A G E N D A HENDERSON WATER & SEWER...

A G E N D A (Revised)

HENDERSON WATER & SEWER COMMISSION (270) 826‐2421

July 16, 2018 Monday @ 4:30pm

______________________________________________________________________________ A. ROLL CALL

B. REQUEST TO ADDRESS THE BOARD

C. RECOGNITION FOR 20 YEARS OF SERVICE

Mike Moore – Purchasing Aide ‐ June 25, 1998

D. APPROVAL OF MINUTES

Approval of Minutes from June 18, 2018

E. MONTHLY REPORTS

Financial o Discuss Fleet/Fuel Card

Plant Operations Field Operations Engineering Human Resources & Safety General Manager’s

F. BUSINESS

Action Report #2018‐18 – Process Water from Wells – Borax Drive Property

Action Report #2018‐19 – SWWTP – Automation and Renovation Project

G. EXECUTIVE SESSION – Requested

To discuss matter which might lead to the appointment, discipline, or dismissal of an individual employee pursuant to KRS 61.810 (1) (f)

H. OTHER BUSINESS (Walked In)

Resolution #2018‐20 – Recommending Changes to Director Positions

1

REQUEST TO ADDRESS THE BOARD

2

RECOGNITION FOR 20 YEARS OF SERVICE

Mike Moore – Purchasing Aide (June 25, 1998)

3

ACTION MINUTES OF MEETING June 18, 2018

4

ACTION MINUTES JUNE 18, 2018

HENDERSON WATER & SEWER COMMISSION

______________________________________________________________________________

A. ROLL CALL

Present at the meeting was Commissioner Paul Bird, Chairman, who presided over the meeting, along with Commissioners George Jones, John Henderson, Gary Jennings, and Julie Wischer. General Manager, Tom Williams and Eric Shappell, Attorney were also present. Other staff members present were Kevin Roberts, Todd Bowley, John Baker, Tim Fischbeck, Kathy Ambrose, Sandi Danner, and Patty Brown Also in attendance were Donna Stinnett, Public Information Officer and Brad Woosley, customer. No members of the media were present.

B. REQUEST TO ADDRESS THE BOARD Brad Woosley addressed the board with his concern about a stormwater erosion issue on his property located at 1667 Bruce Street. He reported that during rain events a great deal of water goes over the bank of the river and is washing away the top of the bank. He provided pictures of the area after a heavy rain. He requested that rip rap be put there to prevent this. Tom Williams explained that the storm drain located beside Mr. Woosley’s property has been there since part of the subdivision was built in the 80’s and is designed to catch the stormwater in a box and release it slowly across the grassy/sandy area after a heavy rain. This area is in the floodplain. He said HWU crews have worked on this area several times trying to help alleviate the problem. The Board advised that HWU is not responsible for rip rap on the river bank. They discussed extending a pipe out to the river, so the water would go directly into the river. This would have to be approved by the Corp of Engineers and a recent request made by HWU to do a similar project has been denied by the Corp. After much discussion, the Board directed Mr. Williams to ask the Corp of Engineers if they would give permission to extend the storm drain pipe to the river and to let Mr. Woosley know what the results are.

C. APPROVAL OF MINUTES

Approval of Minutes from May 21, 2018 Minutes were approved as submitted.

D. MONTHLY REPORTS

Financial – Discussed and approved as submitted. Todd Bowley reviewed the financials with the Board. He stated that there were $1.6 million in operating revenues which makes the year to date total $18.5 million compared to the budgeted amount of $17.6 million. Expenses for May are $1.3 million as compared to a budget of $1.4 million. The yearly expense total is $16.2 million as compared to the budget of $17.2 million. Operating Revenues continue to trend above budget and expenses are trending lower than budget. The gallon consumption continues the trend of residential being down but being offset by increases in industrial and commercial. The utility is around 2.52% over in billable gallons as compared to this date last year. Overall, we are trending well for

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Action Minutes 2018June18

the year. The pilot payment to the City was made and now fiscal year end procedures will begin. The Statement of Net Positions shows about $7.4 million in cash at the end of May which is higher due to the way receivables and payables fell in the month. Today the amount is about $6.5 million.

o Discuss Investment Options for Cash Reserves Mr. Bowley discussed with the Board the findings of investigating options for investments. He reported that at the present the checking accounts at Independence Bank are earning 1.87%, which has increased from 1.62% a couple of months ago. The 1.87% was almost double the rate which could be obtained for a short term 9 to 12‐month CD. A CD might yield about 2.25% for the 12 to 15‐month range, but most of those were not local institutions and were web based. We determined we are getting an extremely good rate based on our contract with Independence Bank, without going out for bids on some kind of investment service where we would earmark an amount and have to pay service fees. The Board agreed that leaving the money at Independence Bank seems to be the best solution for now but asked that rates be checked periodically to make sure the money is earning a comparable amount.

Plant Operations – Discussed and approved as submitted Kevin Roberts reviewed the plant operations with the Board. He noted that the latest Consumer Confidence Report information has been distributed to our customers for them to view on the website or request the report to be mailed. Mr. Roberts also presented slides showing the difference some of the projects that have been completed have made in plant operations. He showed pictures and graphs of samples obtained from the South Water Treatment Plant newest renovated basin compared to the other two older basins and the extreme improvement in quality that has been made. The new basin has so much more oxygen rich water. He also showed before and after pictures of a basin at the North Water Treatment Plant where a tarp was placed on the basin. When the tarp was removed after 2 ½ years the basin was still clean and algae free. Even though these projects were expensive they have both yielded great benefits. Kevin stated that Lead and Copper testing is scheduled for August. There are a lot of residents scheduled for the sample site plan. If anyone else is interested in getting their water tested, please let us know.

Field Operations – Discussed and approved as submitted. Tom Williams reviewed the Field Operations report with the Board. He said that a lightning strike in May disrupted a lot of different electronics at the SOC. The strike hit the driveway at the SOC and traveled through the ethernet cable.

Engineering – Discussed and approved as submitted. Tom Williams commented on the new projects in the report which included the Wathen Lane Bridge water line replacement project, the painting of the buildings at the SOC, and the North Water Treatment Plant roof project.

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Human Resources & Safety – Discussed and approved as submitted. Mr. Williams noted that there are interviews scheduled for the Director of Field Operations position.

General Manager’s – Discussed and approved as submitted. Tom Williams reviewed with the Board several items included in the report. He stated that the utility has won an award from the Kentucky‐Tennessee Water Environment Federation for “Outstanding Overflow Abatement”. It was also noted that the 2018‐2019 budget was passed by the City. He advised the Board that a customer has fallen behind on their water bill and owes the utility around $32,000. The water service has been shut off and the attorney has started the process of filing an action in Circuit Court to recover the unpaid balance. He mentioned that the City is selling surplus property on 2nd Street next to our location there and they indicated that the SCADA/Training Room building, and 2 parking lots might need to be included in the sale also. This is not anything official just a notice to the Board that this was said.

o Approval of Revisions to the Wastewater and Pump Station Technical Manual After discussion, motion was made and approved to accept the Revisions to the Wastewater and Pump Station Technical Manual as presented and forward to the City/County Planning Commission for their approval.

E. BUSINESS

Action Report #2018‐14 – Annual Chemical Bids After discussion, motion was made and approved to accept Action Report #2018‐14 – Annual Chemical Bids according to the bid tabulation attached. These bids are effective from June 18, 2018 to June 18, 2019. This expense will be taken from the chemicals operating budget, as detailed in the Action Report.

Action Report #2018‐15 – 4th & Alvasia Stormwater Project After discussion, motion was made and approved to accept Action Report #2018‐15 – 4th & Alvasia Street Stormwater Project which has already been completed in the amount of $45,707.08 and will be taken from the “Unidentified Capital Projects” line item in the 2018‐19 Capital budget, as detailed in the Action Report.

Action Report #2018‐16 – Wathen Lane Bridge Project – Water Line Relocation After discussion, motion was made and approved to accept Action Report #2018‐16 – Wathen Lane Bridge Project Water Line Relocation in the amount of $20,000 and will be

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taken from the “Unidentified Capital Projects” line item in the 2018‐19 Capital budget, as detailed in the Action Report.

F. EXECUTIVE SESSION – Requested

To discuss matter which might lead to the appointment, discipline, or dismissal of an individual employee pursuant to KRS 61.810 (1) (f) Motion was made and approved to go into Executive Session to discuss matter which might lead to the appointment, discipline, or dismissal of an individual employee pursuant to KRS 61.810 (1) (f)

E. BUSINESS (continued)

Resolution #2018‐17 – Annual Merit Adjustment for Chief Financial Officer

Upon return from Executive Session, motion was made by Commissioner, George Jones, and seconded by Commissioner, Gary Jennings to adopt Resolution #2018‐17 – Annual Merit Adjustment for Chief Financial Officer. The General Manager has reviewed Mr. Bowley’s job performance and concluded that his performance warrants an increase to base salary for his services as Chief Financial Officer to $76,500, effective June 1, 2018. The roll call vote results are as follows: Commissioner, Paul Bird, Aye; Commissioner, George Jones, Aye; Commissioner, John Henderson, Aye; Commissioner, Gary Jennings, Aye; Commissioner, Julie Wischer, Aye. Motion carried. Motion was made and approved to adjourn. The next monthly meeting will be held on Monday, July 16, 2018.

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FINANCIAL REPORT

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Financial Summary

For the Twelve Months Ended June 30, 2018

Preliminary

10

June June Year to Date Year to Date Fiscal Year

Actual Budget Actual Budget Budget

OPERATING REVENUES

Water Sales 676,919$ 606,281$ 7,786,403$ 7,547,070$ 7,547,070$

Water Penalties 3,560 2,417 45,818 29,000 29,000

Water Fees 200 4,167 30,916 50,000 50,000

Wastewater Services 993,830 855,172 11,255,867 10,645,300 10,645,300

Wastewater Penalties 4,165 3,208 57,053 38,500 38,500

Wastewater Fees 18,240 17,292 339,458 207,500 207,500

Stormwater Impact Fee 60,350 61,840 734,921 735,240 735,240

Total Operating Revenues 1,757,264 1,550,377 20,250,436 19,252,610 19,252,610

OPERATING EXPENSES

Salaries and Wages 331,400 357,424 4,302,276 4,646,506 4,646,506

Payroll Taxes 24,635 27,284 324,079 354,693 354,693

Health Insurance 101,269 124,111 1,306,828 1,489,333 1,489,333

Pension Benefits 61,607 67,591 815,697 878,685 878,685

Workers Compensation (4,378) ‐ 95,610 100,000 100,000

Other Employee Benefits 1,079 2,151 19,800 25,811 25,811

Car Allowance 900 1,350 15,750 16,650 16,650

Electricity 160,809 156,358 1,886,885 1,876,291 1,876,291

Natural Gas 280 1,500 22,463 37,050 37,050

Chemicals 118,850 94,018 1,286,500 1,248,220 1,248,220

Inventory Expense 6,774 22,342 79,540 268,108 268,108

Fuel 9,895 7,554 107,760 90,650 90,650

Tools & Small Equipment 6,800 13,356 106,982 160,275 175,275

Safety & Clothing Supplies 1,756 3,988 27,767 47,850 47,850

Lab Supplies and Testing 38,537 29,405 369,748 352,857 208,857

Clothing/Cleaning Allowance ‐ ‐ 27,825 29,250 29,250

Vehicle Repair 4,040 4,600 57,137 55,200 55,200

Other Equipment Repair 17,839 21,717 239,425 260,600 245,600

Other Structures Repair 60,309 36,896 313,108 442,750 442,750

SCADA Expense 2,015 4,494 23,582 53,929 53,929

Administrative Services 53,333 53,333 640,000 640,000 640,000

Contractual Services 26,806 20,683 302,197 248,190 392,190

Contractual Labor 15,303 17,992 135,898 215,900 215,900

Sludge Hauling and Disposal 84,030 59,167 706,228 710,000 710,000

Professional Services 622 2,542 29,867 30,500 30,500

Equipment Rental 9,839 3,926 65,577 47,115 47,115

Audit Expense ‐ ‐ 20,000 21,000 21,000

Public Contributions ‐ 250 ‐ 3,000 3,000

Insurance ‐ ‐ 278,168 285,000 285,000

Technology Expense 20,751 16,469 159,519 197,631 197,631

Office & Field Supplies 6,283 11,433 108,131 137,194 137,194

Telephone 7,540 7,203 69,559 86,437 86,437

Medical Exams 2,024 500 7,091 6,000 6,000

Travel, Training & Education 2,705 6,637 49,522 79,642 79,642

Dues and Subscriptions 285 1,518 15,889 18,219 18,219

Advertising and Printing 897 1,521 7,234 18,250 18,250

Miscellaneous 75 679 5,067 8,150 8,150

Depreciation 304,598 293,750 3,655,177 3,525,000 3,525,000

Total Operating Expenses 1,479,507 1,473,741 17,683,886 18,711,936 18,711,936

Operating Income (Loss) 277,757$ 76,636$ 2,566,550$ 540,674$ 540,674$

Henderson Water Utility

Operating Revenues and Expenses Summary


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Operating Revenues

Actual 20,250,436$

Budgeted 19,252,610

Favorable (Unfavorable) Variance 997,826$

Percentage Difference 5.18%

Billable Gallons

Through 6/30/18 2,412,521,157

Through 6/30/17 2,392,632,985

Difference 19,888,172


Operating Expenses

Actual 17,683,886$

Budgeted 18,711,936

Favorable (Unfavorable) Variance 1,028,050$


Breakdown of Volumetric Differential For Year to Date Ended

Jun‐18 Jun‐17 Differential %

Residential 550,491,723 595,249,402 ‐7.52%

Industrial (includes IP) 460,268,233 452,733,094 1.66%

Commercial (includes Tyson & HCWD) 1,401,761,201 1,344,650,489 4.25%

Total 2,412,521,157 2,392,632,985 0.83%

Notes

Revenue Summary:

Revenues continue to trend above budget for year to date. Usage trend continues with overall increase.

Increase in commercial and industrial usage being offset by reductions to residential users.

Expense Summary:

Expenses were under the monthly allocated budget totals; expenses year‐to‐date remain under budget, as well,

by approx. 5.5%.

For year‐to‐date, chemicals, electricity, fuel, contractual services and professional services are continuing

to trend over budget, but overall expenses remain under budget.

Summary:

Cash flow for month was negative, due to timing of month end A/R transfer of funds from City and due to

payment of PILOT bill and capital project activity. Overall cash decreased $330k for year, which was better than

original projections.

Year end closing procedures have begun and, as such, would consider these June financials a "rough draft".

Final FY2018 financials will be presented when close is finished and at completion of audit.

New auditors have begun their work and we have been very pleased with their work and communication

thus far.


Variance Analysis


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Henderson Water UtilityCapital Expenditures ReportFor the Twelve Months Ended June 30, 2018

Report Prior Years FY 2018 Fiscal Year Total Beginning Current MTD Current YTD Project to Date

Project # No. Appropriations Appropriations Appropriations Budget Balance Activity Activity Balance

Construction In Progress:Previous Fiscal Year Initiated Projects

Misc Stormwater Projects 1802‐0015 17‐10 50,000$ 20,500$ ‐$ 70,500$ (3) 9,189$ ‐$ 60,517$ 69,706$ US 60 Reimbursable 1802‐0019 16‐08 1,000 ‐ ‐ 1,000 (1) 144,645 ‐ 2,633 147,278 NWWTP Fencing & Gate 1802‐0035 N/A 19,000 ‐ ‐ 19,000 (4) ‐ ‐ 18,919 18,919 SWTP Rehab 1802‐0051 15‐09 860,239 ‐ ‐ 860,239 860,239 ‐ (2,500) 857,739

Countryview Subdivision‐ HWU portion 200,000 ‐ ‐ 200,000 24,793 2,566 36,826 61,619 Countryview Stormwater‐ City Contrib ‐ ‐ ‐ ‐ (2) 24,793 2,566 36,826 61,619 Countryview Subdivision Stormwater 1802‐0053 14‐53 200,000 ‐ ‐ 200,000 49,585 5,133 73,653 123,238

Atkinson Park Watershed 1802‐0058 15‐14 213,500 ‐ 50,000 263,500 (7) 210,561 498 30,623 241,184 College Tank Project 1802‐0059 17‐08 30,000 420,252 ‐ 450,252 28,656 54,810 418,493 447,149 SWTP Building 1802‐0065 GM Rpt 17,000 (4,000) ‐ 13,000 12,820 ‐ ‐ 12,820 S Main St Sewer 1802‐0067 16‐15 66,000 ‐ ‐ 66,000 44,458 ‐ ‐ 44,458 S Elm Water Lines 1802‐0069 17‐20 51,315 95,910 ‐ 147,225 122,698 ‐ 12,860 135,559 NWWTP Clarifier Project 1802‐0070 16‐21 781,472 ‐ ‐ 781,472 150,371 53,238 613,556 763,927 Clay St Sewer Repair Project 1802‐0071 17‐02 58,800 23,241 ‐ 82,041 72,866 ‐ 9,175 82,041.38 Riverdale Stormwater Project 1802‐0072 GM Rpt 10,000 ‐ ‐ 10,000 2,688 111 6,936 9,623 SWWTP Basin Renovations 1802‐0073 17‐23 116,000 2,200,000 1,144,351 3,460,351 136,201 408,099 2,079,662 2,215,863 Fiber Optic Connect to City 1802‐0074 17‐12 30,000 (7,250) ‐ 22,750 16,261 ‐ 6,477 22,738 Emergency Generator System 1802‐0075 17‐11 20,000 ‐ ‐ 20,000 4,335 ‐ 7,076 11,410 Green River Rd Tank Project 1802‐0076 17‐15 23,000 ‐ ‐ 23,000 ‐ ‐ 15,699 15,699 S Main St Water Main Project 1802‐0077 17‐15 68,000 ‐ ‐ 68,000 ‐ 5,248 67,556 67,556

Current Fiscal Year Capital ProjectsCanoe Creek 41A Crossing 1802‐0078 17‐24 ‐ 50,888 ‐ 50,888 ‐ ‐ 50,730 50,730 Hackberry‐ South Main Water Line 1802‐0079 17‐29 ‐ 235,000 ‐ 235,000 ‐ 17,351 142,614 142,614 Gaslight‐ Stormwater 1802‐0080 GM Rpt ‐ 72,140 ‐ 72,140 (3) ‐ ‐ 72,077 72,077 Old Corydon Rd Sewer Extension 1802‐0081 17‐39 ‐ 10,000 11,536 21,536 ‐ ‐ 21,536 21,536 Door Access Security Upgrades 1802‐0082 17‐40 ‐ 15,000 ‐ 15,000 ‐ ‐ 14,759 14,759

HCC Water Line Extension 1802‐0083 18‐03 ‐ ‐ ‐ 100,000 (6) ‐ 10,911 58,442 58,442

SWTP Backwash Pumps Proj 1802‐0084 GM Rpt ‐ ‐ 50,000 50,000 (7) ‐ 22,455 34,570 34,570

4th St & Alvasis Stormwater 1802‐0085 18‐15 ‐ ‐ 46,818 46,818 (8) ‐ 4,080 46,818 46,818

Unallocated Capital FundsPrior Fiscal Year Carryover ‐ Current Fiscal Year 2018 (0)

Total Construction In Progress 2,615,326 3,131,681 1,302,705 7,149,712 1,865,571 581,932 3,862,882 5,728,453

Buildings and Improvements:Previous Fiscal Year Initiated Projects

NWTP Office/Lab Remodel 1804‐0016 17‐13 39,100 ‐ ‐ 39,100 16,920 ‐ 21,440 38,360 NWWTP Demolition of Old Headworks 1804‐0017 17‐16 11,000 (700) ‐ 10,300 ‐ ‐ 10,200 10,200 NWTP Roof Replace 1804‐0018 ‐ ‐ 25,000 25,000 ‐ 188 188 188

Current Fiscal Year Capital Projects‐ ‐ ‐ ‐

Total Buildings and Improvements 50,100 (700) 25,000 74,400 16,920 188 31,828 48,748

Equipment and Vehicles:Equipment:

THM‐RR Lab Equipment 1700‐0061 17‐22 ‐ 49,750 ‐ 49,750 ‐ ‐ 49,749 49,749 Spruce Drive Pump Station Motor 1700 N/A ‐ 6,550 ‐ 6,550 (5) ‐ ‐ 6,550 6,550 CityWorks Upgrade 1700‐0062 N/A ‐ 10,000 ‐ 10,000 ‐ 1,450 6,488 6,488 PS Pump Replacements 1700‐0063 N/A ‐ 14,500 ‐ 14,500 ‐ ‐ 14,500 14,500 SWWTP Gas Chlorinator System 1700‐0064 N/A ‐ 7,700 ‐ 7,700 ‐ ‐ 7,656 7,656

Total Equipment and Vehicles ‐ 88,500 ‐ 88,500 ‐ 1,450 84,943 84,943

Total Capital Expenditures 2,665,426$ 3,219,481$ 1,327,705$ 7,312,612$ 1,882,491$ 583,570$ 3,979,653$ 5,862,144$

Capital Appropriations

FY 2018 Budgeted 2,901,200$ FY 2017 Carryover 318,281

Total Available 3,219,481$

Notes: (1) Project being fully reimbursed by KY Dept of Transportation, no budgeted appropriation.

(2) Project being funded 50% by City of Henderson, no budgeted appropriation. Project total $400,000

(3) Gaslight project‐ reclassified budget from approved Misc Stormwater projects, was separated for accounting and tracking purposes

(4) Work ordered in April, funds appropriated in prior year allocations.

(5) Small Capital item purchased, appropriated from unallocated funds

(6) Project being fully reimbursed by KCTCS, no budgeted appropriation.

(7) Ongoing projects that will have additional funds approproated in FY 2019, to date unknown final costs.

(8) Repair project that escalated to capital. BAR presented in May after completion will allocate from FY19 funds.

Budget Cost Activity

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Financial Statements


Preliminary

14

ASSETS AND DEFERRED OUTFLOWS

Current assets:

Cash 5,522,075$

Designated Cash for Contractual Adjustments 935,200

Unrestricted Investments 55,741

Restricted Investments ‐

Accounts receivable 1,568,480

Inventories 937,974

Other current assets 75,905

Total current assets 9,095,375

Noncurrent assets:

Construction in progress 5,728,453

Utility plant and equipment, net of

accumulated depreciation 76,940,209

Other assets 16,685

Total noncurrent assets 82,685,347

Deferred outflows of resources 2,052,846

Total assets and deferred outflows 93,833,568

LIABILITIES AND DEFERRED INFLOWS

Current liabilities:

Accounts payable 286,861

Retainage payable 287,608

Deposits payable 113,295

Accrued expenses 995,200

Accrued interest payable 145,339

Other accrued liabilities 1,210,072

Current portion of long‐term debt ‐

Total current liabilities 3,038,375

Noncurrent liabilities:

Accrued pension liability 8,132,373

Long‐term debt 35,032,480

Total noncurrent liabilities 43,164,853

Deferred inflows of resources ‐

Total liabilities and deferred inflows 46,203,228

NET POSITION

Net investment in capital assets 47,652,867

Restricted for debt service ‐

Unrestricted (22,527)

Total net position 47,630,340$


Statement of Net Position

June 30, 2018

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June June Year to Date Year to Date Fiscal Year

Actual Budget Actual Budget Budget

OPERATING REVENUES

Water sales and fees 680,679$ 612,865$ 7,863,137$ 7,626,070$ 7,626,070$

Wastewater services and fees 1,016,235 875,672 11,652,378 10,891,300 10,891,300

Stormwater impact fee 60,350 61,840 734,921 735,240 735,240

Total operating revenues 1,757,264 1,550,377 20,250,436 19,252,610 19,252,610

OPERATING EXPENSES

Salaries, wages, and benefits 516,512 579,911 6,880,040 7,511,678 7,511,678

Contractual services 189,933 157,642 1,899,767 1,912,705 2,056,705

Supplies and materials 182,612 170,663 2,006,122 2,197,210 2,068,210

Utilities expense 161,089 157,858 1,909,348 1,913,341 1,913,341

Repairs and maintenance 84,203 67,707 633,252 812,479 797,479

Other services and expenses 40,560 46,210 700,180 839,523 839,523

Depreciation 304,598 293,750 3,655,177 3,525,000 3,525,000

Total operating expenses 1,479,507 1,473,741 17,683,886 18,711,936 18,711,936

Operating income (loss) 277,757 76,636 2,566,550 540,674 540,674

NONOPERATING REVENUES (EXPENSES)

Investment income 10,924 2,083 106,427 25,000 25,000

Other income (56) 625 125,535 7,500 7,500

Interest expense (73,500) (73,565) (897,251) (898,035) (898,035)

Total nonoperating revenues (expenses) (62,632) (70,857) (665,289) (865,535) (865,535)

Income (loss) before capital contributions

and distributions 215,125 5,780 1,901,261 (324,861) (324,861)

Capital contributions ‐ 20,833 36,893 250,000 250,000

Distribution to City of Henderson ‐ ‐ (400,000) (400,000) (400,000)

Change in net position 215,125$ 26,613$ 1,538,154$ (474,861)$ (474,861)$

Net position, beginning of period 47,415,215 45,571,520 46,092,186 46,092,186 46,092,186

Net position, end of period 47,630,340$ 45,598,133$ 47,630,340$ 45,617,325$ 45,617,325$


Statement of Revenues, Expenses, and Changes in Net Position


16

June Year to Date

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customers 1,023,672$ 20,636,877$

Payments for goods and services (514,354) (6,939,057)

Payments for employees (517,412) (6,896,240)

Net cash provided (used) by operating activities (8,094) 6,801,580

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES

Distribution to City of Henderson (400,000) (400,000)

Net cash provided (used) by noncapital

financing activities (400,000) (400,000)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES

Acquisition and construction of capital assets (571,515) (3,852,195)

Principal payments on long‐term debt ‐ (2,253,613)

Interest payments on long‐term debt ‐ (894,918)

Proceeds from sale of capital assets ‐ 69,545

Capital contributions ‐ 36,893

Net cash provided (used) by capital and related

financing activities (571,515) (6,894,288)

CASH FLOWS FROM INVESTING ACTIVITIES

Investment and other income received 10,868 162,818

Investments proceeds ‐ ‐

Investments purchases ‐ ‐

Net cash provided (used) by investing activities 10,868 162,818

Net increase (decrease) in cash (968,741) (329,890)

Cash, beginning of period 7,426,016 6,787,165

Cash, end of period 6,457,275$ 6,457,275$


Statement of Cash Flows


17

PLANT OPERATIONS REPORT

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Plant Operations Report 07‐16‐2018

General Operations:

A. Treatment Plants – Overview:

1. Regulatory:

Lead & Copper Testing: Testing in our distribution system is scheduled for August. In addition to this routine testing, samples have also been collected from the schools in the Henderson County School System. HWU and HCS are working together to ensure that the water quality in the schools is lead‐free. Schools are one of the most vulnerable locations in a water system (with the most vulnerable population as well) due to most of them being older construction with highly variable water usage. We hope to branch this out to other higher‐risk locations within the community, such as nursing homes, daycares, etc.

2. Operational & Financial:

End of FY2018 Expenses (Fuel, Chemicals, Sludge Hauling & Disposal): These three categories are the 3 big ones that can significantly impact the budget outcome. For FY2018, the plants combined came in at approximately $50K under budget. This was completely due to the South Wastewater Treatment Plant not needing to feed Magnesium Hydroxide slurry as much as anticipated. The plant has been in a state of upset and construction for most of the year which diminished the amount of chemical needed.

The other three plants were over‐budget, so while we never want to strive for any of our plants being in a state of upset and not performing well, at least where the budget is concerned this helped us to the tune of $50,000.

3. System Water Quality:

Water Quality Calls: Two water quality complaint calls were taken this past month.

1667 Marshall Drive: The customer had a complaint of muddy orange water. Construction was taking place on South Main that affected this area and a BWA had been issued. The meter was removed, and the line was flushed for 30 minutes. Her interior plumbing was flushed afterwards until clear. However, this area remained under a BWA until the next day. Instructions were given to her to call us back if it was not satisfactory after the BWA was lifted.

846 Lamont Lane: The customer reported a chlorine/pool smell and taste to the water. The customer had a Point of Use (POU) filter on their water line. Chlorine testing showed that the filter was not removing chlorine from the water. Recommendations were given to the customer to replace the filter more regularly or to fill a container and let the chlorine dissipate. Customer was satisfied with the results and was very happy with our customer service.

Water Quality Laboratory Audit: Our audit went very well. There are some changes being made to our SOP manual and practices, but overall, we received high marks.

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4. Personnel:

Staffing Levels:

a. Water Quality: Full operational staff.

b. Distribution System Operator: Full operational staff.

c. North Water: Full operational staff.

d. North Wastewater: Full operational staff.

e. South Water: Full operational staff.

f. South Wastewater: Full operational staff.

g. Environmental Compliance & Pretreatment: Full operational staff.

h. Plant & Pump Station Maintenance: Full operational staff.

i. Treatment Intern: This position was not filled this year due to lack of applications. We would like to explore broadening this position into partnering with HCHS as a mentoring and career‐prep opportunity.

5. Projects:

Plant Beautification Efforts: This effort is continuing throughout the plants on an ongoing basis.

B. North WTP:

1. Treatment Quality:

Water Quality Goals: All regulatory goals were met.

2. Operations & Projects:

Treatment Challenges: Heavy rains have caused river turbidities to be higher than average for this time of year. While this leads to increased chemical usage, it also helps to reduce the chance of algae blooms on the river and taste/odor complaints in the system.

Plant Optimization: Plant staff has continued to work to extend the hours we get out of our filters. Monitoring output water quality has shown that we may be near the optimal range for this time of year. This will cut down on process water being lost.

Staff has recently done a large amount of jar testing on different Powdered Activated Carbons, which were recently submitted for bid. These tests should be instrumental in finding the most cost‐effective carbon for our treatment process.

Maintenance: Work is on‐going on numerous items that require staff attention. Good progress continues to be made.

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3. Average Water Treated and Water Pumped Data Trend:

Note: These values are current readings, but the actual billed readings are approximately 45 days behind.

C. North WWTP:


Effluent Quality: All regulatory treatment goals were met. Effluent quality continues to be very good.

Biosolids Quality & Hauling: Hazex’s hauling remains satisfactory. A quarterly meeting was held with them last week to meet their new trucking manager. It was stressed at this time how important it is for us that they not fall behind. They agreed.

Reports: All reports have been submitted.


Permit Update: As reported in the GM Report, we are near having a renewed discharge permit. It went out for public comment last week. Maintenance: Minor airline work has cropped up for #3 basin.

Once #2 basin work is finished that basin will be available as needed.

Clarifier #2 actuator needs to be adjusted.

Diffuser systems in digesters 1 & 4 are on tap for repairs once the weather cools a bit. There needs to be protection from the sunlight, but there is also no air flow in these tanks for workers.

Drying Beds: Sludge and material has been removed from beds 3 – 4. A crew has begun work on the new drainage system for these drybeds. Rehab of #3 & 4 began last week.

UV System: Overall the system is working as designed and we have been using minimum power even due to hot weather. There is some increase in E. coli likely due to excessive algae. The new bar screen will remove the large debris.

Clarifier Rehab: Automation completion is scheduled for this week. Repairs to a few concrete cracks in #2 unit are complete; we anticipate having these units in service by next week.

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D. South WTP:


Water Quality Goals: All monthly regulatory goals were met.


Treatment Challenges: Bid invitations were sent out for Powdered Activated Carbon. As at the NWTP, jar testing is being conducted to find the most cost‐effective carbon for each plant.

Water Leak: Evidence of a leak has not been found. However, usage is still up and pressure remains the same. Beech Grove did report that there was more usage at the coal mine, and that the chicken houses were using cooling pads for the chickens, which means that there could be actual usage that accounts for much of the pressure issues. We will continue to monitor the situation.

Maintenance: It has been a busy month on the maintenance side of things. Several damaging storms rolled through, causing power surges and outages.

3. Average Water Treated and Water Pumped Data Trend:

Note: These values are current readings, but the actual billed readings are approximately 45 days behind.

E. South WWTP:


Effluent Quality: All treatment goals were met. The newest basin remains functioning extremely well.

Biosolids Quality: Quality continues to improve, but we need to move more, and Hazex has been requested to provide two trailers a day, as they can.


Personnel: We have one operator planning to take a certification exam this month.

Aeration Basin Repairs: Construction on the rehab of #5 Basin is progressing very well. It was reported last month that there might be the possibility of taking Basin #6 out of service early to allow for a quicker project completion date. We believe that the organic loading is too heavy right

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now to risk operating on just two basins. Weather continues to cause delays, and it doesn’t seem likely that this would have any positive impact on the completion date.

Sludge Hauling: This has been a consistent month on both our side and Hazex’s.

F. Plant & Pump Station Maintenance:

1. CSO Basin: Waiting on some extended dry weather to install the pumps and lift rails.

2. NWTP Backwash Actuator: The actuator that controls the backwash volume flow malfunctioned this past month. The gear box has been removed, and we are in the process of getting quotes for replacement. This is a large actuator, so it will not be a small cost.

3. Admin Building Fountain: The pump has been installed, and the fountain is working. The lighting has also been repaired. The metal weirs will be repaired and repainted when the fountain is taken out of service for the season.

4. Pump Station Control Panels: With the help of the Automation Department, an effort is underway to begin replacing our pump station control panels. Some of these panels are in poor shape and contain a lot of extraneous wiring, switches, etc. from past years and different control panel builders. The new panels are going to be very simple inside. This will not only improve the aesthetic quality at some of the stations but will also help in troubleshooting when there are problems. (No Change)

5. North Pump Stations: We are in the process of evaluating each station so that levels can be adjusted to operate more efficiently. This is an ongoing process. Carriage Park PS, Hazex PS, Henderson Apts PS, Green Valley PS, Golden Corral PS, Spruce Drive PS, The Hills PS, Methodist Hospital PS, and Bob Romans PS were adjusted this past month.

6. North & South Water Plants: Backup motors and gearboxes for all of the chemical tank mixers have been purchased. When these mixers go down, the ability to feed these chemicals also goes down, so they are critical to operations. Backup solenoids and valves are being evaluated for backup purchase as well.

7. International Paper Pump Station: We had a motor/pump starter and bypass valve fail at this station. Galloway was called out, and they completely re‐worked the panel, replaced both starters, and had us back in service within the day.

8. NWWTP Grit System: There has been a problem with the grit unit clogging the re‐use water supply line. A bypass line has been fabricated, and the discharge volume has been increased to see if this corrects the problem.

9. SWTP Low Service Pump #1: This pump has died, but we got our money’s worth out of it; it was an original install. The pump end, shafts, bearings, and stuffing box have all been replaced. We will look at Pump #2 next.

G. Pretreatment Program & FOG Services:

1. Industrial Pretreatment Activity: Industrial User Permit applications have been sent to each Industry. Applications will be reviewed and new 2018‐2019 permits will be issued August 1, 2018.

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2. Violations: International Paper received a Letter of Violation for discharging process wastewater with a pH of 5.4. They are permitted to discharge a minimum Ph of 5.5. The Environmental Manager for International Paper investigated the event and found the data was entered incorrectly on the spreadsheet submitted to HWU. International Paper is in compliance, and the mistake has been documented for Division of Water Inspections.

3. FOG Program Permit Applications: Non‐Compliance Notifications have been given out to Firedome Pizza and Wings, The Dairette Grill, Heady’s Pizza, Penn Station East Coast Subs, and Bliss Artisan for failure to submit the proper paperwork required in their FOG permits.

4. FOG Program Impact: We’ve heard from several on our collections crew staff that they are seeing less call‐outs due to grease in areas where there used to be problems and consistent calls. We’re working on gathering data together through Cityworks (or beginning to make it easier to do so) that will put metrics to this program.

H. Distribution Operator Update:

Cross Connection and Backflow Prevention: The Distribution Operator is working on a draft policy for HWU’s Cross Connection and Backflow Prevention Program. This will largely be similar to the FOG policy where those with backflow preventers are required to maintain annual inspection and maintenance records.

Grantwood Hills Subdivision Water Quality: It has been a persistent problem keeping good water quality and turnover in the back of this subdivision. We are currently investigating the reasons for this as well as potential solutions. (No Change)

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FIELD OPERATIONS REPORT

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Field Operations Report 07‐16‐2018

General Operations:

A. Overview:

1. Operational:

Audubon Metals Sewer Project: Project complete. Storm water work along 4th Street near Alvasia is complete.

2. Personnel:

We have hired two new Utility System Worker I’s, but actually, they aren’t that new. Jonathon Hollowell worked for us previously and has now returned, and Rick Green, who has been working as an Operator at the North WTP is returning to his previous classification. We welcome them both, and we are now pretty much at full complement.

B. Automation Department:

1. Beacon Meters: (No Change) We are in the process of installing nine Beacon devices on water meters located at Gibbs Die Casting, Inc. Beacon devices attach to the Badger brand of water meters and transmit usage readings every night via cellular communications to a website hosted by Badger. We are provided an account and website access for the Beacon devices that we deploy. This allows us to remotely track daily water usage and to provide that information to customers. Knowing the daily water usage is often beneficial to industries in order to account for process performance and costs. We currently monitor sixteen locations with Beacon devices. The locations include meters at Beech Grove, Brenntag, Henderson County Water District, International Paper, and Tyson. Adding the nine devices at Gibbs will bring the total to twenty‐five.

2. SWWTP Automation: We met with J.R. Wauford, Inc. on May 5th to discuss the SCADA upgrade project for the SWWTP. Wauford has created a set of plans and specifications. We will take bids on equipment but will install and integrate in‐house. The project will include a new influent flowmeter and dozens of process control devices to be located at various points throughout the plant.

3. Fair Street Booster Station: (No Change) The master control center and SCADA for this station will be relocated to a building or free‐standing set of panels, about 35 feet from the current position so that we can remove the existing building that is blocking access to the part of Canoe Creek Subdivision that will soon be developed. This project will require a new electrical meter service, a master control center with motor starters, and possibly a new building to house the controls. Electrical service for this project will be bid, as we estimate it to be close to $20,000.

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C. SOC General / HWU General:

1. CSO Consent Judgment / Kentucky‐Tennessee Water Environment Association Award

Henderson’s CSO Consent Judgment was officially terminated at a ceremony in Frankfort on July 11, 2018. The Consent Judgment was ordered on August 30, 2007, about eleven years ago.

An important part of our CSO Consent Judgment requirements was the creation and implementation of a Long Term Control Plan (LTCP). The LTCP is a series of major projects that help with CSO overflow abatement. We received an Outstanding Overflow Abatement Award for our CSO Long Term Control Plan by the Kentucky/Tennessee Water Environment Association. The award was presented at a banquet on July 10, 2018, and was accepted by Tom Williams.

2. Flexibility Is Our Nature

One of our greatest assets is our ability to adapt and adjust to change.

In late June and July, the System Operations Center staff was hit with medical and other emergencies. Essential people were off work for, in some cases, an extended period of time. Other staff members immediately stepped up to the plate and, as the saying goes, “Got ’er done.”

Of course, that is just one example of the teamwork that routinely takes place throughout all of Henderson Water Utility.

In the coming months and years, as seasoned employees retire or otherwise move on, HWU staff will continue to fill voids and shift responsibility to keep our utility running smoothly.

We’re in good hands.

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D. Customer Service: Customer Service Calls and Work Orders (NORTH):

1. The tabulation below shows calls we responded to last month. This tabulation by no means represents all of the calls that came in. We provided the following services:

Water Line and Service Maintenance Qty. Sewer Line and Service Maintenance Qty. Water Main Repairs 4 Sewer Main Repairs 3 Water Service Line Repairs 3 Sewer Service Line Repairs 0 Water Meter Inspection 36 Sewer Manhole Repairs 2 Water Meter Changes 12 Sewer Main Cleaning 2 Water Meter Repair 5 Sewer Main Grease Removal 0 Water Meter Disconnected 0 Sewer Overflow Calls 1 Water Meter Reposition 1 Sewer Backup Calls 4 Water Meter Box Cleaned 3 Sewer Blocked Calls 0 Water Meter Locate 1 Sewer Odor Calls 1 Water Meter Leak Detection 6 Sewer Service Line Locates 0 Water Meter Consumption Check 8 Fire Hydrant Repairs 2 New Services Qty. Low Water Pressure Calls 4 Water Taps 2 Water Leak Calls 12 Sewer Taps 0 Water Quality Calls 4 Sewer Tap Locates 3 No Water Calls 1 Water Meter Installation 5 Turn Water Off/On Calls 11 Install Temporary Hydrants 4 Miscellaneous Services Qty. Sink Hole Calls 9 Stormwater Maintenance Qty. Inspect Misc. Items 36 Storm line Repairs 2 Smoke Test Lines 1 Storm Intake Repairs 3 Camera Inspect Lines 5 Stormwater Flooding Calls 6 Clean/Unblock Intakes 3 Regulatory Issues Qty. Downspout Removal Letters Mailed 1 Pump Station Maintenance Qty. Downspout Letters Mailed To Date 228 Pump Station Repairs 1 Downspout Removal Requests: 222 Pump Station Inspections 2 Total Complied and Re‐inspected Pump Station Cleaning 9 Pump Station Maintenance 25

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2. Rolling 2‐Year History of Monthly HWU Service Calls.

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E. Collection System:

We have just had normal day to day maintenance.

F. Distribution System:

The relocation of the 8” water main on Wathen Ln. has begun. The contractor is making a 10” bore with HDPE pipe under the ditch on 7‐12‐2018 and should complete this part the same day. Our crews will then tie the line back into our main and get it disinfected. Customers should see no change in service while we are doing this.

G. Stormwater Projects:

We are replacing approximately 80 feet of stormwater main on Helm St.

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H. Stormwater Phase II:

KSA Annual Conference:

KSA, the Kentucky Stormwater Association, held its Annual Conference in Owensboro on June 27‐29, 2018. There were eight plenary sessions where all of the attendees met in one large conference room. Additionally, there were approximately two dozen breakout sessions, where attendees could pick and choose a track that meets their interests and needs.

HWU staff attended and participated in the conference and picked up a lot of good information.

We will be working with John Baker to transition his MS4 responsibilities to somebody, before he retires. Open question at this point whom that will be, but it likely will be several people.

I. Information Technology Department:

Cityworks 15.2 Upgrade (Project Closed): We went live with Cityworks 15.2 on Tuesday 6/12/2018, and it has been running fine. During early project planning, we reached out to the vendor who originally installed Cityworks for us and requested a proposal for their services. Their initial proposal was over $15,000 ($15,800 for upgrade and post go‐live support, and $5,400 T&M for Reports). HWU IT and GIS staff, with assistance from Cityworks, performed the upgrade for $1,450 in services. The total cost for the project, including required database software upgrade, was $6,488.

I am working with John Baker to transition his social media responsibilities to IT before he retires.

J. GIS Department:

No report this month.

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Henderson Water UtilityJune

2018 Door Tags

Date Crew # Address Comments Jamie's Comments

6/25/2018 135 2006 Magnolia Ave They did replace my Peony Bush but never came back and seeded the yard. Kevin Tapp and that crew are great. Couldn't ask for a better bunch of guys. Keep up the Great Work!

A crew is scheduled to seed this property on Monday, July 16, 2018.

03 Service Request Tags Given Out00 Work Order Tags Given Out01 Door Tags Returned

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1

Roberts, Kevin

To: Roberts, KevinSubject: RE: Water Additives?

From: Roberts, Kevin Sent: Friday, July 13, 2018 11:22 AM To: sumnerpip <[email protected]> Subject: RE: Water Additives? Yes ma’am! And I hope it does help. Thank you for the compliments. We strive to provide the very best quality water that we can and appreciate it when we hear of where we are both good at doing so, and bad even, so that we can address it.

From: sumnerpip [mailto:[email protected]] Sent: Friday, July 13, 2018 11:17 AM To: Roberts, Kevin <[email protected]> Subject: RE: Water Additives? Thank you for your prompt reply. I'll show this to the vet and see if it helps. And by the way, I think our water is perfect!! Not too hard or soft, and mine (almost) always tastes good. I've heard complaints from others, mostly county customers. We're so fortunate here with our water, and all our municipal utilities for that matter. If my vet gives me any answers I will let you know so you can let other customers know. Thanks again. Sent from my Verizon, Samsung Galaxy smartphone

‐‐‐‐‐‐‐‐ Original message ‐‐‐‐‐‐‐‐ From: "Roberts, Kevin" <[email protected]> Date: 7/13/18 10:46 AM (GMT‐06:00) To: Robin Sumner <[email protected]> Cc: "King, Heather" <[email protected]> Subject: RE: Water Additives?

Hi Ms. Sumner,

Thank you for taking the time to ask about us about your concern. We are always glad to help in any way that we can.

In regards to the addition of treatment chemicals during the warmer months, the only chemical added is Powdered Activated Carbon. We inject this at the front of the treatment process to mitigate as much organic content as we can. Exactly how this helps us is not as important for you to know as it is that nearly 100% of the carbon is used up and filtered out prior to entering the water system that supplies our customers. But, even if it did, carbon is so inert that I don’t believe that it would be the cause of what you’re observing and experiencing.

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2

When the water heats up, it requires a larger amount of chemicals. Kind of like, the dirtier your hands, the more soap you need to wash them clean. Our chemical feed rates are based on water quality standards at the plant and in the system, so that quality is consistently maintained. In other words, we strive to maintain a certain disinfection level (let’s say a level of “1.5”) in our system to serve as a buffer against contamination. It takes a certain amount of disinfection chemical to maintain this. As the water warms up, microbial presence and contamination risk rises, which in turn lowers our 1.5 level. So, we increase the disinfection chemical feed at the plant so as to raise us back up to 1.5

So, while we don’t add any additional (new) chemicals during the warmer months, we often must increase the chemicals we are already using to maintain the water quality in the system.

This might produce what you’re experiencing. Some animals and people are more sensitive to these changes than others. I haven’t heard of anyone , or any animals, having this reaction from ingesting the water though. Of course, you could always try your dogs on bottled water and see if they still experience the problems, but that still may not be as conclusive as you’d like. I’ve had the same problem with my own pets before, where I was told that it was the shampoo, or was bathing them too often, or not often enough, and any number of other things.

I am sorry that your dogs are having a difficult time during these dog days of summer! I hope you’re able to figure this out a little more conclusively. If you have any further questions, please don’t hesitate to contact us. And if you would like to have your water specifically analyzed, just let us know. Someone will come right out, pull a sample, and run some analyses on it. The Water Quality Specialist will take all the time you need to explain the results and answer any other questions you have.

Thank you for contacting us!

Kevin M. Roberts

Director of Plant Operations – Henderson Water Utility 230 N. Alvasia Street Henderson, KY 42420 [email protected] www.hkywater.org 270.869.6616 – Office 270.823.2719 – Cell 270.826.9343 – Fax

From: Robin Sumner [mailto:[email protected]] Sent: Friday, July 13, 2018 10:01 AM To: WaterQualityQuestions <[email protected]> Subject: Water Additives?

I'm asking about any water additives that may have started in April or early May, probably each year. One day during the early spring months both of my dogs, on the exact same day, started having very itchy skin. One of my dogs, a Corgi, seems to be much worse than the other, and it is so bad this year that I've decided to start looking into the cause. I've also noticed that my skin also itches basically all over, but not nearly as bad as the dogs have it. They both stop itching in late fall and throughout the winter months.

My second or third thought (my first was a grass-type allergy) is that since it started on the same day for both of them, is it possible there has been something added to our drinking water for whatever reason, to keep algae down, to soften/harden water, whatever the need - I'm far from a water

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3

expert. My husband drinks very little water; gets water for coffee and maybe a drink mix like lemonade, but not much. I drink a lot of instant tea at home made with our water; otherwise I also don't drink a lot of water unless it's bottled water at work.

I'm taking my Corgi to the vet tomorrow for a cortisone shot to help (it always helps - we've had this problem for several years) and I would like to give this information to my vet, if there is anything I can tell her. Knowing if and what is added to the dogs' drinking water might be helpful to coming up with a prevention for them. And if that means bottled water, that's okay too. I'd just like to know if there is something added to the water in the warm months.

Thank you for your time and I hope to hear back from you very soon. My poor dog has so many raw spots from biting and scratching that I want to be able to give him some permanent relief.

Thanks,

Robin Sumner

964 Villagebrook Drive

270-748-3064

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ENGINEERING REPORT

37

Engineering Report

Engineering Report 16 July 2018

16 July 2018

1. South Wastewater Treatment Plant – Repair and Rehab of Extended Aeration Basins:

The first basin (#4) is in service and performing well. Work is progressing on Basin 5, and has picked up, due to better weather. Concrete pour for the bottom was completed last week; due to the extremely hot weather, was done last Thursday night, to control curing and possible cracking in the slab. Temps above 90 degrees can lead to rapid initial and final setting, and weaker concrete at the top of the slab. We took precautions to minimize those effects.

We’re about 340 days into a one-year contract. There have been a number of legitimate weather days, above what would be normal for a year, that we will be discussing with the Contractor, Mark Bowling, as we bring this project closer to completion.

SCADA/Grant Project: The grant we received from Delta Regional Authority ($ 285k) will not be used on the basins proper, but we have identified other needs at the plant that were not addressed in the rush to get the basin project underway. This will include reworking the existing belt presses, which we can do in the range of $50k (versus $ 250k for a new press), and some work related to automation (flow meters, other monitoring equipment) which will make the plant easier to operate. Plans are complete, and we received one bid on the equipment ($ 129,210.41); bids on electrical installation were received on June 27th, but only one bid was received so we are rebidding on the 25th. Sludge press renovation bids received on July 11th, and the entire package will be brought to you for action at our next meeting.

2. Atkinson Park Sewershed Study - Myrene Drive Sewer Pump Station: (no change since last report) Phased in five sections, design of these projects is on hold. We have several easements appraised and have six signed on the Myrene FM portion of the work, and two on the Atkinson Park FM, from the Hospital, just north of 14th Street. Easement offers on the North Elm Street portion of the Myrene force main segment have all been signed.

The construction of a revamped Myrene Drive pump station will hopefully be bid in early 2019. This will require temporary easements from surrounding property owners, and we have met with all those and are adjusting our plans based on their concerns.

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We have received the KDOW construction permit for the Spruce Drive portion of the project (which eliminates one pump station). This will not be bid until 2020 at the earliest. All easements for the Spruce Drive segment have been signed and recorded.

3. North Wastewater Treatment Plant – Clarifier Repairs: This project has included replacement of the metal rotating mechanisms on the two older clarifier units, as well as new weirs and scum boxes. Mark Bowling (MBI) is the contractor, and the work is now complete, except for the automation/SCADA portion, which should be done shortly.

This project had a scheduled completion date of 28 September 2017, and ran considerably beyond that, on the order of 39 weeks. Liquidated damages specified in the contract are $ 1,000 per week, so this will amount to a substantial penalty. We are in discussion with the Contractor on this matter and will report our resolution to you.

4. Countryview Subdivision Stormwater Project: Some tree clearing adjacent to the subdivision has been performed, along with ditch construction on the outfall for the first phase. Have received a Stream Construction Permit as required by KDOW (project area is in the flood plain), the local Flood Plain permit that parallels the State permit, and have also received our permit from the Corps of Engineers for the outfalls to Canoe Creek. A lightly attended public informational meeting was held on April 12th.

Bids on the first big phase are due on 18 July, and we’ll bring award of a contract to you at the August Board meeting.

5. South Main Street Water Transmission Main – Hancock to Yeaman: Strand Associates has prepared plans for this project, and we held a review meeting on 17 October. This project is estimated at $ 1.5 million and will be critical if a large water user locates in the South/College pressure zone (Riverport/College area). At this point, funds for this project are planned for FY 2020, and our model shows it to be a priority, even without new industrial use in the South/College pressure zone. We will be wrapping up the planning phase shortly.

6. Hackberry Neighborhood Water Main – Drury Ln to Yeaman Avenue: A remaining portion of this work that we are adding to the end of the project is to tie the S. Main area to a main that’s in an alley between Main and Green Streets.

There is another portion of this project, which runs along Drury Lane and ties into an existing main at the North WWTP, which we may do later if we decide to move the Hackberry area to the College pressure zone.

7. South Elm Street (Jefferson to Washington) Water Line: This project will eventually resume with work on the two blocks that run from Clay to Washington, where we will be able to connect to a 20” line laid during the Downtown project. We have retired a problematic old 4” line in Green Street that dead ended at Norris Lane, which required work in the

39


middle of Green Street to switch services over to another line. This was an appropriate time to perform that work, as KYTC plans to repave Green Street through town this summer, so patching we do will be overlaid then. We hope to restart the work along S. Elm soon, as the Hackberry and College projects are now (almost) complete.

8. Community College Water Line: Project to loop existing water mains on the Henderson Community College campus, retiring some very old water lines, and improving water quality in four buildings, is complete.

We have collected data for this line’s location, as well as the existing line that runs around the Preston Arts Center, and have enlisted Branson Surveys to prepare an easement document that will dedicate those lines to us, clearing up confusion about ownership of some water mains that we have been maintaining, but to which we don’t have clear title.

9. South Water Treatment Plant – Backwash Pump System: Operational review of the South WTP shows that the filters undergo backwash for extended periods, which reduces the production capacity of the plant. In a nutshell, the filters were designed to use clean water from the other filters to perform the backwash function. Since all the filters are at the same elevation, there is not sufficient “head” for the filters to quickly and efficiently clean themselves using this system.

To speed up the backwash process, we are looking at a pumped backwash system that will provide more head differential, speeding the process and allowing the filters to be returned to service much faster. J.R. Wauford has been retained to perform the preliminary engineering, and we think this project will cost around $ 400,000. May be a candidate project for another grant application or could be folded into the replacement of the Clearwell.

10. Emergency Generators: (no change since last report) Kickoff of this project occurred on 2 June 2017. Siting of generators has been reviewed by Plant Operators and comments have been resubmitted to the engineering firm. Cost estimates for each location have being developed, and we are considering prioritization of the sub-projects.

11. Riverdale Court: (no change since last report) Investigation in this area off South Main Street revealed a previously unknown storm sewer pipe that ties into the Downtown Interceptor near the River. Taking that line off the Interceptor and running a separated storm line to the River will allow about 2 acres of area to be taken off the combined system, at relatively low cost. Requires one easement, which we have not acquired.

12. Frontier Tank: We’ve noticed a problem with a portion of the paint on the Frontier Tank. Near the top “knuckle” of the tank, there is an area where roller marks are visible, and the paint is discolored. Repairs/repainting of a portion of the tank are covered by the contractor’s warranty. The Contractor has repeatedly balked at doing this, but we have finally reached agreement on a plan and they were early in July to do this remedial work, which is stretching into this week.

13. College Tank: (Project Complete) Remedial work has finally been completed and the final pay estimate on this project processed. We assessed liquidated damages in the amount of $ 3,940, which covered our costs of additional inspection trips by a NACE inspector; that seemed fair and was accepted by the contractor.

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14. Wathen Lane Bridge – Water Line Relocation: This project will replace a substandard bridge north of Wolf Hills Boulevard with a large box culvert. The construction requires us to move an 8” water line, and only a portion of that cost will be reimbursed. We engaged a subcontractor, A & S Services, to do a directional drill to reduce costs and disturbance in the stream, and that work was completed last week. Their pipe string is shown at right. We will now make connections on each end using traditional cut-and-cover methods. That work should be done shortly.

15. Buildings at the SOC (Painting and Possible Construction): The metal storage, garage and crew buildings at the Systems Operation Center are getting in pretty poor shape, with a lot of rusted siding, and now that the City has cleared the lots along the Second Street frontage, we are now visible from the main drag. Bids on painting of the metal surfaces are due in a few days and will be brought to you for action in August.

16. North Water Treatment Plant Roof: The last remaining original roof surface on the North WTP main building is on the high, three-story section. This was constructed around 1962, so we’ve gotten our money’s worth out of it, but judging from the pails on the third floor, it needs to be replaced. We prepared specs and plans internally, it was bid on July 11th, and we didn’t receive any responses, so we are looking at our options to just contact vendors directly and get pricing.

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HUMAN RESOURCE & SAFETY REPORT

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Incident Rates HWU Change 2012

NAICS 2213 Total Recordable Rate 2.59 - 0.77 2.8 DART Incident Rate 2.59 - 0.26 1.4 DAFW Rate 2.59 -0.52 0.8 Trans / Restrict. Rate 2.59 0.00 0.6

HWU Human Resources Summary: July 16, 2018

Staffing Levels:

1. Director of Field Operations [1 position]: direction of position in discussion

2. Utility System Worker I [1 position]: 1 hired on 7/2/18; recommendation received on 2nd applicant

3. Utility System Worker II [no vacancy]: internal exam could not be given on March 15th, waiting on department on how to proceed

4. Crew Leader [1 position]: no request for action

5. Maintenance Welder [1 position]: no request for action

6. Construction Inspector [1 position]: no request for action

7. SOC – Seasonal Worker [3 positions]: 4 staffing agency working in this position

8. Treatment Plants – Seasonal Worker [3 positions]: no request for action

9. Seasonal Treatment Intern [1 position]: no request for action

Safety Report (as of 6/30/2018):

HWU Change

Hours Worked 77,239 + 12,228 Total Cases 1 -1 Days Away/Restricted Time Cases 1 +1 Days Away From Work Cases 1 +1 Actual # Days Away From Work 27 +27 Transfer/Restricted Cases 1 +1 Actual #Days Restricted Duty 0 -51

2012 NAICS is the classification for Utilities: Water, Sewage, and other systems DART = Days Away, Restricted, or Transferred DAFW = Days Away From Work How incident rates are calculated: [(# Cases) x 200,000] / Employee Hours Worked Change data compared to data at the end of the previous month.

Junes Fixed Facility Audits were conducted at HWU Administration Building and Systems

Operations Center No significant issues were noted in the Administration Building. At SOC there is a major issue

with the fueling station either lacking proper signage or lacking an emergency shut off switch Also electrical extension cord being used in place of a permanent receptacle in a wash bay.

One Lost Time accident in June.

Other:

Upcoming City-wide Events:

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GENERAL MANAGER’S REPORT

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General Manager Report

General Manager Report 16 July 2018

16 July 2018

Regulatory Issues

The motion for LTCP/CJ Termination, along with an Agreed Order implementing the motion were processed by our Board in February and then endorsed by the City and forwarded back to Frankfort for final action. We received the final order in June, City Attorney Dawn Kelsey signed and returned it, and at a hearing in Franklin Circuit Court on 11 July, the order was signed by Judge Wingate, formally ending the Consent Judgement. This is a big deal.

The draft KPDES Permit for our North Wastewater Treatment Plant has been published for public comment by KDOW. We have had our consultants review the draft, and it includes everything that we asked for during the nearly 2 years we’ve been talking to KDOW about how the permit would be structured. This would not have happened without the assistance we received from our consultant on the long LTPC/Consent Judgement process, Strand Associates. It matters who you bring to the table with you, in these negotiations. This is another big deal.

We received an award from the Kentucky – Tennessee Water Environment Federation for the “Outstanding Overflow Abatement” project in these two states, for our completion of the Long-Term Control Plan and the pending termination of our Consent Judgement. Was presented at the Water Professionals Conference in Nashville, on July 10th.

Technical Standards Manual for Wastewater and Pump Station Facilities

We’ve been working internally for about three years to revise and update our Technical Standards for Water, Wastewater and Stormwater, and you adopted changes to the Potable Water Manual in June 2016. Revision of the Wastewater & Pump Station Manual was approved by our Board last month, and by the Planning Commission on 3 July.

This represents the bulk of our engineering and construction standards, with only the Stormwater Manual remaining. That’s next in the queue. This has been a hard slog, but worth the effort, as the updated documents reflect our current practice, and act as a guide for developers and engineers who work on additions to our systems.

Collection of Past Due Charges

We have a residential customer who has fallen far behind on payment of water and wastewater charges, and who has ignored our attempts to negotiate a repayment schedule. I authorized shutting off this water service on 24 May, and we pulled the meter on 4 June. Eric has now filed an action in Circuit Court to recover the unpaid balance for water/wastewater, in an amount of $ 32,243.66.

City of Henderson – Community Development Projects

We have received a request from the new City Manager to waive water and sewer tap fees for two City community development projects, at 513 S. Ingram Street and 39 Meadow Street. The total fees waived are two times $ 2,195 ($ 1,040 water/$ 1,155 wastewater) for a set of normal residential taps.

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Strategic Plan

Every year about this time, we talk about implementation of the updated Capital Improvement Program and Strategic Plan that spells out our projects for the next 10 years, and how it informs our spending decisions in the short term, over the next 2 to 3 years. Below is my attempt to bring that 10-year view into better focus for the next three fiscal cycles.

This year, we’ve allocated quite a bit of our new Capital spending to projects that are already started, either due to overruns, or because we knew that some expenditures from 2017-18 projects would be delayed and not actually incurred until the 2018-2019 FY (the biggest of these is the SWWTP Basins Project).

So first, here’s a rundown on money already dedicated from the $ 3.0 million committed to Capital spending, in the new budget year.

2018 - 2019 Fiscal Year – Pre-Allocated per Adopted Budget

Completion of the SWWTP Basins project $ 1,144,351 Construction Atkinson Park Sewershed 50,000 Easement Costs Old Corydon Road Sewer 11,500 Construction South WTP – Backwash Pump 50,000 Design Miscellaneous Stormwater Projects 75,000 Construction Vac Truck 34,500 1st year lease payment Sub-Total $ 1,365,351 Those budget allocations leave $ 1,634,649 from the 2018-2019 Capital Budget to spend on new projects. Here’s a tentative Three-Year Plan:

2018 - 2019 Fiscal Year (started 1 July)

Wathen Lane Bridge Project – Water Main Relocation 20,000 (net of KYTC Funding) 4th & Alvasia Stormwater – Retroactively approved 46,000 In-house Maint/Const North WWTP Gate 11,000 South WWTP – Belt Press Renovation portion 180,000 (net of DRA Grant) North WTP – Roof Replacement 25,000 SOC – Painting Storage Buildings 50,000 Vine Street Tank – Water Quality Monitoring Equipment 9,500 Old Madisonville Rd – Water Line Creek Crossing 40,000 South Elm Street Water Line – Washington to Clay 100,000 Additional Small Project Construction Services 75,000 Additional Comanche Drive Sewer Lining 50,000 Sewer Camera Equipment 38,000 Myrene Drive Sewer Pump Station 700,000 Sub-Total $ 1,344,500 The four projects above the line were approved last month or should be approved at this meeting.

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This plan would leave $ 290,149 unallocated, one month into the 2018-2019 fiscal year, if we started all these projects right now.

We are not going to do that but will spread these planned expenditures out over the next 8 or 9 months.

The following two fiscal years look like this:

2019 - 2020 Fiscal Year

South Main Street Water Line – Drury to Yeaman 50,000 Completion Paint and Rehab Green River Road Water Tank 400,000 South Main Street Water Main – Hancock to Yeaman 1,500,000 Small Project Construction Services 150,000 Myrene Drive PS – Force Main Replacement 400,000 Vac Truck 34,500 lease payment Countryview Storm Sewer – Phase II 200,000 Sub-Total $ 2,734,500 2020 - 2021 Fiscal Year

Paint and Rehab the Four-Star Tank 450,000 South Water Treatment Plant – Clearwell (Project 3) 1,100,000 (may be offset by grant) Atkinson Park Sewer Pump Station 600,000 Generators at 5 locations 175,000 Small Project Construction Services 150,000 Vac Truck 34,500 lease payment Countryview Storm Sewer – Phase III 200,000 Sub-Total $ 2,709,500 Our cash flow projections show spending $ 3.0 million in each of these two years, so there is a small cushion included in this plan. History shows, however, that we’ll end up spending everything we allocate; there are just many, many needs. The spirit of Rodney Michael, if nothing else.

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BUSINESS

Action Report # 2018‐18 – Process Water from Wells – Borax Drive

Property

Action Report # 2018‐19 – SWWTP – Automation and Renovation Project

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EXECUTIVE SESSION

To discuss matter which might lead to the appointment, discipline, or dismissal of an individual employee pursuant to KRS 61.810 (1) (f)

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OTHER BUSINESS

Resolution # 2018‐20 – Recommending Changes to Director

Positions (Walked In)

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HENDERSON WATER AND SEWER COMMISSION RESOLUTION OF THE BOARD OF COMMISSIONERS

Resolution No. 2018 - 20

The following Resolution was duly adopted by the Board of Commissioners of the Henderson

Water & Sewer Commission at a regular meeting held on Monday, 16 July 2018, at which meeting a

quorum was present.

BE IT RESOLVED, that the Henderson Water and Sewer Commission by and through its Board of

Commissioners under the authority granted under Chapter 23 Article II Division 3 Sections 23-36 through

23-41.1 of the City Code of Ordinances hereby adopts a revision to the Schedule of Budgeted positions

that:

1) Eliminates the Director of Field Operations position;

2) Creates a new Director of Operations position; and

3) Creates a new Treatment Manager position to oversee HWU’s four water & wastewater

treatment plant operations.

4) The existing Director of Plant Operations will remain on the roster but will not be filled.

The total number of positions in the HWU Schedule of Budgeted Positions will increase by one,

but the current number of actual employees in all classifications as of the adoption of the HWU Budget

for the 2018-2019 Fiscal Year will remain the same.

A copy of the revised Schedule of Budgeted Positions is attached as Exhibit “A”, and it is

incorporated herein by reference.

The new Schedule of Budgeted positions will become effective upon final approval by the City

Commission and required publication.

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IN WITNESS WHEREOF, having come before the Board of Commissioners on Monday, 16 July 2018,

and upon Motion made by Commissioner ______________, and seconded by Commissioner

_________________, the Board of Commissioners voted as follows:

AYE NAY Commissioner, R. Paul Bird, Jr. _______ _______ Commissioner, George Jones, III _______ _______ Commissioner, John Henderson _______ _______ Commissioner, Gary Jennings _______ _______ Commissioner, Julie Wischer _______ _______

___________________________ Tom Williams, P.E. HWU General Manager

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Location / Department Job Classification FY FY

18-19 18-19As revised

NWTP 01-811Treatment Plant Operator Chief 1 1Water Treatment Operator, II 5 5Water Treatment Operator, I 2 2Water Quality Specialist 2 2

Total 10 10

NWWTP 01-836Treatment Plant Operator Chief 1 1Wastewater Treatment Operator, II 4 4Wastewater Treatment Operator, I 3 3Water Quality Specialist 1 1

Total 9 9

PRE-TREAT 01-837Environmental Compliance & Pretreatment Coordinator 1 1

Total 1 1

SWTP 02-811Treatment Plant Operator Chief 1 1Water Treatment Operator, II 5 5Water Treatment Operator, I 2 2

Total 8 8

SWWTP 02-836Treatment Plant Operator Chief 1 1Wastewater Treatment Operator, II 3 3Wastewater Treatment Operator, I 4 4

Total 8 8

HWU ADMIN 03-803HWU General Manager - Contract Employee 1 1HWU Chief Financial Officer - Contract Employee 1 1HWU Purchasing Manager 1 1Information Technology Manager 1 1Administrative Assistant 1 1Secretary, Senior 1 1

Total 6 6

SOC: ADMIN & ENG 04-861 Director of Field Operations - Contract Employee 1 0

Director of Plant Operations - Will not be Filled 1 1Director of Operations - Contract Employee 0 1HWU Chief Engineer 1 1Treatment Manager 0 1Projects & Compliance Manager 0 0Project Engineer - Contract Employee 1 1HWU Automation Manager 1 1HWU Utility System Superintendent 1 1Distribution System Operator 1 1GIS Manager 1 1GIS Analyst 1 1Purchasing Aide 1 1Receiving/Inventory Clerk 1 1Administrative Assistant 1 1Secretary, Senior (SOC) 1 1Secretary 1 1

Total 14 15

Full Time PositionsBudgeted Positions

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Location / Department Job Classification FY FY

18-19 18-19As revised

Full Time PositionsBudgeted Positions

SOC: DIST - COLLECT- MAINT Utility System Crew Leader 5 5

04-862 Utility System Worker I 9 9Utility System Worker II 5 5Utility System Worker III 6 6Utility System Specialist - Camera Truck Lead 1 1Utility System Specialist 1 1HWU Maintenance Supervisor 1 1HWU Maintenance Technician Sr 1 1HWU Maintenance Technician I 3 3HWU Maintenance Technician II 9 9Utility Locator/Geospatial Technician 1 1

Total 42 42

SOC:AUTOMATION 04-863 HWU Automation Specialist 2 2

Total 2 2

SOC:SUPPORT 04-864 Vehicle Mechanic 1 1

Total 1 1

TOTAL NUMBER OF BUDGETED FULL TIME EMPLOYEES 101 102

NWTP 01-811 HWU Seasonal Positions 1 1NWWTP 01-836 HWU Seasonal Positions 1 1

SWTP 02-811 HWU Seasonal Positions 1 1SWWTP 02-836 HWU Seasonal Positions 1 1

SOC 04-861 Treatment/Engineering Interns - Seasonal 2 2SOC 04-862 HWU Seasonal Positions 4 4

TOTAL BUDGETED PT & SEASONAL EMPLOYEES 10 10

HWU Admin 03-803Commissioners HWU Commissioner 5 5

TOTAL BUDGETED W&S COMMISSIONERS 5 5

116 117

Note: While there are 14 positions total in the Water Treatment Operator I and II classifications, there will never be more than 10 of those positions filled.

While there are 14 positions total in the Wastewater Treatment Operator I and II classifications, there will never be more than 8 of those positions filled.

While there are 13 positions total in the Maintenance Technician I and II, and Sr.classifications, there will never be more than 10 of those positions filled.

While there are a total of 20 positions in the Utility Worker I, II & IIIclassifications, there will never be more than 17 of those positions filled.

TOTAL NUMBER OF BUDGETED HWU EMPLOYEES

Part Time & Seasonal Positions

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