A G E N D A HENDERSON WATER & SEWER COMMISSION

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A G E N D A (REVISED)

HENDERSON WATER & SEWER COMMISSION (270) 826‐2421

September 17, 2018 Monday @ 4:30pm

______________________________________________________________________________ A. ROLL CALL

B. REQUEST TO ADDRESS THE BOARD

C. RECOGNITION FOR 20 YEARS OF SERVICE

John Courtney – Water Treatment Operator ‐ September 23, 1998

D. APPROVAL OF MINUTES

Approval of Minutes from August 20, 2018

E. MONTHLY REPORTS

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

F. BUSINESS

Action Report #2018‐26 – Purchase of Sewer Inspection Camera Action Report #2018‐27 – South Elm Street Water Main Replacement Resolution #2018‐28 – Acceptance of Water Line Improvements –

Henderson Community College Reminder – October meeting date changed to Monday, October 22,

2018

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G. EXECUTIVE SESSION – Requested

To discuss matter regarding future acquisition or sale of real property pursuant to KRS 61.810 (1) (b)

To discuss matter regarding proposed or pending litigation pursuant to KRS 61.810 (1) (c)

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

F. BUSINESS (Cont.)

Resolution #2018‐29 – Annual Merit Adjustment for General Manager

REQUEST TO ADDRESS THE BOARD

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RECOGNITION FOR 20 YEARS OF SERVICE

John Courtney – Water Treatment Operator (September 23, 1998)

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ACTION MINUTES OF MEETING August 20, 2018

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ACTION MINUTES AUGUST 20, 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, and Julie Wischer. Commissioner Gary Jennings was unable to attend the meeting. General Manager, Tom Williams and Eric Shappell, Attorney were also present. Other staff members present were Kevin Roberts, Todd Bowley, Tim Fischbeck, Bart Boles, and Patty Brown Also in attendance were Mayor Steve Austin, City Manager William “Buzzy” Newman, and Donna Stinnett, Public Information Officer. No members of the media were present.

B. REQUEST TO ADDRESS THE BOARD ‐ None

C. APPROVAL OF MINUTES

Approval of Minutes from July 16, 2018 After review, motion was made and approved to accept minutes as submitted.

Approval of Minutes from July 19, 2018 Special Called Meeting After review, motion was made and approved to accept minutes as submitted.

D. MONTHLY REPORTS

Financial – Discussed and approved as submitted. Todd Bowley reviewed the financial reports for July with the Board. He reported that this is the first month of the flat fee that was implemented, and this amount is included in the water sales number. Overall the revenue was good, and it was a 3‐payroll month. Several manual accruals take place in July. He noted that there is no gallon volume usage reported because of a problem concerning a meter change and a multiplier issue with a Henderson County Water District meter. This affects usage about 6 months back, so those numbers will need to be revised. The multiplier problem caused only one‐tenth of their usage to be billed. They are the only customers in our system that own their own meters because it was drawn up that way in their contract. Tom Williams stated that there will need to be some negotiations with this contract in the future. Mr. Bowley explained that there was not much activity in the capital expenditures report. Cash was listed at $6.5 million at the end of July. In the liability section the Accrued Pension Liability is now $9.6 million and there is a new GASB implemented Other Post Employment Benefit (OPEB) liability for retiree insurance listed at $3.3 million. Our net position is now a negative $3.3 million. He commented that most of the utility’s assets are in the ground.

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Action Minutes 2018 August 20

There was a positive cash flow this month with not a lot of construction activity and no debt payments. He stated that plans for the fleet cards are moving forward and information is being gathered to complete this process. Preliminary talks have also begun for financing of the Vac Truck and there is a possibility that the rate will be lower than first expected. A formal proposal will be brought before the Board probably next month, so a decision can be made.

Plant Operations – Discussed and approved as submitted. Kevin Roberts reviewed the Plant Operations report with the Board. He informed the board of the Henderson County School System’s lead and copper results which includes the 5 schools that originally tested above the recommended level showing the before flushing and after flushing results, as indicated by the graphs. The results were all very good. These sites will continue to be tested after different scenarios and those results will be reported at next months meeting. Most of the problems were caused by stagnate water since school was not in session. The schools have been notified of how to alleviate this problem by flushing their lines after periods of no school, such as summer, spring and fall breaks. Tom Williams reminded the Board that the lead and copper rule is odd. It is not something that can be regulated by the utility. Notification and sample bottles are given for people testing their homes. The samples are sent off and if there is a problem, the homeowners are responsible for taking care of it.

Field Operations – Discussed and approved as submitted. Kevin Roberts highlighted the completion of HWU’s portion of the Wathen Lane project. Tom Williams asked the board their thoughts on the graphs and charts that are displayed in the Field Operations report each month. The group decided to discontinue some but leave the Service Call Summary, Work Order Opened/Closed, and Unaccounted for Water.

Engineering ‐ Discussed and approved as submitted.

Human Resources & Safety – Discussed and approved as submitted.

Commissioner Paul Bird introduced and welcomed Bart Boles as the new Project Engineer.

General Manager’s – Discussed and approved as submitted.

Tom Williams highlighted some of the regulatory issues that are listed in the report. He explained that there does not seem to be anything that will have a significant financial impact for HWU in the next few years.

o Memorandum of Understanding with City of Henderson Mr. Williams explained that the changes being made to the Memorandum of Understanding included returning the Safety function back to the City and making the Project Engineer position non‐civil service. Motion was made, seconded, and approved to accept the revised Memorandum of Understanding with the City of Henderson. This will be forwarded to the City for their approval also.

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E. BUSINESS

Action Report #2018‐21 – Countryview Stormwater Project – Phase 1B Tom Williams reported that bids were received on August 15th for Phase 1B of the Countryview Stormwater Project. The apparent low bidder was M. Bowling, Inc. at a total cost of $507,459.50. This was above the amount allocated, so after discussion with the contractor for a reduction in scope the low bid price of $452,877 was accepted. A further reduction was arrived at today for $432,000 but will leave the amount at $452,877 to include contingencies. After discussion, motion was made, seconded, and approved to accept Action Report #2018‐21 – Countryview Subdivision Stormwater Project, Phases 1 B awarding low bid to M. Bowling, Inc. as detailed above. Funds will be taken from the Countryview Stormwater Project line in the Capital Budget and the cost of this project is being shared with the City.

Action Report #2018‐22 – Systems Operation Center – Painting of Metal Buildings After discussion, motion was made, seconded, and approved to accept Action Report #2018‐22 for Systems Operation Center – Painting of Metal Buildings awarding the job to low bidder Sam Estes Painting in the amount of $27,212, as detailed in the Action Report. Funds will be taken from the appropriate line item in the 2018‐19 Operating Budget.

Action Report #2018‐23 – Annual Renewal of Maintenance Contracts – Azteca Systems, LLC (Cityworks) After discussion, motion was made, seconded, and approved to accept Action Report #2018‐23 for Annual Renewal of Maintenance Contracts – Azteca Systems, LLC (Cityworks) in the amount of $30,000 for the annual maintenance agreement, as detailed in the Action Report. This cost will be taken from the approved FY 2018‐19 operating budget.

Resolution #2018‐24 – Recommending Revisions to the City Code of Ordinances Chapter 23 After discussion, motion was made by George Jones, seconded by Julie Wischer to approve Resolution #2018‐24 Recommending Revisions to the City Code of Ordinances, Chapter 23 formally adopting the name Henderson Water Utility, (HWU) and changing the project engineer and director of operations positions to non‐civil service positions. Roll Call vote as follows: Commissioner, Paul Bird, AYE; Commissioner, George Jones, AYE; Commissioner, John Henderson, ABSENT; Commissioner, Gary Jennings, ABSENT; Commissioner, Julie Wischer, AYE. Motion carries.

Action Report #2018‐25 – Chemical Powdered Activated Carbon After discussion, motion was made, seconded, and approved to accept Action Report #2018‐25, awarding bid for Powdered Activated Carbon to Calgon Carbon Corporation at the purchase price of 1.075/lb, as detailed in the Action Report. This purchase is included in the operating budget for chemicals.

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Discuss October Meeting Date After discussion, the Board agreed to move the October Board meeting date to October 22, 2018 due to some conflicts with the regular meeting date.

F. EXECUTIVE SESSION – Requested

To Discuss Matters Regarding Future Acquisition or Sale of Real Property Pursuant to KRS 61.810 (1) (b)

Discussion with a Business Entity on the Siting, Retention, Expansion, or Upgrading of a Business Pursuant to KRS 61.810 (1) (g) Motion, was made, seconded, and approved to go into Executive Session to discuss the items listed above. Upon return from Executive Session no further business was discussed. Motion was made, seconded, and approved to Adjourn. The next regularly scheduled meeting will be held on Monday, September 17th, 2018 at 4;30 pm.

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FINANCIAL REPORT

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Financial Summary

For the Two Months Ended August 31, 2018

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August August Year to Date Year to Date Fiscal Year

Actual Budget Actual Budget Budget

OPERATING REVENUES

Water Sales 978,172$ 845,667$ 1,806,803$ 1,648,333$ 8,600,000$

Water Penalties 3,668 2,917 8,707 5,833 35,000

Water Fees 1,800 2,917 2,840 5,833 35,000

Wastewater Services 1,079,921 1,071,833 2,097,133 2,089,167 10,900,000

Wastewater Penalties 3,414 4,208 7,597 8,417 50,500

Wastewater Fees 20,175 22,917 21,430 45,833 275,000

Stormwater Impact Fee 64,734 61,270 126,365 122,540 735,240

Total Operating Revenues 2,151,884 2,011,728 4,070,875 3,925,957 20,630,740

OPERATING EXPENSES

Salaries and Wages 319,941 337,803 803,522 844,507 4,391,435

Payroll Taxes 23,991 24,424 60,037 61,060 317,513

Health Insurance 107,926 125,257 218,538 250,514 1,503,083

Pension Benefits 65,650 67,450 166,807 168,625 876,851

Workers Compensation 5,132 8,621 27,977 34,483 103,450

Other Employee Benefits 106 1,734 1,784 3,469 20,812

Car Allowance 900 1,350 1,800 2,700 16,200

Electricity 133,320 163,930 293,660 327,859 1,967,154

Natural Gas 51 500 301 1,000 29,400

Chemicals 72,628 216,333 183,249 332,667 1,396,000

Inventory Expense 7,912 16,667 16,828 33,333 200,000

Fuel 12,150 10,028 18,218 20,057 120,340

Tools & Small Equipment 3,517 11,304 9,932 22,608 135,650

Safety & Clothing Supplies 566 3,900 2,729 7,800 46,800

Lab Supplies and Testing 27,645 37,614 55,770 75,228 451,366

Clothing/Cleaning Allowance ‐ ‐ ‐ ‐ 27,575

Vehicle Repair 3,618 5,017 8,555 10,033 60,200

Other Equipment Repair 15,334 18,225 28,798 36,450 218,700

Other Structures Repair 11,132 28,175 28,199 56,350 338,100

SCADA Expense 2,402 4,220 2,796 8,439 50,634

Administrative Services 51,667 53,333 103,330 106,667 640,000

Contractual Services 17,007 28,308 31,890 56,615 339,690

Contractual Labor 13,252 10,767 13,252 21,533 129,200

Sludge Hauling and Disposal 46,411 61,667 103,210 123,333 740,000

Professional Services 2,461 3,958 3,961 7,917 47,500

Equipment Rental 7,196 3,762 9,696 7,523 45,140

Audit Expense ‐ ‐ ‐ ‐ 22,000

Public Contributions ‐ 250 ‐ 500 3,000

Insurance 69,350 77,500 70,037 77,500 310,000

Technology Expense 12,016 16,017 22,094 32,034 192,206

Office & Field Supplies 9,399 9,692 14,635 19,383 116,300

Telephone 1,655 6,720 6,211 13,440 80,642

Medical Exams 659 608 659 1,217 7,300

Travel, Training & Education 1,788 4,213 3,967 8,425 50,550

Dues and Subscriptions 2,245 1,566 3,333 3,132 18,789

Advertising and Printing 413 1,704 663 3,408 20,450

Miscellaneous 242 863 442 1,726 10,357

Depreciation 322,500 322,500 645,000 645,000 3,870,000

Total Operating Expenses 1,372,182 1,685,978 2,961,880 3,426,536 18,914,387

Operating Income (Loss) 779,702$ 325,750$ 1,108,995$ 499,421$ 1,716,353$

Henderson Water Utility

Operating Revenues and Expenses Summary


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Operating Revenues

Actual 4,070,875$

Budgeted 3,925,957

Favorable (Unfavorable) Variance 144,918$

Percentage Difference 3.69%

Billable Gallons

Through 8/31/18 450,573,443

Through 8/31/17 448,495,390

Difference 2,078,053


Operating Expenses

Actual 2,961,880$

Budgeted 3,426,536

Favorable (Unfavorable) Variance 464,656$


Breakdown of Volumetric Differential For Year to Date Ended

Aug‐18 Aug‐17 Differential %

Residential 98,974,678 109,197,855 ‐9.36%

Industrial (includes IP) 88,528,461 90,490,317 ‐2.17%

Commercial (includes Tyson & HCWD) 263,070,304 248,807,218 5.73%

Total 450,573,443 448,495,390 0.46%

Notes

Year end closing procedures are ongoing.

Good start to fiscal year thru first two months. Cash flows have been positive as we built cash for November 1

debt service payment. Capital activity has been minimal outside SWWTP Basin project.

Usage trends continue with residential down being offset by Commercial gains.


Variance Analysis


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Henderson Water UtilityCapital Expenditures ReportFor the Two Months Ended August 31, 2018

Report Prior Years FY 2019 Future 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

NWWTP Fencing & Gate 1802‐0035 N/A 19,000 ‐ ‐ 19,000 (4) 18,919 ‐ ‐ 18,919$ SWTP Rehab 1802‐0051 15‐09 860,239 ‐ ‐ 860,239 857,739 ‐ ‐ 857,739

Countryview Subdivision‐ HWU portion 200,000 90,000 ‐ 290,000 61,619 ‐ ‐ 61,619 Countryview Stormwater‐ City Contrib ‐ ‐ ‐ 290,000 (1) 61,619 ‐ ‐ 61,619 Countryview Subdivision Stormwater 1802‐0053 18‐21 200,000 90,000 ‐ 580,000 123,238 ‐ ‐ 123,238

Atkinson Park Watershed 1802‐0058 15‐14 213,500 50,000 ‐ 263,500 241,271 ‐ ‐ 241,271 S Main St Sewer 1802‐0067 16‐15 66,000 ‐ ‐ 66,000 44,458 ‐ ‐ 44,458 S Elm Water Lines 1802‐0069 17‐20 147,225 ‐ ‐ 147,225 135,559 ‐ ‐ 135,559 NWWTP Clarifier Project 1802‐0070 16‐21 781,472 ‐ ‐ 781,472 820,261 ‐ ‐ 820,261 Riverdale Stormwater Project 1802‐0072 GM Rpt 10,000 ‐ ‐ 10,000 9,623 ‐ ‐ 9,623 SWWTP Basin Renovations 1802‐0073 17‐23 2,316,000 1,144,351 ‐ 3,460,351 2,323,477 308,999 308,999 2,632,476 Emergency Generator System 1802‐0075 17‐11 20,000 ‐ ‐ 20,000 11,410 ‐ ‐ 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 72,815 ‐ ‐ 72,815 Hackberry‐ South Main Water Line 1802‐0079 17‐29 235,000 ‐ ‐ 235,000 142,614 1,199 1,199 143,812

HCC Water Line Extension 1802‐0083 18‐03 ‐ ‐ ‐ 100,000 (2) 55,109 5,091 7,688 62,797

SWTP Backwash Pumps Proj 1802‐0084 GM Rpt ‐ ‐ ‐ ‐ 19,270 ‐ ‐ 19,270

Wathen Lane Bridge‐ HWU portion ‐ 20,000 ‐ 20,000 ‐ 8,662 17,087 17,087 Wathen Lane Bridge‐ KCTCS/City Contrib ‐ ‐ ‐ 20,000 (3) ‐ 8,662 17,087 17,087 Wathen Lane Bridge‐ Water Main 1802‐0086 18‐16 ‐ 20,000 ‐ 40,000 ‐ 17,325 34,174 34,174

Briarcliff Storm/Sewer Line 1802‐0087 GM Rpt ‐ ‐ ‐ ‐ ‐ 2,908 2,908 2,908

SWWTP Automation & Press Proj 1802‐0088 18‐19 ‐ 180,000 ‐ 461,000 (4) 25,783 2,000 2,000 27,783

Current Fiscal Year Capital Projects

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Unallocated Capital FundsCurrent Fiscal Year 2019 1,422,295

Total Construction In Progress 4,959,436 2,906,646 ‐ 7,134,787 4,917,244 337,521 356,967 5,274,212

Buildings and Improvements:Previous Fiscal Year Initiated Projects

NWTP Roof Replace 1804‐0018 GM Rpt ‐ 25,000 ‐ 25,000 188 ‐ ‐ 188

Current Fiscal Year Capital ProjectsSOC Admin Office Renovations 1804‐0020 GM Rpt ‐ 10,000 ‐ 10,000 ‐ 557 557 557

Total Buildings and Improvements ‐ 35,000 ‐ 35,000 188 557 557 744

Equipment and Vehicles:Equipment:

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Total Equipment and Vehicles ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Total Capital Expenditures 4,959,436$ 2,941,646$ ‐$ 7,169,787$ 4,917,432$ 338,078$ 357,524$ 5,274,956$

Capital Appropriations

FY 2019 Budgeted 3,000,000$ FY 2018 Carryover (58,354) FY2019 funds allocated to overages for closed FY18 projects (Old Corydon Rd and 4th St & Alvasia Stormwater)

Total Available 2,941,646$

Notes: (1) Project being funded 50% by City of Henderson, no budgeted appropriation. Project total $400,000

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

(3) Project being funded 50% by KCTCS/City of Henderson, no budgeted appropriation. Project total $40,000

(4) Delta Regional Auth Grant of $281,000 awarded towards this project, HWU funds allocated of $180k for total project budget

Budget Cost Activity

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Financial Statements


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ASSETS AND DEFERRED OUTFLOWSCurrent assets:Cash 6,841,274$ Designated Cash for Contractual Adjustments 935,200 Unrestricted Investments 46,067 Restricted Investments ‐ Accounts receivable 1,446,293 Inventories 810,537 Other current assets 54,517

Total current assets 10,133,888

Noncurrent assets:Construction in progress 5,274,956 Utility plant and equipment, net of 77,329,369 accumulated depreciation

Other assets 15,247 Total noncurrent assets 82,619,572

Deferred outflows of resources 4,200,230

Total assets and deferred outflows 96,953,690

LIABILITIES AND DEFERRED INFLOWSCurrent liabilities:Accounts payable 231,856 Retainage payable 222,320 Deposits payable 116,635 Accrued expenses 935,200 Accrued interest payable 290,679 Other accrued liabilities 1,104,381 Current portion of long‐term debt 2,306,297

Total current liabilities 5,207,368

Noncurrent liabilities:Accrued pension liability 9,637,646 Accrued OPEB liability 3,310,089 Long‐term debt 32,726,183

Total noncurrent liabilities 45,673,918

Deferred inflows of resources 1,070,316

Total liabilities and deferred inflows 51,951,602

NET POSITIONNet investment in capital assets 47,587,092 Restricted for debt service ‐ Unrestricted (2,585,004)

Total net position 45,002,088$

Henderson Water UtilityStatement of Net Position

August 31, 2018

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August August Year to Date Year to Date Fiscal Year

Actual Budget Actual Budget Budget

OPERATING REVENUES

Water sales and fees 983,640$ 851,500$ 1,818,350$ 1,660,000$ 8,670,000$

Wastewater services and fees 1,103,510 1,098,958 2,126,160 2,143,417 11,225,500

Stormwater impact fee 64,734 61,270 126,365 122,540 735,240

Total operating revenues 2,151,884 2,011,728 4,070,875 3,925,957 20,630,740

OPERATING EXPENSES

Salaries, wages, and benefits 523,646 566,639 1,280,465 1,365,358 7,229,344

Contractual services 137,994 161,794 265,339 323,588 1,963,530

Supplies and materials 124,418 295,846 286,726 491,693 2,377,731

Utilities expense 133,371 164,430 293,961 328,859 1,996,554

Repairs and maintenance 32,486 55,636 68,348 111,272 667,634

Other services and expenses 97,767 119,133 122,041 160,766 809,594

Depreciation 322,500 322,500 645,000 645,000 3,870,000

Total operating expenses 1,372,182 1,685,978 2,961,880 3,426,536 18,914,387

Operating income (loss) 779,702 325,750 1,108,995 499,421 1,716,353

NONOPERATING REVENUES (EXPENSES)

Investment income 13,675 4,167 25,977 8,333 50,000

Other income 2,124 833 7,173 1,667 10,000

Interest expense (73,389) (73,390) (146,778) (146,781) (860,842)

Total nonoperating revenues (expenses) (57,590) (68,390) (113,628) (136,781) (800,842)

Income (loss) before capital contributions

and distributions 722,112 257,360 995,367 362,640 915,511

Grants and Capital contributions 17,300 20,833 17,300 41,667 250,000

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

Change in net position 739,412$ 278,194$ 1,012,667$ 404,306$ 765,511$

Net position, beginning of period 44,262,676 44,115,534 43,989,421 43,989,421 46,092,186

Net position, end of period 45,002,088$ 44,393,728$ 45,002,088$ 44,393,727$ 46,857,697$


Statement of Revenues, Expenses, and Changes in Net Position


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August Year to Date

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customers 2,447,090$ 4,149,304$

Payments for goods and services (512,894) (1,174,585)

Payments for employees (524,546) (1,282,265)

Net cash provided (used) by operating activities 1,409,650 1,692,454

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES

Distribution to City of Henderson ‐ ‐

Net cash provided (used) by noncapital

financing activities ‐ ‐

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES

Acquisition and construction of capital assets (337,521) (423,705)

Principal payments on long‐term debt ‐ ‐

Interest payments on long‐term debt ‐ ‐

Proceeds from sale of capital assets ‐ ‐

Grants and Capital contributions 17,300 17,300

Net cash provided (used) by capital and related

financing activities (320,221) (406,405)

CASH FLOWS FROM INVESTING ACTIVITIES

Investment and other income received 15,799 33,150

Investments proceeds ‐ ‐

Investments purchases ‐ ‐

Net cash provided (used) by investing activities 15,799 33,150

Net increase (decrease) in cash 1,105,228 1,319,199

Cash, beginning of period 6,671,246 6,457,275

Cash, end of period 7,776,474$ 7,776,474$


Statement of Cash Flows


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PLANT OPERATIONS REPORT

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Plant Operations Report 09‐17‐2018

General Operations:

A. Treatment Plants – Overview:

1. Regulatory:

Lead & Copper Testing: Henderson County School System Update – Safe Water Beyond the Meter:

Last month you were updated on the test results up to August 8th, represented in the graph below.

We advised that the August 8th results were meant to show what impact intentionally flushing the lines prior to the start of school would have, after a weekend or prolonged break. The results showed overwhelmingly that this would be an effective strategy.

It was also stated that we would be pulling two more samples that would show what could be expected after a weekend during normal school operation as well as after a couple of days of the same. These results were also very positive, showing that during normal school operation there is no need for implementing any kind of pre‐flushing regimen. The results are shown in the graph below. I’ve changed the scaling so that you can see the results better, depicted by the two right‐most bars (purple and green) for each location. Again, the purple bar represents water usage after a weekend of non‐use. The green bar represents a typical Tuesday through Friday morning, with no overnight use.

Notification of these results were sent to the HCSS staff that we have been working with.

Our water quality staff are proceeding with this same type of effort at area daycares next.

0.05.0

10.015.020.025.030.035.040.045.050.055.060.065.070.075.080.0

Central Academy 2 HCHS 4 Cairo 1 Niagara 2 Spottsville 3

Lead Results (Recommended MCL = 15 ug/L)

12‐Jul 23‐Jul 8‐Aug

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2. Operational & Financial:

Carbon Usage for the months of July and August:

Both Water Treatment Plants were able to feed significantly less Powdered Activated Carbon (PAC) this summer in comparison to last year. While weather was a factor, a different PAC and the ability to do in‐house testing played a large role in reducing usage. With inhouse testing of trihalomethanes using the TTHM‐RR unit, purchased last year, operations and water quality personnel were able to closely monitor Disinfection‐By‐Products (DBPs) at the plants and in the distribution systems to target the proper amount of PAC to feed in order to achieve similar DBP result to last years at a savings of over $60,000. The TTHM machine cost us about $ 55,000.

0.0

5.0

10.0

15.0

Central Academy 2 HCHS 4 Cairo 1 Niagara 2 Spottsville 3

Lead Results (Recommended MCL = 15 ug/L)

12‐Jul 23‐Jul 8‐Aug 20‐Aug 22‐Aug

0

10000

20000

30000

40000

50000

60000

70000

North Water Treatment Plant South Water Treatment Plant

Powdered Activated Carbon Usage(Pounds fed in July and August)

2017 2018

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3. System Water Quality:

a. Lead and Copper Testing: The water quality staff conducted compliance lead and copper testing for the north system. These are pre‐selected, state certified addresses throughout the city to represent our service area. Results have been received and were all lower than the MCL.

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

1028 Saddlebrook Apts. The customer called, stating that her bathroom had a solid pink discharge from bathroom hot water faucet. Investigation found that the residence had adequate chlorine residuals, but when the aerator was removed there was slime build up in the aerator. Bac‐T and Legionella tests were negative for the residence and the sink in question. The customer was advised to increase the temperature of the hot water heater, clean the aerator and flush.

320 Dixon St. Customer called stating that the water was discolored. Water outside and

inside the house were flushed, which cleared the problem. Bacteriological test was done

and found to be negative.

4. Personnel:

Staffing Levels:

a. Water Quality: Full operational staff.

b. Distribution System Operator: Full operational staff.

c. North Water: Full operational staff (with the relief operator position unfilled, for the time being).

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.

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B. North WTP:

1. Treatment Quality:

Water Quality Goals: All regulatory and Partnership goals were met.

2. Operations & Projects:

Treatment Challenges: Hot and dry weather has increased water usage by customers, and therefore plant flow. Water usage has been well within the capacity that the plant is capable to produce.

Plant Optimization: Plant staff worked closely with water quality staff to reduce Disinfection‐By Products while also reducing the overall usage of Powdered Activated Carbon.

Hach WIMS Conference: Josh Thompson attended the National Hach WIMS User Conference. This conference included over 150 users from all over the world, showcasing how they are leveraging the software to streamline and optimize operations of plants, labs and distribution systems. Several contacts and ideas were brought back and will be implemented into our system where applicable; such as electronic reporting and predictive modeling. During this conference Josh was asked to be on a panel of five individuals considered to be “Super‐Users” fielding questions and making suggestions to other users of the group and developers.

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

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 has diminished due to difficulty in treatment of low flow with extremely high organic loading but well below violation levels and plant is recovering well.

Biosolids Quality & Hauling: We continue to be satisfied with both Hazex and Advanced Disposal. Both contracts have been extended an additional year.

0.0

1.0

2.0

3.0

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Reports: All reports have been submitted.


Permit Update: As reported in the GM Report, we are near having a renewed discharge permit. We are awaiting final issue by KY DOW.

Maintenance: Clarifier #2 appears to have several new cracks in the concrete along with some malfunction of the pressure relief valves. HWU personnel are doing a large amount of investigation to determine the proper course of action to determine and address the issue and any underlying causes.

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.

Aeration Basins: We are back to operating under two aeration basins although flow is below 4MGD the organic loading is excessive for a single basin. Maintenance has alleviated diffuser issues on #3 basin.

UV System: UV energy use has decreased. A new lamp manufacturer is about to ship trial lamps to the plant. If they work well, the manufacturer will ship enough lamps for a full bank replacement at no cost. This will be a significant savings (>$30k) as lamps are due replacement.

Clarifier Rehab: Clarifier #1 is operating as designed along with the automated swap from a series‐to‐parallel operation of the #3 clarifier as hydraulic flow necessitates.

D. South WTP:


Water Quality Goals: All monthly regulatory goals were met.


Operations: Two of our operators have been cross‐training at the North Water Plant, with another two scheduled to begin soon. This is an attempt to show whether we need to fill an open WTO1 position that was a relief operator spot at the North Water Plant. A relief operator has been a great benefit at both plants, but with the budget constraints and the transfer of the person who filled that position to a USW1, now is the time to see if we can function well without filling it.

Maintenance: Communication issues with 4 Star Tank resulted in Automation needing to replace relays at both 4 Star Tank and Chamberlain Tank.

With storms in the area, on September 8th HMP&L had some damage to the fiber optics line that supplies the internet and networks connectivity to the South plants. We lost all network connectivity for approximately the six hours it took them to repair the issue.

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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.

E. South WWTP:


Effluent Quality: All treatment goals were met. The newest basin remains functioning extremely well. We have put the final contact basins back in service, which have been out of service over the summer.

Biosolids Quality: We requested two trucks daily from Hazex, and they have been quite helpful in fulfilling that. We are currently running the older press, and last month went smoothly.

Plant Inspection: We had our annual visit from D.O.W. State Inspector, Mark Lamar, the week of the 3rd. It was a good visit with no issues found.


Personnel: We have a full staff, and two operators are now scheduled to take their Class I license test.

Aeration Basin Repairs: #5 aeration basin has been in service and is working well. We now have two of the new basins in service, and things are going well with them both. The two new basins (4 & 5) are out performing the older basins by leaps and bounds. The Dissolved Oxygen levels are well within what is considered to be the industry normal operating ranges. In the older basins this was not obtainable and greatly impacted the daily plant operations.

In the photo below, you can see an older basin in service on the left and a new basin in service on the right. Both basins are receiving the same amount of loading from our influent. In the old basin the oxygen is not being mixed/transferred well, and the basin is almost septic, as can be observed by the black water. This causes stress on the plant along with odor problems. The new basin, on the right, has superb mixing and oxygen transfer. It is not black and is operating well within the normal parameters.

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Photo courtesy Meuth Concrete

Aeration Blowers: We now have 6 of the 8 online and working well. We are only using 5 blowers for the basins, and the rest are for back up as needed.

New Camera: A new camera was installed over the pressroom, allowing the Operators to better track the sludge press as it is in operation. Before, they had to stop running samples and go check on them every 30 minutes. Now they can run samples in the lab and view them in real time continuously via monitor. This is a huge help in keeping up with the presses, and they can spot operational issues quickly.

#4 Clarifier Yard Valve: While we were switching over from #4 clarifier to the #3 clarifier as required by the basin project, a valve broke in the “closed” position. We had to call a dig out crew and safety Sam Langley (HR) to oversee the dig out. We found the gearbox to be shattered. The HWU dig out crew safely removed the gear box. We are currently waiting on a new one. Without the valve, the #4 clarifier cannot be used; however, #3 clarifier is working, and we only need one.

F. Plant & Pump Station Maintenance:

1. CSO Basin: We received a call from one of our CSO Basin neighbors, who usually lets us know when the basin needs to be cleaned out. He thanked our crews for the great job they’ve done this year in keeping it cleaned out and pumped down. We are waiting for dry weather, so we can get the new lift rails installed.

2. NWTP Backwash Actuator: The actuator that controls the backwash volume flow malfunctioned this past month. We have only received one quote so far and are waiting on additional ones to come in. Staff is looking at a number of different options for this repair, including the possibility of using an inhouse item to repair the valve and actuator.

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. (No Change)

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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. International Paper Pump Station: The existing panel is in the process of being replaced by a metal sided building. This will be a major improvement at the station.

6. SWTP Low Service Pump #1: Pump #1 was replaced. Parts for pump #2 have arrived, and we will be installing the new shaft and stuffing box soon.

7. HCC‐ Welding Class: Several of the Maintenance employees, Ian Snow, and two line crew employees have begun taking a beginner welding class, one day a week, focusing on stick, mig and cutting. This has been a long time in coming, and the response has been fantastic.

G. Pretreatment Program & FOG Services:

1. Industrial Pretreatment Activity: Shamrock Technologies is now in the Industrial Pretreatment Program and will be included in future compliance sampling.

2. Compliance Sampling: Third quarter compliance sampling took place August 13th‐ 15th. Sitex and Shamrock Technologies have been found to be over their permitted limits for Oil and Grease Total Petroleum Hydrocarbons. They will receive Notices of Violation, and both will be resampled for compliance for that parameter.

3. Compliance Reports: The Semi‐Annual report has been prepared and submitted to the Division of Water, and an approval letter was received on September 5, 2018 from Diana Robertson, the State of Kentucky Pretreatment Coordinator.

4. FOG Program Permit Applications: Tom’s Smokin’ Bar‐B‐Q (catering) submitted a FOG plan for approval of a commercial kitchen at his residence located at 430 Cherry St. He has been notified and will receive a letter explaining that this facility is considered a Class 2: Limited service restaurant according to the F‐500 Fats, Oils, and Grease Management Policy, and normally would be required to have a 1,000‐gallon grease interceptor. In this case, we are making an exception on a trial basis, and have allowed him to install an under‐sink unit.

5. Rookies Notice of Violation: While their grease interceptor was full, Rookies employees stored some grease in five‐gallon buckets in the alley. Two of these buckets were knocked over by an unknown party, and the grease flowed down the alley and into the street. HWU employees cleaned the area and camera inspected the local storm sewer to ensure that no grease made it into the storm sewer and the river. The cost for this work was invoiced to Rookies.

H. Distribution Operator Update:

Grantwood Hills: An additional automatic flush hydrant is being installed in the Grantwood Hills area to increase water quality. This has historically been a lower than average chlorine residual area, and investigation has shown that an auto‐flush hydrant should help significantly.

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FIELD OPERATIONS REPORT

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Field Operations Report 09‐17‐2018

General Operations:

A. Overview:

1. Operational:

Our part of the Wathen Lane project has been completed.

2. Personnel:

We have one opening in the Field Operations area for a Utility System Specialist, and an internal exam is in the works for that position. A test has been given for Utility System Crew Leader, which was an open position at the start of this Fiscal Year which we chose not to fill immediately. With impending changes, we are looking to fill that before the end of the calendar year.

B. Automation Department:

1. Beacon Meters: (no change since last report) 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 to Gibbs staff, and have set up training for them on the website. 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. Fair Street Water 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

With the end of the Consent Judgment, this paragraph will no longer appear in future reports.

2. This report:

The following section of this report has contained numerous graphs and metrics for activities at the SOC for the last couple of years. After receiving feedback from the last meeting, we are reducing the number of graphs shown.

Please note also that we’ve been making a concerted effort to close out work orders, both those that are actually complete, and open items that either are no longer an issue, or for which we have no immediate plans to do work under. This effort will continue for the next couple of months.

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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 7 Sewer Main Repairs 3 Water Service Line Repairs 3 Sewer Service Line Repairs 1 Water Meter Inspection 21 Sewer Manhole Repairs 1 Water Meter Changes 24 Sewer Main Cleaning 3 Water Meter Repair 4 Sewer Main Grease Removal 0 Water Meter Disconnected 2 Sewer Overflow Calls 2 Water Meter Reposition 2 Sewer Backup Calls 8 Water Meter Box Cleaned 0 Sewer Blocked Calls 0 Water Meter Locate 1 Sewer Odor Calls 0 Water Meter Leak Detection 11 Sewer Service Line Locates 1 Water Meter Consumption Check 17 Fire Hydrant Repairs 1 New Services Qty. Low Water Pressure Calls 2 Water Taps 2 Water Leak Calls 23 Sewer Taps 2 Water Quality Calls 2 Sewer Tap Locates 3 No Water Calls 3 Water Meter Installation 5 Turn Water Off/On Calls 11 Install Temporary Hydrants 0 Miscellaneous Services Qty. Sink Hole Calls 5 Stormwater Maintenance Qty. Inspect Misc. Items 13 Storm line Repairs 3 Smoke Test Lines 0 Storm Intake Repairs 1 Camera Inspect Lines 12 Stormwater Flooding Calls 0 Clean/Unblock Intakes 1 Regulatory Issues Qty. Downspout Removal Letters Mailed 0 Pump Station Maintenance Qty. Downspout Letters Mailed To Date 228 Pump Station Repairs 8 Downspout Removal Requests: 222 Pump Station Inspections 12 Total Complied and Re‐inspected Pump Station Cleaning 8 Pump Station Maintenance 15

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2. Rolling 2‐Year History of Monthly Work Orders and Unaccounted‐For Water.

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E. Collection System:

We have just had normal day to day maintenance.

F. Distribution System:

We are performing normal day to day operations.

G. Stormwater Projects:

Normal day to day maintenance.

H. Stormwater Phase II:

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

I. Information Technology Department:

Tim Fischbeck has been out on leave, so nothing to report, this month.

J. GIS Department:

No report this month.

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Henderson Water UtilityAugust

2018 Door Tags

Date Crew # Address Comments Jamie's Comments

8/7/2018 135 114 Hubbard Ln. They were very courteous and made sure to cover my mailbox and flowers. Even rinsed it off when they were done. Great job!

8/9/2018 135 219 Barker Rd. Thank you.

8/22/2018 1642 Bruce St. Mark Sears received a call from Troy Marks. He had previously had low water pressure when Fair St. booster was running. He called to inform us that he now has the best water pressure he's had since moving to that address, even with Fair St. booster running. He wanted us to know he appreciates the effort.

8/24/2018 135 204 Old Orchard Ln. No comments.

05 Service Request Tags Given Out07 Work Order Tags Given Out04 Door Tags Returned

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ENGINEERING REPORT

35

Engineering Report

Engineering Report 17 September 2018

17 September 2018

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

The second basin (#5) is in service and is performing well, as expected. Work is ramping up on Basin 6, the last one to be renovated on this project.

We’re about 390 days into a one-year contract, with likely three months of work remaining. There have been several legitimate weather days above what would be normal for a year, that we have been discussing with the Contractor, Mark Bowling. Scheduled completion date was in September. New completion date is 7 October, with weather days as of the end of August. It’s not likely we’ll meet that schedule.

SCADA/Grant Project: The grant we received from Delta Regional Authority ($ 285k) will not be used on the basins themselves, but we have identified other needs at the plant that were not addressed in the rush to get the basin project underway. This will only consist of reworking the existing belt presses, as other phases of the project that were planned were shelved when bids came in higher than expected. We have given a notice to proceed to the contractor, Mark Bowling.

2. Atkinson Park Sewershed Study - Myrene Drive Sewer Pump Station: Phased in five sections, design of these projects is nearing completion. We have most of the easements signed on the Myrene FM portion of the work. Easement offers on the North Elm Street portion of the Myrene force main segment have all been signed. One that remains outstanding is on the Atkinson Park Medical Building.

We 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.

We had a review meeting with J.R. Wauford on 6 August to get the project for revamping the Myrene Drive Pump Station back on track, after we had an extended downtime while securing easements for the force main portion of this project; didn’t make sense to move forward with the pump station until all the easements for the FM were acquired. With most of the easements signed, the pump station will likely be bid later this year. 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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3. North Wastewater Treatment Plant – Clarifier Repairs: (Project Complete) 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 of $ 39,571. We are in discussion with the Contractor on this matter and will report our resolution to you.

4. Countryview Subdivision Stormwater Project: Bids on the first big phase were received 15 August, and award of a contract with a reduced scope was negotiated with the low bidder, after the bids came in higher than anticipated. We expect work to begin shortly. Mark Bowling is the contractor on this project, too.

5. South Main Street Water Transmission Main – Hancock to Yeaman: (no change since last report) 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 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. Another future 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. We will be dropping this project from future reports, until these future ties are closer to being reality.

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 hope to restart the work along S. Elm soon.

8. Community College Water Line: (Project Complete) Branson Surveys has prepared an easement document that will dedicate this work and other lines on the campus 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. We will be processing a Resolution at the September meeting, dedicating all these lines to the City and accepting them into our system.

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9. South Water Treatment Plant – Backwash Pump System and New Clearwell: This project came out of an operational review of the South WTP, which shows that the filters undergo backwash for extended periods, reducing 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 after cleaning. J.R. Wauford has been retained to perform the preliminary engineering, and we think this project will cost around $ 420,000. This is our next candidate project for a grant application and includes the replacement of the Clearwell, at an additional $ 940,000.

Wauford prepared a Preliminary Engineering Report (PER) for the combined Backwash/Clearwell project, which we have forwarded to a granting agency for consideration of some outside financial help. Fingers crossed.

10. Painting Buildings at the SOC: 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 visible from the main drag. Contract awarded to Sam Estes Painting, and work should commence shortly and be complete by the first of November.

11. 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. Kathy uncovered some purchasing coalition partners at her recent conference, and we may be able to obtain pricing through one of those, which would be in effect another bid arrangement.

12. 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.

13. 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.

14. Wathen Lane Bridge – Water Line Relocation: (Project Complete) The City has a State-funded project that 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 in July. Our connections on each end were completed the week of August 13th.

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HUMAN RESOURCE & SAFETY REPORT

39

HWU Human Resources Summary: September 17, 2018

Staffing Levels:

1. Utility System Specialist [1 position]: exam is scheduled for September 20th

2. Water Treatment Operator I – North Plant [1 position]: exam register forwarded to the department

3. Maintenance Technician II [1 position]: employee promoted September 9th

4. Director of Operations [1 position]: promotion effective September 3rd

5. Treatment Manager [1 position]: exam is scheduled for September 20th

6. Crew Leader [1 position]: one applicant is scheduled to take exam September 20th

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

8. Seasonal Treatment Intern [2 positions]: no request for action

Safety Report (as of 8/31/2018):

➢ 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.

• No lost time/restricted cases occurred in August.

• A fixed facility safety audit was conducted at the South Water Treatment Plant in August. No significant issues were noted and found the mobile equipment inspection records in very good order. Well-deserved compliments are extended to the chief and plant operators.

• An August job site observation occurred at the South Wastewater Treatment Plant. Evacuation safety rules were followed by the crew.

Other:

Upcoming City-wide Events:

• Annual Benefits Open Enrollment period will occur October 15th – October 24th. This is the active re-enrollment benefit process where all eligible employees must select the benefits to renew or change for the 2019 calendar year.

• Benefit Information Group Meetings are planned for October 1st – October 3rd.

HWU Change

Hours Worked 103,141 + 13,600

Total Cases 4 0

Days Away/Restricted Time Cases 2 0

Days Away From Work Cases 2 0

Actual # Days Away From Work 308 0

Transfer/Restricted Cases 3 0

Actual #Days Restricted Duty 68 0

Incident Rates HWU Change 2012

NAICS 2213 Total Recordable Rate 7.76 - 1.17 2.8

DART Incident Rate 3.88 - 0.59 1.4

DAFW Rate 3.88 - 0.59 0.8

Trans / Restrict. Rate 5.82 - 0.83 0.6

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GENERAL MANAGER’S REPORT

41

General Manager Report

General Manager Report 17 September 2018

17 September 2018

Regulatory Issues

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. Public comment period has now ended, but US EPA asked for more time and some additional information. This permit is breaking new ground, and we anticipated that time and resources would have to be expended to get it approved.

Contract Renewals

Although they don’t require any action at present from the Board, wanted to let you know about three contract renewals.

Our Janitorial Services contract with Consolidated Facility Services is up for its first yearly renewal, with a 2% increase per the contract and a renewed term of 1 Sept 2018 to 31 august 2019. This covers the SOC and the Admin Building. Financial impact is minimal (+ $ 288 annually).

Sludge Hauling with Haxex, Inc. is being renewed for its second and last renewal (total of 3-year term) with a 5% increase per contract terms. Estimated annual impact is a $ 12,022 increase, and with diesel pricing trending up around 2%, we expect an additional fuel-price-adjustment impact of $ 4,800.

Sludge Disposal at the Blackfoot Landfill in Winslow, Indiana, is up for its first renewal (one more available per contract) and includes the contractually allowed 5% increase. Annual impact estimate is $ 22,000.

Both the Hauling and Disposal renewals are effective this Wednesday, with a term end date of 18 September 2019. Hauling will be rebid prior to that, next summer.

Total impact of these 5%-plus sludge cost increases is just less than $ 39,000, of the total estimated sludge hauling/disposal budget of $ 740,000. One of our biggest cost centers, and thankfully, our recent experience is much more stable than the situation we faced several years ago.

Habitat for Humanity of Henderson

In accordance with long-standing policy, we will be waiving tap fees for a house to be constructed by Habitat at 2118 Collier Road. The total fees waived are $ 1,040, since only water is involved, sewer is not available in that portion of Finley Addition.

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.

There has been some communication from the customer suggesting they will repair the leak(s) and seek an adjustment under our policy. Still trying to work through how that will happen, because the

42

General Manager Report 17 September 2018

water will have to be turned back on for a plumber to locate the problem. An adjustment would be sizeable

Master Agreement – Qk4

We had executed a Master Agreement in April 2016 with Qk4, Inc., for work on the U.S. 60 Widening Utility Relocations, near the Henderson Community College. With some needs coming up on various small projects for design and drafting services, we have renewed that agreement at the end of August, for an additional two years. No action required on your part, FYI only.

Vacations

Kevin Roberts was on vacation last week, and I’m going to be out from the 18th through the 25th. We didn’t bother Kevin much while he was out, and I plan to put down the phone and iPad this week, too. We’re fortunate that we have the staff horsepower to cover gaps, and people that step up and fill in. Even with all the retirements, reductions and the length of time it takes to replace people, we continue to provide good service. Your staff is extraordinary, and although we say that from time to time, we can’t ever say it enough.

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BUSINESS

Action Report #2018‐26 – Purchase of Sewer Inspection Camera

Action Report #2018‐27 – South Elm Street Water Main Replacement

Resolution #2018‐28 – Acceptance of Water Line Improvements – Henderson Community College

Reminder – October meeting date changed to Monday, October 22, 2018

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HENDERSON WATER AND SEWER COMMISSION RESOLUTION OF THE BOARD OF COMMISSIONERS

Resolution No. 2018 - 28 Acceptance of Water Line Improvements

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

Henderson Water & Sewer Commission at a regular meeting held on Monday, 17 September

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 to the Board of Commissioners under

Chapter 23 Article II Division 3 Sections 23-36 through 23-45.2 of the City Code of Ordinances

hereby recommends to the Board of Commissioners of the City of Henderson, Kentucky, that the

City of Henderson accept certain public improvements as recommended by the staff of the Water

and Sewer Commission, and herewith transmitted to the City, to wit:

Henderson Community College Campus Water Mains

New Water Mains:

6-inch Water Main 726 LF 8-inch Water Main 624 LF 2-inch Service Lines 100 LF 4-inch Service Lines 195 LF 6-inch Service Lines 18 LF Fire Hydrant 3 Each

Previously Constructed Water Mains:

6-inch Water Main 255 LF 8-inch Water Main 1395 LF 2-inch Service Lines 30 LF 3-inch Service Lines 6 LF 6-inch Service Lines 22 LF Fire Hydrant 3 Each

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The “new” portion of these facilities were constructed by Henderson Water Utility crews in

2018 under a project funded by the Kentucky Community and Technical College System (KCTCS),

and those “previously constructed” were installed some time ago, but never formally dedicated

to the City. All these facilities are now complete, in operation, and ready for acceptance.

Additionally, KCTCS has agreed to dedicate an easement encompassing all the lines being

accepted, and the easement document will be signed by the Chairman and Secretary of the Water

and Sewer Commission, then forwarded to the City for signatures by the Mayor and City Clerk.

The General Manager is hereby authorized to deliver this Resolution and the Deed of

Easement to the City of Henderson, and to have the Deed of Easement recorded upon signature

by the City.

IN WITNESS WHEREOF, having come before the Board of Commissioners on Monday, 17

September 2018, and upon Motion made by Commissioner ______________, and seconded by

Commissioner _________________, the Board of Commissioners voted as follows:

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

___________________________ Tom Williams, P.E. General Manager Henderson Water Utility

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EXECUTIVE SESSION To discuss matter regarding future acquisition or sale of real

property pursuant to KRS 61.810 (1) (b)

To discuss matter regarding proposed or pending litigation pursuant to KRS 61.810 (1) (c)

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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HENDERSON WATER AND SEWER COMMISSION RESOLUTION OF THE BOARD OF COMMISSIONERS

Resolution No. 2018 ‐ 29 Annual Merit Adjustment for General Manager

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

Water & Sewer Commission at a regular monthly meeting held on Monday, 17 September

2018, at which meeting a quorum was present.

WHEREAS, in accordance with the terms of an Employment Agreement under which the

Board of Commissioners of the Henderson Water and Sewer Commission (the “Commission”)

employs Tom Williams as General Manager of the Henderson Water Utility, it is provided that

the Commission shall annually determine whether to increase the compensation paid to Mr.

Williams; and

WHEREAS, the Commission has reviewed Mr. Williams’ job performance and concluded

that his performance warrants an increase to base salary, plus adjustments for various fringe

benefits as required under the aforementioned Agreement.

BE IT RESOLVED, by the Commission that the base salary of Tom Williams for his

services as General Manager be increased to $ 150,500 effective 1 October 2018. Additionally,

vacation days as specified in Section 10 of the Employment Agreement shall be increased from

the current twenty (20) days to twenty‐five (25) days, annually.

IN WITNESS WHEREOF, having come before the Board of Commissioners on Monday, 17

September 2018, and upon Motion made by Commissioner ______________, and seconded by

Commissioner _________________, the Board of Commissioners voted as follows:

AYE NAY Commissioner, Paul Bird _______ _______ Commissioner, George Jones _______ _______ Commissioner, John Henderson _______ _______ Commissioner, Gary Jennings _______ _______ Commissioner, Julie Wischer _______ _______

___________________________

R. Paul Bird, Jr., Board Chairman Henderson Water & Sewer Commission

Documents

A G E N D A HENDERSON WATER & SEWER COMMISSION