Hardin County Water District No. 1 Minutes1.pdf · Williams and Jim Shelton in attendance. Staff present included Jim Bruce, General Manager; Brett Pyles, Operations Manager; Daniel

Hardin County Water District No. 1 Minutes of Special Meeting

of the Board of Commissioners

December 15, 2015

Chairman William Gossett called the meeting to order at 11:55 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; Daniel Clifford, Engineering Manager; Scott Schmuck, Finance and Accounting Manager; Andrea Palmer, Executive Assistant; and attorneys David Wilson and Dustin Humphrey. This meeting was being held at the new Fort Knox Distribution building.

Chairman Gossett noted that there was a need for closed session and asked that the Board consider entering closed session early in order to accommodate those Board members that would need to leave the meeting early. Commissioner Williams made a motion to enter into closed session in order to discuss litigation and personnel in accordance with KRS 61.810.l.c. and KRS 61.810.l.f. Commissioner Shelton seconded the motion and motion passed. Mr. Bruce remained and all other staff exited the room at this time. Chairman Gossett reconvened open session at 12:25 P.M.

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 November 17, 2015 regular meeting minutes. Commissioner Shelton seconded the motion and motion passed.

Mr. Schmuck presented the November 2015 Treasurer's report, noting that all five funds have a positive net income for the year. He noted that the Radcliff Sewer fund is reflecting a $500,000 YTD net income improvement compared to the same period last year. Commissioner Williams asked Mr. Bruce about potentially hiring a firm to create a graphic-based Treasurer's rep01t, and Mr. Bruce answered that Mr. Schmuck has put a lot of work into a model that is currently awaiting Mr. Bruce's review. Secretary Hockman made a motion to approve the November, 2015 Treasurer's Report. Commissioner Williams seconded the motion and motion passed.

Board Monitoring Reports: Mr. Bruce presented the General Manager's Report and added that the bid opening for the Louisville Water Interconnect would be on January 15111

• He added that HDR had increased the estimated cost for the project by 82% from their initial projection. He noted that he and Mr. Schmuck are working on multi-year financing plan to bring back to the Board in light of this revision. There was discussion about why HDR, Inc. raised the estimated project cost. Mr. Bruce and Mr. Clifford answered all Board questions.

Mr. Pyles presented the Operations Manager Report and answered questions about sewer system overflows during a wet year. Mr. Clifford presented the Engineering Manager Report and answered all Board questions.

Ft. Knox Sewer CLIN Projects - Engineering Services: Mr. Bruce presented the item and noted that Stantec Engineering not only had the best apparent price, but has already provided excellent work and value to the District on previous projects. Treasurer Tindall made a motion to approve staffs recommendation to contract with Stantec Consulting Services to complete five Ft. Knox sewer projects, funded through additional CLIN funds to complete all services as shown in the Request for Proposals. Commissioner Williams seconded the motion and motion passed.

Adjourn: Secretary Hockman made a motion to adjourn at 12:56 PM. Motion was seconded by Commissioner Shelton and motion passed. After adjournment, Mr. Bruce, Richard Stranahan (Ft. Knox Water Distribution Supervisor) and Brett Pyles provided a tour of the new building to Board members.

(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:

Date Api);oved

Hardin County Water District No.1 Minutes ofRegularMeeting


November 17,2015

Chairman William Gossett called the meeting to order atll :29 A.M. with CommissionersJohn Tindall, Ron Hockman, Howard Williams and Jim Sheltonin attendance. Staff present included Jim Bruce, General Manager;Brett Pyles, Operations Manager;Daniel Clifford, Engineering Manager;Andrea Palmer, Executive Assistant; and attorney David Wilson.


Chairman Gossett asked for and obtained Board consent to address all voting issues first so that any attendees that needed to be excused early could do so. Mr. Wilson thanked him.

Chairman Gossett asked for a motion to accept the prior meeting minutes. Secretary Hockman made a motion to accept the October 20, 20 15regular meeting minutes. Commissioner Sheltonseconded the motion and motion passed.

Mr. Schmuck presented the October 2015 Treasurer's report, noting that all five funds have a positive net income for the year. He noted that the County Water fund net income is above the budgeted estimate by $100,000 and YTD its net income is $111,000 less than last year at same time, he also noted that the Radcliff Sewer fund is under budget by $35,000, that fund is reflecting a net income change YTD of+ $426,000 compared to same period last year. Commissioner Williams made a motion to approve the October, 2015 Treasurer's Report. Commissioner Shelton seconded the motion and motion passed.

Bid Award- Fire Station No. 3 Water Main -Fort Knox Water:Treasurer Tindall made a motion to authorize award of contract for the FireStation No.3 Water Main Improvements, for theFmt Knox Water Utility, to Phillips BrothersConstruction at the lump sum price of $198,917. Secretary Hockman seconded the motion and motion passed.

Chairman Gossett took a moment to present a gift to Secretary Hockman from the Board. Secretary Hockman thanked the Board. There was brief humorous discussion regarding the nature of the gift.

Human Resource I Personnel Consulting Services: Mr. Bruce presented the item and offered to answer Board questions. Treasurer Tindall asked if the District had quoted multiple firms for a competitive quote. Mr. Bruce answered that the District had PayChex in the past for some HR services, but that it had not worked out. He explained that this firm is local and therefore more understanding of the District's needs and is recommended by other local businesses.

Commissioner Williams spoke to the credibility of the firm based upon his positive experiences with them in the past during his previous position as responsible for an HR depmtment. There was discussion regarding the terms of service, and Treasurer Tindall made a motion to authorize General Manager, after review by legal counsel, execute a one year agreement with lntegrityHR of Louisville, Kentucky, forHuman Resource services, and to complete an HR Audit, at theearliest convenience and to include funding as needed in the 2016budget to fund the audit and monthly HR services for an amount up to$2,000 monthly and report back to the Board on the continued need fmthis service with the 2017 budget presentation, at which time it would be bid to a variety of firms. Commissioner Williams seconded the motion and motion passed.

Airview Utilities, LLC: There was very brief discussion about the Airview Utilities wastewater system before Secretary Hockman made a motion to direct legal counsel to respond to AirviewUtilities, LLC attorney that HCWD1 is still not interested inacquiring the Airview sewer system. Commissioner Shelton seconded the motion and motion passed.

Mr. Wilson notified the Board that there was a need to enter into closed session for litigation. Secretary Hockman made a motion to enter into executive session in order to discuss alitigation matter in accordance with KRS 61.81 O.l.c. Commissioner Shelton seconded the motion and motion passed. Mr. Bruce remained present for the litigation discussion and remaining staff exited the room at this time. Chairman Gossett reconvened open session at !2:20PM.

Mr. Wilson updated the Board on his meeting the day before with the General Manager and Chairman of Meade County Water District (MCWD). He informed the Board that MCWD has finished and filed their RD Loan Application andis waiting for the District to finished and file theirs so that both Districts may receive their letter of conditions from Rural Development. Mr. Bruce noted that he hoped to have the RD Loan Application finished by the December Board meeting so

Hardin County Water District No. 1 - Board of Commissioners Minutes of Regular Meeting November 17,2015

Continued

that he can bring an estimated rate increase to the Board. Secretary Hockman asked if the Board should consider planning a joint Board session with MCWD's Board, and Mr. Bruce answered that he would reach out to Mr. Bartley at MCWD to discuss it. Mr. Wilson exited the meeting at this time.

Board Monitoring Reports:Mr. Bruce presented the General Manager's Report and noted that he had met with HDR regarding the delays in the Louisville Water Interconnect project, and they deflect to the Corp of Engineers He noted that the District did receive the agreement with CSX Railroad and updated the Board on the scheduled pre-bid meeting planned for December 41

h. There was discussion about potential start date for the project, and staff answered all Board questions.

Mr. Pyles presented the Operations Manager Repmt and offered to answer any questions. There was discussion regarding sewer overflows during rain events. The Board discussed option for diagnosing Inflow & Infiltration problems, including smoke testing. Secretary Hockman asked for an update on the Chloramine Conversion and Mr. Pyles answered that he expects that the District portion of the construction will be complete by the last week of November. Treasurer Tindall expressed interest in the entire region switching to Chloramines at the same time, and Mr. Pyles answered that after speaking to HCWD2, they have specific reasons to switch to Chloramines before HCWDl is going to be ready.

Mr. Clifford presented the Engineering Manager Repmt and offered to answer any questions. There was discussion about how the bore under the Salt River for the Louisville Water Interconnect project is highly specialized and could potentially attract out of state contractors. There was brief discussion about the possibility of using four inch water line as opposed to six inch water line on the upcoming county expansion. The Board agreed to revisit this topic. Mr. Bruce informed the Board that Mr. Blake Durrett has started his own business and is no longer working part time for the District.

Adjourn: Secretary Hockmanmade a motion to adjourn at I 2:55PM. Motion was seconded by Treasurer Tindalland 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:

/;!- /5-/lt)/5 Date Approved



November 11, 2015

Chairman William Gossett called the meeting to order at II :34 A.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; Brett Pyles, Operations Manager; Andrea Palmer, Executive Assistant. Lunch was provided for the Board and staff.

Mr. Bruce invited Mr. Schmuck to address the Board regarding the preliminary budget review. Mr. Schmuck noted that in the five year budget plans, four of the five utilities show a need for a rate increase. Treasurer Tindall asked questions regarding new budget reporting regulations by the Department of Local Governments. Mr. Schmuck answered his questions, and there was brief discussion about who must receive copies of the approved budget. Mr. Schmuck then gave reasons for the projected rate increases for four of the utilities, including assumed increases in expenses.

Mr. Bruce called attention to the note that the total consolidated operating expense budget for the District decreased by 2.3%, which includes the new Radcliff Sewer Operations costs. Secretary Hockman asked if staff has developed a plan to spend the grant money associated with Radcliff Sewer and Mr. Bruce answered that there will be a planning session to determine where those funds would be best spent.

Secretary Hockman asked about the addition of staff in the 20 16 budget, and Mr. Bruce answered that staff is asking for a part time customer service position. Secretary Hockman noted that he was prepared to discuss the capital list at this time. He then asked about added vehicles in the 2016 budget. Mr. Bruce answered that all vehicles meet the District criteria set by the Board and all quotes are based on the state bid amount, if it were a vehicle available on state bid. Mr. Bruce answered all other questions to Board satisfaction.

Commissioner Williams made a motion to approve the complete 2016 Budget as submitted. Commissioner Shelton seconded the motion and motion passed. (The approved 2016 Budget amounts are as shown in the following table)

ITEM Water Ft.. Knox Water Ft. Knox Sanitary Ft. Knox Storm Radel itT Sewer Consolidated Sewer Sewer

Capital Request List $603,183 $29,818 $35,889 $4,192 $356,785 $1,029,867

Other Capital $4,810,301 $5,570,851 $1,337,289 $769,948 $2,526,450 $15,014,839

Construction I Uses

Operations Budget $3,745,266 $3,343,175 $2,874,823 $427,862 $3,255,516 $13,646,642

Total> 1 $9,158,750 $8,943,844 $4,248,001 $1,202,002 $6,138,751 $29,691,348

Adjourn: Secretary Hockman made a motion to adjourn at 12:25 PM. Motion was seconded by Commissioner Shelton and motion passed. After adjournment, Mr. Bruce thanked Mr. Schmuck for his work on the annual budget for which the Board offered a round of applause.


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. I at a meeting held on the date shown below:

MTRon Hockman, Secretary

Date Approved

Hardin County Water District No.1 Minutes of Regular Meeting


October 20, 2015

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; Daniel Clifford, Engineering Manager; Andrea Palmer, Executive Assistant; and attorney David Wilson.


Chairman Gossett asked for a motion to accept the prior meeting minutes. Secretary Hockman made a motion to accept the September 15, 2015 regular meeting minutes. Commissioner Williams seconded the motion and motion passed.

Mr. Bruce stated that Mr. Schmuck was attending a conference in Atlanta and proceeded to present the September 2015 Treasurer's report, noting that even though water sales were down year to date for the month, Radcliff Sewer was showed a positive net income of about $71 ,000. He also compared the 2014 and 2015 year to date net incomes for Radcliff sewer, noting there had been about a $326,000 improvement between the years. Mr. Bruce then answered all Board questions. Commissioner Williams made a motion to approve the September, 2015 Treasurer's Report. Commissioner Shelton seconded the motion and motion passed.

!Joa_rd Monitoring Reports: Mr. Bruce presented the General Manager's Report and noted that the Bat assessment had been completed and the District was filing more information regarding the wetlands. Chairman Gossett asked for an update regarding the private easement in West Point and Mr. Wilson answered that the property owners have twenty days to respond regarding condemnation.

Secretary Hockman asked if a new supervisor had been hired for Pirtle Spring Water Treatment Plant and Mr. Bruce answered that Mandy Spalding had filled that position and that the Water Quality/Measurement Specialist position is now being advertised and has received promising candidates so far.

Mr. Pyles presented the Operations Manager Report and offered to answer any questions. Commissioner Williams had some questions regarding the District's inspection of Radcliff Storm Water projects and Mr. Pyles informed him that the District does not inspect those projects as they do not involve the District. Chairman Gossett asked for an update on the building of the Chloramine building at Pirtle Spring Water Treatment Plant. Mr. Pyles gave an update and commended Tim Osborne's team on their hard work.

Mr. Clifford presented the Engineering Manager Repoti and offered to answer any questions. Mr. Clifford gave an update on the USACE 404 nationwide permit for the Louisville Water Interconnect. Th,ere was discussion regarding HDR's role in the delay of the project and the Board suggested that staff send a letter to HDR informing them of the tight deadline for cutting down trees in the Bat Assessment area and the potential financial repercussions for missing that deadline.

Chairman Gossett asked for an update on the water and sewer line work at the new Walmart Neighborhood Market and Mr. Clifford answered that he had some concerns regarding the safety practices of the contractor that is laying the lines for the City. Mr. Clifford and Mr. Bruce informed the Board ofthe safety violations that staff had witnessed. The Board directed staff to send a letter to the City attorney immediately regarding the concerns surrounding the City's contractor and their work. Mr. Bruce said that he would have the letter delivered before the end c,fthe day.

RadcliffWWTP Heater Conversion: Mr. Bruce presented the item. Secretary Hoc.kman made a motion to approve installing four electric gas heating units at the Radcliff WWTP and authorize the capital expense of $9,500 for this installation at the soonest convenience. Commissioner Shelton seconded the motion and motion passed.

~015 Christmas Awards Dinner: Mr. Bruce presented the item as well as the figures from previous years. Treasurer Tindall noted that the District should always use caution to balance the interests of the customer cost and employee gratitude. There was discussion that any appreciation bonuses were not guaranteed and each year needed to be looked at individually. Commissioner Williams made a motion to approve expenditure of$2,300 for the 2015 Annual Christmas &

Hardin County Water District No. 1 -Board of Commissioners Minutes of Regular Meeting October 20, 2015

Continued

A wards dinner and authorize a one-time bonus of $400 to Employees with a pro-rated amount to all employees that have been at the District for less than one year. Secretary Hockman seconded the motion and motion passed. Mr. Bruce thanked the Board for their support.

CPA Services - 2015 Audit: Mr. Bruce presented the item. Discussion ensued regarding reasons for changing CPA firms periodically. Commissioner Williams made a motion to authorize staff to engage the CPA firm, Ray, Foley & Hensley Company, PLLC, for the 2015 audit year before proceeding with an RFP process in early 2016 to solicit new proposals for CPA services. Treasurer Tindall seconded the motion and motion passed.

MCWD Future Water Purchases: Mr. Bruce presented the item as well as the best and worst scenarios. Discussion ensued about how the District should proceed with their Louisville Water Project in light of this news. At the end of the discussion it was agreed that Mr. Wilson would schedule a meeting with MCWD and Brandenburg to discuss future plans and suppliers, including HCWDl 's plans to change to chloramine. Treasurer Tindall asked Mr. Bruce if he thought HCWD2 would consider delaying their switch to Chloramines until the District is ready, and Mr. Bruce answered that he would have a conversation with HCWD2 to that effect.

Final Payment- Codell Construction: Mr. Bruce presented the item and asked for the Board's guidance. There was discussion regarding the total cost for the project and liquidated damages. Secretary Hockman made a motion to pursue liquidated damages in accordance with the contract and report back to the Board. Treasurer Tindall seconded that motion and motion passed.

New Business: Mr. Bruce presented a resolution which the Board needed to pass and execute in order to confirm service with Benecom, Inc. -the District's new third patty administrator. Secretary Hockman made a motion to approve Board resolution 05-2015. Commissioner Williams seconded the motion and motion passed.

~ession: Mr. Wilson notified the Board that there was 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 Shelton seconded the motion and motion passed. Mr. Bruce remained present for the litigation discussion and remaining staff exited the room at this time.

Closed Session Action Item: Chairman Gossett reconvened open session. Secretary Hockman made a motion to continue the litigation with sales tax, taking action as agreed in closed session. Treasurer Tindall seconded the motion and motion passed.

Adjourn: Secretary Hockman made a motion to adjourn at 1 :34 PM. Motion was seconded by Commissioner Williams and motion passed.


APPROVAL OF MINUTES


Mr. Ron Hock:man, Secretary

ll·/1-2.615 Date Approved

Hardin County Water District No 1 RESOLUTION NO: 05-2015

AT A MEETING OF THE BOARD OF COMMISSIONERS OF THE HARDIN COUNTY WATER DISTRICT No. 1 ("BOARD") HELD ON OCTOBER 20TH OF 2015, THE FOLLOWING RESOLUTION PERTAINING TO THE ADOPTION OF A HEALTH REIMBURSEMENT ARRANGEMENT WITH BENECOM COMPANY WAS ADOPTED:

WHEREAS, the form of Health Reimbursement Anangement ("the Plan") effective October 1st, 2015, presented to this meeting is hereby approved and adopted and that the duly authorized agents of the Employer are hereby authorized and directed to execute and deliver to Benecom Company, as Administrators of the Plan, one or more counterparts of the Plan.

WHEREAS, the Administrator shall be instructed to take such actions that are deemed necessary and proper in order to implement the Plan, and to set up adequate accounting and administrative procedures to provide benefits under the Plan.

WHEREAS, the duly authorized agents of the Employer shall act as soon as possible to notify the employees of the Employer of the adoption of the Health Reimbursement Anangement by delivering to each employee a copy of the summary description of the Plan in the fotm of the Summary Plan Description presented to this meeting, which form is hereby approved

This Resolution Has Been Moved and Duly Seconded and by Passing of a Majority of the Board of Commissioners at the regular meeting held on October 20, 2015;

-~;Q~~l:Ldl Mr. W1Lbam Gossett, Chmrman

By:

Hardin County Water District No. 1 Minutes of Regular Meeting


September 15, 2015

Chairman William Gossett called the meeting to order at 11:32 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, Engineering Manager; Justin Metz, Radcliff Sewer Supervisor; Jeffrey Bush, Radcliff Sewer Maintenance and Controls Specialist; William Bishop, Scott Johnson and Kenneth Durham, Radcliff Sewer Operators; Andrea Palmer, Executive Assistant; and attorney David Wilson.


Chairman Gossett asked that Mr. Metz introduce the newest employees. Mr. Metz introduced Mr. Jeff Bush as the new Maintenance Controls Specialist and a Master Electrician, Mr. Scott Johnson as a new Treatment Plant Operator Trainee, Mr. Kenneth Durham as a new Collection System Operator and Mr. William Bishop as a new Treatment Plant Operator trainee. Mr. Metz reviewed each man's employment history and some of their personal interests and background.

The Board welcomed all new employees, asked them a few questions and thanked them for attending. Mr. Metz and the new employees exited the meeting at this time.

Chairman Gossett asked for a motion to accept the prior meeting minutes. Commissioner Williams made a motion to accept the September 3, 2015 special meeting minutes. Commissioner Shelton seconded the motion and motion passed.

Mr. Schmuck presented the August 2015 Treasurer's repmt, noting that all five funds had positive net income for the month. He added that as of August, the Radcliff Sewer fund had net positive income for the year and will show a full month of labor expense in September now that all positions are filled at the Treatment Plant. Regarding the county water fund, Mr. Schmuck informed the Board that gallons sold year-to-date was down by two percent from this time last year. He added that there was one unexpected expense for the month- the repair of the maintenance van for $7,800 and that the District had sold scrap meters and split the proceeds between the county water fund and the Radcliff sewer fund.

Chairman Gossett inquired about a finance repmt using more graphics, and Mr. Bruce answered that Mr. Schmuck has laid the groundwork for such a report but it is still in the works. Treasurer Tindall had questions regarding some door hardware and locks purchased for the Radcliff Sewer System and Mr. Bruce promised to find the answer. Mr. Schmuck then answered all remaining Board questions. Commissioner Williams made a motion to approve the August, 2015 Treasurer's Report. Commissioner Shelton seconded the motion and motion passed.

Board Monitoring Reports: Mr. Bruce presented the General Manager's Report and asked Mr. Clifford to provide an update on the Louisville Water Interconnect project's Bat Study. Mr. Clifford informed the Board that Stantec has completed the Bat Habitat Assessment Study which showed that up to eight acres of forest would be impacted. He noted that the District must account for the amount of timber being cut and pay fees as well as a multiplier if it's a nesting area. Stantec is estimating $63,000 for this impact fee, which U.S. Fish and Wildlife would need to agree to. He added that the reports and maps would be complete within two days and that the Department of Fish and Wildlife must sign off in order to obtain the permit from the Corp of Engineers. Mr. Bruce thanked Mr. Clifford for his update.

There was brief discussion about District personnel, and Treasurer Tindall stated that staff should be aware that they are constantly in the public eye and mentioned that he observed a District truck speeding on Dixie Highway. Mr. Bruce stated that he tells all employees on their first day that they are being observed by the public and need to drive cautiously and within speed limits. He then asked that if the Board ever sees something alarming, to please call the office as soon as possible so that the situation can be resolved. Mr. Pyles noted that the operations staff holds weekly safety meetings and

Hardin County Water District No. 1 -Board of Commissioners Minutes of Regular Meeting September 15,2015

Continued

annual defensive driving training with a member of vehicle enforcement. He assured the Board that this situation would be discJ,lssed again with operations personnel and supervisors. Mr. Pyles presented the Operations Manager Report and offered to answer Board questions. Treasurer Tindall asked if the District would be able to coordinate the chloramine conversion with District 2's conversion and Mr. Bruce answered that the Board would have an opportunity to discuss that at the Joint Board Dinner on September 281

h.

Secretary Hockman mentioned the potential Millpond water tank location. Discussion ensued. Mr. Clifford pointed out that the location was chosen for elevation and proximity, but ultimately could be a poor site depending on the results of a geotechnical study and therefore may not be suitable for tank construction. Mr. Clifford presented the Engineering Manager Report and answered multiple Board questions regarding current projects.

Veolia I Ft. Knox 2016 Proposed Fee Increase: Mr. Bruce stated that Veolia is asking for a 2.16%, or $50,512 annual increase in their operating fee for the Ft. Knox Sewer project. He reminded the Board that if they do not agree with the increase amount, there is a default formula in the contract to calculate the change, which Veolia had provided that the calculated fee was lower than their requested amount. There was brief discussion. Commissioner Williams made a motion to approve the 2.16% Veolia Fort Knox fee increase as requested to become effective October 1, 2016 and to authorize staff to notify the Government that their current fees will remain unchanged for 2016. Commissioner Shelton seconded the motion and motion passed. Secretary Hockman recused himself due to having family employed by Veolia.

Final Payment - Caldwell Tank: Mr. Bruce presented the item and stated that he would like to request payment liens to show that all subcontractors had been paid by Caldwell and that he would also like to request a liability release in which the District would note that the project was subcontracted without permission. There was discussion regarding liquidated damages, and Treasurer Tindall made a motion to authorize staff and legal counsel to draft a notification to Caldwell Tank requesting they provide a full lien release, general liability release, and admittance of improper subcontractor utilization per the contract and notifying them that the District will withhold $50,000 in liquidated damages from the final payment. Commissioner Shelton seconded the motion and motion passed.

Legal Retainer Fee Update: Treasurer Tindall made a motion to approve a change to the legal services retainer agreement with SBW&P to include payment of Mr. Wilson's own health insurance premium with said change effective immediately. Commissioner Williams seconded the motion and motion passed. Secretary Hockman commended Curneal & Hignite on their recent work in helping the District change insurance providers. The Board agreed.

Adjourn: Secretary Hockman made a motion to adjourn at 1:13 PM. Motion was seconded by Commissioner Williams and motion passed. (Minutes submitted by Andrea Palmer, Executive Assistant)

APPROVAL OF MINUTES


Mr. Ron Hockman, Secretmy

Date App'roved.

Hardin County Water District No.1 Minutes of Special Meeting


September 3, 2015

Chairman William Gossett called the meeting to order at 6:00 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; Vaneka Bell, Accounting Specialist; Andrea Palmer, Executive Assistant; and attorney Dustin Humphrey. Ty Puyear, of Corneal & Hignite Insurance, was the only guest present.


Mr. Bruce welcomed Ms. Bell to the meeting and noted that she has been involved in collecting and providing data to Corneal & Hignite as the District's benefits coordinator and would be key to the process to change insurance companies and answering questions for employees. He then introduced Mr. Ty Puyear with Corneal & Hignite, who was present to answer questions about the insurance quotes provided to the District.

Ch'lirman Gossett asked for a motion to accept the prior meeting minutes. Commissioner Williams made a motion to accept the August 18, 2015 regular meeting minutes. Commissioner Shelton seconded the motion and motion passed.

Treasurer Tindall disclosed to the Board that two of his children work for one of the firms represented in the quotes, but that they were not affiliated with the healthcare portion of the business or in pricing these quotes in particular. After brief discussion the Board consensus was that there was no conflict of interest regarding Treasurer Tindall's family members.

Health Insurance Options: Chairman Gossett asked the Board members for their opinion regarding the quotes received from Corneal & Hignite. Secretary Hockman announced that he had conducted extensive research and placed calls to multiple physicians, all of whom accepted the quoted insurance plan. He also provided additional insight into the different plans that had been quoted. Chairman Gossett then asked Mr. Bruce to make his slide presentation.

Mr. Bruce made a presentation to the Board detailing the Insurance options for the District in 2016. Mr. Puyear answered Board questions throughout and after the presentation. There was a brief discussion regardi11g dental and vision coverage.

Secretary Hockman made a motion to approve changing health, dental and vision insurance policies to those recommended b)r staff and also change the third party administrator to Benecom, and authorize staff and legal counsel to execute all necessary documents and provide Corneal & Hignite authorization to make all arrangements to change policies at the soonest convenience. Commissioner Williams seconded the motion and motion passed. (The recommended policies were; Health, Anthem Blue 8.0, Option 30, Rx, AE; Dental, Anthem Full Service; Vision, Dental Care Plus, 4-Tier Plan; TPA, Benecom)

Mr. Bruce thanked Mr. Puyear, Mr. Schmuck, and Ms. Bell for their efforts in this matter.

Adjourn: Secretary Hockman made a motion to adjourn at 6:55PM. Motion was seconded by Treasurer Tindall 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: ·



August 18, 2015

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, Engineering Manager; Andrea Palmer, Executive Assistant; and attorney Dustin Humphrey.


Chairman Gossett asked for a motion to accept the prior meeting minutes. Commissioner Williams made a motion to accept the July 21,2015 regular meeting minutes. Commissioner Shelton seconded the motion and motion passed. Commissioner Williams then made a motion to accept the August 5, 2015 special meeting minutes. Treasurer Tindall seconded the motion and motion passed.

Mr. Schmuck presented the July 2015 Treasurer's report, which showed that all five funds had a positive net income with Radcliff Sewer reporting a $97,000 net income for July and a net loss of $30,000 year to date. He added that he expects that Radcliff Sewer will end the year with positive income. He also noted that the month excluded the salary for three unfilled positions for the month of July and did not include some of the Kentucky Utilities electric bills. He also informed the Board that the District has started to reflect their portion of the Kentucky state pension liability in its financial reports per GASB 68. Mr. Schmuck then answered all Board questions. Secretary Hockman made a motion to approve the July, 2015 Treasurer's Report. Commissioner Williams seconded the motion and motion passed.

Board Monitoring Reports: Mr. Bruce presented the General Manager's Report and informed the Board that the price for the Bat Study for Fish and Wildlife in the Louisville Water Interconnect project is estimated at $19,000. Mr. Bruce explained why the study is necessary and answered all Board questions. Secretary Hockman confirmed with Mr. Bruce that he is presenting the Millpond Tank Site to the Radcliff City Council on September 8111 and asked if the Board should be present. Mr. Bruce answered that the Board is welcome to come if they'd like to.

Mr. Bruce gave an update on the Fort Knox Distribution building, stating that the Mass Notification system is underway and the punch list is nearly complete. He added that the District will be sending a second punch list to Codeil within a week or so.

Treasurer Tindall asked if the District had sold any additional taps due tp the County Expansion Initiative and Mr. Bruce answered that the District has sold less taps this year than any of his years as the General Manager. There was a brief discussion about the County Expansion Project. Treasurer Tindall asked if the District should consider additional marketing for tap sales, and Mr. Bruce answered that the District has spent countless hours of staff time on the initiative to date with little to no results. Discussion ensued regarding well testing in the county.

Mr. Pyles presented the Operations Manager Report and went into further detail regarding the recent emergency expense incurred for the Radcliff Sewer generator. Mr. Clifford presented the Engineering Manager Report and answered questions regarding the Lincoln Trail Tank Painting project.

Consent Agenda: Secretary Hockman made a motion to approve the consent agenda. Commissioner Williams seconded that motion and motion passed. (Approve the District's portion of the revised budget amount $219,580 to $241,410 (+ 10%) for a total revised project budget amount of$728,410 (+3%) for the Pirtle Spring WTP Chloramines Conversion Project; Authorize staff to purchase fencing, gates, electric openers and landscaping materials for up to $33,000 for the Ft. Knox Distribution building and revised the latest approved budget of $146,377; Approve selling all scrap meters to the highest bidder, and to declare these same items as surplus; Approve staff to purchase Perma-Liner CIPP materials for the Ft. Knox lateral CIPP program for the bid amount as

Hardin County Water District No. 1 - Board of Commissioners Minutes of Regular Meeting August 18,2015

Continued

submitted in September 2014 and notify the previous low bidder that their product and low bid has been rejected due to non-performance and failure to meet bid specifications).

2015 Joint Board M~!ing Planning: Ms. Palmer informed the Board the best apparent date for the Boards of District 1 and 2 as well as Judge Berry and legal counsel to meet for dinner is September 281

h. The Board discussed the other details of the meeting and Ms. Palmer stated that she would send all details to the Board before finalizing.

New Business: Mr. Bruce announced that Mayor William Ash of West Point has asked for a meeting with Mr. Bruce and Mr. Pyles. Discussion ensued regarding the potential nature of the meeting.

!).djourn: Secretary Hockman made a motion to adjourn at 12:25 PM. Motion was seconded by Treasurer Tindall and motion passed.

(Minutes submitted by Andrea Palmer, Executive As~;istant)

I hereby cer~if)r 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 ciate shown below:



August 5, 2015

Chairman William Gossett called the meeting to order at 12:04 P.M. with Commissioners John Tindall, Ron Hockman, and Jim Shelton in attendance. Staff present included Jim Bruce, General Manager; Brett Pyles, Operations Manager; Richard Stranahan, Fort Knox Water Distribution Supervisor; Andrea Palmer, Executive Assistant; and attorney Dustin Humphrey.

Mr. Bruce noted that the agenda for the meeting did not allow for closed session. Mr. Humphrey provided suggestions on detail to be discussed in an open meeting when there is a possibility of future litigation or monetary negotiations.

Chairman Gossett 'asked for an update on the Fort Knox Distribution Building. Mr. Bruce said that Cadell Construction has agreed to complete all repairs on the punch list they received on July 20111

• He specifically noted that Cadell has met with Nolin Electric regarding the transformer pad and that they (Cadell) will be paying Nolin to raise the transformer pad before August 1 01

h.

Mr. Bruce then provided an update on the Mass Notification System for the Fort Knox Distribution Building. He informed the Board that the Mass Notification System was not included in the original design requirements, but that Cadell had been notified ofthis requirement in February as soon as District staff had been informed by Ft. Knox officials. Commissioner Williams entered the meeting at this time. There was some discussion about the time line in reference to the original design specifications, the notification to Cadell of the need for a Mass Notification System, and the signing of the contract between the District and Cadell. Mr. Bruce added that while Cadell never changed their price, they are now asking for an $85,790 change order to cover the cost of the system.

Treasurer Tindall asked questions regarding the budget for the Foti Knox Distribution Building, and Mr. Bruce answered all questions. There was brief discussion regarding the payment of subcontractors and the release of subcontractor liens. This led to discussion about the warranties, certifications, and liens from Cadell Construction. Mr. Bruce noted that those items are on the punch list.

Secretary Hockman made a motion to authorize staff to pay Cadell Construction for installation ofthe Mass Notification System at the Fort Knox Distribution Building in two increments; $50,000 immediately and the balance upon successful testing of system and approval by the Ft. Knox Fire Department. Treasurer Tindall seconded that motion and motion passed.

Adjourn: Secretary Hockman made a motion to adjourn at 12:37 PM. Motion was seconded by Treasurer Tindall and motion passed.


APPROVAL OF MINUTES


R DISTRICT No.1

Mr. Ron ckrllan, Secretary

DateA~q;;UJ/5



July 21, 2015

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; Scott Schmuck, Finance and Accounting Manager; Daniel Clifford, Engineering Manager; Justin Metz, Radcliff Wastewater Supervisor; Todd Hughes, Heavy Equipment Operator; Daniel Young and Mike Shanahan, Wastewater Collections Operators; Tim Osborne, County Distribution Supervisor; Patrick Carter and Cody Shelton, County Distribution Operators; Phil Clark, Pirtle Spring Water Treatment Plant Supervisor; Jim Gray, Pirtle Spring Water Treatment Plant Operator; Andrea Palmer, Executive Assistant; and attorneys David Wilson and Dustin Humphrey.


Chairman Gossett asked that supervisors introduce their new employees. Mr. Metz introduced Mr. Hughes as a new hire from Campbellsville, Mr. Young as a previous Veolia employee from Radcliff and Mr. Mike Shanahan as a previous Veolia employee from Ft. Knox and also provided a brief description, history and background for each of the three newest employees. Mr. Osborne introduced Mr. Carter and Mr. Cody Shelton as a new Distribution Operators and gave a brief history oftheir background and experience.

The Board welcomed all new employees, asked them a few questions and thanked them for attending. The new employees including Mr. Metz and Mr. Osborne exited the meeting at this time.

Chairman Gossett asked for and received consensus to move agenda item eight to the. top of the agenda.

Resolutions- Retiring Employees Recognition- Mr. Bruce asked Mr. Clark and Mr. Gray to stand with him at the front of the room. He then read each proposed resolution aloud, detailing the gentlemen's careers with the District. Mr. Gray thanked the Board and Mr. Bruce and noted that he had enjoyed his time with the District. Mr. Clark thanked the Board and Mr. Bruce and stated that he had plans to work in his garage at home for a period after retirement. Mr. Bruce invited the Board to attend a planned retirement lunch on July 30111 at the Service Center. Mr. Clark and Mr. Gray exited the meeting at this time.

Treasurer Tindall made a motion to approve Board resolutions 03-2015 and 04-2015 which formally recognize the dedication and service of Jim Gray, who has worked for over 26 years, and Phil Clark who has worked for over 20 years, and to acknowledge their dedication, commitment and efforts to provide the highest quality drinking water to the customers of Hardin County Water District No. 1. Secretary Hockman seconded the motion and.motion passed. Each Board member individually thanked the gentlemen and shook their hands. Mr. Gray and Mr. Clark exited the meeting at this time.

Chairman Gossett asked for a motion to accept the prior meeting minutes. Commissioner Williams made a motion to accept the June 16,2015 regular meeting minutes. Commissioner Shelton seconded the motion and motion passed.

Mr. Schmuck presented the June 2015 Treasurer's report, noting that four of the five funds are reflecting a positive net income with Radcliff Sewer reporting a $127,000 net loss year to date. He noted that the Radcliff Sewer fund is currently doing better than budgeted by $39,000. He explained that water sales in general are down in comparison to last year due to the excess rainfall. Mr. Schmuck then answered all Board questions. Commissioner Williams made a motion to approve the June, 2015 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. Treasurer Tindall asked for an update on the Louisville Water Interconnect project easements and permits. Mr.

Hardin County Water District No. 1 -Board of Commissioners Minutes of Regular Meeting July 21, 2015

Continued

Bruce answered that the District is moving ahead with condemnation for the final personal easement. He added that he and Ms. Palmer will be starting on the Application for a Certificate of Convenience and Public Necessity for the PSC which will require a copy of all permits and easements.

Secretary Hockman asked for an update on the Rural Development Loan Application for the Meade County Water District Interconnect and Mr. Bruce answered that MCWD has their application complete and the District is finishing theirs. The plan is to submit both applications simultaneously. Mr. Hockman then thanked Mr. Bruce for sending the Board a copy of the slide presentation and audio recording provided to Fort Knox and DLA Contracting staff regarding a recently completed study by Stantec Engineering known as the Water Quality Modeling and Capital Improvement Plan Development Study.

Commissioner Williams asked if any Veolia staff suffered unemployment since the District began operating the Wastewater plant. .Mr. Bruce answered that two ofVeolia employees retired, the Project Manager had transferred to another Veolia project and the others transferred to the Fort Knox Sewer Utility or came to work for the District.

Commissioner Shelton asked for an update on Lincoln Trail Tank and the injured employee for Caldwell Tank. Mr. Bruce answered that the employee had been undergoing voice therapy and that Caldwell has the project close out items left, such as restoration and paint clean up from customer vehicles. There was a brief discussion regarding Caldwell Tank contract requirements and insurance.

Treasurer Tindall had questions and initiated discussion regarding checks and balances on credit card purchases as well as a check written to the State Treasurer. Mr. Schmuck answered that that was the annual assessment fee paid to the Public Service Commission. Secretary Hockman then asked about the 40 1A accounts, and Mr. Bruce answered that the funds had already been deposited and that a representative from Nationwide would be on site August 1 01

h to answer employee questions.

Closed Session: Mr. Wilson noted at this time that he would need to leave the meeting early and that if there were any requests to go into closed session, they may need to go ahead and do so. Mr. Bruce confirmed that there was a need for closed session to discuss a personnel matter, and Secretary Hockman made a motion to enter into executive session in order to discuss a personnel matter in accordance with KRS 61.810.7 .f. Treasurer Tindall seconded the motion and motion passed. Mr. Bruce and Mr. Pyles remained for the discussion, and staff exited the room at this time. At 12:31 P.M., Chairman Gossett reconvened open session.

Mr. Pyles presented the Operations Manager Report and answered Board questions regarding the operations at Radcliff Wastewater Treatment Plant. Commissioner Shelton asked if the District is planning to replace the old clay pipe that is still in operation and Mr. Pyles answered that the District will continue to inspect the system and make repairs and replacements as needed and approved by the Board.

Mr. Clifford presented the Engineering Manager Report and answered questions regarding the design for a new grocery store coming to Radcliff.

Consent Agenda: Secretary Hockman made a motion to approve the consent agenda. Treasurer Tindall seconded that motion and motion passed. (Authorize staff to enter into a professional services agreement with HDR to complete the Constantine Phase 2 County Expansion project for total fees estimated at $107,1 00; Authorize award of contract for the Kingsolver School Sanitary Sewer Project for the Ft. Knox sanitary sewer utility to Schroeder Construction Inc. at the lump sum price of$174,960; Authorize staff to make capital purchase of up to $9,000 to buy a 60" ZTR riding mower and 72" finish mower to use at Radcliff sewer, and to purchase within the previously approved equipment start-up budget and also declare the 1996 and 2000 John Deere riding mowers as surplus equipment to be disposed of in accordance with Board policy, and authorize staff to purchase landscaping supplies and a tool box and hand tools for up to $9,600 for the Ft. Knox Distribution office).

Hardin County Water District No. 1 -Board of Commissioners Minutes of Regular Meeting July 21, 2015

Continued

Resolution- HCWD2 BRAC Sewer Grant Acceptance: Secretary Hockman made a motion to approve Resolution 02-2015 which provides Board approval of the acceptance of a BRAC grant from HCWD2, the current recipient, to HCWD 1 and providing formal approval to authorities that the HCWD 1 Board of Commissioners supports this transfer and responsibility. Treasurer Tindall seconded the motion and motion passed.

Personnel Policy- Computer, Internet and Social Media Use: Treasurer Tindall made a motion to approve changes to Personnel Policy No: 81 as well as changing the policy title to "Computer Use, Internet Access and Social Media Policy" and to authorize the General Manager to implement the changes as soon as possible by providing additional training to employees. Secretary Hockman seconded the motion and motion passed.

Before adjourning, the Board welcomed Ms. Palmer back from her maternity leave. She thanked them.

Affi!>urn: Secretary Hockman made a motion to adjourn at 1:47PM. Motion was seconded by Treasurer Tindall and motion passed.


APPROVAL OF MINUTE~

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 bdow:

HA~~o~z::-TNo~---M~~~·~:~:~tman, Secretary

~PIA~~A/'_jljcf:fJ/£ DateApp~---.



June 16,2015

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; Scott Schmuck, Finance and Accounting Manager; Daniel Clifford, Engineering Manager; Justin Metz, Radcliff Wastewater System Supervisor; Steven Carter and Kenny Hom both RadcliffWastewater Treatment Plant Operators; Leslie Daugherty, Executive Assistant; and attorney Mike Pike filling in for David Wilson for a portion of the meetmg until Mr. Wilson arrived later.


Chairman Gossett welcomed the two newest employees and invited staff to introduce them. Mr. Metz introduced Mr. Carter and Mr. Hom as the two recently hired Radcliff Wastewater Treatment Plant Operators. He gave the Board a brief description of their background and experience in wastewater operations. The Board welcomed both new employees. Mr. Carter and Mr. Hom exited the meeting at this time.

Chairman Gossett asked for a motion to accept the prior meeting minutes. Commissioner Williams made a motion to accept the May 19, 2015 regular meeting minutes. There was one minor typographical correction to be made on the second page. Treasurer Tindall seconded the motion and motion passed.

Mr. Schmuck presented the April2015 Treasurer's report, noting that four of the five funds are reflecting a positive net income with Radcliff Sewer reporting a $117,000 net loss year to date. He noted that although Radcliff Sewer was reflecting a loss for the year, it is currently performing better than projected and better than same period in 2014. He mentioned that the scrap metal sale of$8,000 was divided amongst County Water, Radcliff Sewer, and Fort Knox Water Utilities. Mr. Bruce was asked at what point the Board should consider another possible rate increase for Radcliff Sewer. Mr. Bruce responded that he expected to see an improvement in the next 6 months and staffs five year projection showed a positive net income for 2016. Commissioner Williams made a motion to approve the May, 2015 Treasurer's Report. Commissioner Shelton seconded the motion and motion passed. There was further discussion amongst the Board about the inclusion of the detailed financial reports included in the packet. Mr. Bruce explained that he and Scott have been working on the alternative graphical presentation prototype and hopes to demonstrate to the Board later this year.

Board Monitoring Reports: Mr. Bruce presented the General Manager's Report and offered to answer any questions. Mr. Bruce gave a brief update regarding the West Point private property easements affecting the Louisville Water Interconnect Project. The Board suggested that Mr. Bruce speak to Mr. Albro to seek his expected pricing at which time Mr. Bruce will report back to the Board. Mr. Gossett questioned the time it would take to proceed with condemnation and Mr. Pike advised that it would be a minimum of 60 days. There was more discussion of proceeding with condemnation.

Mr. Bruce noted that there was another opening to be filled for the Radcliff Wastewater Treatment Plant Operator as one previously identified candidate has changed his mind. Mr. Tindall asked about verification of hours worked by J.B. Hall Consulting and Mr. Clifford assured him that the daily reports provide adequate verification of the hours worked.

Chairman Gossett questioned whether any contact had been made with the Mayor's office about the future Radcliff tank location and Commissioner Williams responded that he was reflected back from JJ Duvall to the Mayor's office. Chairman Gossett also inquired about the sewer grant transfer. Chairman Gossett recommended that Mr. Bruce send an email to Harry Berry and if necessary other local elected officials to see if the grant transfer could be moved along. There was a brief discussion about the Lincoln Trail tank painting project as far as the accident, and an issue with Mr. Ford and Sprint Cellular, and the tank being reftlled. Mr. Hockman suggested that the District have a written procedure in place for required regulatory contacts in the event that another accident occurs, which Mr. Bruce responded this was a good idea and he would take care of that.

Hardin County Water District No. I -Board of Commissioners Minutes of Regular Meeting June 16, 2015

Continued

Mr. Pyles presented the Operations Manager Report and answered all Board questions. Treasurer Tindall inquired about Fort Knox Operations, specifically the redirecting ISDC funds, challenges at the treatment plants, chloramine conversion, and the clearwells. Mr. Bruce updated the Board on these Fort Knox operations.

Mr. Clifford presented the Engineering Manager Report and offered to answer any questions. There was discussion regarding the installation of the water and sewer by the City of Radcliff at the upcoming Wal-Mart Neighborhood Market Grocery Store location.

Consent Agenda: Item No. 4 was removed from the Consent Agenda. Secretary Hockman made a motion to accept the highest bid for the sale of surplus vehicle. Treasurer Tindall seconded the motion and motion passed. Treasurer Tindall made a motion to approve the consent agenda items 5 through 10. There were a few questions about the specifics of the mini-excavator which Mr. Bruce and Mr. Clifford answered.

Commissioner Williams seconded the motion and motion passed. (Motion to accept a bid from Spartan Tool for a new sewer jetter I trailer unit for the low bid of$42,995 to be used for the Radcliff wastewater utility after July 1, 2015; to authorize award of contract for mowing services, for the County Water and Fort Knox Water Utilities, to Pro Mow Lawn Care for $2,430 per month, during mowing season, for two years with an option to extend for one year; and a contract for lawn restoration services to Mile Ahead Construction for the as-bid per square foot for two years with an option to extend for one year; to accept bid from Jacobi Sales for the purchase of a Kubota mini-excavator for $43,210 to be allocated among three utilities and to authorize purchase from 2015 capital budget and from the approved Radcliff startup budget; to authorize staff to award a contract to Rye Engineering at the lump sum price of $33,231 for the Fort Knox Water System Leak Survey Project; to authorize staff to extend the Service Center Janitorial contract to Corvus Janitorial, contingent on Corvus agreeing to keep their 2011 bid price of$12,528 through 2016 and their improved performance over the next 30 days since a new sub-contractor was hired and to award bid for the 1000 Block Main Replacement, for the Fort Knox Water Utility, to Bischoff Brothers Construction at the lump sum of $412,960).

On No. 4, Secretary Hockman questioned why a minimum bid was being considered on the sale of the surplus vehicle. Mr. Bruce said he was asking the Board to approve a minimum sale amount as bids had not closed yet, and thought it would be better to have the Board pre-approve a minimum amount rather than waiting another month to have the Board accept the highest bid. The Board discussed and felt it was best to sell to highest bidder without any minimum, as had always been done in the past. Secretary Hockman made a motion to declare the vehicle as surplus and sell to the highest bidder. Treasurer Tindall seconded the motion and motion passed.

Health Insurance Broker Options: Mr. Bruce presented the item and explained the options to the Board. There was a brief discussion about changing brokers, changing health insurance carriers before term end, and if any penalties would result. Secretary Hockman made a motion to authorize the staff to notify Curneal & Hignite (C&H) to file required papers to become our broker of record for health insurance and to notify Paychex of their brokerage termination, and to request C&H to prepare documents and fees to become our benefits administrator and HRA/HSA administrator, and request C&H provide quotes on health plans that are similar to current coverage. Commissioner Shelton seconded the motion and the motion passed. Commissioner Williams abstained from voting noting that he had a relative that worked for Paychex.

Cell Phone Use Policy Revision: Mr. Bruce presented the item and opened to the Board for discussion. Mr. Bruce explained that the District would not continue to purchase truck radios, as the District-provided cell phones would be the primary communication device. There was a brief discussion about the use of hands-free devices. Treasurer Tindall made a motion to approve the revision to the Personnel Policy No. 80, with changes as directed, concerning use of cell phones while operating a vehicle, and to have legal counsel write a policy acknowledgment statement for employees to read and sign, showing their understanding of the new policy and intent to comply, and to implement the new policy at the earliest convenience. Secretary Hockman seconded the motion and the motion passed.

Hardin County Water District No. 1- Board of Commissioners Minutes of Regular Meeting June 16, 2015

Continued

New Business Items;

Bid Award - Sludge Hauling Contract for Radcliff Sewer: Commissioner Shelton made a motion to accept the low bid from Red River for sludge hauling services at the RadcliffWastewater Treatment Plant beginning in July including an option to extend another year after the ftrst year. Treasurer Tindall seconded the motion and the motion passed.

Change Order No. 1- Applewood Lift Station Elimination Project: Mr. Clifford presented the item and offered to answer any questions. Treasurer Tindall questioned where the oversight was made and Mr. Bruce explained that no HCSB employee had provided any infonnation on the geothennalline locations, even though they had been provided the construction plans for comment. Mr. Bruce reminded the Board that the funding would be done through the BRAC grant. Treasurer Tindall made a motion to authorize Change Order No. 1 for the Applewood Lift Station Elimination Project being completed by Phillips Brothers Construction for the amount of$167,791 for a revised contract amount of $406,328. Commissioner Williams seconded the motion and the motion passed.

Windstream Phone Issues: Mr. Bruce gave a brief history of the phone issues with Windstream providing phone service to the Pirtle Spring Water Treatment Plant (PSWTP). He said that staff had been talking to Windstream for several months about these problems, and had already flled an infonnal complaint with the PSC. Secretary Hockman made a motion to authorize staff to consult with legal counsel in order to ftle a fonnal service complaint with the Public Service Commission in regards to the service provided by Windstream at PSWTP. Treasurer Tindall seconded the motion and the motion passed.

Codell Construction-Fort Knox Distribution Building: Mr. Bruce updated the Board on the current progress at the Codell job site. There was a discussion about the money owed to Codell for work done on the building and on the ftre notification system. Mr. Wilson has previously suggested that a letter be sent to their controller and that he meet with their attorney. The Board agreed that we need to reach an agreement with Codell so that we can get the building completed, whether by Codell or by tenninating their contract and using other forces.

Closed Session: Mr. Wilson notified the Board of a need to enter into closed session for litigation per KRS 61.81 O.l.c. At 1:15 P.M., Secretary Hockman made a motion to enter into executive session in order to discuss litigation. Commissioner Shelton seconded the motion and motion passed. Mr. Bruce and Mr. Schmuc~ remained present for the discussion and the remaining staff exited the room at this time. At 1 :55 P.M., Chairman Gossett reconvened open sesston.

Closed Session Action Item: Secretary Hockman made a motion to authorize payment of the past sales tax bill from the Revenue Cabinet, if a settlement cannot be reached by legal counsel, but any payment would be made under protest and further appeals would be filed to the Tax Review Board. Motion was seconded by Commissioner Williams and passed.

Adiourn: Secretary Hockman made a motion to adjourn which was seconded by Commissioner Shelton and passed.

(Minutes submitted by Leslie Daugherty, Executive Assistant)

APPROVAL OF MINUTES


Hockman, Secretary

Date A:Jeljc1D ff


A RESOLUTION OF HARDIN COUNTY WATER DISTRICT No.1 ("Districtl")SUPPORTINGTHE CHANGE OF LEAD APPUCANT FOR THE CABINET FOR ECONOMIC DEVELOPMENT WASTEWATER GRANT AWARDED JANUARY 21,2009 AND FORMALIZED IN A GRANT AGREEMENT DATED OCTOBER 2, 2009 IN THE AMOUNT OF $9,601,420 FROM HARDIN COUNTY WATER DISTRICT No.2 ("District 2") TO HARDIN COUNTY WATER DISTRICT No.1,

I. WHEREAS, District 2 was awarded a grant from the Cabinet for Economic Development for the advancement of wastewater services in the unincorporated areas of Hardin County in the amount of $9,601,420.00 (the "Grant"); and

2. WHEREAS, the geographical scope of the wastewater project was chosen to complement the continued growth and advancement of Fort Knox in association with the Base Realignment and Closure efforts of the U.S. Army; and

3. WHEREAS, District 2 does not currently own or operate wastewater facilities be they water treatment or collection assets; and

4. WHEREAS, District 1 does currently own and operate wastewater treatment and collection facilities both in the City of Radcliff and on post at Fort Knox; and

5. WHE~EAS, by resolution passed the Z.l~t"day of J (,{ / t , 2015, District 2 recommended the Cabinet for Economic Development allow a lead agency c ange for the subject Grant from District 2 to District 1;

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE HARDIN COUNTY WATER DISTRICT No. 1 AS FOLLOWS:

Section 1: District l agrees to accept the Grant and the terms of the Grant Agreement, if assignment and transfer of said Grant is approved; and

Section 2: District 1 will utilize the proceeds of the Grant to improve the current operations within its sewer system territorial boundary, excluding the sewer system of Fort Knox, and other such inlprovements that will increase the capacity of its conveyance and or treatment systems; and

Section 3: District 1 recommends the Cabinet of Economic Development allow a lead agency change for the Grant from District 2 to District 1 .

This Resolution Has Been Moved and Duly Seconded and by Passing of a Majority of the Board at the regular meeting held on July 21, 2015;

By:

Mr. William Gossett, Chairman

Mr. Ron Hockman, Secretary

\

Mr. Howard Williams, Commissioner G:Shelton, Commissioner


RESOLUTION OF THE HARDIN COUNTY WATER DISTRICT No 1 BOARD OF COMMISSIONERS PERTAINING TO THE RECOGNITION OF TWENTY SIX YEARS OF DEDICATED SERVICE BY EMPLOYEE JIM GRAY TO THE CUSTOMERS, TO THE GENERAL MANAGER AND TO THE BOARD OF COMMISSIONERS OF THE DISTRICT FROM APRIL 1989 UNTIL HIS RETIREMENT IN JULY2015;

WHEREAS; Jim Has Faithfully Served the District and its Customers from April, 1989 until July, 2015 And;

WHEREAS; During His Career, Jim Served as a Water Treatment Plant Operator at Two Water Treatment Plants and Served for over Twelve Years in the Distribution Department as a Water System Distribution Operator, And;

WHEREAS; While in Distribution, Jim Was Required to Drive a Vehicle Every Day in His Job, and Probably Drove over 400,000 Miles During His Tenure, and in All of That Driving, Not Once Had an Accident Which Was His Fault or Resulted in Damage to Persons or Property, And;

WHEREAS; During His Twenty·six Year Career, Jim Had Direct Interaction Thousands of Times with Customers, and Never Once Was There a Complaint or Criticism Made of Jim's Interaction with Those Customers and in Fact, Compliment Letters Were Received from Customers, And;

WHEREAS; Jim Was Able to Sit for and Pass Test to Become Both a Class IV-D Kentucky Licensed Water Distribution Operator, and a Class IV-A Water Treatment Plant Operator, Both Being the Highest Level Certification for These Professions, and in Addition, Jim Completed Numerous Other Training Sessions and Meetings, And;

WHEREAS; Jim Became a Highly Skilled Water Treatment Plant Operator, Able to Solve Many Different Challenges with Raw Water and Adjust the Treatment Plant Process to Produce the Highest Quality Drinking Water Possible for Our Customers, and Became a Skilled and Expert Operator Learning to Operate the Treatment Plant Facilities, Perform Maintenance as Needed, and Carry out Various Quality Sampling and Testing Required Daily to Comply with Epa and Kentucky Division of Water Drinking Water Regulations, And,

WHEREAS; Jim Was Exemplary in His Attendance to Work, His Punctuality to Be on Time, His Ability to Care for and Operate Equipment,

NOW THEREFORE; the District's Board of Commissioners Expresses Their Gratitude and Thanks to Jim Gray for His Service and Further Recognizes That the District, Staff and its Customers Have Clearly Benefitted from His Service and Said Thanks Has Been Shown by the Presentation of this Resolution.

This Resolution Has Been Moved and Duly Seconded and by Passing of a Majority of the Board at the Regular Meeting Held on July 21, 2015;

By: w~~ Mr. William Gossett, Chairman


RESOLUTION OF THE HARDIN COUNTY WATER DISTRICT No 1 BOARD OF COMMISSIONERS PERTAINING TO THE RECOGNITION OF TWENTY YEARS OF DEDICATED SERVICE BY EMPLOYEE PHIL CLARK TO THE CUSTOMERS, TO THE GENERAL MANAGER AND TO THE BOARD OF COMMISSIONERS OF THE DISTRICT FROM JANUARY 1995 UNTIL HIS RETIREMENT IN JULY 2015;

WHEREAS; Phil Has Faithfully Served the District and its Customers from January, 1995 until July, 2015, And;

WHEREAS; During His Career, Phil Initially Served as a Water Treatment Plant Operator at Two Water Treatment Plants and Has Served for the Last Eighteen Years as the Supervisor of the Pirtle Spring Water Treatment Plant (PSWTP), And;

WHEREAS; Phil Has Trained Numerous New Water Treatment Plant Operators During His Tenure and Has Overseen Numerous Construction and Improvement Projects Including the Construction of a New Raw Water Building, Painting of the Clarifiers and Repairs and Sealing of the Clearwell, And;

WHEREAS; Phil Was the PSWTP Supervisor in 1999 During an Oil Contamination Event and Throughout a Historic Drought When Regulators Closed the PSWTP and Phil and His Operators Had to Carry Many Tasks Including Purging and Cleaning of the PSWTP, Taken Hundreds of Samples for Regulators, Monitoring the Pumping of All Supplemental Water fl"om a New District Pump Station to Supply Water to Our Customers, and Those of Hardin County Water District No.2 and City of Elizabethtown, And;

WHEREAS; In 2009 During a Major Ice Storm, Phil and His Operators Had to Run the PSWTP under Emergency Generator Power for Four Days until Power Was Restored and Then Had to Treat Water to Meet Unprecedented Demand While Wholesale and Retail Customers Refilled Their Systems and Plumbing, And;

WHEREAS; Phil During His Term Has Caused the PSWTP to Receive Numerous Awards from Regional Peers and Industry Groups for the Quality of Water and Quality of Operations of the PSWTP, and Has Also Been Able to Have the PSWTP Become Recognized for its High Water Quality in National A WWA I EPA and Kentucky Division of Water Programs, Consistently Year after Year, Including the EPA Partnership for Safe Water and the Division of Water Area Wide Optimization Program, And;

WHEREAS; Phil Was to Become a Class IV-A Kentucky Licensed Water Treatment Operator and Became a Certified Utility Management Professional Through a Program by Western Kentucky University and the Kentucky Rural Water Association, and Phil Completed Numerous Other Training Sessions and Meetings, And;

WHEREAS; Phil Became a Highly Skilled Water Treatment Plant Operator, Able to Solve Many Different Challenges with Raw Water and Adjust the Treatment Plant Process to Produce the Highest Quality Drinking Water Possible for Our Customers, and Oversaw the Various Quality Sampling and Testing Required Daily to Comply with EPA and Kentucky Division of Water Drinking Water Regulations, And,

WHEREAS; Phil Was Exemplary in His Attendance to Work, His Punctuality to Be on Time, Coach and Supervise His Staff, and Respond to Continual Requests fi·om His Supervisor and Management,

NOW THEREFORE; the District's Board of Commissioners Expresses Their Gratitude and Thanks to Phil Clark for His Service and Further Recognizes That the District, Staff and its Customers Have Clearly Benefitted from His Service and Said Thanks Has Been Shown by the Presentation of this Resolution.

This Resolution Has Been Moved and Duly Seconded and by Passing of a Majority of the Board at the Regular Meeting Held on July21,2015;

By: __ ~~~~------~~---------Mr. William Gossett, Chairman



May 19,2015

Chairman William Gossett called the meeting to order at 11 :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; Jim Boyken, Civil Engineer; Justin Metz, Radcliff Wastewater System Supervisor; David Burkhead, Maintenance and Controls Specialist; Andrea Palmer, Executive Assistant; and attorneys David Wilson and Dustin Humphrey.


Chairman Gossett welcomed the two newest employees and invited staff to introduce them. Mr. Pyles introduced Mr. Metz as the RadcliffWastewater System Supervisor. He gave the Board a brief description of Mr. Metz's education, background, and achievements in his former position.

Mr. Bruce then introduced Mr. Burkhead, who had previously worked for the District as the Maintenance and Controls Specialist for about 10 years, leaving in 2010. He listed some of Mr. Burkhead's accomplishments during his time with the District and noted that some of the innovative controls Mr. Burkhead had put into place which some are still in use today. The Board introduced themselves and welcomed both new employees. Mr. Metz and Mr. Burkhead exited the meeting at this time.

Chairman Gossett asked for a motion to accept the prior meeting minutes. Commissioner Williams made a motion to accept the April21, 2015 regular meeting minutes. Commissioner Shelton seconded the motion and motion passed.

Mr. Schmuck presented the April2015 Treasurer's report, noting that four of the five funds are reflecting a positive net income with Radcliff Sewer reporting a $95,000 net loss year to date. He noted that although Radcliff Sewer was reflecting a loss for the year, it is currently performing better than projected. He drew the Board's attention the scrap metal sales of $8,000 and then answered Board questions. Treasurer Tindall inquired about initiating another sewer rate increase in 2016 and Mr. Bruce answered that staff would like to wait to see the effects of assuming operations at the Radcliff Wastewater plant before making that determination. Commissioner Shelton made a motion to approve the April, 2015 Treasurer's Report. Commissioner Williams 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 a brief discussion regarding the Lincoln Trail Tank painting and logo placement. Treasurer Tindall asked for an update regarding the West Point private property easements affecting the Louisville Water Interconnect Project, which Mr. Bruce gave. The Board suggested sending a fmal offer letter to Mr. Albro regarding the fmal easement necessary for the project. Mr. Bruce noted that there was a meeting with Codell Construction regarding the Fort Knox Distribution building that afternoon and answered all related questions.

Mr. Pyles presented the Operations Manager Report and answered all Board questions.

Mr. Bruce introduced Mr. Boyken and informed the Board that Mr. Clifford was currently on vacation. Mr. Boyken presented the Engineering Manager Report and offered to answer any questions. There was discussion regarding the installation of the water and sewer by the City of Radcliff at the upcoming Wal-Mart Grocery Store location.

Consent Agenda: Mr. Bruce showed a brief video in relation to the Ft. Knox Sewer CIPP (Cure In Place Pipe) Project Bid Award and Secretary Hockman made a motion to approve the consent agenda. Commissioner Shelton seconded the motion and motion passed. (Motion to accept high bid from Mr. Gene Cecil in the amount of $5,500 to sell a surplus 2004 Ford F350 work truck at the soonest convenience once payment is received; Motion to authorize award of the CIPP project, for the Fort Knox Wastewater Utility, to Layne Inliner, LLC of Orleans, Indiana in the amount of $249,976; Motion to approve and adopt Board resolution 01-2015 as required in order to establish and set-up a new 401(a) investment account with Nationwide, which action was previously approved by Board motion at the February 26, 2015 meeting).

Hardin County Water District No. 1 -Board of Commissioners Minutes of Regular Meeting May 19,2015

Continued

Health Insurance & Employee Attitude Surveys: Mr. Bruce presented the item and noted that he received the results simultaneously with the Board. There was discussion regarding the re-bidding of health insurance and Treasurer Tindall suggested that staff explore options for a new broker as well. There was brief discussion regarding the Employee Satisfaction Survey including the questions asked and some of the answers and Mr. Bruce informed the Board that Ms. Palmer is working on a departmental analysis that will provide more insight.

County Expansion Initiative Project: Mr. Bruce presented the item and noted that the ftnal report had been distributed to the Board previously. Secretary Hockman made a motion to authorize staff to proceed with a project to construct the four highest ranking roads, but also bid the next two or three highest ranking roads and then continue to lobby to seek additional funding or grants to complete some or all of the additional unserved roads in order to fmalize engineering costs and update construction estimate and to bring back to Board for fmal approval prior to bidding the project. Commissioner Williams seconded the motion and motion passed.

Engineer Selection for 313/1882 Transmission Main Project: Mr. Bruce presented the item and offered to answer any questions. There was brief discussion regarding where the new water main would run. Commissioner Williams made a motion to authorize staff to accept the revised proposal submitted by Cannon & Cannon to complete the ftnal design of the 1882/313, 16 inch transmission main project, which was previously designed by Cannon & Cannon, in order to meet future increased purchases by Meade County Water District, and to also complete all application documents to submit to Rural Development for a loan to fmance this project, including a water rate increase, if required by Rural Development. Treasurer Tindall seconded the motion and motion passed.

Closed Session: Mr. Wilsonnotifted the Board of a need to enter into closed session for litigation. At 1:14 P.M., 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 Shelton seconded the motion and motion passed. Mr. Bruce remained present for the discussion and staff exited the room at this time. Chairman Gossett reconvened open session at 1 : 19 P.M.

Adiourn: Secretary Hockman made a motion to adjourn at 1 :20 PM. Motion was seconded by Treasurer Tindall and motion passed.


APPROVAL OF MINUTES


Mr. Ron ockman, Secretary ""'

/2oruJ I b J r2 0 LJi


AT A MEETING OF THE BOARD OF COMMISSIONERS ("Board") OF THE HARDIN COUNTY WATER DISTRICT No.1 ("District") HELD ON MAY 19TH OF 2015, THE FOLLOWING RESOLUTION WAS ADOPTED:

WHEREAS, the Board has previously adopted a joinder agreement has previously adopted a joinder agreement to participate in the Kentucky Public Employees' 40l(k) Deferred Compensation Plan ("State Plan") and has made employer matching contributions into the State Plan in addition to employee 40l(k) elective deferrals; and

WHEREAS, the Kentucky Deferred Compensation Authority ("Authority") has advised the Board that effective January 1, 2015, the State Plan will no longer accept employer matching contributions but District employees may continue to make 401 (k) deferrals into the State Plan; and

WHEREAS the Board desires to establish a new qualified retirement plan effective January 1, 2015 to accept employer contributions;

NOW, THEREFORE, the District's plan ("Plan") as stated on the Nationwide Financial Services, Inc. Governmental Volume Submitter 401(a) Plan (Exhibit A) is hereby adopted and approved effective January 1, 2015 and that the appropriate officer of the Board shall perform all acts and execute all agreements that may be necessary or desirable to retain Nationwide Retirement Solutions ("Nationwide") to provide cettain administrative and/or recordkeeping services that may be necessary or desirable to effectuate the foregoing resolution, including but not limited to the submission of an application to the Internal Revenue Service for the favorable determination of the qualification of the Plan under applicable provisions of the Internal Revenue Code and the execution of amendments to the Plan as may be required by the Internal Revenue Service in order for the District to receive the said favorable determination of the tax qualified status of the Plan;

This Resolution Has Been Moved and Duly Seconded and by Passing of a Majority of the Board at the regular meeting held on May 19, 2015;

By:

. Jim Shelton, Commissioner



April21, 2015

Chainnan William Gossett called the meeting to order at 11:30 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, Engineering Manager; Richard Stranahan, Fort Knox Water Distribution Supervisor; Andrea Palmer, Executive Assistant; and attorney David Wilson.


Chainnan Gossett asked for a motion to accept the prior meeting minutes. Secretary Hockman made a motion to accept the March 24, 2015 special meeting minutes. Commissioner Williams seconded the motion and motion passed.

Mr. Schmuck presented the March 2015 Treasurer's report, noting that four ofthe five funds are reflecting a positive net income with Radcliff Sewer reporting a $77,000 net loss year to date. He explained that water sales in general are down three percent in comparison to last year and income year to date is down $22,000 compared to last year. Mr. Schmuck then answered all Board questions. Commissioner Williams made a motion to approve the March, 2015 Treasurer's Report. Commissioner Shelton seconded the motion and motion passed.

Board Monitoring Reports: Mr. Bruce presented the General Manager's Report and noted that Hardin County Water District No. 2 was planning to consider a vote whether or not to relinquish their BRAC grant for North End County Sewer Funding, which meeting was being held the same day. Mr. Wilson then gave an update regarding the Sales Tax Audit and added that the District's letter of protest had been denied so the next step would be requesting a conference with staff and counsel. He added that counsel plans to attend. Discussion ensued.

Mr. Pyles presented the Operations Manager Report and offered to answer any questions. Commissioner Shelton asked about current correspondence with a sewer customer, and Mr. Pyles confirmed that there have been no further issues.

Mr. Clifford presented the Engineering Manager Report and offered to answer any questions. There was a brief discussion regarding the Lincoln Trail Tank Painting Project as well as an update on the Bacher Street Project, which is now complete. Mr. Wilson said that he was still reviewing the change order on that project, including a review of the Board's change order policy and relevant state laws and regulations. He said he would report back to the Board on his findings at a future meeting.

Sale of Scrap Metals: Mr. Bruce presented the item and offered to answer any Board questions. Secretary Hockman made a motion to authorize staff to accept scrap purchase from ISA recycling for scrap iron and copper, in accordance with Board policy. Treasurer Tindall seconded the motion and motion passed.

Pay Plan- Grade 4 Market Adjustment: Mr. Bruce presented the item and answered questions from the Board. Chairman Gossett asked how much time has passed since the District has completed a market comparison of the entire pay scale, and Mr. Bruce answered about six years. There was a consensus that staff should take this into future consideration and complete a wage scale comparison to the market and bring to Board at a future meeting.

Codell Change Order Request: Mr. Bruce presented the item and noted that Mr. Stranahan was present to assist in answering all Board questions. Mr. Bruce presented the time line of events beginning with the Notice to Proceed that was issued to Cadell Construction and gave a brief overview of some of the challenges and delays with this project. Commissioner Shelton spoke to the Board regarding the site and soil using his experience as an excavator. Discussion followed regarding weather conditions as well as the correspondence that Cadell Construction submitted to the District. Secretary Hockman made a motion to forego any outlay of monies or extension oftime

Hardin County Water District No. I -Board of Commissioners Minutes of Regular Meeting April21, 2015

Continued

and authorized staff to prepare a letter to the Government asking for $85,790 to pay for the mass notification system, and to request a meeting with Cadell officials to discuss other outstanding issues. Commissioner Williams seconded the motion and motion passed.

Adjourn: Secretary Hockman made a motion to adjourn at 1:00PM. Motion was seconded by Treasurer Tindall 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:


~I'!, -:lol$ Date Ap ved



March 24,2015

Chairman William Gossett called the meeting to order at 9:00A.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, Engineering Manager; James Boyken, Civil Engineer; Andrea Palmer, Executive Assistant; and attorney David Wilson. Guest in attendance was Mr. Brad Hayes, CPA, CGFM with Ray, Foley, Hensley & Company, PLLC/CPA.


Chairman Gossett invited Mr. Clifford to introduce his newest employee. Mr. Clifford introduced Mr. James "Jim" Boyken, P.E. selected for the Civil Engineer position as a licensed Professional Engineer in the states of Kentucky and Alabama and gave a brief history of his employment background. The Board introduced themselves and welcomed him to the District. Mr. Boyken exited the meeting at this time.

2014 Annual Financial & Audit Report: Chairman Gossett gained consensus to move to agenda item No.8, the 2014 Annual Audit Repmt Presentation, to the top of the agenda. Mr. Bruce introduced Mr. Brad Hayes from Ray, Foley, Hensley & Company and invited him to make his presentation.

Mr. Hayes called the Board's attention to the audit repmt and noted that the only adjustments made to the audit were made by the District. He added that not only were there were no findings or issues, but that this was the cleanest audit he has ever seen with the District and was able to issue an unqualifed audit letter. Mr. Hayes made a slide presentation showing financial ratios and benchmarking comparing to other utilities, as well as prior years for the District. Mr. Hayes then answered Board questions in regard to GASB 68, a 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 underfunded pensions.

Secretary Hockman asked about review of credit card use and if there were any cash funds being maintained. Mr. Bruce and Mr. Hayes answered those questions. The Board thanked Mr. Hayes and commended Mr. Schmuck and his staff for a successful audit. Mr. Schmuck noted that Mr. Hayes and his staff are extremely professional and have been a pleasure to work with. Treasurer Tindall made a motion to accept the 2014 Financial & Audit Report as presented by the District's CPA firm. Commissioner Shelton seconded the motion, and motion passed.

Chairman Gossett asked for a motion to accept the prior meeting minutes. Commissioner Shelton made a motion to accept the February 26, 2015 special meeting minutes. Treasurer Tindall seconded the motion and motion passed.

Mr. Schmuck presented the February 2015 Treasurer's report, noting that the four of the five funds are reflecting a positive net income for the month with Radcliff Sewer reporting a $35,000 net loss. He explained that water sales in general are down eight percent in comparison to last year. He added that the District did receive a refund check from Louisville Water Company because the repair and maintenance limit account was not reached for the year so the refund was issued and will be reflected in the March statements. Mr. Bruce asked if the District has received the $6,500 payment from the insurance company for the plumbing leak that took place inside the building on February 201

\ and Mr. Schmuck answered that the check had not yet been received. Commissioner Williams made a motion to approve the February, 2015 Treasurer's Report. Commissioner Shelton seconded the motion and motion passed.

Board Monitoring Reports: Mr. Bruce presented the General Manager's Repmt and offered an update on the communications with Mayor Weaver regarding the Millpond Tank Location. He informed the Board that per Julie Aldridge, Mayor Weaver has forwarded the issue to the office of JJ. Duvall, the city's Economic Development, Planning and Building Director. Commissioner Shelton asked for an update on the Radcliff Sewer Operations Transition and Mr. Bruce answered that it is going smoothly and that District staff met with Veolia employees recently to distribute information on District employment opportunities and benefits. Secretary Hockman asked questions pertaining to

Hardin County Water District No. 1 - Board of Commissioners Minutes of Special Meeting March 24, 2015

Continued

positions available at the wastewater treatment plant and Mr. Bruce answered that he would send the updated organization chmi so that Board members could see how many of each position would be filled.

Treasurer Tindall asked for an update on the Fort Knox Distribution Building floor and Mr. Bruce answered that the contractor has re-stained the concrete and is awaiting approval from the District. He stated that he believes that the floor is too dark to correct and that the District may need to explore other flooring options. He added that the District has withheld funds for the flooring from the latest pay request.

Mr. Pyles presented the Operations Manager report and answered questions regarding water loss and water usage for the month of February.

Mr. Clifford presented the Engineering Manager report and answered questions regarding conversion of the Pirtle Spring Water Treatment plant and the Louisville Interconnect Project. During discussion, Mr. Bruce noted that the District had yet to formally hear whether or not Meade County intends to purchase all of their water from the District after the conversion takes place.

Consent Agenda: Treasurer Tindall requested to remove Agenda Item 6 (Bacher Street Water Project- Change Orders) from the consent agenda for discussion. Commissioner Williams made a motion to approve the remainder of the consent agenda. Treasurer Tindall seconded the motion and motion passed. (Approve staff to purchase HACH WIMS software to be used at the Radcliff WWTP for $4,893, and if necessary, to expend up to $124,200 for start-up items required for the Radcliff Sewer Operations; approve adding eight new titles for wastewater into the pay plan as recommended by the General Manager in order to fill the future openings for Radcliff Sewer Operations; award a contract to the low bidder, Vanguard Construction, for $48,359 for the CLIN 45Ft. Knox Stormwater Improvements.) ·

Bacher Street Water Project- Change Orders: Mr. Bruce presented the item and added that Board policy states that General Manager has the authority to approve a change order in emergency situations. There was a brief discussion regarding the change orders and why they were necessary. Mr. Wilson was asked ifthere were any state law regarding adding change orders to an existing contract. Mr. Bruce and Mr. Clifford noted that the added work had been requested by Ft. Knox and that there was a strict deadline to finish the water project so the remodeling of the barracks could continue. Treasurer Tindall made a motion to approve Change Orders 1 and 2 to HF McClure Construction for $67,300, revising the contract price to $150,963 for added work for the Bacher Street Water Main Improvement project, noting that an emergency existed due to the short deadline, and that approval of both change orders was contingent as to legality after investigation by legal counsel. The motion was seconded by Commissioner Shelton and passed.

Pirtle Spring WTP Chloramine Conversion Project: Mr. Bruce presented the item, including a timeline of events to date. Secretary Hockman made a motion to authorize staff and legal counsel to proceed with negotiating and finalizing a Design-Build contract with Judy Construction for up to $490,000 and to expend up to an additional $220,000 for materials and work to be purchased and completed by District staff, and to file for all permits needed and advertise for all bids required for the project, and to finance the project for up to 18 months using the Cecilian Bank line of credit, in order to convert the Pirtle Spring Water Treatment Plant to chloramine disinfection at the soonest convenience, with final conversion implementation date to be approved at a future Board meeting. Mr. Bruce was asked about the planned conversion date and he noted that the motion required having the Board approve a future date, before conversion could take place. Treasurer Tindall seconded the motion and motion passed.

Proposed Personnel Policy Change- Vehicle Use: Mr. Bruce presented the item and answered all Board questions. Treasurer Tindall made a motion to approve the suggested change to Personnel Policy No. 80 on District Vehicle Use to add guidelines for assigning vehicles to take home and driving limit distance for supervisors to take a vehicle home. Commissioner Williams seconded the motion and motion passed. Secretary Hockman asked about use of cell phones in District vehicles. Mr. Bruce noted that the current policy does ban personal cell phone use in District vehicles, which policy was updated a few years ago after some incidents caused by phone use had occurred.

Life Insurance & LTD Provider Options: Mr. Bruce presented the item and answered all Board questions. Treasurer Tindall made a motion to approve changing Life and Long-Term Disability insurance to the Principal Financial Group

Hardin County Water District No. I -Board of Commissioners Minutes of Special Meeting March 24,2015

Continued

with Paychex as the District's broker and authorize staff and the District's agent to proceed with any changes needed to the plan. Commissioner Shelton seconded the motion and motion passed. Commissioner Williams abstained, noting that his daughter works for Paychex and he was not able to verify that she did not have any connection to this item.

Approval of New Civil Engineer Position- Engineering Manager Position: Secretary Hockman made a motion to approve a new S2 exempt pay grade in the 2015 pay plan for the Civil Engineer position, as presented by the General Manager, and authorize the General Manager to fill his position as soon as possible and also to approve the General Manager's recommendation to promote Daniel Clifford, Interim Engineering Manager, into that position permanently and immediately. The motion was seconded by Commissioner Williams and passed.

Closed Session: Mr. Wilson reviewed concerns Secretary Hockman had brought up about use of closed session, which Mr. Wilson had responded to with a letter. There was a discussion about what should or should not be discussed in closed sessions. Mr. Wilson advised that if an item could be discussed in open session that should be the preferred option. Mr. Bruce said that he had an item which he had already asked Mr. Wilson if closed session would be appropriate, which he responded it would be.

Mr. Bruce notified the Board of a need to enter into closed session for discussion of water line property acquisition and asked that Mr. Clifford and Ms. Palmer remain for the discussion. Secretary Hockman made a motion to enter into closed session in order to discuss the purchase of property in accordance with KRS 61.81 0.1.b. Treasurer Tindall seconded the motion and motion passed. Mr. Bruce, Mr. Clifford and Ms. Palmer remained for the discussion, and staff exited the room at this time.

Closed Session- Action Item: At 11 :20 AM, Chairman Gossett reconvened open session. Treasurer Tindall made a motion to authorize staff to negotiate with property owners for the purpose of obtaining easements for the Louisville Water Interconnect within a range of$0.50 per lineal foot, plus other compensation as appropriate, up to $2,000 total per easement The motion was seconded by Secretary Hockman and passed.

Adjourn: Secretary Hockman made a motion to adjourn at 11:22 AM. Motion was seconded by Commissioner Williams and motion passed.


APPROVAL OF MINUTES




February 26, 2015

Chairman William Gossett attended by video teleconference from Ft. Myers, Florida. Chairman Gossett called the meeting to order at 11 :30 A.M. with Commissioners Ron Hockman, Howard Williams and Jim Shelton in attendance and Commissioner John Tindall en route. 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; Vaneka Bell, Accounting Specialist and attorney David Wilson. Lunch was provided for the Board and staff.


Chairman Gossett asked for a motion to accept the prior meeting minutes. Commissioner Williams made a motion to accept the January 20, 2015 regular meeting minutes. Commissioner Shelton seconded the motion and motion passed. Commissioner Williams then made a motion to accept the February 10, 2015 special meeting minutes. Secretary Hockman seconded the motion and motion passed.

Chairman Gossett invited Mr. Schmuck to introduce his newest employee. Mr. Schmuck introduced Ms. Vaneka Bell and gave a brief history of her educational and employment background. Commissioner Williams spoke positively to Ms. Bell's character, noting that he knows her parents. The Board introduced themselves and welcomed her to the District. Ms. Bell exited the meeting at this time.

Mr. Schmuck presented the January 2015 Treasurer's report, noting that the four of the five funds are reflecting a positive net income for the month of January with Radcliff Sewer repmiing a $31,000 net loss. He also noted that the annual financial audit is nearing completion and offered to answer arty questions. Secretary Hockman asked if the audit services were to be bid in 2016, and Mr. Bruce answered that the Board approved using the current firm for the 2015 audit with an option for the 2016, after which staff will solicit new proposals. Commissioner Williams made a motion to approve the January, 2015 Treasurer's Repmi. Commissioner Shelton seconded the motion and motion passed.

Board Monitoring Reports: Mr. Bruce presented the General Manager's Repmi and offered to answer questions. There were brief discussions regarding the items in Mr. Bruce's report, and he answered all questions. Treasurer Tindall entered the meeting at this time (11 :45AM) and apologized to the other Commissioners for his delay.

Mr. Pyles presented the Operations Manager report and answered questions regarding a recent main break on Fort Knox. Commissioner Shelton commended staff at Veolia Fort Knox, and Mr. Pyles and Mr. Bruce both noted that Veolia staff had been very responsive and helpful. The Board asked questions regarding the vacant positions at the Radcliff Wastewater treatment plant and Mr. Bruce and Mr. Pyles answered.

Mr. Clifford presented the Engineering Manager report and answered questions regarding the water tank painting at Lincoln Trail Tank and also future tank painting at Whispering Hills.

2014 & 2015 Recurring Payment Disbursement Request: Mr. Bruce presented the item and noted that Mr. Schmuck did an excellent job of estimating these charges in 2014 and came within 1% of the actual costs. The Board commended Mr. Schmuck. Secretary Hockman made a motion to approve all the expenses and vendors to be paid as shown on the 2015 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 2015 budget year. Commissioner Shelton seconded the motion and motion passed.

Hardin County Water District No. 1 -Board of Commissioners Minutes of Special Meeting February 26, 2015

Continued

Kentucky Employee Deferred Compensation Change: Mr. Bruce presented the item and offered to answer any questions. Secretary Hockman had questions about what benefit the Board receives as far as flex benefit from the District and Mr. Bruce answered that the Board currently receives either the flex benefit or health insurance, and that this policy was set by Board motion and therefore could be changed at any time by Board motion. Treasurer Tindall made a motion to authorize staff and any required Board officer to execute a new investment group account agreement with Nationwide, after verifYing that future deposits are pre-taxed and it is legal for employees to have two 401k accounts, so that employees can continue to invest employer provided funding into a 401(k) I 457 investment accounts and once account set up, transmit any funds currently on deposit with Cecilian Bank on the employees behalfto Nationwide at the earliest convenience. Treasurer Tindall asked if the PSC had ever questioned the benefits provided to Commissioners. Mr. Wilson and Mr. Bruce answered that it had come up in the recent Racliff rate case, which after Mr. Wilson responded by citing case law, the PSC did not respond or include any specific direction in their final order. Commissioner Williams seconded the motion and motion passed.

Sales Tax Audit Results: Chairman Gossett asked Mr. Wilson to present the item. Mr. Wilson recounted telephone conversations he had regarding the item, and informed the Board that he had been advised by two separate employees of the Kentucky Revenue Cabinet (KRC) to file a protest to the order. There was some discussion about the different fees and services that the KRC is asking for sales tax on .. Treasurer Tindall made a motion to file a protest with the KRC for the order to pay sales tax on the stormwater services, franchise fee, and school tax and to charge staff to contact other stakeholders within the commonwealth.

Executive Session: Mr. Bruce notified the Board of a need to enter into closed session for personnel discussion. Secretary Hockman made a motion to enter into executive session in order to discuss a personnel matter in accordance with KRS 61.810.7.f. Treasurer Tindall seconded the motion and motion passed. Mr. Bruce remained for the discussion, and staff exited the room at this time.

Executive Session- Action Item: At 1 :05 PM, Chairman Gossett reconvened open session. Secretmy Hockman made a motion to approve a new S2 exempt pay grade in the 2015 pay plan for the Civil Engineer position, as presented by the General Manager, and authorize the General Manager to fill his position as soon as possible and also to approve the General Manager's recommendation to promote Daniel Clifford, Interim Engineering Manager, into that position permanently and immediately. The motion was seconded by Commissioner Williams and passed.

Adjourn: Secretary Hockman made a motion to adjourn at 1:10PM. 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:

2015 Recurring Payment Disbursement Register (Board Governance Policy S.d.iii)

Payment Methods: ACH Debit, Auto Withdrawal, Check, Wire, Credit Card

Criteria::> than 6 Payments & > $5,000

2015 ESTIMATED Est Annual Total Cash Number

Vendor Disbursement Pymts Description Arista $ 86,000 12 CustomerBil!!ngPrinting&Postage

Assurant $ 244,500 12 Health Insurance. Total Premium (EE + Oist portion) + 6 mth Estimate fOf" Raddiff Op's

AT&T $ 5,100 12 LongDistanceTelephone

Bank of New York (cecifian Bank) $ 379,433 12 2002 Variable Rate Water Bond Payments (P&I)

BluegrassCellular $ 13,580 12 Cell Phone+ 6 mths Estimate fN Raddiff Sewer Op's 3 phor~es

BrandenburgTelephone $ 8,520 12 Telephone+ 6 mths Estimate for Raddiff Sewer Op's

BrenntagMld-South $ 5,000 Water Treatment Chemical- Hydrogen Sulfite & carbon

CedlianBan~ $ 21,258 letterofCreditFee

Ceo1ian Bank/Unknown BenefltVendwJ $ 61,100 12 Flex $172 dollars+ 6 mths Estimate for Raddlff Op's

GtyOfRaddiff $ 1,07S,OOO 36 Stormwaterfees&Franchlsefees

Col!ecto.rSo!utions $ 61,000 12 Mercharlt Fee.s on Cwtomer Credit Card & E-ehedt Pymts

Corvu5Janitorlal $ 12,528 12 Jan:toriaiServiee

Cumeai&Hign;te $ 160,100 Business Uabtlity Insurance- per C&H quotes 07/11/14 & 10/23/14

DeltaDental $ 25,288 12 Dentallnsurante- Total Premium (EE + Dlst portion)+ 6 mths Estimate for Raddiff Op's

F21ndustries $ 12,500 Water Treatment Chemical- Potassium Permar~ganate

Ferguson Waterworlu $ 72,850 12 o:stribution lnver~tory & Mise Supplie.s + 6 mths Estimate for Raddiff Op's

Fleetone $ 84,(X)(I 12 Fuel Purchases t 6 mths Estimate for Raddiff Sewer Op's

Fortfine $ 125,(X)(I 12 o:stribution Inventory & Mise Supplies

G&CSuppty $ 6,000 12 o;stribution Inventory & Mise Supplies

HayesPipe $ 201,615 12 Distnllution lnver~tory & Mise Supp!les t 6 mths Estimate for Radd<ff Op's

HOSup-ply $ 427,535 12 Meters/ERTS plus Oist IIWentory & Mise Supplies+ 6 mths Estimate for Raddiff Op's

Humana $ 7,641 12 Pass thru Pymt of Attorney Health lnsurallCe

JaJonesChemicals $ 5,000 WaterTreatmentChemlcal-Chlorine

KACO $ 5,650 Unemployment lruurance

KEMI $ 18,320 12 Workers Comp + 6 mths Estimate for- Raddiff Sewer Op's

KIA $ 348,378 Raddiff Debt (P&I +Fees)

KU $ 134,200 12 Electric+ 6 mths Estimate for Radcliff Sewer Op's

KyStateRetirement $ 412,100 Retirement/Pemlon (17.67% District Requirement,Ooes Not Include EE W.thho!ding) • 6mths RaddiffOp's

KyStateTreasurer $ 159,000 12 UtilityTax./SalesTax

KYStateTreasurer $ 57,003 26 401 K Withholding (Does NOT indude Flex $172 dollars) + 6 mths Estimate for Raddiff Sewer Op's

~ 26,028 12 OffsiteDataStorage&ITSupportServke

llneolnNatiooaiUf~.::_----',"'s,3"-'90"t--::._--fu"'·r,"'t"'o.""'"'"'-'""'-_'-',oo"'%"'P"•"id:!:byO::H::.CW;::D:..:l.:.:+6'-m-l-h•-E•-tim-,-.,-,"'-.,-dd-iff-5-,w-,-,o-,·-, -------j Louisvi\!eWater $ 1,799,547 12 FKWaterCo.ntractOp's

Mccoy&McCoy $ 17,500 12 Water Ana!ys.ls + 6 mths Estimate for Raddiff Op's

Nako $ 140,00J Water Treatment Chemical- Aluminum Ch'oride (Polymer) {Uitrioo8158)

No!lnRECC $ 276,000 Electric+ 6 mths Estimate fM Raddiff Sewer Op's

OnlineCollections $ 6,000 CO!!eetionfxpense

Payt:hex $ 1,527,594 26 Net Salaries+ 6 mths Estimate for Raddiff Op's

Paychu $ 693,020 26 Payroll Ta~es (Fed, FICA/Medi, State, Local)+ 6 mths Estimate for- Raddiff Op's

Paychex $ 36,000 24 Child Support & Gran!.shments withheld from EE paycheck

Paychex $ 9,860 26 Payroll Processing Fee+ 6 mths Estimate for Raddiff op's

Penceo,lnt. $ 11,000 Water Treatment Chemlca\- Fluoride

diffTreatment Chemicals (Unknown Vendors) $ 11,500 6 mths Estimate for Raddiff Op's

Rumplo:e $ 43,200 12 6 mths Estimate for Radcliff Op's Sludge Hauling

Unilirst $ 11,180 12 Uniform SeNice + 6 mths Estimate for Raddiff SewerOp's

USBank $ 598,056 12 2005 Fixed Water Bond Payments (P&Ij

VeoHa- Ft Knox & Raddiff $ 3,453,794 12 Ft Knox Sewer/Storm Op's + Re-Ure Fee t 1/2 Yr Raddiff Sewer Op's IMiudin& Overage Accrual

46 Total Recurring Disbursements.,! s;__.;.12,;;,,9.;.2;.;0.;.,8;.;6_B .. I __ s_7_,9!

Approved at the ltb'@lJ '),41 , Wlt;_ Board of Commissioners Meeting I

Hardin County Water District No.1 Minutes of Special Meeting


February 10, 2015

Acting Chairman John Tindall called the meeting to order at 11 :57 A.M. with Commissioners Ron Hockman, Howard Williams and Jim Shelton in attendance. Chailman William Gossett called in via conference phone to listen but was unable to vote as a video teleconference was not established. Staff present included Jim Bruce, General Manager; Daniel Clifford, Interim Engineering Manager; Andrea Palmer, Executive Assistant; and attorney David Wilson.

Acting Chairman Tindall opened the floor for public comment. There wa,s none and floor was closed to public comment.

Bid Award- Bacher Street Water Main Replacement: Mr. Bruce presented the item and explained the time sensitivity. Commissioner Williams made a motion to authorize staff to contract with HF McClure Construction Company of Louisville Kentucky for a contract in the amount of$83,663 to complete the Bacher Street water main replacement at Ft. Knox. Secretary Hockman seconded the motion and motion passed.

Bid Award- Soearhead Loop Stormwater Improvements: Mr. Bruce presented the item and offered to answer questions. Secretary Hockman made a motion to authorize staff to contract with Phillips Brothers Construction for a contract in the amount of $99,818 to complete the Spearhead Loop Stormwater Improvement project at Ft. Knox. Commissioner Shelton seconded the motion and motion passed.

Adjourn: With no further business before the Board, Secretary Hockman made a motion to adjourn at 12:03 PM. Motion was seconded by Commissioner Williams and passed.


APPROVAL OF MINUTES





January 20, 2015

Chairman William Gossett called the meeting to order at II :25 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; Daniel Cliffoi·d, Interim Engineering Manager; Andrea Palmer, Executive Assistant; Richard Stranahan, Fmt Knox Distribution Supervisor; Anthony Rogers, Fmt Knox Distribution Operator; Tim Osborne, County Distribution Supervisor; Bob Ammerman, Project Coordinator; 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 floor was closed to public comment.

Mr. Gossett announced that the District recently hired two new staff members and asked Mr. Stranahan and Mr. Clifford to introduce their newest employees to the Board. Mr. Stranahan introduced Mr. Anthony Rogers, Fort Knox Water Distribution Operator, to the Board and reviewed Mr. Rogers' employment history. Mr. Clifford then introduced Mr. Bob Ammerman, Project Coordinator, to the Board and reviewed Mr. Ammerman's employment history. The Board introduced themselves and welcomed Mr. Rogers and Mr. Ammerman to the District. Mr. Stranahan, Mr. Rogers, and Mr. Ammerman exited the meeting at this time.

Chairman Gossett asked for a motion to accept the previous meeting minutes. Commissioner Williams made a motion to approve the December I 0, 2014 special meeting minutes as written. Commissioner Shelton seconded the motion and motion passed. Commissioner Williams made a motion to approve the December 16, 2014 special meeting minutes as written. Treasurer Tindall seconded the motion and motion passed.

Mr. Schmuck presented the December, 2014 Treasurer's report. He noted that four ofthe five funds had a positive net income for the year, but that four of the five funds were showing a net loss for the month. He explained why each fund was showing a loss, and noted that Fort Knox Water was reflecting a net income for the month. He added that overall, the District reflected a $1 ,536,610 net income for 20 14. Mr. Schmuck also provided an answer to Commissioner Williams question at the previous meeting. He noted that based on a one month analysis, 34% of all customer payments were by credit/debit card, 14% by ACHor bank transfer meaning about 48% of all payments were being made by electronic method with the balance paper check or cash. Commissioner Shelton made a motion to approve the December, 2014 Treasurer's Report. Commissioner Williams seconded the motion and motion passed.

Board Monitoring Reports: Mr. Bruce presented the General Manager's Repmt and offered to answer any questions. He informed the Board that Tim Walker, former County Distribution Operator, had taken a job with the Elizabethtown Police DeP.mtment as a cadet I trainee officer. He also noted that Karen MmTison, Accounting Specialist, is retiring as of February 131

'. He added that while the District is advertising for these positions, they are also advertising for the Water Treatment Plant Operator Trainee which was funded in the 2015 budget. Mr. Bruce answered all Board questions.

Mr. Pyles presented the Operations Manager repmt and answered all Board questions. Treasurer Tindall asked for an update on the Fort Knox Clearwell project, and Mr. Bruce answered that the Government did a leak test that produced the same findings as the District's leak test and they are now working to find a resolution with the contractor the built the Clearwell.

Mr. Clifford presented the Engineering Manager report and added that the Lincoln Trail Tank has been sandblasted and primed, but the finishing coat of paint cannot be applied until the temperature of the steel reaches fifty degrees again, which will be at least March. He added that the cell phone companies will be reattaching their antennas and resuming use of the tank. Commissioner Shelton had some questions regarding the Quiggins Project that was recently open for bid, and a brief discussion followed.

Executive Session: Mr. Bruce notified the Board of a need to enter into closed session to discuss litigation. Secretary Hockman made a motion at 12:24 P.M. to enter into executive session in order to discuss a litigation matter in accordance with KRS 61.8IO.l.c. Commissioner Shelton seconded the motion and motion passed. Staff other than Mr. Bruce exited the room at this time. At 12:45 P.M., Chairman Gossett reconvened open session.

Executive Session Action Item: Treasurer Tindall made a motion to authorize staff and legal counsel to negotiate a settlement with a customer for a claim for additional moving expenses and non-refundable deposits for an amount not to exceed $7,500. The motion was seconded by Commissioner Williams and passed.

Hardin County Water District No. 1 -Board of Commissioners Minutes of Regular Meeting January 20,2015

Continued

Consent Agenda: Commissioner Williams had questions regarding Consent item 4 (Server/Data Back-Up Provider Change). Secretary Hockman made a motion to approve consent agenda items 5 ~ 9. Commissioner Shelton seconded the motion and motion approved. (Accept high bid from Corey Lucas in the amount of$6,500 for surplus 2006 Chevrolet pickup truck, Accept low bid submitted by Phillip Bros Construction in the amount of $466,84 7 for the Quiggins Sanitary Sewer Project, Authorize award of contract for Otter Creek Pump Station Door Replacement Project to M.C. Coleman Group for $40,408, Award bids or purchase contracts to the various lowest and best bids received for 2015 on Treatment Chemical Products as shown on the bid summary, Authorize staff to expend up to $76,000 for all furniture and fixtures for the new Ft. Knox Water Distribution office building being constructed and to provide the Board a final accounting of actual costs and depreciation once purchased and installed.)

Offsite Data Backup -Item No.4: After further discussion, Treasurer Tindall made a motion to authorize staff to purchase a replacement Network Attached Storage device for $3,265 from LexNet and execute a new service contract for the offsite data backup service. The motion was seconded by Commissioner Williams and passed.

Election of Officers: Chairman Gossett noted that the Board policy states that elections of officers must be held at the January meeting each year and asked gained consensus to proceed with the elections. 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 to their current offices by acclamation and to close nominations. Commissioner Shelton seconded the motion and motion passed.

Meade County Water District- Additional Supply Analysis: Mr. Bruce presented the item and mentioned that Mr. Tim Osborne was present due to his previous 25 years as an employee ofMCWD. Discussion ensued regarding MCWD's request to purchase additional wholesale supplies and the current wholesale contract between HCWD 1 and MCWD. There were some questions and further discussion regarding a Rural Development loan in order to connect the MCWD Distribution system to the HCWD1 system in a second location.

Treasurer Tindall made a motion for Mr. Bruce to draft a letter to MCWD that reaffirms that the Board of HCWD I wants to maintain a customer-supplier relationship with MCWD. Commissioner Williams seconded the motion and motion passed. Mr. Bruce said he would send the letter to the Board for review before sending to MCWD.

Treasurer Tindall had questions regarding the timing of the multiple projects all related to the conversion of Piltle Spring Water Treatment Plant to Chloramine Treatment and Mr. Bruce answered that he hoped to bring a proposal and recommendation to the Board at the next meeting regarding these projects.

Adjourn: With no further business before the Board, Secretary Hockman made a motion to adjourn at 1:20PM. Motion was seconded by Treasurer Tindall 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. I at a meeting held on the date shown below:

Date ApprDVed

Documents

Hardin County Water District No. 1 Minutes1.pdf · Williams and Jim Shelton in attendance. Staff present included Jim Bruce, General Manager; Brett Pyles, Operations Manager; Daniel