ } \ )2 /\)\&/j/)\)\) ,7 Bids No. 23-01-01 and 23-01-02 — Mixing and Ventilation Systems for I.C. Avenue Tank and Forest Hills Reservoir Mr, Vinson reported a bid opening was held on January 19 to purchase in -tank mixing and ventilation systems for both water storage structures. PSI Water Technologies of Milpitas, California was the sole bidder for this very specialized equipment. The bids were as follows: Structure Total Cost I.C. Ave Tank $81,157.00 Forest Hills Reservoir $104,954.00 Mr. Vinson and Mr. Petersen explained although PW has not worked with the PSI Water Technologies directly, the company manufactured the mixing and ventilation system for the Cairo Road tank that is currently in the final stages of construction. They recommended acceptance of the bids as presented. Mr. Bohle made a motion to accept the bids. The motion was seconded by Mr. Clayton, and the motion carried unanimously with a vote of 5 — 0. Sick Leave Policy Revision Mr. Petersen presented a revision to the current Sick Leave Policy. The revision would include a statement to allow PW employees to use accumulated sick time in the event of "a significant and unforeseen health event involving a parent, sibling or independent child" at the discretion of the General Manager. These circumstances usually require the use of accrued vacation time. Atter discussion, the board decided to table this issue to give Mr. Petersen the opportunity to include recommended edits and allow Mr. Denton to review the amended policy. 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 s Secretar Approved at a meeting of the Commissioners of Waterworks held on the 2Dray of 2023. Chair r Vice Chair Commissioner Commissioner Commissioner Commissioner Commissioner