hardin county water district no. 1 minutes.pdf · stranahan and ms. daugherty exited the meeting at...

Hardin County Water District No. 1 Minutes of Regular Meeting

of the Board of Commissioners

January 21, 2014

Chairman William Gossett called the meeting to order at II :32 A.M. with Commissioners John Tindall, Ron Hockman, Howard Williams, and Jim Shelton in attendance. Staff present included Jim Bruce, General Manager; Brett Pyles, Operations Manager; Scott Schmuck, Finance and Accounting Manager; Daniel Clifford, Interim Engineering Manager; Andrea Palmer, Executive Assistant; Richard Stranahan, Ft. Knox Distribution Supervisor; Leslie Daugherty, Ft. Knox Distribution Specialist; and attorneys David Wilson and Dustin Humphrey. Lunch was provided for the Board and staff.

Chairman Gossett opened the floor for public comment. There was none and the floor was closed to public comment.

Chairman Gossett asked for a motion to accept the prior meeting minutes. Treasurer Tindall made a motion to accept the December, 2013 regular meeting minutes. Commissioner Shelton seconded the motion and motion passed.

Mr. Schmuck presented the December, 2013 Treasurer' s report, noting that four of the five funds reflect a net positive income for the month with Radcliff Sewer showing a net operating loss of approximately $459,000 for 2013, before auditing and year close out. He added that in the month of December, the District sold scrap for $18,000. He then notified the Board that the audit would be taking place the last week of January and there was a brief discussion regarding the fee paid to the auditors. Chairman Gossett thanked Mr. Schmuck for the report and all of the improvements he' s made in the financial reporting process. Mr. Bruce noted that a surplus computer and furniture sale took place which generated about $800 and added that a detailed list would be included in the January packet. Commissioner Williams made a motion to approve the December, 2013 Treasurer' s Report. Secretary Hockman seconded the motion and motion passed.

Board Monitoring Report: Mr. Bruce presented the General Manager's Report and added that he and Mr. Schmuck would be presenting the District' s 2014 budget at the upcoming Fiscal Court meeting, which all Board Members were welcome to attend. He noted that he planned to give an update to the Fiscal Court regarding the County Expansion Project and that Mr. Brian Bruggeman from The Bruggeman Group would be attending as the County Expansion Initiative project would be explained during that presentation.

There was brief discussion regarding the Legislative Breakfast and future capital funding sources.

Commissioner Shelton asked if the $9 million that Hardin County Water District No. 2 is spending in northern Hardin County is part of the "Glendale Project". Mr. Bruce answered that it is not, and added that the grant name for this project is "Northern Hardin County Sewer" . Mr. Clifford and Mr. Bruce updated the Board on their discussion with HCWD2 about possible changes to the scope and use of the "Northern Hardin County Sewer" grant.

Mr. Bruce answered questions regarding chemical spill in West Virginia and how the Louisville Water Company had responded to that event, and kept the District and Ft. Knox updated after this spill.

Mr. Pyles presented the Operations Manager report and offered to answer any questions. Treasurer Tindall complemented distribution staff for their hard work on water main breaks in the subzero temperatures and noted he had observed crews working in Radcliff after hours and during cold weather.

Mr. Clifford presented the Engineering Manager report. He informed the Board that Veolia employees are making operational changes to accommodate and work around the defective Radcliff WWTP RAS pumps. He added that pump number 2 has been installed but is still not working and pump number 3 is at the factory now. He advised the Board that he and Mr. Bruce had met with legal counsel about the options, and then requested a meeting with the contractor and pump supplier and presented the District's demands at that meeting. He noted that the cost of bypass pumping has now exceeded the total projected cost of the project and that the pump supplier seems to understand the District's concerns and has been working to resolve the problems, albeit slowly. He added that in the last week, pump seals failed letting water into the motor, which ruined the motors. He then answered all Board questions.

Election of Officers: Chairman Gossett noted that the Board policy states that elections of officers must be held at the first possible meeting of each year and asked if anyone opposed doing so now. Hearing no opposition, Chairman Gossett opened the floor for elections. He then asked for nominations for the office of Chairman.

Commissioner Williams made a motion to re-elect all current officers by acclamation and to close nominations. Commissioner Shelton seconded the motion and motion passed.

Hardin County Water District No. 1 -Board of Commissioners Minutes of~egular Meeting January 21 , 2013

Continued

Radcliff Sewer Rate Case Discussion: Mr. Bruce explained that the staff has an upcoming conference with the Public Service Commission to discuss a possible settlement, and he asked for direction from the Board. Mr. Humphrey interjected that this topic would better be discussed in executive session under litigation. Chairman Gossett gained consensus to complete other agenda items first before considering a motion for closed session.

Ft. Knox Distribution Facility: Mr. Bruce introduced Ms. Daugherty and Mr. Stranahan and explained their key roles with the Ft. Knox Water utility. Mr. Bruce then gave a brief presentation and answered all Board questions regarding the proposed office and operations facility to be constructed on Ft. Knox. Commissioner Williams made a motion to authorize staff and legal counsel to negotiate a design-build contract with Codell Construction Management for the Ft. Knox Water Distribution Facility for a total design-build contract not to exceed $1 ,440,000 and building only cost of$155 per square foot and to authorize the General Manager and legal counsel to execute the contract at the earliest convenience and to proceed with the project design and construction. Treasurer Tindall seconded the motion and motion passed. Mr. Bruce thanked the Board for their support and informed them that Mr. Stranahan had recently received notice that the temporary distribution office is again on a building demolition list. Mr. Stranahan and Ms. Daugherty exited the meeting at this time.

Uniform Rental & Laundry Service: Treasurer Tindall made a motion to authorize award of a one year contract for Uniform Rental and Laundry Services to UniFirst Corporation, the lowest bid of two received and, if deemed appropriate by legal counsel, to make an attempt to terminate current agreement with current provider. Commissioner Williams seconded the motion and motion passed. Chairman Gossett asked if the District is able to terminate their previous contract with G&K and Mr. Bruce answered that instead of terminating, the District will keep G&K' s rag rental service through the end of the contract.

New Business: Mr. Bruce presented the Board members with a hand out explaining the 2002 Variable Rate Bonds Letter of Credit Extension and answered all Board questions. Secretary Hockman made a motion to approve another one year extension to the Letter of Credit for the 2002 Series Adjustable Rate Water Bonds which is being provided by the Cecilian Bank and the Federal Home Loan Bank, dated April8, 2010, with the same terms and conditions as originally stated extending the Letter of Credit through April 20 15, and to authorize the General Manager and or Chairman to execute any documents as required for this extension. Commissioner Shelton seconded the motion and motion passed.

Executive Session: Treasurer Tindall made a motion to enter into executive session in order to discuss a litigation matter in accordance with KRS 61.81 O. l.c. Commissioner Shelton seconded the motion and motion passed. Mr. Bruce noted that Mr. Schmuck should be present for the discussions, and remainjng staff exited the room at this time.

Adjourn: Chairman Gossett reconvened open session and Secretary Hockman made a motion to adjourn at 1:37PM. Motion was seconded by Treasurer Tindall and motion passed.

(Minutes submitted by Andrea Palmer, Executive Assistant)

APPROVAL OF MINUTES

I hereby certify that the foregoing minutes were duly approved by the Board of Commissioners of the Hardin County Water District No. 1 at a meeting held on the date shown below:

r. Ron Hockman, Secretary

.2 -/?- /-fJ//j Date Approved

Hardin County Water District No. I Minutes of Special Meeting


January 29, 2014

This was a video teleconference meeting. Proper public notice was made in accordance with KRS/KAR requirements. Chairman William Gossett attended by video teleconference from Ft. Myers, Florida. Chairman Gossett called the meeting to order at 1:08 P.M. with Commissioners John Tindall, Ron Hockman, Howard Williams, and Jim Shelton in attendance. Staff present included Jim Bruce, General Manager; Scott Schmuck, Finance and Accounting Manager; and attorney Dustin Humphrey.

Mr. Humphrey updated the Board on attorney Mr. David Wilson's health condition and status. Mr. Wilson could not attend the meeting as he was still in the hospital for a heart procedure, but was expected to be released the following day.

Chairman Gossett asked Treasurer Tindall to chair the meeting for him, in the event the teleconference connection failed and Chairman Gossett would not be able to participate or vote. Treasurer Tindall agreed and took over chairing the meeting.

Executive Session: Mr. Bruce and Mr. Humphrey noted that the Board needed to discuss a litigation matter regarding the Radcliff Sewer Rate Case and requested a closed session in accordance with KRS 61 .81 0.1.c. Commissioner Hockman made a motion to enter into closed session. The motion was seconded by Commissioner Williams and passed.

Executive Session Action Item: Acting Chairman Tindall reconvened open session at 1:55 P.M. Commissioner Gossett made a motion to task staff and legal counsel to draft a settlement agreement and motion to accept a settlement offer presented by the Public Service Commission to staff on January 23 , 2014 and to file same at the earliest convenience. The motion was seconded by Commissioner Williams and passed.

Adjourn: Secretary Hockman made a motion to adjourn at I :58 PM. Motion was seconded by Commissioner Williams and the motion passed.

(Minutes submitted by Jim Bruce, General Manager)

APPROVAL OF MINUTES

1 hereby certify that the foregoing minutes were duly approved by the Board of Commissioners of the Hardin County Water District No. I at a meeting held on the date shown below:

· Mr. Ron Hockman, Secretary

/J. -I£- ~01~ Date Approved

-------------- - ---

Hardin County Water District No.1 Minutes of Regular Meeting

ofthe Board of Commissioners

February 18,2014

Chairman William Gossett attended by video teleconference from Ft. Myers, Florida. Chairman Gossett called the meeting to order at 11:32 A.M. with Commissioners, Ron Hockman, Howard Williams and Jim Shelton in attendance. Staff present included Jim Bruce, General Manager; Brett Pyles, Operations Manager; Scott Schmuck, Finance and Accounting Manager; Daniel Clifford, Interim Engineering Manager; Andrea Palmer, Executive Assistant; Richard Stranahan, Ft. Knox Distribution Supervisor; Leslie Daugherty, Ft. Knox Distribution Specialist; attorneys David Wilson and Dustin Humphrey. Lunch was provided for the Board and staff.

Chairman Gossett opened the floor for public comment. Mr. Bruce introduced Mr. Mickey Miller, President I CEO of Nolin RECC. Mr. Miller thanked the Board for the chance to speak to them and noted that Nolin and the District have a good relationship. He announced that as a Cooperative, Nolin periodically pays capital credits to the members whenever funds are available to do so. He added that this total payout of$5.5 million was from parts of 1987, 1988, 1989, and 2012 and then he presented a check for $38,857.52 to the Board. The Board thanked Mr. Miller with a round of applause. Mr. Bruce noted that the District calls on Nolin quite often and that they are a great help. Mr. Miller exited the meeting at this time and Chairman Gossett closed the floor to public comment.

Chairman Gossett asked for a motion to accept the prior meeting minutes. Secretary Hockman made a motion to accept the January 21,2013 regular meeting minutes as well as the January 29,2013 special meeting minutes. Commissioner Williams seconded the motion and motion passed.

Treasurer Tindall entered the meeting at this time. Chairman Gossett asked Treasurer Tindall to chair the meeting for him, in the event the teleconference connection failed and Chairman Gossett would not be able to participate or vote. Treasurer Tindall agreed and took over chairing the meeting.

Mr. Schmuck presented the January 2014 Treasurer's report, noting that the County Water Fund is showing a net operating loss of just over $28,000 due to; an increase in purchased water caused by numerous main breaks and leaks associated with the cold weather, a loss on disposal of assets such as the old phone system, scrapping of 195 meters, and writing off un-depreciated expense for various items sold at the surplus auction in January. He added that the surplus auction did net $800 income, which would help to offset some of the loss on those items. Commissioner Williams made a motion to approve the January, 2014 Treasurer's Report. Commissioner Gossett seconded the motion and motion passed.

Board Monitoring Report: Mr. Bruce presented the General Manager's Report and offered to answer questions. Secretary Hockman inquired about the Ft. Knox Heavy Equipment Operator Position and Mr. Bruce answered that the position was filled internally. Secretary Hockman clarified that an external candidate backfilled the now vacant position due to the internal promotion, and Mr. Bruce confirmed. There was discussion regarding Meade County Water District and their plan for purchasing water once the District converts to Chloramine treated water. Mr. Bruce added that Mr. Joe Bartley ofMCWD appreciated the update that Mr. Bruce sent him.

Mr. Pyles presented the Operations Manager report and answered questions regarding the radio read meter installation. Mr. Pyles noted that the USA Cares Golf Scramble has been scheduled for June 19th and invited the Commissioners to attend.

Mr. Clifford presented the Engineering Manager report and offered to answer any questions. He noted that there would be a meeting in the upcoming week to sign the agreement for the Fort Knox Water Distribution building and make changes to the 30% plans. He added that in the process of bidding the RAS pumps at the Fort Knox Wastewater Treatment Plant, there was a language change in the agreement to require progress and final payments to be tied to demonstrated pump performance. Secretary Hockman asked if the bidders agreed to the new language and Mr. Clifford confirmed that they did.

Consent Agenda: Secretary Hockman made a motion to approve the consent agenda. Commissioner Shelton seconded the motion and motion passed. (Authorize bid award of contract for the Ft. Knox WWTP RASNFD Replacement Project to Vanguard Construction for $144,000 and authorize award of contract for the Roof Replacement Project, for the Fort Knox Wastewater Treatment Plant to H&O Contracting for $94,000). Commissioner Gossett abstained from the vote for the bid award- Ft. Knox WWTP RAS Pump Replacement.

Hardin County Water District No. I -Board of Commissioners Minutes of Regular Meeting February 18, 2013

Continued

County Expansion Initiative Update: Mr. Bruce announced that the Kentucky Infrastructure Authority (KIA) has approved the use of grant funds to subsidize taps for potential or current customers and that Board could develop its own criteria for qualifying for a subsidy. There was discussion about how that process would work and whether the Board was interested in using the grant for tap subsidies. Secretary Hockman stated that he felt the grant should be used for its original intent- to put water mains in the ground in the Constantine Area. Commissioner Gossett noted that his preference was to partner with a bank to allow customers to finance their taps and utilize the grant money just for extending new water mains. There was brief discussion about the variables used in the District ranking system to decide which roads would be included in the project. It was the consensus of the Board to continue to work with a local bank to develop a tap financing option, and to proceed with carrying out the other aspects of the County Expansion Initiative project, but not to use any grant funds for tap subsidies.

Proposed Personnel Policy - Emergency Closure: Mr. Bruce presented the proposed policy and answered Board questions. Secretary Hockman made a motion to adopt a new Emergency Closure /Compensation policy to be included in the Personnel Handbook under Policy No. 70 - Leave with Pay, and the implement the policy at the soonest convenience. Mr. Bruce thanked the Board for their consideration. ·

Executive Session: Mr. Bruce notified the Board of a need to enter into closed session for litigation. Secretary Hockman made a motion to enter into executive session in order to discuss a litigation matter in accordance with KRS 61.81 0.1.c. Commissioner Williams seconded the motion and motion passed. Mr. Bruce noted that Mr. Pyles should be present for the discussions, and remaining staff exited the room at this time.

Executive Session -Action Item: At 1:25PM, Chairman Tindall reconvened open session. Secretary Hockman made a motion for staff to send a letter to the contractor and the pump supplier, for the RadcliffRAS Pump project, after an interim solution is in place allowing all three pumps to work, notifYing the parties of the District's expectations and possibility of further legal action if the District's expectations and required bid and contract requirements are not met. The motion was seconded by Commissioner Shelton and passed.

Adjourn: Chairman Gossett reconvened open session and Secretary Hockman made a motion to adjourn at 1 :26 PM. Motion was seconded by Commissioner Williams and motion passed.


APPROVAL OF MINUTES

I hereby certifY that the foregoing minutes were duly approved by the Board of Commissioners of the Hardin County Water District No. 1 at a meeting held on the date shown below:

~~~CTNo.l

Mr. Ron Hockman, Secretary

M a.t:t.J1 21, 20/Jf Date Approved 1

Hardin County Water District No. 1 Minutes of Special Meeting


March 21, 2014

Chairman William Gossett called the meeting to order at II :32 A.M. with Commissioners John Tindall, Ron Hockman, Howard Williams and Jim Shelton in attendance. Staff present included Jim Bruce, General Manager; Brett Pyles, Operations Manager; Scott Schmuck, Finance and Accounting Manager; Daniel Clifford, Interim Engineering Manager; Andrea Palmer, Executive Assistant; Tim Osborne, Distribution Supervisor; Patrick Arnold, Distribution Operator; and attorneys David Wilson and Dustin Humphrey. Guest in attendance was Mr. Brad Hayes, CPA, CGFM with Ray, Foley, Hensley & Company, PLLC/CPA. Lunch was provided for the Board and staff.

Chairman Gossett opened the floor for public comment. There was none and Chairman Gossett closed the floor to public comment.

Chairman Gossett asked for a motion to accept the prior meeting minutes. Secretary Hockman made a motion to accept the February I8, 2014 regular meeting minutes. Commissioner Williams seconded the motion and motion passed.

Mr. Bruce asked Mr. Osborne to introduce his newest employee to the Board. Mr. Osborne introduced Mr. Patrick Arnold, County Water Distribution Operator, to the Board and reviewed Mr. Arnold's employment history. The Board introduced themselves and welcomed Mr. Arnold to the District. Mr. Osborne and Mr. Patrick exited the meeting at this time.

2013 Annual Financial & Audit Report: Chairman Gossett gained consensus to move to agenda item No. 7, the 2013 Annual Audit Report Presentation. Mr. Bruce introduced Mr. Brad Hayes from Ray, Foley, Hensley & Company and announced that Mr. Hayes has recently become a partner of the firm. The Board congratulated Mr. Hayes and invited him to make his presentation.

Mr. Hayes called the Board's attention to the audit report and noted that there were no findings or issues and offered to answer any questions before he began the presentation. Mr. Hayes made a slide presentation showing financial ratios and benchmarking comparing to other utilities, as well as prior years for the District. Treasurer Tindall asked Mr. Hayes if he felt there was anything that the Board needed to address, and Mr. Hayes answered that he is comfortable with the District's accounting methods and procedures and the effectiveness of internal controls in place.

Mr. Bruce thanked Mr. Hayes and commended Mr. Schmuck and his staff for a successful audit, noting that each year the budgeting and auditing process becomes more efficient thanks to their efforts. He then asked Mr. Hayes for clarification on new legislation requiring public agencies which are part of a state pension fund to begin showing its share of the pension fund's unfunded liability on the balance sheet of the local agency. Mr. Hayes answered all questions for Mr. Bruce and the Board.

Commissioner Williams made a motion to accept the 2013 Financial & Audit Report as presented by the District's CPA firm. Commissioner Shelton seconded the motion, and motion passed.

Mr. Schmuck thanked Mr. Hayes and his firm, stating that they are a "class act" that is very thorough with the audit for the District. The Board applauded Mr. Hayes and he exited the meeting at this time.

Mr. Schmuck presented the February 20I4 Treasurer's report, noting that four of the five funds reflected a net income for the month. He answered questions for the Board, and Commissioner Williams made a motion to approve the February, 2014 Treasurer's Report. Commissioner Shelton seconded the motion and motion passed.

Board Monitoring Reports: Mr. Bruce presented the General Manager's Report and offered to answer questions. He stated that the Hardin County Water District No.2 northern Hardin County Sewer Expansion is moving quickly. He added that Mr. Clifford and Mr. Kyle Guthrie, P.E., ofHDR, Inc. developed and presented a plan to the General

Hardin County Water District No. 1 -Board of Commissioners Minutes of Special Meeting March 21, 2014

Continued

Manager and Operations Manager with HCWD2. Mr. Bruce reported that the HCWD2 Board was pleased with the proposed project and suggested a joint resolution be passed to proceed with the project design and construction. Treasurer Tindall asked if a special joint meeting would be necessary and Mr. Bruce answered that if both Boards adopted the resolution at the April meeting that should resolve any questions and formalize the agreed terms between the two Boards.

There was some discussion regarding the PSC Hearing held on March 18th in Frankfort. Mr. Wilson and Mr. Bruce answered all Board questions.

Mr. Pyles presented the Operations Manager report and answered questions regarding leaked water on Fort Knox. There was discussion regarding the Louisville Water Interconnect and the sizing of the main. Mr. Pyles also noted that previously the Board wanted to be aware of any work that is being performed near a Commissioner's home. He informed them that there is currently sewer work being performed on both Audubon Ct and Deepwood Ave, near the homes of two Commissioners.

Mr. Clifford presented the Engineering Manager report and offered to answer any questions. There was brief discussion regarding the Quiggins sewer project and the plans for the repairs.

Secretary Hockman asked for an update on the Radcliff Wastewater RAS Pumps, and Mr. Clifford answered that the third pump is currently being rebuilt by KSB, but the first two were back and operating. He noted that those two had both tripped once more for unknown reasons, but had been reset and had since been operating normally. Secretary Hockman asked for an update on the Pirtle Spring Water Treatment Plant ("PSWTP") Chloramine Conversion Project. Mr. Bruce answered that a preliminary design report had been submitted to the DoW and was approved. He said that staff had advertised for Request for Qualifications from teams interested in submitting a design/build build proposal to complete final construction plans and construction. He noted that staff hoped to have the PSWTP converted by November.

Consent Agenda: Secretary Hockman made a motion to approve the consent agenda. Treasurer Tindall seconded the motion and motion passed. (Authorize award of a painting contract for the Service Center Roof & Garage Door Painting Project to

NPM of Elizabethtown for $36,200 and authorize award of contract for the Fort Knox Wastewater Plant Garage Door Replacement Project, for the Fort Knox Sanitary Sewer Utility, to Raynor Garage Doors of Lexington for $47,000).

Annual Recurring Disbursement Register Approval: Mr. Bruce presented the recurring register in accordance with the Payable Disbursement Policy which had been approved by the Board as policy 410.8.d in July, 2012. Commissioner Williams made a motion to approve all the expenses and vendors to be paid as shown on the Recurring Disbursement Register in accordance with the Board's Payable Disbursement policy and to authorize the Treasurer to sign any checks or other payment instruments as needed to make these payments throughout the current budget year. Commissioner Shelton seconded the motion and motion passed.

Water Treatment Alternative Coagulant Study: Mr. Bruce presented a proposed coagulant study and offered to answer any questions. Treasurer Tindall made a motion to authorize staff to proceed with completing an Alternative Coagulant Study during 2014 and 2015 to find more cost effective options for treatment coagulants with a not-to-exceed budget of$16,000 and to present study results to the Board at completion. Commissioner Shelton seconded the motion and motion passed.

Veolia Contract: Mr. Bruce notified the Board that Mr. Brad Walker Radcliff Project Manager with Veolia was present to answer questions about the next item. Mr. Walker entered the meeting at this time. Mr. Bruce presented the amendment to the Veolia contract, explaining that the previous language was not clear in that Veolia should alert the District to any and all repairs over $2,500, to include facilities, equipment and vehicles~ He noted that Mr.

Hardin County Water District No. 1- Board of Commissioners Minutes of Special Meeting March 21, 2014

Continued

Walker has already put in place a new standard operating procedure to begin using the $2,500 pre-approval limit. Chairman Gossett asked Mr. Walker to explain the repairs that were needed tor the 2008 Ford F450 that was in question.

Mr. Walker detailed repairs spanning a period of nearly f()ur months for a total of $15,151 and answered all Board questions. Secretary Hockman showed support for the amendment, noting that the current language does not say "any repair" and adding that transmission and engine work is sometimes more costly than anticipated. Mr. Bruce added that the District intends to write a letter to Ford Motor Company regarding a possibly faulty engine. Commissioner Williams added that Ford Motor Company, at ifs highest level, needs to be aware ofthe issues with this vehicle.

Treasurer Tindall made a motion to authorize staff and legal counsel to complete contact amendments to the Radcliff and Ft. Knox Veolia Operations contracts, modifying to require advance notice and prior approval for any repairs above $2,500 to include facilities, equipment and vehicles with the stipulation that the District's Attorney have the final review. Commissioner Williams seconded the motion and motion passed.

Adjourn: Secretary Hockman made a motion to adjourn at 1:16PM. Motion was seconded by Commissioner Williams and motion passed.


APPROVAL OF MINUTES

I hereby certifY that the foregoing minutes were duly approved by the Board of Commissioners of the Hardin County Water District No. 1 at a meeting held on the date shown below:

H~~~::~COUNr~ W ~JER DISTRICT No. I

( ' ~-<::J1•"l,,.,.,.// -..-'l~· ... .(~<''_/c"4.,-_.-_,._.,.~"""'"''"

Mr. n Hockman, Secretary

"'I/;:; !1"1 ~'4 l c JP'<L -,// , Date Afprovoo '

Hardin County Water District No. 1 Minutes of Regular Meeting


May 20,2014

Chainnan William Gossett called the meeting to order at 11 A.M. with Commissioners John Tindall, Ron Hockman. Howard Williams and Jim Shelton in attendance. Staff present included Jim Bruce, General Manager; Brett Pyles, Operations Manager; Scott Schmuck, Finance and Accounting Manager; Daniel Clifford, Interim Engineering Manager: Andrea Palmer, Executive Assistant; Charlene Easter, Customer Service Manager; and attorneys David Wilson and Dustin Humphrey. Lunch was provided for the Board and staff.


Chaim1an Gossett asked iura motion to accept the prior meeting minutes. Treasurer Tindall made a motion to accept the April 15, 20 !4 regular meeting minutes. Commissioner Williams seconded the motion and motion passed.

Mr. Schmuck presented the ApriL 2014 Treasurer's report, noting that f()ur of the five funds reflected a net income f~·x the month, while the Radcliff Sewer Fund reflected a loss of $121,000 year-to-date. He added that the District had disposed of a surplus asset by trading in the Toyota Tundra for $4,800 on a 20 ll Honda Ridge line. Secretary Hockman had questions regarding how depreciation is reported and where the funds are deposited, which Mr. Schmuck and Mr. Bruce ans\vered. Commissioner Williams made a motion to approve the April, 2014 Treasurer's Report. Commissioner Shelton seconded the motion and motion passed.

Board Monitoring Reports: Mr. Bruce presented the General Manager's Report and oflered to answer questions. He explained that the llrst bills reflecting the sewer rate increase \Vould not be sent out until June since the District cannot charge the higher rate on any usage prior to May l. Mr. Wilson brie11y updated the Board on PSC questions regarding the L WC Purchased Water agreement

Mr. Pyles presented the Operations Manager report and answered questions regarding the process for insurance claims related to sewer back-ups in the Radcliff Sewer System. There was a discussion about need for a policy on how the District would respond to claims for damage caused by sewer back-ups. Mr. Bruce said he and staff have been collecting information to bring the Board a recommendation at a future meeting. The Board asked staffto find more information about a recent insurance settlement with a resident in Radcliff.

Mr. Clifford presented the Engineering Manager report and provided an update regarding the Radcliff RAS pumps. There was brief discussion regarding the Boone Trace Lift Station project

Consent Agenda: Treasurer Tindall made a motion to approve the consent agenda. Commissioner Williams seconded the motion and motion passed. (Authorize award of contract for Lincoln Trail Painting Project to Caldwell Tanks for $459,000, authorize staffto proceed with having Nolin RECC install primary electric service and transformer for the FK Water Distribution facility for $30,000, authorize staff to purchase a new pump for the pitnvheel station in the Ft. Knox Sanitary system for $7, l 00, and authorize staff to spend $1 LOOO fur repairs to the 200 l Sterling V AC truck and increase Budget item 3 l to $36,000.)

There \Vas a discussion about the paint color for the tank painting project. The Board requested staff select the color. Mr. Bruce asked about the option for a logo on the tank recognizing the City of Radcliff or Vine Grove. Treasurer Tindail suggested a combined logo or statement such as "The Cities of Radcliff and Vine Grove''. Mr. Bruce said he would fashion a proof or text and get a price f(x adding this and report back to the Board.

Leak Adiustment Policy: Mr. Bruce presented the proposed policy and noted that Ms. Easter was present to help answer Board questions. Treasurer Tindall made a motion to authorize staff and legal counsel to prepare new tariff sheets to add a water and sewer leak policy, with features as proposed by staff and modified by the

Hardin County Water District No. I - Board of Commissioners Minutes of Regular Meeting May 20,2014

Continued

Board and to file with the PSC for consideration as soon as possible. Commissioner Williams seconded the motion and motion passed.

Commissioner Williams had questions regarding service line insurance, and Mr. Bruce answered that the service is offered by a third party. Commissioner Williams suggested that staff research partnerships in the field and bring the findings back to the Board in approximately six months.

Travel Policy: Mr. Bruce presented the proposed, updated Travel Policy. Commissioner Williams made a motion to approve proposed changes to the Board and Employee Travel Expense policies with any changes as directed by the Board, and to update both written policies in the manuals as required. Commissioner Shelton seconded the motion and motion passed. Treasurer Tindall stated that this policy should be a "living" document that should be revisited period~cally and updated as needed.

Fort Knox Water Quality Modeling & CIP Development: Mr. Bruce presented the item and announced that the District received five proposals. There was a discussion regarding Stantec, the recommended firm, and how the proposals were evaluated. Mr. Bruce reviewed the need for this study and what information it would provide to staff and the Board. Treasurer Tindall made a motion to accept a proposal from Stantec for the completion of a Water Quality Modeling and Capital Improvement Plan Development study for the Ft. Knox Water utility and to authorize staff and legal counsel to prepare and execute a professional services agreement with the firm and to carry out the study at the earliest convenience and report the findings of the study and recommendations to the Board when complete.

New Business: At this time, Mr. Bruce noted that with the recent, heavy rain, the Service Center Roof was leaking in multiple places with a total repair cost of approximately $1,500. Secretary Hockman made motion to authorize staff to coordinate roof repairs at the Service Center. Treasurer Tindall seconded the motion and motion passed.

Adjourn: Secretary Hockman made a motion to adjourn at l: l 0 PM. Motion was seconded by Treasurer Tindall and motion passed.


APPROVAL OF MINUTES


~~ ~~Secretary

Date Approved

Hardin County Water District No.1 Minutes of Special Meeting


June 17, 2014

Chairman William Gossett called the meeting to order at 1:02 P.M. with Commissioners John Tindall, Ron Hockman, Howard Williams and Jim Shelton in attendance. Staff present included Jim Bruce, General Manager; Brett Pyles, Operations Manager; Stephanie Strange, Accountant; Daniel Clifford, Interim Engineering Manager; Richard Stranahan, Fort Knox Distribution Supervisor; Andrea Palmer, Executive Assistant; and attorney David Wilson. Lunch was provided for the Board and staff.


Chairman Gossett asked for a motion to accept the prior meeting minutes. Secretary Hockman made a motion to accept the May 20, 2014 regular meeting minutes. Commissioner Williams seconded the motion and motion passed.

Mr. Bruce presented the May, 2014 Treasurer' s report and explained that Mr. Schmuck was attending a class for his certification in government accounting and Ms. Strange was in attendance to answer any questions. He noted that the new Radcliff sewer rate would be billed at the end of the week and offered to answer any questions. Commissioner Williams made a motion to approve the May, 2014 Treasurer' s Report. Commissioner Shelton seconded the motion and motion passed.

Commissioner Williams suggested that the financial report be presented as graphs, and Mr. Bruce answered that the District is working towards that goal.

Board Monitoring Reports: Mr. Bruce presented the General Manager' s Report and offered to answer questions. He noted that he has attempted to schedule a meeting with the Mayor of Vine Grove to discuss the shared water tank report, but has been unable to set that meeting.

Commissioner Williams thanked the Board and staff for the cards and condolences in the passing of his brother. Mr. Bruce notified the Board that John Thomas' father had passed the evening before the meeting. The Board expressed their condolences for him.

Secretary Hockman asked for clarification on the agreement with Hardin County Water District No.2 for the Brushy Fork Sewer Project, and Mr. Bruce answered his questions. Mr. Bruce and Mr. Clifford explained that staff has investigated a project to eliminate the Lincoln Trail Pump Station by installing a gravity sewer line from that station to the treatment plant. There was brief discussion regarding District liabilities during the project and Treasurer Tindall asked questions regarding the District' s current insurance coverage amounts. Mr. Bruce answered all questions to the Board's satisfaction.

Mr. Bruce informed the Board that in regards to the Louisville Water Purchase Agreement (PSC Case 2013-00251), the PSC has called an informal conference with HCWDl , HCWD2, Louisville Water Company, and the Frankfort Plant Board. That meeting is scheduled at the PSC offices on July 17.

Mr. Pyles presented the Operations Manager Report. He noted that the Maintenance Specialist's Van required over $1 ,000 in repairs when the air conditioner failed and per Board Policy, the Board was to be notified for any emergency expense above $1 ,000. He also notified the Board that he had received more information regarding the insurance payout on the Radcliff Sewer system. He stated that insurance paid the customer $16,855 due to grease in the lines. He noted that the customer had requested $17,000 and they did sign a release for the District upon receipt of the check. Mr. Bruce added that the District would be meeting with Joe Stewart to further discuss why this particular claim was paid. Treasurer Tindall asked if it is possible to use alarms in the system to prevent backups, and Mr. Clifford answered that while alarms are used at the Lift Stations, there are too many miles of line in the system to monitor all mains with alarms.

Hardin County Water District No. I -Board of Commissioners Minutes of Special Meeting June 17, 2014

Continued

There was a brief discussion about equipment safety, and Secretary Hockman suggested that the District conduct training and buy new equipment if necessary.

Mr. Clifford presented the Engineering Manager report and offered to answer any questions. Chairman Gossett asked for an update on the easements for the Louisville Water Interconnect, and Mr. Clifford answered that all landowners have been contacted, but nobody has signed as of yet. He added that all easement documents will be hand delivered to the landowners. Mr. Wilson added that he would call Mr. Bruce McPheeters at the Corp of Engineers regarding their easement documents.

Mr. Clifford gave a briefPowerPoint presentation to update the Board on the Boone Trace Lift Station Reconstruction project. The Board thanked him and had a few questions, which he answered.

Consent Agenda: Secretary Hockman made a motion to approve the consent agenda. Commissioner Williams seconded the motion and motion passed. (Authorize bid award for the Ireland Army Hospital Water Line Replacement Project to TSI Paving for $663,000.)

CPA Services Agreement: Mr. Bruce presented the item and offered to answer any questions. There was brief discussion about re-bidding the service and Treasurer Tindall made a motion to direct staff to request current CPA firm, Ray, Foley & Hensley, to submit an updated proposal and fee limited to one year with an option for a one year extension, and then issue a Request for Proposal for CPA services after the 2015 audit is complete. The motion was seconded by Commissioner Williams and motion passed.

County Expansion Initiative Discusssion: Mr. Bruce presented the item and proposed adding increased tap fee language to the public info. He also mentioned postponing the public meetings until the fall months to ensure greater participation. Treasurer Tindall suggested that the District hold one public meeting in the immediate future and then decide if the others are necessary.

Closed Session: Mr. Bruce notified the Board of a need to enter into closed session for litigation and personnel items. Secretary Hockman made a motion to enter into executive session in order to discuss a litigation matter in accordance with KRS 61.810.1.c. and a personnel matter in accordance with KRS 61.810.7.f. Commissioner Williams seconded the motion and motion passed. Mr. Bruce noted that Mr. Clifford should be present for the litigation discussion and Mr. Stranahan for the personnel discussion. Remaining staff exited the room at this time. At 3:06P.M., Chairman Gossett asked Treasurer Tindall to assume leadership of the meeting as he needed to leave for a personal appointment. Acting Chairman Tindall reconvened open session at 3: 10 P.M.

Adjourn: Secretary Hockman made a motion to adjourn at 1:24PM. Motion was seconded by Commissioner Williams and passed.


APPROVAL OF MINUTES

I hereby certify that the foregoing minutes were duly approved by the Board of Commissioners of the · Hardin County Water District No. 1 at a meeting held on the date shown below:

:::?=~t::CTNo I ~ckman, Secretary --..

Hardin County Water District No. 1 - Board of Commissioners Minutes of Special Meeting June 17, 2014

Continued



June 27, 2014

Chairman William Gossett called the meeting to order at 12:54 P.M. with Commissioners John Tindall, Ron Hockman, Howard Williams and Jim Shelton in attendance. Staff present included Jim Bruce, General Manager; Brett Pyles, Operations Manager; Daniel Clifford, Interim Engineering Manager; and attorney David Wilson.

Radcliff WWTP RAS Pump Bid Award Mr. Bruce presented the item and the bid tabulation and offered to answer questions. He noted that the apparent low bidder is Winelco, of West Chester, Ohio. Secretary Hockman shared his findings on what he had learned about Winelco. There was some discussion about awarding to the other company, which had a local presence. Secretary Hockman asked how the project would be funded, which Mr. Bruce answered. Treasurer Tindall made a motion to authorize bid award for Radcliff WWTP RAS Pump Replacement Project to Winelco, Inc. of West Chester, Ohio for $90,000. The motion was seconded by Commissioner Williams and motion passed.

Closed Session: Mr. Bruce notified the Board of a need to enter into closed session for litigation. Secretary Hockman made a motion to enter into executive session in order to discuss a litigation matter in accordance with KRS 61.810.l .c. Commissioner Williams seconded the motion and motion passed. Mr. Bruce noted that Mr. Clifford should be present for the litigation discussion and remaining staff exited the room at this time. Chairman Gossett reconvened open session at 1 :24 P.M.

Adjourn: Treasurer Tindall made a motion to adjourn at 1:24PM. Motion was seconded by Commissioner Williams and passed.

(Minutes submitted by Jim Bruce, General Manager)

APPROVAL OF MINUTES


Mr. Ron Hocl<iftan, Secretary

Date Appved

-------



September 16,2014

Chairman William Gossett called the meeting to order at 11 :31 A.M. with Commissioners John Tindall, Ron Hockman, Howard Williams and Jim Shelton in attendance. Staff present included Jim Bruce, General Manager; Brett Pyles, Operations Manager; Stephanie Strange, Accountant; Daniel Clifford, Interim Engineering Manager; Andrea Palmer, Executive Assistant; and attorney David Wilson. Breckenridge County Judge Executive Maurice Lucas, Breckinridge County Magistrate Willis Bosley, and Dr. Bob Hunt of760 St. Clair Cemetery Road in Custer, KY were present as guests. Lunch was provided for the Board and staff.


Chairman Gossett asked and received consensus to move item 11 (Breckinridge County Judge Discussion) to the top of the agenda. With no opposition, Chairman Gossett welcomed Judge Lucas, Mr. Bosley and Dr. Hunt. Mr. Bruce presented the item and explained the circumstances surrounding their attendance and invited Judge Lucas to speak.

Judge Lucas introduced himself, Mr. Bosely and Dr. Hunt to the Board. He explained that Dr. Hunt is a citizen that is developing a blueberry farm on his property "in Breckinridge County and is need of potable water. He explained that the District currently has a water main on Highway 2199 that ends at Minter Lane, which is the road that St. Clair Cemetery road connects to, but that there is no water main on St. Clair Cemetery Road, and the City of Hardinsburg may be years away from running water on that road. Commissioner Williams asked Judge Lucas ifBreckinridge County received any BRAC funding and Judge Lucas answered that they did not. Judge Lucas invited Dr. Hunt to speak at this time.

Dr. Hunt explained that he has a 63 acre blueberry farm that he plans to supply blueberries to the school systems. He added that he currently uses drip irrigation from his pond and has trucks bring additional water. He estimates that he will use approximately 250,000 to 300,000 gallons of water per year in order to water and process his blueberries. He currently hauls his crop several miles away to be processed. He noted that law requires that he use potable water to process the blueberries and he added that with potable water, he believes he could expand his sales and therefore expand his operation and create jobs.

The Board asked how many acres are planted and how many jobs Dr. Hunt will be able to create with potable water. Dr. Hunt answered that 26 of his 63 acres are currently planted, and that while he has seasonal help now, he might be able to employ one to three full time employees if he had potable water.

There was discussion regarding funding through the Agriculture Cabinet and grants for farmers or crop producers, as well as making the private road that Dr. Hunt lives on a public road. The Judge assured the Board that the county could annex the road into their road system making it a public road.

Mr. Bruce explained that the issue for the District is funding. He noted that the District cannot use current funds to extend service further into Breckinridge County, which is not in the District's service area, when there are so many unserved roads or portions of roads in rural Hardin County which are in the current service area. He added that Dr. Hunt could tap the existing main, but he would have to extend a service line to his house, which would also require a private easement if the line crossed other private property.

Chairman Gossett thanked the guests for attending the meeting, and Judge Lucas, Mr. Bosley and Dr. Hunt exited the meeting at this time.

Hardin County Water District No. 1 -Board of Commissioners Minutes of Regular Meeting September 16, 2014

Continued

Chairman Gossett asked for a motion to accept the prior meeting minutes. Secretary Hockman made a motion to accept the August 19, 2014 regular meeting minutes. Commissioner Williams seconded the motion and motion passed.

Mr. Bruce explained that Mr. Schmuck was out of the office on personal business and presented the August, 2014 Treasurer's report. He noted that Ms. Strange was available to answer any questions. There was a brief discussion regarding bad debt and how that is allocated between the water and sewer funds. Commissioner Williams made a motion to approve the August, 2014 Treasurer's Report. Commissioner Shelton seconded the motion and motion passed.

Board Monitoring Reports: Mr. Bruce presented the General Manager's Report and offered to answer any questions. There was discussion regarding the shared tank with Vine Grove and the site for a new storage tank for the District's system. Mr. Bruce informed the Board that he had met with Mayor Proffitt of Vine Grove and that he was told that any grant money for a shared water storage tank had been spent on other water system upgrades recently constructed. Secretary Hockman asked how proposals for the Radcliff Contract Services Sewer Pricing would be evaluated, and Mr. Bruce answered that staff would like to send the proposals out for a third party evaluation, in addition to the staff's evaluation.

Mr. Pyles presented the Operations Manager Report and offered to answer any questions. There were none.

Mr. Clifford presented the Engineering Manager report and offered to answer any questions. Secretary Hockman asked ifthe current RadcliffRAS pumps are in operation and Mr. Clifford answered yes, and that two of the three pumps had an electrical issue, but Winelco installed motor controls for all three pumps and made other upgrades to ensure that they continue to work. There was a brief discussion regarding Hicon moving the fill dirt on Glenn Turner's property, and Mr. Bruce noted that the District may ask Mr. Turner for a wider easement due to the depth of the sewer main.

Consent Agenda: Secretary Hockman made a motion to approve the consent agenda. Treasurer Tindall seconded the motion and motion passed. (approve a change order in the amount of$77,783 to the TSI Paving contract for the Ft. Knox Hospital Water Main Replacement project, authorize award of contract for the CIPP and Spot Repair Materials, for the Fort Knox Sewer Utility, to Trelleborg Pipe Seals for each bid item as tabulated, authorize bid award Automatic Transfer Switch Replacement Project for the Fort Knox Water Utility to Timmons Electric Company for $87,000, authorize bid award of contract for the 30 Inch Sewer Main Cured-In--Place Installation Project, for the Fort Knox Sewer Utility, to Moore Construction Company for $200,000).

Veolia - Ft. Knox Proposed Fee Increase: Mr. Bruce presented the item and stated that while he has not met with Mike Kuhn ofVeolia to negotiate the fee, there is still a positive cash flow at this time, therefore the District may be better served to wait until2015 to raise the fee to the government. Treasurer Tindall made a motion to approve the Veolia Fort Knox fee increase as requested to become effective October 1, 2015 and to authorize staff to notify the Government that their current fees will remain unchanged through September, 2015, but to notify the Government that the District anticipates an increase in the 2016 year. Commissioner Williams seconded the motion and motion passed. Secretary Hockman abstained due to a conflict of interest.

Veolia- Radcliff Proposed Fee Increase: Mr. Bruce presented the item and stated that the Board has the option to discuss at a later date, after proposals for the system are opened. The Board took no action on this item.

Hardin County Water District No. 1 - Board of Commissioners Minutes of Regular Meeting September 16, 2014

Continued

Annual Christmas Dinner: Secretary Hockman made a motion to approve expenditure of$2,250 for the Annual Christmas & Awards dinner and to authorize a one-time bonus of$350 to Employees with a pro-rated amount to all Employees that have been at the District for less than one year.

The Board further discussed Dr. Bob Hunt's blueberry farm and his options for attaining potable water. The Board directed Mr. Bruce to send Mr. Hunt a friendly letter explaining the options for running water from the District, and also noting that the District will not be funding this project, but could provide assistance in his efforts to secure grants or other funding.

Adjourn: Secretary Hockman made a motion to adjourn at 1 :04 PM. Motion was seconded by Treasurer Tindall and passed.


APPROVAL OF MINUTES


~~~DISTRICT No.!

ltZ13t ----, r. Ron ockman, Secretary

Date Approved



October 1, 2014

Chairman William Gossett called the meeting to order at 1:31 P.M. with Commissioners John Tindall, Ron Hockman, Howard Williams and Jim Shelton in attendance. Staff present included Jim Bruce, General Manager; Andrea Palmer, Executive Assistant; and attorney David Wilson. There were no guests present. Refreshments were provided for the Board and staff.

Radcliff Sewer Operations - Proposal Review Options: Chairman Gossett began by advising the Board that staff had completed its own internal pricing for operating the Radcliff sewer system the prior week, before the proposals were received and asked Mr. Bruce to confirm this, which he did. Chairman Gossett then invited Mr. Bruce to proceed to present five options for reviewing the Radcliff Sewer Operations Proposals received by the District as well as the District's own internal pricing. He told the Board that two proposals were received which proposal amounts were opened and recorded at 4:30PM on October 29. Mr. Bruce provided some background information for each proposer, being Severn Trent Services and Veolia Water, North America and offered to answer any questions.

There was discussion about the potential reviewers and their prior experience with the District's finances and the Radcliff Sewer System. Commissioner Shelton asked how long the review process would last, and Mr. Bruce answered that the District expected to receive the reviews by the end of October to mid November after which staff would provide the reviewers recommendations along with staffs recommendation at a November Board meeting. Treasurer Tindall asked if staff could do its own review without using outside consultants. Mr. Bruce answered that he felt staff could do that, however, considering the complexity of the proposals, and that staff had also prepared its own pricing, he felt it would be best to use outside reviewers to independently provide a review and recommendation.

Commissioner Williams made a motion to authorize staff to enter into professional services agreements for the proposed scope ofwork for review ofthe Veolia and Severn-Trent operations proposals, as well as the staff internal pricing, for the operations of the Radcliff Sewer Utility for a combined cost not to exceed $45,000 and to provide all review and final reports to the Board at the soonest convenience. Commissioner Shelton seconded the motion and motion passed.

Adjourn: Secretary Hockman made a motion to adjourn at I :45 PM. Motion was seconded by Commissioner Williams and passed.


APPROVAL OF MINUTES


Date Approved '



October 21, 2014

Chairman William Gossett called the meeting to order at 11 :34 A.M. with Commissioners John Tindall, Ron Hockman, Howard Williams and Jim Shelton in attendance. Staff present included Jim Bruce, General Manager; Brett Pyles, Operations Manager; Scott Schmuck, Finance and Accounting Manager; Daniel Clifford, Interim Engineering Manager; Andrea Palmer, Executive Assistant; and attorneys David Wilson and Dustin Humphrey. Lunch was provided for the Board and staff.


Chairman Gossett asked for a motion to accept the previous meeting minutes. Secretary Hockman made a motion to approve the September 16, 2014 regular meeting minutes as written. Treasurer Tindall seconded the motion and motion passed. Commissioner Williams made a motion to approve the October 1, 2014 special meeting minutes as written. Treasurer Tindall seconded the motion and motion passed.

Mr. Schmuck presented the September, 2014 Treasurer's report. He noted that four of the five funds had a positive net income year to date, but that Radcliff Sewer reflects a net loss of approximately $201,000. There was brief discussion about whether the recently approved Radcliff Sewer Rate increase would help balance the net loss, and Mr. Bruce answered that it would not since the rate increase approved by the Public Service Commission was about a third less than the District and its rate consultant had requested. Treasurer Tindall questioned whether the District should begin the process of preparing another rate increase application, or when it might be the best time to do so. It was the consensus of the Board to revisit this topic once a decision is made regarding the Radcliff Sewer Operations Contract. Commissioner Williams made a motion to approve the September, 2014 Treasurer's Report. Commissioner Shelton seconded the motion and motion passed.

Board Monitoring Reports: Mr. Bruce presented the General Manager's Report and offered to answer any questions. He informed the Board that the Meade County Water District hydraulic study is progressing. He also noted that he, Mr. Schmuck, and Brian Smith from Congressman Guthrie's office recently met with Ms. Linda Luckett of Rural Development regarding possible future loan applications for a future County Water Expansion project as well as a new Meade County interconnect project. In reference to the County Expansion project, Treasurer Tindall asked for an update.

Mr. Bruce answered that the District has sold 15 taps and opened 5 accounts since sending the surveys to potential customers. He noted that 20% of all surveys sent were completed and returned and that Ms. Palmer was entering the survey answers into a spreadsheet which would allow Mr. Bruce to prepare statistical summaries. Consultant Mr. Brian Bruggeman would then write a summary for the Board. There was a brief discussion about additional marketing versus staff capabilities.

Commissioner Shelton asked if the recent repairs to the Ft. Knox Vac Truck were under warranty, and Mr. Pyles answered that they were under a 90 day warranty.

Mr. Pyles presented the Operations Manager Report and offered to answer any questions. Chairman Gossett asked who completed the work to the Ford diesel, and Mr. Pyles answered that a mechanic in Meade County was responsible. Chairman Gossett suggested that the District request a copy of any insurance certificates prior to having work completed on District equipment.

Hardin County Water District No. I -Board of Commissioners Minutes of Regular Meeting October 21,2014

Continued

There was a discussion regarding the Fort Knox Clearwell project and Mr. Bruce gave a detailed history of the project.

Mr. Clifford presented the Engineering Manager report and offered to answer any questions. Secretary Hockman asked for more details on the Quiggins project, and Mr. Clifford explained that this project will make corrections to the previous work and finish the project. Secretary Hockman asked for an update on the RadcliffRAS pumps, and Mr. Clifford informed the Board that the pumps have had a failure and that the vendor thinks that the cabling inside a conduit may have had the insulation nicked which is allowing moisture to seep into the wiring and cause a short. He added that they are still under warranty.

Proposed 2015 Pay Changes: After brief discussion about whether or not staff should be present, it was the consensus of the Board to move agenda item 4 to the end of the agenda.

2015 Health Insurance Options: Mr. Bruce presented the item and offered to answer any questions. There was a discussion regarding employee satisfaction with the current health insurance. The Board asked each staff member present for their personal experience with the insurance. Secretary Hockman reviewed his negative experiences with the insurance and not being able to have claims paid, or only partial reimbursements. Chairman Gossett asked the four staff members in the room to give their opinions one by one. Commissioner Williams made a motion to approve renewing the current Assurant PPO plan at an increase of 19.8% for 2015 and authorize staff and agent to proceed with any changes needed to the plan. Treasurer Tindall seconded the motion. Motion passed with three yay votes over two nay votes. Commissioner Williams suggested that the District survey the employees prior to the next renewal regarding their satisfaction with the current health insurance plan. Mr. Bruce received the same direction from the other Board members and said he would put together a survey instrument in 2015 and bring to the Board before distributing.

HCWD1/ HCWD2 Sewer Service Area: Mr. Bruce presented the item, explaining that District 2 is currently designing sewer lines that will actually be within District 1 's current sewer service area, and distributed a map of the current District service areas. There was a brief discussion about where the lines will be located. Treasurer Tindall made a motion to authorize staff to notify HCWD2 that HCWD1 will approve a change in the joint sewer service area boundary, once the Brushy Fork project final design and areas are known, and to authorize legal counsel to file the required documents with Fiscal Court to affect this change, at the soonest convenience. Secretary Hockman seconded the motion ad motion passed.

Fort Knox Water Distribution Building- Offsite Utility Material : Mr. Pyles presented the item and explained that these are additional materials that weren't included in the 2014 Budget, and that District staff will be providing the labor as opposed to the contractors. Secretary Hockman made a motion to authorize staff to purchase up to $29,000 for all materials to complete the off-site utilities installation for the Ft. Knox Water Distribution office facility, previously approved at the January 21, 2014 Board meeting. Commissioner Williams seconded the motion and motion passed.

Proposed 2015 Pay Changes: The Board revisited the proposed pay changes. Secretary Hockman made a motion authorizing staff to use 3.6% for wage increases for the 2015 budget development, with 1.8% being added to all pay grades and 1.8% available for performance based raises with the Board's

Hardin County Water District No. 1 - Board of Commissioners Minutes of Regular Meeting October 21 , 2014

Continued

final approval to adjust 2015 wage increases at the time the budget is approved. Treasurer Tindall seconded the motion and motion passed.

Closed Session: Mr. Bruce notified the Board of a need to enter into closed session for litigation. At 12:56 P.M., Secretary Hockman made a motion to enter into executive session in order to discuss a litigation matter in accordance with KRS 61.810.1.c. Commissioner Shelton seconded the motion and motion passed. Mr. Bruce noted that Mr. Clifford should be present for the discussion and remaining staff exited the room at this time.

Closed Session Action Item: At 1:23 P.M. Chairman Gossett reconvened open session. Secretary Hockman made a motion to advance a sum not to exceed $5,000, out of the remaining unpaid balance to DD Construction for the RadcliffRAS Pump Project. Said advance would be used to allow DD to pay its legal costs. Treasurer Tindall seconded the motion and motion passed.

Adjourn: Secretary Hockman made a motion to adjourn at 1:31 PM. Motion was seconded by Commissioner Shelton and passed.


APPROVAL OF MINUTES


Date Approved



December 1~, 2014

Chairman William Gossett called the meeting to order at 11:28 A.M. with Commissioners John Tindall, Ron Hockman, Howard Williams and Jim Shelton in attendance. Staff present included Jim Bruce, General Manager; Brett Pyles, Operations Manager; Scott Schmuck, Finance & Accounting Manager; Andrea Palmer, Executive Assistant; and attorney David Wilson. Mr. Brad Walker with Veolia Water of350 New St East in Radcliff and Mr. Thomas Krall with Severn Trent Services of 580 Virginia Dr. Suite 300 Fort Washington, Pennsylvania were present as guests. Lunch was provided for the Board and staff.

Chairman Gossett opened the floor for public comment and asked that the guests introduce themselves to the Board and make any statements at this time. Mr. Krall introduced himself and added that he was present to observe the process and answer any questions for the Board. Mr. Walker introduced himself and thanked the Board for the opportunity to present a proposal for the Radcliff Sewer Operations Contract and offered to answer any questions that the Board might have. Chairman Gossett closed the floor to public comment at this time.

Radcliff Sewer Operations Options: Chairman Gossett stated that the District prepared internal pricing as well as received two proposals from external companies for the Radcliff Sewer Operations Contract. Secretary Hockman asked to read a statement to be included with the minutes at this time. Secretary Hockman's statement detailed his communications with legal and ethical counsel regarding any existing conflict of interest in his voting in the matter of the Radcliff Sewer Operations. He concluded that while he did not believe a conflict of interest existed, he would recuse himself from voting and leave the meeting at this time in order to allow Board members to discuss the matter freely. Secretary Hockman left the meeting at 11:37 A.M.

Chairman Gossett invited Mr. Bruce to make a presentation at this time. Mr. Bruce gave a powerpoint presentation detailing the District's CCTV inspection and main cleaning options, as well as a review of the comparison of costs between the two private proposals and staffs own operations cost. He answered all questions about cleaning and CCTV services.

After brief discussion and all questions were answered, Chairman Gossett asked Mr. Walker and Mr. Krall if they had any other comments or questions, to which both declined. Chairman Gossett addressed Mr. Walker regarding staffs recommendation to proceed with self operations of the Radcliff Sewer Operations, stating that the if this were the Board's decision, it would be made from a business reason and should not be taken as a personal decision against Veolia or their employees. Mr. Walker noted his appreciation and asked if current Veolia employees working on the contract would be considered for employment with the District. Mr. Bruce answered that the District would need that expertise and noted that all current employees would be welcome to apply.

There was discussion about how current Veolia employees might be integrated should the Board elect the District's internal pricing, and Mr. Bruce answered all Board questions.

Commissioner Williams made a Motion to select the self operations option for the Radcliff sewer utility, including awarding annual cleaning and inspection to Robinson Pipe and notify the Public Service Commission by sending summary of costs, and to notify Veolia Water of plans to terminate contract per contract terms, and to authorize staff and legal counsel to carry out all bidding, contracts, purchasing, employment and other required tasks needed to begin operations on July 1, 2015. Commissioner Shelton seconded the motion and asked for a roll call vote in the matter. With all Board members in consensus regarding the voting method and Secretary Hockman absent, Treasurer Tindall began calling roll. Votes were recorded as follows:

James Shelton -Yes Howard Williams- Yes John Tindall- Yes William Gossett- Yes Ron Hockman - Recused

Hardin County Water District No. I -Board of Commissioners Minutes of Special Meeting December 10,2014

Continued

Motion passed unanimously.

Adjourn: With no further business before the Board, Commissioner Shelton made a motion to adjourn at 12:36 PM. Motion was seconded by Commissioner Williams and passed.


APPROVAL OF MINUTES

I hereby certify that the foregoing minutes were duly approved by the Board of Commissioners ofthe Hardin County Water District No. I at a meeting held on the date shown below:

Date Approved



December 16, 2014

Chairman William Gossett called the special meeting to order at I 0:00A.M. with Commissioners John Tindall, Ron Hockman, Howard Williams and Jim Shelton in attendance. Staff present included Jim Bruce, General Manager; Brett Pyles, Operations Manager; Scott Schmuck, Finance and Accounting Manager; Daniel Clifford, Interim Engineering Manager; Andrea Palmer, Executive Assistant; and attorney David Wilson. Lunch was provided for the Board and staff.


Chairman Gossett asked for a motion to accept the previous meeting minutes. Commissioner Williams made a motion to approve the November 18, 2014 regular meeting minutes as written. Commissioner Shelton seconded the motion and motion passed.

Mr. Schmuck presented the November, 2014 Treasurer' s report. He noted that four of the five funds had a positive net income for the month, but that Radcliff Sewer reflected a net loss of approximately $27,633. There was brief discussion about how the Radcliff Sewer Fund would improve after the District began operations in mid-20 15. Commissioner Williams suggested again that staff consider a graphics based monthly financial report showing critical ratios. Mr. Bruce answered that he and Scott had met with the FKFCU CFO and had been working on developing some key ratios. He said that he hoped to have a prototype of the new presentation method to show the Board during 2015. Mr. Schmuck then answered Board questions regarding returned checks from the October meeting. Commissioner Williams made a motion to approve the November, 2014 Treasurer' s Report. Commissioner Shelton seconded the motion and motion passed.

Board Monitoring Reports: Mr. Bruce presented the General Manager's Report and offered to answer any questions. He informed the Board that the District intended to approach Mike Weaver once he took the Mayor's office regarding the Millpond Tank Site. He then answered questions regarding a recent change order from Codell Construction for the Fort Knox Distribution building, the Louisville Water Interconnect project easements, and the Chloramines Conversion project at Pirtle Spring Water Treatment Plant. He added that Fort Knox has also asked the District to provide pricing for converting the Fort Knox system to Chloramines. Mr. Bruce said staff would have to ask for an extension to provide the estimate, since Fort Knox had only provided two weeks notice.

Mr. Pyles presented the Operations Manager report and offered to answer any questions. Treasurer Tindall asked for an update on the County Expansion project, and Mr. Bruce answered that the project has been delayed, but is nearing completion and a final report with recommendations should be available to the Board soon.

Mr. Clifford presented the Engineering Manager report and offered to answer any questions. Chairman Gossett asked for an update on the Lincoln Trail Tank painting project. Mr. Clifford answered that the project will be delayed until spring due to minimum paint temperatures. There was a brief discussion regarding who may be responsible for damages and impacts to cell phone leassees caused by the delay

Consent Agenda: Secretary Hockman made a motion to approve the consent agenda. Treasurer Tindall seconded the motion and motion approved. (Award construction contract to Phillips Brothers Construction for $238,567 for the John Hardin Force Main & Applewood Lift Station Elimination project for the Radcliff sewer utility, Award bid to H & 0 Contracting of Elizabethtown, KY for $63,566 for the Ft. Knox Wastewater Treatment Plant roof replacement on the disinfection building, Accept the best bid for product received for the Otter Creek Pump Station Door Replacement Project, for the Ft. Knox Water Utility, to H&O Contracting of Elizabethtown, KY for $20,980.)

Chairman Gossett announced a ten minute break at 11:00 A.M. before beginning the Budget review. Mr Clifford and Mr. Wilson exited the meeting at this time.

Hardin County Water District No. 1 -Board of Commissioners Minutes of Special Meeting December 16,2014

Continued

2015 Preliminary Budget Review: Chairman Gossett reconvened at 11:10 with Commissioners Tindall, Shelton, Williams, and Hockman present as well as Mr. Bruce, Ms. Palmer, Mr. Pyles, and Mr. Schmuck. The Board asked questions regarding particular budget line items, and Mr. Bruce answered all questions. There was some discussion regarding the third item on the list, bullet-proof glass for the customer service representatives, and the Board was in consensus that the item should be moved to the bottom of the list.

Treasurer Tindall made a motion to approve the 2015 Budget with changes as suggested. Commissioner Williams seconded the motion. Mr. Bruce asked if the motion was for the Operations and Capital Request budget, or just the Capital Request. Treasurer Tindall amended his motion to approve the 2015 Capital Request Budget with changes as suggested. Commissioner Howard amended his second, and motion passed.

Secretary Hockman had questions regarding the Operating Budget, all of which Mr. Bruce answered. Commissioner Shelton made a motion to approve the 2015 Operations Budget as written. Treasurer Tindall seconded the motion and motion passed. (The approved 2015 Budget amounts are as shown in the following table);

ITEM Water Ft. Knox Ft. Knox Ft. Knox Radcliff Consolidated Water Sanitary Storm Sewer Sewer

Sewer Capital

Request $150,455 $493,855 $37,091 $181 $341,281 $1,022,863 List

Other Capital $3,456,905 $3 ,338,655 $937,135 $673,644 $2,002,418 $10,408,757 Constructio

n I Uses Operations $3,755,985 $3,343,793 $2,711,897 $415,100 $3,729,413 $13,956,188 Budget

Total> $7,363,345 $7,176,303 $3,686,123 $1,088,925 $6,073,112 $25,387,808

Adjourn: Secretary Hockman made a motion to adjourn at 12:00 PM. Motion was seconded by Commissioner Williams and motion passed.


APPROVAL OF MINUTES

I hereby certify that the foregoing minutes were duly approved by the Board of Commissioners ofthe Hardin County Water District No. 1 at a meeting held on the date shown below:

Date Approved

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