a g e n d astorage.hkywater.org/adobe/meeting_agenda/hwu_board...2014/12/15 · software with...

A G E N D A

HENDERSON WATER & SEWER COMMISSION (270) 826-2421

December 15, 2014 Monday @ 4:30pm

______________________________________________________________________________ A. ROLL CALL

B. INVOCATION

C. APPROVAL OF MINUTES

Approval of Minutes from November 17, 2014

D. MONTHLY REPORTS

Financial Operations Engineering Human Resources Safety Report General Manager’s Policy and Procedures Manual Documents for Board Review and Approval Water & Sewer Tap Fees (Revision) Board Action Reports and Board Resolutions

E. BUSINESS

Action Report #2014-53 – Countryview Subdivision Stormwater Project – Design Services

Action Report #2014-54 – North WWTP ATV Purchase & South WWTP ATV Upgrade

Determine date of January 2015 Board Meeting since third Monday falls on a Holiday

F. EXECUTIVE SESSION

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

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ACTION MINUTES OF MEETING November 17, 2014

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ACTION MINUTES NOVEMBER 17, 2014

HENDERSON WATER & SEWER COMMISSION ______________________________________________________________________________ A. ROLL CALL

Present at the meeting was Commissioner George Jones, who presided over the meeting; along with Commissioners John Henderson, Gary Jennings, and Julie Wischer. Commissioner Paul Bird was unable to attend the meeting. Tom Williams, General Manager, and Eric Shappell, Attorney, were also in attendance. Staff members present included Leason Neel, Rodney Michael, Jeremy Duncan, Kevin Roberts, and Patty Brown. Also attending were, Assistant City Manager, William “Buzzy” Newman, and Mayor, Steve Austin. There were no media representatives present.

B. INVOCATION – Rodney Michael

C. APPROVAL OF MINUTES

Approval of Minutes from October 20, 2014 Minutes were approved as submitted.

D. MONTHLY REPORTS

Financial – After discussion, approved as submitted. Leason Neel noted that the Cost of Service information is included in the financial statements.

Operations – After discussion, approved as submitted.

Engineering – After discussion, approved as submitted. Human Resources – After discussion, approved as submitted. Safety Report – After discussion, approved as submitted. General Manager’s

Policy and Procedures Manual Documents for Board Review and Approval Travel, Training, Related Expenses & Compensation (Revision) Phones & Pagers (Revision) Boot & Clothing Allowance (Revision) Time Clock Policy – Hourly Employees (Revision)

After discussion, approved the 4 Policy revisions listed above as submitted.

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E. BUSINESS

Action Report #2014-49 – Annual Renewal of Service Contracts – Hach Company Approved Action Report #2014-49 for Annual Renewal of Service Contract – Hach Company. The service contract is for instrumentation calibrations at an annual cost of $51,169.00 and is a budgeted item.

Action Report #2014-50 – Annual Maintenance Agreement – Wonderware Software Approved Action Report #2014-50 for the Annual Maintenance Agreement for Wonderware Software with InSource Software Solutions at a cost of $21,434.39 and is a budgeted item.

Action Report #2014-51 – S. Main Street & Drury Lane Stormwater Improvements Approved Action Report #2014-51 for South Main Street & Drury Lane Stormwater Improvements in the amount of $35,000 to be taken out of the “Unidentified Capital Project” line item in the 2014-2015 Fiscal Year Budget.

Action Report #2014-52 – Tapping Machines Approved Action Report for purchase of Tapping Machines in the amount of $23,310.00, which will be taken from the “Unidentified Capital Project” line item in the 2014-2015 Fiscal Year Budget.

F. EXECUTIVE SESSION

To discuss matters in that open discussion would jeopardize the siting, retention, expansion, or upgrading of a business pursuant to KRS 61.810 (1) (g) Motion was made and approved to go into Executive Session to discuss matters in that open discussion would jeopardize the siting, retention, expansion, or upgrading of a business pursuant to KRS 61.810 (1) (g). Upon return from Executive Session no action was taken. Motion made and approved to Adjourn. The next regular monthly meeting will be held on Monday, December 15, 2014.

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FINANCIAL REPORT

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Henderson Water UtilityFinancial Summary

For Five Months Ended November 30, 2014

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November November Year to Date Year to Date Fiscal Year

Actual Budget Actual Budget Budget

OPERATING REVENUES

Water Sales 620,649$ 621,480$ 3,318,597$ 3,261,997$ 7,457,765$

Water Penalties 2,601 2,324 15,690 11,622 27,893

Water Fees 2,762 3,947 12,293 19,736 47,367

Wastewater Services 867,890 838,940 4,639,626 4,536,543 10,067,281

Wastewater Penalties 3,902 3,045 23,531 15,226 36,543

Wastewater Fees 8,255 15,800 72,635 78,998 189,594

Total Operating Revenues 1,506,059 1,485,537 8,082,372 7,924,122 17,826,443

OPERATING EXPENSES

Salaries and Wages 300,155 359,965 1,612,222 1,799,827 4,319,582

Payroll Taxes 21,189 26,160 114,310 130,802 313,925

Health Insurance 97,270 108,167 474,005 540,833 1,298,000

Pension Benefits 52,148 61,125 282,249 305,625 733,500

Workers Compensation 7,231 8,320 44,745 58,238 99,836

Other Employee Benefits 1,126 1,951 6,754 9,755 23,412

Car Allowance 1,800 1,350 9,000 6,750 16,200

Electricity 99,199 117,525 534,505 587,624 1,410,297

Natural Gas 565 600 1,142 1,600 32,050

Chemicals 86,529 89,321 445,844 446,603 1,071,848

Inventory Expense 10,397 13,333 63,029 66,667 160,000

Fuel 12,566 14,167 56,088 70,833 170,000

Small Equipment & Tools 11,235 10,325 45,703 51,625 123,900

Safety Supplies 1,963 4,333 10,660 21,667 52,000

Clothing/Cleaning Allowance - - - - 17,050

Vehicle Repair 4,109 5,850 16,706 29,250 70,200

Other Equipment Repair 6,587 25,000 126,600 125,000 300,000

Other Structures Repair 35,998 21,695 155,539 108,475 260,340

SCADA Expense 3,036 2,657 12,412 13,283 31,878

Administrative Services 48,333 49,917 241,669 249,583 599,000

Contractual Services 104,601 104,955 576,715 524,775 1,259,460

Professional Services 544 2,917 5,548 14,583 35,000

Equipment Rental 1,786 4,693 27,770 23,465 56,315

Audit Expense - - 20,000 20,000 20,000

Trust Fees 2,181 1,250 2,990 6,250 15,000

Public Contributions - 3,958 1,250 19,792 47,500

Insurance - - 131,152 135,000 270,000

Technology Expense 29,896 10,917 62,004 54,583 131,000

Office & Field Supplies 12,946 14,688 73,465 73,438 176,250

Telephone 3,181 3,956 16,628 19,782 47,477

Medical Exams 72 500 1,799 2,500 6,000

Travel and Training 6,371 3,865 26,619 19,325 46,380

Dues and Subscriptions 125 1,194 3,822 5,970 14,327

Printing 382 358 1,860 1,792 4,300

Miscellaneous 91 596 1,027 2,979 7,150

Depreciation 278,334 258,333 1,311,667 1,291,667 3,100,000

Total Operating Expenses 1,241,946 1,333,940 6,517,498 6,839,939 16,339,177

Operating Income 264,113$ 151,597$ 1,564,874$ 1,084,183$ 1,487,266$

Henderson Water Utility

Operating Revenues and Expenses Summary

For the Five Months Ended November 30, 2014

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Variance Analysis

Five Months Ended 11/30/2014

Actual Operating Revenues 8,082,372$

Budgeted Operating Revenues 7,924,123

Favorable (Unfavorable) Variance 158,249$

Percentage Difference 2.00%

Billable Gallons

Through 10/31/2014 1,104,856,653

Through 10/31/2013 1,097,611,289

Difference 7,245,364


Actual Operating Expenses 6,517,498$

Budgeted Operating Expenses 6,839,941

Favorable (Unfavorable) Variance 322,443$


Breakdown of Volumetric Differential For Five Months Ended :

Nov-14 Nov-13 Differential %Residential 269,230,198 264,433,255 1.81%Industrial 489,818,607 497,664,236 -1.58%Commercial 345,807,848 335,513,798 3.07%

Technology expense is over budget due to expensing of Wonderware yearly maintenanceagreement in November instead of December.

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Total Action

Beginning Current MTD Current YTD Project to Date Fiscal Year Capital Report

Balance Activity Activity Balance Budget Budget No.

Construction In Progress:

Center & Julia 1,382,288$ -$ 1,382,288$ 100$ 2,520,000 08-03Pump Station Modifications 27,545 - 27,545 100 110,000 13-14NWWTP Headworks Project 5,496,283 1,201,425 3,285,925 8,782,208 8,200,000 13,630,139 13-24NWTP Rehab 88,200 2,500 33,688 121,888 154,000 154,000 14-20 &21Green River Road Project 300,300 4,897 305,197 - 407,500 13-05& 07SWTP Rehab 19,500 26,500 46,000 500,100 545,000 13-23&'14-37Tiger Ditch Stormwater 10,925 50,083 61,008 100 98,000 13-38Countryview Subdivision Stormwater - - - 200,000 200,000 Cooper Park Stormwater - 351 351 - 14-30South Main & Drury Stormwater 2,770 2,770 2,770 35,000 35,000 14-51Special Projects - - - 881,197 Total Construction In Progress 7,325,041 1,206,695 3,404,214 10,729,255 9,970,597

Buildings and Improvements:

SOC Bldg Roof - 13,991 13,991 34,125 34,125 14-23Blower Bldg # 1 Roof - - - 100 SOC Mechanic Shop 11,692 18,255 29,947 30,000 30,000 14-14Paving 42,450 10,291 52,741 - 52,741 14-48Total Buildings and Improvements 54,142 - 42,537 96,679 64,225

Equipment and Vehicles:

Generator - - - 100 Tapping Machines - 14,715 14,715 38,660 38,660 14-32&52Work Order Mgt. System - 60,906 82,012 82,012 135,000 135,000 14-27VFD Controls - - - 100 ISCO 2150 CSO Point Automation - 205 205 100 HVAC SPBldg NWWTP - - - 100 Portable Samplers - 17,255 17,255 - - Confined Space Entry System 7,753 7,753 7,753 8,000 8,000 14.47Ford Escape (3) - - - 69,015 69,015 14-42Van - - - 23,005 23,005 14-42Pickup Truck - - - 31,169 31,169 14-42South WWTP ATV - 10,024 10,024 10,424 10,424 14-35Total Equipment and Vehicles - 68,659 131,964 131,964 315,673

Total Capital Expenditures 7,379,183$ 1,275,354$ 3,578,715$ 10,957,898$ 11,030,900$


Capital Expenditures Report


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Henderson Water UtilityFinancial Statements

For Five Months Ended November 30, 2014

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ASSETS

Current assets: Cash 4,815,414$ Unrestricted Investments 2,100,020 Restricted Investments 477,207 Receivable-2014 Bonds 8,045,812 Accounts receivable 1,213,880 Inventories 923,759 Total current assets 17,576,092

Noncurrent assets: Construction in progress 10,729,256 Utility plant and equipment, net of accumulated depreciation 66,373,366 Other assets 214,280 Total noncurrent assets 77,316,902

Total assets 94,892,994$

LIABILITIES

Current liabilities: Accounts payable 333,087$ Retainage payable 571,649 Deposits payable 78,744 Accrued liabilities 1,171,260 Current portion of long-term debt 67,470 Total current liabilities 2,222,210

Noncurrent liabilities: Long-term debt 42,351,063 Total noncurrent liabilities 42,351,063

Total liabilities 44,573,273

NET POSITION

Net investment in capital assets 42,944,181 Restricted for debt service 141,941 Unrestricted 7,233,599

Total net position 50,319,721

Total liabilities and net position 94,892,994$


Statement of Net Position

November 30, 2014

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November November Year to Date Year to Date Fiscal Year

Actual Budget Actual Budget Budget

OPERATING REVENUES

Water sales and fees 626,012$ 627,752$ 3,346,580$ 3,293,355$ 7,533,025$ Wastewater services and fees 880,047 857,785 4,735,792 4,630,768 10,293,418

Total operating revenues 1,506,059 1,485,537 8,082,372 7,924,123 17,826,443

OPERATING EXPENSES

Salaries, wages, and benefits 480,919 567,038 2,543,285 2,851,825 6,804,455 Contractual services 157,445 167,690 876,629 859,450 2,032,275 Supplies and materials 122,690 131,479 621,324 657,395 1,594,798 Utilities expense 99,764 118,125 535,647 589,225 1,442,347 Repairs and maintenance 49,730 55,202 311,257 276,010 662,418 Other services and expenses 53,064 36,074 317,689 314,370 702,884 Depreciation 278,334 258,333 1,311,667 1,291,666 3,100,000

Total operating expenses 1,241,946 1,333,941 6,517,498 6,839,941 16,339,177

Operating income 264,113 151,596 1,564,874 1,084,182 1,487,266

NONOPERATING REVENUES (EXPENSES)

Investment income 873 2,083 11,327 10,417 25,000 Other income 600 - 5,881 - - Interest expense (105,255) (108,350) (471,894) (541,748) (1,300,196) Amortization expense (1,875) (3,750) (10,381) (18,750) (45,000)

Total nonoperating revenues (expenses) (105,657) (110,016) (465,067) (550,082) (1,320,196)

Income before capital contributions and distribution 158,456 41,580 1,099,807 534,100 167,070

Capital contributions - - 50,000 50,000 100,000 Distribution to City of Henderson - - - - (400,000)

Change in net position 158,456 41,580 1,149,807 584,100 (132,930)

Net position, beginning of period 50,161,265 49,741,450 49,169,914 49,198,928 49,169,914

Net position, end of period 50,319,721$ 49,783,030$ 50,319,721$ 49,783,028$ 49,036,984$


Statement of Revenues, Expenses, and Changes in Net Position


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November Year to Date

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customers 1,112,341$ 7,777,226$ Payments for goods and services (623,611) (2,673,466) Payments for employees (480,919) (2,519,497)

Net cash provided (used) by operating activities 7,811 2,584,263

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 (1,227,379) (4,744,573) Principal payments on long-term debt (866,083) (2,306,553) Interest payments on long-term debt (129,479) (535,915) Bond proceeds - - Capital contributions - -

Net cash provided (used) by capital and related financing activities (2,222,941) (7,587,041)

CASH FLOWS FROM INVESTING ACTIVITIES

Investment and other income received 2,293 18,376 Proceeds from sales and maturities of investments 918,424 918,424 Purchase of investments (29,506) (146,854)

Net cash provided (used) by investing activities 891,211 789,946

Net increase (decrease) in cash (1,323,919) (4,212,832)

Cash, beginning of period 6,139,333 9,028,246

Cash, end of period 4,815,414$ 4,815,414$


Statement of Cash Flows


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OPERATIONS REPORT

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Operations Report 12-15-2014

General Operations:

A. North WTP:

Treatment Quality:

1. All regulatory treatment goals were met.

2. One water quality call was received and investigated at 2439 Green River Road, Apt. B3. Customer complained of a chemical-like odor and skin irritation. All Laboratory analyses on sample obtained from residence checked out normal. Customer was satisfied with findings and will call back if problem persists.

3. Ashley Cooper is in the process of getting the drinking water lab certified for 2015. We will be audited in June of 2015.

4. Ashley Cooper is in the process of training two operators in proper sample collection for Bac-T’s and chain of custody forms.

Operations:

1. Chlorine Dioxide Generator Update: (Update): This project is complete and is all working well.

2. Hach WIMS: We are continuing to work on WIMS and have made more progress since last month. This software is a major change and is going to yield benefits that we are just beginning to grasp.

(Last Month’s Update): Thanks to Josh Thompson, a lot of progress has been made on getting all of the plants entering data into this software management system. While there’s still a great deal of distance between what we are beginning to do and what we will be able to do, we are further along than I had projected we would be at this time.

3. Personnel Update: At this time, we are not in need of moving forward on data-entry personnel. However, this may change in the next couple of months.

(Last Month’s Update): In regards to the WIMS data management system, the usefulness of any program is the data that is contained in it. In the purchase contract, we opted to have Hach representatives only program in one month’s worth of data and then train us how to do this in-house. This has worked out well. Data entry into the system by the operators began in August of this year. We want to get the database populated for at least 3 years’ worth of information. The best way to do this is to try to use one of the unfilled/unused temporary positions to hire a data entry clerk.

The grade changes for WTP Operator II took effect on December 8.

4. Budget:

a. Chemical expenditures were under budget for the month.

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5. Average water treated & water pumped data trend:

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

B. North WWTP:

Treatment Quality:

1. Effluent Quality: All regulatory treatment goals were met. Rain and low temperatures caused us to have some higher than normal levels in solids and E. coli but all is stabilized now.

2. Biosolids Quality: No problems or complications.

Operations:

1. Plant Update: Work is about to begin on the installation of overhead doors at the sludge pad area. This will be a tremendous help during the extreme cold weather.

2. Influent Flow: Influent flow has returned to a lower than normal and expected rate. As you can see from the chart above, the total gallons pumped out of the water plant is around 6 MGD. The average Influent to the wastewater plant is around 2.75 MGD.

3. Budget:

a. Chemical expenditures were slightly over budget.

b. Fuel (Off-Road Diesel) was over budget.

c. Sludge Hauling and Disposal was under budget.

C. South WTP:

Treatment Quality:

1. All regulatory and in-house treatment goals were met.

2. Weather continues to create treatment challenges. This will normalize once it gets cold and stays cold.

Operations:

1. Sodium Chlorite Tank Update: Now that the NWTP has installed a working replacement of what was originally designed, work will proceed with installing the same here.

0.01.02.03.04.05.06.07.08.09.0

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August2014

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NWTP Treated (MGD) NWTP Pumped (MGD)

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2. Personnel Update: (UPDATE): An exam was given this past Thursday, 12/11. Provided we are able to hire someone from the roster, we will be back to full staff. Mark Julian, the operator hired last month is working out great.

Our relief shift operator will be on FMLA for the next several weeks, so although we’ll be back at full staff, we’ll still be one less operator for several weeks.

Our temporary employee, Aaron Calvert, had to discontinue working with us due to increased demands at school. Paperwork for replacing him has been sent in.

The grade changes for WTP Operator II took effect on December 8.

3. Budget:

a. Chemical expenditures were under budget.

4. Average Treated & Pumped water trend:

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

D. South WWTP:

Treatment Quality:

1. Effluent Quality: All reportable treatment goals were met.

2. Plant Update: Chuck Gee completed the Groundwater Protection Plan for this plant. It covers the last quarter.

Plant improvements continue to be made to the interior and exterior of the plant. The entire site is looking very good.

Operations:

1. Personnel: Randy Bentley, Maintenance Tech, passed the promotional exam for the Maintenance Tech 2 position and has been promoted. Congratulations to him, well deserved.

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Nov2012

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SWTP Treated (MGD) SWTP Pumped (MGD)

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2. Budget:

a. Chemicals: Chemicals were under budget this past month

b. Sludge Hauling & Disposal: This was under budget this past month.

E. Pretreatment Program:

1. Pretreament & FOG Services: No updates to report this month.

F. Automation Department:

1. (No Change) The Canoe Creek monitoring station located at Clay Street has been installed and is being continuously trended with SCADA. We are in the process of making the website more visually appealing as well as adding additional functionality. For a view, go to http://storage.hkywater.org/scada/NewCCGraph.php. The graphic depicts the past 24 hours of creek level data at Clay Street and Second Street overpass. You can also access this information from our website at www.hkywater.org.

2. (No Change) We have begun installation of a new weather station located at our South Wastewater Treatment Plant. We will be recording live data with SCADA for temperature and for rainfall amount, duration and intensity.

3. We will be incorporating our CSO Monitoring System into our GIS with a publicly accessible website. This involves linking some database queries from SCADA to GIS. We anticipate having this done by the first of the New Year, depending on the timeframe of going live with Cityworks.

4. We have captured several rainfall events with the six flow monitors installed within the Myrene Drive area. Analysis of the data is underway.

5. We are in the process of modifying the North Water Treatment Plant Filter operation so that continuous trending is delineated whenever a filter wash takes place. This should save the Chief Operators a considerable amount of time each month when preparing operations reports to file with the DOW. We will accomplish this by installing switches that are tied into SCADA where the database memory register can be monitored by WIMS.

6. The Janalee Drive PS upgrade is approximately 80% complete, from an automation perspective. We are continuing to work with the system integrator to finalize communications and HMI development. Issues with the flowmeter are being worked out between the contractor and the vendor. We have established permanent locations for the hydrostatic pressure transducer and the emergency floatball switch. We have recently replaced the NWWTP HMI computer with new, along with the latest Wonderware and data acquisition server software. The system integrator is finishing up with HMI control screens that we will import. The final step is to make adjustments to the IP addressing that will tie Janalee Drive PS into our existing secured SCADA LAN.

7. Last report we noted that the Remote Terminal Unit (RTU) Controller at the NWTP was replaced with a backup due to communications failures. We have since determined that the probable cause of the failure was a faulty power supply transformer within the plant. The transformer has been replaced and we will be testing the original RTU Controller, but suspect it is fully functional & will not require repair.

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http://storage.hkywater.org/scada/NewCCGraph.php

G. Customer Service:

Customer Service Calls and Work Orders (NORTH): These are the customer calls we responded to and by no means represent all of the calls that came in. We provided the following services to customers last month:

Water Line and Service Maintenance Qty. Water Main Repairs 2 Water Service Line Repairs 3 Water Meter Inspection 6 Water Meter Changes 10 Water Meter Repair 9 Water Meter Disconnected 1 Water Meter Raised/Lowered 1 Water Meter Box Cleaned 3 Fire Hydrant Repairs 2 Low Water Pressure Calls 3 Water Leak Calls 14 Water Quality Calls 3 No Water Calls 2 Shut Water off/Turn Water On Calls 16 Install Temporary Hydrants 0 Stormwater Maintenance Qty. Storm line Repairs 0 Storm Intake Repairs 0 Stormwater Flooding Calls 0 Clean/Unblock Intakes 41 Pump Station Maintenance Qty. Pump Station Repairs 0 Pump Station Inspections 13 Pump Station Cleaning 0 Pump Station Maintenance 6

Sewer Line and Service Maintenance Qty. Sewer Main Repairs 0 Sewer Service Line Repairs 2 Sewer Manhole Repairs 2 Sewer Main Cleaning 1 Sewer Main Unblocking 3 Sewer Overflow Calls 1 Sewer Backup Calls 13 Sewer Odor Calls 1 Sewer Service Line Locates 9 New Services Qty. Water Taps 0 Sewer Taps 1 Sewer Tap Locates 1 Water Meter Installation 1 Miscellaneous Services Qty. Sink Hole Calls 0 Inspect Misc. Items 15 Smoke Test Lines 1 Camera Inspect Lines 1 Regulatory Issues Qty.

Downspout Removal Letters Mailed We have mailed out a total of 181 downspout letters to date. 155 have complied and been inspected.

0

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H. SOC General:

1. We continue to work on the new Asset Management Program. We have had good cooperation from all groups and so far have been keeping up with the scheduled pace. Greg has managed to place iPads in the hands of our crews and they are practicing using the program in the field. We are seeing a good deal of interest in the field crews to learn and use this process.

2. We are tentative scheduled to have training on the new City Works the second week of February and go live with it the following week. Of course this schedule is subject to change if the weather turns out to be like last year.

3. Brad Pendergraft, Maintenance Tech has been promoted to Maintenance Tech 2. Congratulations to him.

4. Louis Ashby was promoted to Utility System Worker III. Congratulations to him.

I. Collection System:

1. The crews have been working on some water, sewer and stormwater repairs this month. They have also been cleaning a lot of intakes this month due to the amount of rain.

J. Distribution System:

1. We had a couple of larger leaks this month, one on Fifth Street across from the office. This leak was on a 12” line and split the pipe for a length of about 12’. It also caused a loss of a lot of water but we managed to isolate it before running out of water in the tanks. We had to shut down part of Henderson County Water and a couple of industries but their cooperation saved us from a city wide Boil Water Advisory. Our crews did an outstanding job on this leak.

2. Another was on a 12” line in front of IMI. This was repaired without a lot of problems and avoided another large Boil Water Advisory.

3. The training and professionalism of our employees saves the city a lot of inconvenience in incidences like those listed above. We are truly blessed with outstanding employees.

K. Stormwater Phase II:

1. A meeting of KSA, The Kentucky Stormwater Association, was held on 12-12-2014 in Frankfort, and was attended by HWU staff. The meeting included presentations on a variety of topics, including:

Compliance Assistance - Paulette Akers, Kentucky Division of Compliance Assistance

Ollie the Otter and Tommy the Turtle - Public Education and Outreach

Watershed Watch Program - Dale Reynolds, Kentucky Division of Water

UK Cooperative Extension Resources – Brad Lee, UK Cooperative Extension

MS4 Permit Discussions

2. Development of an MS4 program monitoring plan

The Stormwater General Permit that covers all MS4 communities states the following:

The permittee shall develop an appropriate monitoring program that evaluates the effectiveness of the MS4 program and provides feedback for the permittee to change or improve the stormwater quality management program appropriately. The MS4 program monitoring plan shall be submitted to the Division of Water for approval before the end of the

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permit period. The MS4 program monitoring plan, as approved by the Division of Water, shall be implemented in the following permit period.

The current 5-year permit period is scheduled to expire on March 31, 2015.

HWU staff is developing an MS4 program monitoring plan that meets the requirements of the permit. We will identify three “typical” sites, and then monitor stream quality immediately upstream and downstream from where runoff enters our MS4 conveyances. The sites include areas of commercial development, industrial development, and residential development.

L. Information System Department:

1. In preparation for the Cityworks software rollout, we have provided iPads for all of the crews and other essential personnel. These will give them the ability to get up-to-date information about our systems as well as new/old work orders.

2. Working on upgrading parts of our SAN (Storage Area Network) to handle the needs that have now been placed on it.

M. GIS Department: (No Change)

1. We are working on the new Cityworks Software to get our Asset information in the correct formats.

2. We now have a seasonal employee that is making some much needed data input to our maps. He is making all of the mark-up changes that the crews have made.

3. We continue to update GIS to reflect changes from recent construction projects and mapping projects.

4. We are assisting Strand in working with the Modeling Software for the Water System.

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Henderson Water UtilityNovember 2014 Door Tags

Date Crew # Address Comments Rodney's Comments

11/14/2014 135 1025 N. Main St. Awesome!

10 Service Request Tags Given Out 4 Work Order Tags Given Out 1 Door Tags Returned

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ENGINEERING REPORT

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Engineering Report 15 December 2014


1. North Wastewater Treatment Plant Upgrade Project

The North WWTP Improvements (Headworks) continues, with work on the new 160-foot diameter clarifier proceeding with floor and wall concrete pours. Getting structures up out of the ground before winter weather is of primary importance to a successful conclusion to this project in a reasonable amount of time; results have been mixed, with extreme cold weather arriving earlier than expected, and a relatively wet November.

At this point in the project, it appears that construction will run about 10 weeks past the original scheduled end date, which runs us up into September or October of 2015. The only costs to us for that will be the costs of the consultant’s construction engineering and inspection, which involves a person on site every day that work is performed. We will attempt to keep those costs to a minimum, but have the right to request that the contractor reimburse us for that through liquidated damages.

2. Janalee Drive Pump Station and Force Main Upgrade Project Contractor, equipment vendor and HWU personnel performed startup of two of the new pumps on 18 November and most of that process went well, with some remedial work required on the flow meter installation, before the final old pump can be taken out of service. Completion of the project by the end of December is likely. Cutting and capping the old Janalee force main pipe will require a great deal of coordination and teamwork, as most of our collection system has to be shut down to make the final cuts. We will likely take paving of the parking area out of the contractor’s scope due to the lateness of the season, and will perform that under the City’s paving contract, next summer.

3. North Water Treatment Plant – Rehab and Basin Repair Project: Design for the critical improvements (flash mix repair, basin modifications, and leak repairs) is well-along, with 50% plans received and reviewed, and final plans due in February. Bidding of the first phase of the project will likely be in the March/April timeframe, so that costs can be considered in our upcoming budget cycle. Timing of the construction will be arranged to accommodate increased need for water production in the summer months, which will stretch out the completion time by some amount; a preliminary schedule to accomplish this will be included in the bid documents. Staff has been happy with the work of Clark Dietz on this project so far.

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4. Myrene Drive Sewer Pump Station: A complete investigation of all the pump stations in the Atkinson Park sewer-shed is included in this study. Additional flow monitoring within the Myrene Drive sewer-shed is being performed by our staff; we are attempting to locate what appears to be substantial inflow during rainfall events. Preliminary report from Wauford delivered, has been reviewed by staff, and we have returned it for some revisions. It is clear from this review that the Atkinson Park pump station is overdue for renovation, and we are having Wauford produce an estimate of those costs for inclusion in our strategic plan, which will include options to renovate the station similar to the Janalee project, or to replace the station with a completely new station with submersible pumps, at a nearby location. The current location next to the Park entrance road is cramped and a traffic/safety hazard. The station is also approaching 60 years old. It’s good to save old structures when it makes economic sense, but at some point, a whole new approach may be warranted. There is also a “temporary” pump station at the end of Spruce Drive that’s over 20 years old, which could be eliminated with a project to lay 800 feet of sanitary sewer.

5. Water Model: Strand Associates has completed setting up our water model for the North water distribution system. Training on November 21st went well, and we used that exercise to confirm our direction on some water system projects that we have planned for the future, including the Riverport Loop, Craig Drive pressure improvements. The model is capable of predicting disinfection by-products and water age in the system, which will be helpful from a regulatory standpoint. We may add some work to Strand’s contract to do on-going work on the model, since they have more experience with this work than we do in-house.

6. Riverport Water Line Loop – Mosaic Project: Project is a cooperative one between us and a local industry, and will enhance fire protection and advance our ultimate plans for this portion of our distribution system. We received bids for materials on October 10th, but delayed award of that bid until an easement and a cost-sharing agreement with Mosaic were finalized. Now that all those steps are complete, we’re moving ahead with construction, using our forces. Pre-construction conference with Mosaic took place on 2 December, and construction is set to run from 15 December to 15 February. Taking great pains to make sure this line is located on the easement we’ve negotiated with Mosaic.

7. Bobby Gish (Admin) Building Roof: We chose Hafer Associates of Evansville to assist us in replacing or repairing the roof on the Admin Building, and making some minor exterior repairs to the building, which is 24 years old and in need of some work. Initial meeting held on 7 October. We will bring any proposed repairs back to the Board for authorization. We also are replacing carpet in some well-worn areas in this building.

8. Frontier Tank Rehab and Painting Project: Task Order with Wauford for design engineering on the Frontier Tank has been signed, and we are setting a kickoff meeting soon. The lateness of the timing means that the actual construction work will follow in the spring of 2015. This fits into our capital planning, which anticipates the first payment to the contractor in next fiscal year.

9. Work Order Management System - Cityworks:

Extensive and time-consuming work is under way for this new system to replace our Hansen asset management system (AMS). The implementation consultant (Timmons Group) was here for the start of wide-ranging work during the second week of September, and again the last week of October. We hope to “go live” with this system early next year. At present, this is taking a lot of time and input from “front line” people that deal with the work order system. This system is vital for tracking our work, keeping up with expenses, and allocating costs to the contractual customers based on where work is performed.

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10. South Water Treatment Plant – Rehab Project: Contract signed to move forward with design of work at this plant in the coming fiscal year. Draft of new agreement with Big Rivers has been reviewed with them, and we are moving forward with minor changes to the document in anticipation of having something for Board action soon. Had a useful and agreeable meeting with Big Rivers staff in late November. Wauford has begun surveying on the power plant site to begin the more detailed design process.

11. US 60 West Water Booster Station (South Pressure Zone):

We have finalized plans for this water booster station and the associated water line connections, which will be located on US 60 West near the Fairmont wastewater pump station at the South extremity of the cemetery. The foundation will be constructed in a manner that will allow us to replicate the Atkinson Park Booster Station building in the future, when funding is available. Has received KDOW approval, and is awaiting procurement of materials and time in the crew schedule.

12. Cooper Park Stormwater Project: The City applied for and received a grant for this project to address stormwater issues in an older subdivision north and east of Clay Street and North Fork Canoe Creek. We have prepared plans and forwarded them to the City for discussions with KY EMA about the method of solving the problems we’ve found, which is a change from the original plan. We have included some additional work in this neighborhood that will be above and beyond the work in the grant project. We have also prepared easements for the line from this neighborhood to the North Fork Canoe Creek, and will be talking to property owners soon. Pipe for this project will be the reclaimed pipe from the relocation of the North Fork force main.

13. Highway #41A South, Sewer System Project: This project will ultimately serve Finley Addition and some other un-sewered areas just outside the City limits, but within our service territory. We have been in contact with HMPL about issues related to providing three-phase service to the three pump station sites; this is critical to our future maintenance and operational needs, and these costs will have to be paid as part of the County’s project. The County delayed these bids until December due to contractor questions that pointed up inconsistencies in the plans and specifications.

14. Countryview Subdivision Stormwater Project: We have a joint project in the current budget to begin provision of storm sewers in this neighborhood, and had thought we could do the design engineering in-house. Due to workload, that hasn’t happened. With the City’s concurrence, we’ve issued an RFP for a consultant to do the work of providing plan documents. It’s likely this will stretch over several years, and the construction may be performed with our own forces. Selection of a consultant is the subject of an action report for this meeting.

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HUMAN RESOURCE REPORT

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HWU Human Resources Summary: December 15, 2014

Staffing Levels:

1. Automation Specialist [1 position]: Advertisement on November 23, exam scheduled December 11.

2. Utility System Worker III [1 position]: Internal candidate promoted November 24.

3. Utility System Worker II [1 position]: Register was exhausted, posted position internally on December 1, exam scheduled December 11.

4. Utility System Worker I [1 position]: New employee started November 10.

5. SWTP Water Treatment Operator [1 position]: Advertisement on November 23, exam scheduled December 11.

6. Environmental Compliance & Pretreatment Coordinator [1 position]: Register forwarded to HWU staff; position on hold

per HWU management. 7. SOC Maintenance Technician II [5 positions]: 2 employees promoted December 8; HWU management evaluating the

remaining internal candidates.

8. SWTP – Seasonal Maintenance Worker [1 position]: Staffing agency is working to fill position.

9. SOC – Temporary Secretary [1 position]: Coordinating interview time for staffing agency candidate.

10. Seasonal Treatment Intern [2 positions]: HR Specialist & Director of Plant Operations will establish process after employee requisition is received.

11. SOC – Seasonal Construction Utility System Worker [2 positions]: No request for action.

12. SOC – Seasonal Worker [2 positions]: No request for action.

Safety Report (as of 11/30/2014):

HWU Change

Hours Worked 142,756 + 11,290

Total Cases 7 + 1

Days Away/Restricted Time Cases 5 + 1

Days Away From Work Cases 3 0

Actual # Days Away From Work 14 0

Transfer/Restricted Cases 2 + 1

Actual #Days Restricted Duty 8 + 6

Incident Rates HWU Change 2012

NAICS 2213

Total Recordable Rate 9.81 + 0.68 2.8

DART Incident Rate 7.00 + 0.91 1.4

DAFW Rate 4.20 - 0.36 0.8

Trans / Restrict. Rate 2.80 + 1.28 0.6

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.

One recordable incident in November.

Comprehensive fixed facility safety audits of the SOC and HWU Admin buildings were conducted in November.

One minor safety issue noted at the SOC was immediately corrected. No issues were noted for the HWU Admin building.

Other:

Upcoming City-wide training is planned in the coming months

o Drug & Alcohol training is scheduled for December 9, 10 and 11 o Supervisor Safety Training Day is scheduled for January 14 at HCC

Kentucky OSH audit is in the planning process for early 2015

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SAFETY REPORT

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Safety Report 12-15-2014

A. Safety Committee:

The monthly safety committee meeting was held on November 20th at the NWTP. Discussion was on upcoming training.

B. Training

Training performed in November:

1. Safety meetings are continuing for the crews at the SOC.

2. Lock Out/ Tag Out, Confined Space, and Trenching and shoring training was held with one new employee.

3. Lock Out/ Tag Out, Confined Space, and Trenching and shoring, CPR, and First Aid was held for Distribution and Construction crews.

4. Blood Borne Pathogen training was completed for the treatment plants.

C. Safety Inspections:

1. Administration Building

See facility audit below.

2. Systems Operation Center (SOC):

See facility audit below.

3. WTP North:

There were no significant safety issues found during periodic site visits. These visits unlike the complete audits below may not cover every area of the facility on the day visited. Site visit dates in November were on the 6th, 7th, 8th, 9th, 14th, 20th, 22th, and 24th.

4. WWTP North:

There were no significant safety issues found during periodic site visits. These visits unlike the complete audits below may not cover every area of the facility on the day visited. Site visit dates in November were on the 6th, 7th, 8th, 9th, 14th, 20th, 22th, and 24th.

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5. WTP South:

There were no significant safety issues found during periodic site visits. These visits unlike the complete audits below may not cover every area of the facility on the day visited. Site visit dates in November were on the 4th, 10th, 11th, 18th, 19th, and 24th.

6. WWTP South:

There were no significant safety issues found during periodic site visits. These visits unlike the complete audits below may not cover every area of the facility on the day visited. Site visit dates in November were on the 4th, 10th, 11th, 18th, 19th, and 24th.

7. Water Distribution/ Collection System:

There were no safety issues with employees observed during safety site visits and proper PPE and signage was being used.

D. Comprehensive Safety Audits:

1. Admin Building:

There were no issues noted during the audit.

2. SOC:

There were a few minor issues noted during the audit. These are in the process of being corrected.

E. Recordable Injuries:

1. There was one recordable injury in November with no lost time

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GENERAL MANAGER’S REPORT

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General Manager Report 15 December 2014

General Manager Report 15 December 2014

Operator Salaries

The changes we processed at our October meeting to Job Classifications and Pay Grades for Automation, Water Operators and Interns went to the City Commission for second reading on 25 November, were approved and became effective on 30 November, and we are moving forward with the changes to the Operator positions as quickly as possible, and will test for the additional Automation position in early December.

HWU Policies

A revision to Water and Sewer Tap Fees policy is attached. Over the years, we’ve waived some tap fees for new and expanded industry, when a user has coordinated such work with Kentucky Economic Development and Kyndle. This formalizes that ad-hoc policy, so that we don’t have to hold things up for Board approval on each project. Our plan would be to inform you in monthly reports of dollar amounts involved. This would not apply automatically to major expenses for line extensions, or large increases in system capacity.

Also, a policy reflecting our current procedures on Action Reports and Resolutions is attached. This is merely a house-keeping measure, and contains no changes from current practice.

Regulatory Items

Nothing new on the regulatory front.

Things in General

As we end one year and approach the beginning of another, I just have to say how happy I am with how things are going, and how proud I am to be a part of this organization. We’ve got good, hard-working people, top to bottom, at HWU. We see that in the commitment that our guys make to do their jobs efficiently, quickly and with a sense of pride, every day. From the offices, to the field, to the plants, we’re blessed with fine employees; even the occasional sore-heads are valued. Support from our Board matters, too, and we all thank you for that.

Looking forward to another good year!

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Policy and Procedure Manual Henderson Water Utility

Subject Number Water & Sewer Taps E/F-100

Effective Date Revision No. Revision Date 21 April 2014 12 15 December 2014

1.0 POLICY STATEMENT: This policy is to establish procedures and payment for water and

sewer tap fees, locating services and sewer cleanouts.

2.0 PROCEDURES:

2.1 Definitions:

New Lot: A legally defined parcel of land that has not previously had a habitable structure constructed on it. This includes lots in new subdivisions, vacant lots in older subdivisions, or lots of record and other un-divided tracts of land in the HWU service area.

Water Service Line: The water line running from the HWU water main to the meter pit. This portion of the water service is the responsibility of HWU to maintain.

Sewer Tap: The connection of the customer sewer lateral to the HWU sewer main.

Cleanout: An approved plumbing connection (6” minimum diameter) between the sewer main and a building, where sewer cleaning equipment can be inserted to clean a portion of the lateral.

Redevelopment: New construction in long-established areas of Henderson. Redevelopment typically includes a tear-down/rebuild type of project, or “in-fill” construction in an existing neighborhood. The baseline for the definition of redevelopment is evidence on the site of pre-existing water or sewer service.

2.2 Water Taps: The following circumstances will require payment of a full water tap fee in an amount as set in the appropriate rate/fee table:

2.2.1 A new water tap is required for a new structure where an existing water service line does not exist.

2.2.2 If the water service line is upsized at the request of the customer.

2.2.3 Relocating existing water service lines at the request of the customer, if that relocation involves tapping the main.

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Policy Number Revision No. Page of E/F-100 12 2 3

2.3 The following circumstances will not require payment of a full water tap fee.

2.3.1 Renewal or repair of old service lines required by existing customers for existing structures or redevelopment will not be subject to tap fees.

2.3.2 For new structures:

2.3.2.1 If there is an existing water meter setting on the property, the service line is copper, and no modifications are needed to the tap or meter service, the customer can use this service without paying a water tap fee. A meter setting fee will apply.

2.3.2.2 If the existing water meter setting is copper and a new service line does not need to be installed but the meter setting has to be replaced or modified, there will be a charge for time and materials for the tap and a meter setting fee. In these cases, time and material charges shall not exceed the amount of a normal tap fee.

2.4 For commercial and industrial water taps greater than 1-1/2”, time and material charges apply, and the estimated cost must be paid at the time of application. Where the estimate is exceeded, the customer will be billed for the excess amount. Where the estimate is not exceeded, the difference will be refunded to the customer. Time and material charges are subject to a minimum charge as shown in the rate tables.

2.5 Meter setting fees apply in most cases, in addition to tap fees. Setting fees will not be charged when a meter is downsized.

2.6 Sewer Taps: The following circumstances will require payment of a full sewer tap fee in an amount as set in the appropriate rate/fee table:

2.6.1 A new sewer tap is required for a new structure where an existing sewer service line does not exist.

2.6.2 If the sewer service line is upsized at the request of the customer, or if the customer desires the service location be moved, requiring a new tap on the main.

2.7 The following circumstances will not require payment of a full sewer tap fee:

2.7.1 Sewer Taps for redevelopment will be at no charge to the customer.

2.7.2 Renewal of a sewer tap for existing customers for existing structures will not be subject to tap fees.

2.7.3 If there are multiple properties on one sewer tap HWU will install one free of charge to the customer that does not have one on their property. If the shared tap is unusable we will install new taps for both properties at no expense to the customers.

2.7.4 Locating existing sewer taps for customers will be at no charge

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Policy Number Revision No. Page of E/F-100 12 3 3

Policy and Procedure Manual

2.8 For commercial and industrial sewer taps, time and material charges apply, and the estimated cost must be paid at the time of application, subject to a minimum charge as shown in the rate tables. Where the estimate is exceeded, the customer will be billed for the excess amount. Where the estimate is not exceeded, the difference will be refunded to the customer.

2.9 Cleanouts: For existing customers that are experiencing problems and a sewer snake/camera has been used to determine that the problem is within the right of way or easement, HWU will install a clean-out on the line and service the portion from the cleanout to the main for the payment of a sewer cleanout fee.

2.10 Payment of all fees must be made at the time of application, and no work will be performed on water or sewer taps until applicable fees are paid. Charges for taps are set in the applicable fee table as set by the Water & Sewer Commission, and different fees apply for developer-installed and Utility-installed taps, for fire suppression services, and for meter-setting (based on meter size).

2.11 Waiver of Fees: At the request of any customer, Water water and sewer tap fees may be waived on a case by case basis by the Water and Sewer Commission. Generally, churches, charities and other 501(c) 3 organizations do not qualify for a waiver of fees. Tap fees may be waived by staff in the following instances:

2.11.1 Ffor projects related to City or County government entities.

2.11.2 Long-standing Board policy allows waiver of fees on For Habitat for Humanity of Henderson projects.

2.11.3 For any industrial user locating or expanding in the HWU service areas, if the user has worked with both the Kentucky Economic Development Cabinet and Kyndle in deciding its final plans. The waiver would not include line extensions or capacity expansion.

3.0 RESPONSIBILITY: Tap fees and service fees are set by the HWU Board of

Commissioners. The Utility System Superintendent shall determine which of the above procedures is to be used in the calculation of fees. Collection of the fees shall be the responsibility of the SOC Administrative Assistant. The Director of Field Operations shall be responsible for the overall coordination for this process. Waiving of any fees due to special circumstances shall be at the discretion of the General Manager, and shall be reported to the Board of Commissioners, including an estimate of the amount waived.

APPROVED: _____________________________________ Tom Williams, P.E. General Manager

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Policy and Procedure Manual Henderson Water Utility

Subject Number Board Action Reports and Board Resolutions A-200

Effective Date Revision No. Revision Date 15 December 2014 0 15 December 2014

1.0 POLICY STATEMENT:

In order to document actions by the Water and Sewer Commission, Board Action Reports and Board Resolutions will be used according to the guidelines below. This policy supersedes and voids any policy or procedure previously adopted.

2.0 PROCEDURES:

2.1 Board Action Reports and Board Resolutions record procedures of the Water and Sewer Commissioner related to capital projects, disposition of property, and other matters that require formal action prior to implementation. They should be complete and concise.

2.2 Action Reports are normally not required for budgeted capital expenditures in amounts less than $ 20,000. They are required for all other capital projects and for budgeted capital items under $ 20,000 when special or unusual circumstances apply (sole source, unusual bid circumstances, etc). Action Reports are prepared from pricing obtained under the requirements of the Purchasing Policy, contained in policy B-200.

2.3 Board Resolutions are typically required for items that will be forwarded to the City for further action, such as dispositions of real property, ordinance revisions, or budget amendments, and for hiring and setting the compensation of non-civil service positions. Resolutions require a roll-call vote of the Board.

2.4 Action Reports and Resolutions shall be sequentially numbered. The format for numbering is “YEAR – XX”, where “YEAR” is the four-digit calendar year in which the action is taken, and “XX” is the number of the document. Numbering will reset each year on 1 January.

2.5 When an Action Report relates to a previous report, it shall contain a reference to the prior report near the top of the new report, in bold-italics.

2.6 When a Resolution is forwarded to the City, it should be accompanied by a memo that explains the actions contained therein, and requests consideration by the City. The memo may be addressed to the Mayor and Commissioners, and should at a minimum be copied to the City Manager, Assistant City Manager, City Attorney, and other staff as deemed necessary.

3.0 RESPONSIBILITY: Department heads and other staff are responsible for preparation of Action Reports related to their areas of expertise when required to document Board action. The General Manager must approve all Action Reports and Resolutions, prior to submission to the Board. The Administrative Assistant is responsible for maintaining records of Board actions, and for transmitting information to the City as required.

APPROVED:

_________________________ Date: ________ Tom Williams, P.E. General Manager

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BUSINESS

Action Report #2014-53 – Countryview Subdivision Stormwater Project – Design Services

Action Report #2014-54 – North WWTP ATV Purchase & South WWTP ATV Upgrade

Determine date of January 2015 board meeting since third Monday falls on a Holiday

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

property pursuant to KRS 61.810 (1) (b)

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