Board of Commissioners Meetings

26 CITY OF HENDERSON – RECORD BOOK Record of Minutes of A Called Joint City/Henderson Water & Sewer Commission Meeting on February 5, 2025 A special called joint meeting of the Board of Commissioners of the City of Henderson, Kentucky, was held with the Henderson Water and Sewer Commission on Wednesday, February 5, 2025, at 5:00 p.m., prevailing time, in the third floor Assembly Room of the Municipal Center, 222 First Street, Henderson, Kentucky. There were present Mayor Bradley S. Staton presiding: PRESENT: Commissioner Kelsey Hargis Commissioner Robert N. Pruitt, Sr. Commissioner Nicholas E. Whitt ABSENT: Commissioner Rodney Thomas ALSO PRESENT: Mr. William L. “Buzzy” Newman, Jr., City Manager Mr. Dylan Ward, Assistant City Manager Ms. Holli Blanford, Public Relations Director Mrs. Dawn Kelsey, City Attorney Ms. Jessa Brandon, City Clerk Mr. Travis Owens, Assistant IT Director Mr. Bart Boles, Henderson Water Utility General Manager Mr. Todd Bowley, Henderson Water Utility Chief Financial Officer Ms. Deniese Jones, HWU Administrative Assistant Mr. Paul Bird, Henderson Water & Sewer Commission Chair Mr. Steve Austin, Henderson Water & Sewer Commission Ms. Brenna Caudill, Henderson Water & Sewer Commission Mr. George F. Jones, Henderson Water & Sewer Commission Dr. Gary Jennings, Henderson Water & Sewer Commission Mr. Eric Shappell, Henderson Water & Sewer Commission Attorney Mr. Joseph Horton Mr. Harold Wolfe Mr. Jermaine Johnson Mr. Greg Billiter Ms. Melissa Roberts Ms. Sieglinde Williams Ms. Christina ________________________ UTILITY COMMISSION CHAIR BIRD asked that Roll Call for the Water and Sewer Commission be conducted. ________________________ EXECUTIVE SESSION: “Litigation ” MOTION by Commissioner Pruitt, seconded by Commissioner Whitt, that the Board of Commissioners go into Executive Session pursuant to KRS 61.810(1)(c) for the purpose of discussions of proposed litigation against the City of Henderson and the Water & Sewer Commission of the City of Henderson (a/k/a HWU), regarding threats of litigation regarding errant billing issues against the City/HWU, and regarding potential litigation against the manufacturer, vendor, and/or installer of water meters which led to said errant billing issue. The vote was called. On roll call, the vote stood. Commissioner Hargis ----- Aye: Commissioner Pruitt ------ Aye: Commissioner Thomas --- Absent: Commissioner Whitt ----- Aye: Mayor Staton ----- Aye:  27 CITY OF HENDERSON – RECORD BOOK Record of Minutes of A Called Joint City/Henderson Water & Sewer Commission Meeting on February 5, 2025 UTILITY COMMISSION CHAIR BIRD entertained a motion for the Water and Sewer Commission to adjourn into Executive Session. WHEREUPON, Mayor Staton declared the Boards adjourned into Executive Session. ________________________ MEETING RECONVENED: MOTION by Commissioner Whitt, seconded by Commissioner Pruitt, that the Board of Commissioners reconvene into regular session. The vote was called. On roll call, the vote stood: Commissioner Hargis ----- Aye: Commissioner Pruitt ------ Aye: Commissioner Thomas --- Absent: Commissioner Whitt ----- Aye: Mayor Staton ----- Aye: UTILITY COMMISSION CHAIR BIRD entertained a motion for the Water and Sewer Commission to reconvene into regular session. WHEREUPON, Mayor Staton reconvened the Boards into regular session. ________________________ PRESENTATION: “Programming Error Identified in New Water Meters” BART BOLES, Henderson Water Utility General Manager, gave an educational presentation to include: the process of ordering the new water meters; the reason only a portion of the new meters were affected; how the issue was identified; and the investigative process, as well as timeframe, that was necessary to fully identify and uncover the full scope of the issue. It was determined that 2,234 meters were affected. Mr. Boles provided the visual of a sample bill, showing the under-billing that occurred for effected meters, as well as the “catch-up” bill for the same sample bill, including a consumption chart, showing that all of the previously used amounts that had not been included in the bills for those months, had been applied to the most recent bill, becoming a “catch-up” bill. He reported that the range he had seen for catch-up bills extended from $150.00 to $250.00, on average, and that if customers were seeing significantly larger amounts, that they may have a leak, in which case, they should reach out to the Water Utility. MAYOR STATON expressed his sympathies to those affected by the catch-up bills. He reported that the City had been discussing many potential options to resolve the issue, to include not collecting the under-payment and delaying rate increases. Regarding legal limitations, he requested the City Attorney to elaborate. DAWN KELSEY, City Attorney, explained that the City, on behalf of the Water & Sewer Commission, took out a water & sewer revenue bond in 2023. She further elaborated that when a revenue bond is taken by the City, the City is required to adopt an ordinance, which contains covenants defining what the City will do to satisfy those bonds. Mrs. Kelsey explained that by those covenants, the City is legally bound to collect all revenue relating to water and sewer services provided. Failure to do so could result in the bonds being called. ERIC SHAPPELL, Henderson Water & Sewer Commission Attorney, reported that in addition to the aforementioned bond covenants, the Henderson Water Utility is further obligated to collect by Section 23-21 subsection (1) of the City of Henderson Code of Ordinances, which states “All water utilized from the Henderson Water Utility system for any purpose shall be metered or identified, and appropriately charged for.” He further elaborated that because Henderson Water Utility is owned by the municipality, it is not governed by the Kentucky Public Service Commission (PSC). 28 CITY OF HENDERSON – RECORD BOOK Record of Minutes of A Called Joint City/Henderson Water & Sewer Commission Meeting on February 5, 2025 DISCUSSION WAS HELD regarding alternative solutions to the catch-up bills, during which the question arose as to why the City was not seeking legal recourse on the manufacturer, as a letter had been received by patrons, stating that this was “a technical issue from the manufacturer.” It was clarified by Henderson Water Utility leadership that the manufacturer had sold a quality product, adequately addressing the technical specifications that had been requested. However, the initial entity from which the same meters had been previously purchased, performed a programming step that the Henderson Water Utility was not made aware of, and therefore did not request from the second supplier. ________________________ APPEARANCE OF CITIZENS: JOSPEPH HORTON cited KAR Title 807, Chapter 005, Regulation 006, Section 17, Subsection (1), which states that, “Before being installed for use by a customer, an electric, gas, and water meter shall be tested and in good working order…” He addressed the Henderson Water Utility leadership to inquire as to why, if that had been properly adhered to, the error persisted for 6 months. PAUL BIRD, Henderson Water & Sewer Commission Chair, answered that, due to the nature of the error in conjunction with the billing process, the system would not have flagged the issue until months later, at which time investigations began in attempt to identify all meters affected, which was a lengthy and complicated process in itself. BART BOLES, Henderson Water & Sewer General Manager, clarified that each meter is tested and calibrated at the factory and test sheets are then provided to the Henderson Water Utility for each individual meter. JOSEPH HORTON cited KAR Title 807, Chapter 005, Regulation 006, Section 11, Subsections (3)(b) & (c), which state that, “procedures shall be designed to draw the utility’s attention to unusual deviations in a customer’s usage and shall provide for reasonable means by which the utility can determine the reasons for unusual deviation,” and, “If a customer’s usage is unduly high and the deviation is not otherwise explained, the utility shall test the customer’s meter to determine if the meter shows an average meter error greater than two (2) percent fast or slow.” BART BOLES, Henderson Water & Sewer General Manager, clarified that the error in billing was identified by the billing department and communicated to the Henderson Water Utility in August and early September, at which time an investigation was launched to fully identify the issue and all affected customers. JOSEPH HORTON cited KAR Title 807, Chapter 005, Regulation 006, Section 11, Subsection (4)(c), which states that, “If the meter shows an average meter error greater than two (2) percent fast or slow, the utility shall maintain the meter in question at a secure location under the utility’s control, for a period of six (6) months from the date the customer is notified of the finding of the investigation…” PAUL BIRD, Henderson Water & Sewer Commission Chair, clarified that the meters themselves are very accurate, and that the issue, instead, is the transmission being sent to the billing system. BART BOLES, Henderson Water & Sewer General Manager, elaborated that as these issues were being identified, service requests were sent out and responded to by field crews, who were finding that the meters onsite read correctly. JOSEPH HORTON, inquired as to why the meters were left in place during the investigation.  29 CITY OF HENDERSON – RECORD BOOK Record of Minutes of A Called Joint City/Henderson Water & Sewer Commission Meeting on February 5, 2025 BART BOLES, Henderson Water & Sewer General Manager, answered that multiple meters had been replaced in attempt to resolve the issue; however, the same issue was consistently present even with the replacement meters. JOSEPH HORTON, cited KAR Title 807, Chapter 005, Regulation 006, Section 11, Subsection (5), regarding customer notification in the event of expected back billing or refund. ERIC SHAPPELL, Henderson Water & Sewer Commission Attorney, reminded that the Henderson Water Utility is not governed by the Public Service Commission laws Mr. Horton is citing, though they were used as guidelines. JOSEPH HORTON, inquired of the Henderson Water Utility leadership why the back billing was being received by customers as a lump sum, rather than customers being notified via individualized letters with specific details, as the example provided in the KAR for Public Service Commission governance. PAUL BIRD, Henderson Water & Sewer Commission Chair, clarified that the Henderson Water Utility sent out a letter to notify those affected and is actively working with customers to rectify the situation. ________________________ APPEARANCE OF CITIZENS: HAROLD WOLFE addressed the Henderson Water Utility to report that the letter he received, as an affected party, was easy to misinterpret with negative connotation and lacking sympathy. PAUL BIRD, Henderson Water & Sewer Commission Chair, apologized for the miscommunication and expressed his sympathies on behalf of the Henderson Water Utility. HAROLD WOLFE inquired of the Henderson Water Utility leadership, why they were not pursuing the manufacturer. PAUL BIRD, Henderson Water & Sewer Commission Chair, clarified that the letter was misstated, and that the manufacturer had sent them exactly the product they had ordered, in full working order. ________________________ APPEARANCE OF CITIZENS: JERMAINE JOHNSON addressed the Henderson Water Utility leadership to express concern regarding an earlier comment by the Water Utility leaders stating that millions of dollars were being saved as a result of the new meters reading themselves. Mr. Johnson’s concern was that jobs were being eliminated. PAUL BIRD, Henderson Water & Sewer Commission Chair, clarified that staffing level did not change, but that job duties had shifted, instead. JERMAINE JOHNSON further reported on his personal experience with local plumbers, who were not adequately trained on how to work with the new meters. PAUL BIRD, Henderson Water & Sewer Commission Chair, stated that as a benefit of the new meters, the Water Utility would be able to monitor them daily, which would enable them to more quickly and efficiently identify usage fluctuations upon request, in the event of a leak or other event. JERMAINE JOHNSON expressed concern regarding the customer service at the utility billing windows inside the City Municipal Building. 30 CITY OF HENDERSON – RECORD BOOK Record of Minutes of A Called Joint City/Henderson Water & Sewer Commission Meeting on February 5, 2025 MAYOR STATON thanked Mr. Johnson for addressing the issue and assured him that actions would be taken to improve customer service and appearances at the utility billing windows. ________________________ APPEARANCE OF CITIZENS: HAROLD WOLFE addressed the Water Utility leadership to ask for clarification of the meter reading and billing processes, and how they can be sure the issue is corrected. BART BOLES, Henderson Water Utility General Manager, clarified that if the totals on the meter and in the billing system were in agreeance, the issue was resolved, or the meter was not affected. MAYOR STATON reported that, in response to this issue, the City will be implementing stricter processes, such as more closely monitoring exception reports to systematically address usage deviations and prevent utility billing issues in the future. ________________________ APPEARANCE OF CITIZENS: GREG BILLITER addressed the Henderson Water Utility leadership to ask if the current readings and prior readings consistently added up to gallons used. TODD BOWLEY, Henderson Water Utility Chief Financial Officer, responded that yes, with the exception of the month in which the meter was changed. During that month, customers’ billing statements reflect 0 gallons used. However, the consumption reports display the correct amounts. GREG BILLITER reported concerns and confusion regarding his personal billing, which HWU Staff responded to by offering him a personal meeting to address, and Mr. Billiter accepted. Lastly, Mr. Billiter asked if HWU received any incentive pay for utilizing the company from which they purchased the water meters. THE WATER & SEWER COMMISSIONERS and staff responded that they did not receive any incentive for utilizing the company. ________________________ APPEARANCE OF CITIZENS: KAREN NUNN expressed concerns regarding the billing process, as she has experienced issues such as receiving her bill late, payments not being received, and arrears being applied to her account. WILLIAM L. “BUZZY” NEWMAN, JR., City Manager, reported that the ice storm in January 2025 delayed billing for that month. He further reported that the City was aware of delays in billing due to the postal service and would be making exceptions with late fees for afflicted customers. ________________________ APPEARANCE OF CITIZENS: MELISSA ROBERTS expressed her frustrations with the letters sent by HWU, the social media post, and the statements quoted in the Hendersonian, which she believes all lacked empathy. She reported on the 17.9% poverty rate in Henderson, and asked the water utility leadership to speculate how those families might have felt when reading the available communication. Beyond the communication, she also expressed concern regarding the checks and balances in relation to process within the water utility, which she believes are lacking and do  31 CITY OF HENDERSON – RECORD BOOK Record of Minutes of A Called Joint City/Henderson Water & Sewer Commission Meeting on February 5, 2025 not allow for quality control, nor accountability. She asked the water utility leadership who they would hold accountable for the issue. BRENNA CAUDILL, Henderson Water & Sewer Commission, reported that she had also personally been affected by this issue, and sympathized with the frustration regarding the communication surrounding the issue. Mrs. Caudill continued to elaborate that new procedures and policies were being discussed by leadership to prevent further issues from occurring, to include the exploration of a public relations role to improve communication in the future. MELISSA ROBERTS expressed her belief that in the future, the letters should at least include a detailed breakdown with a more thorough explanation of the charges being billed. PAUL BIRD, Water & Sewer Commission Chair, informed Ms. Roberts that such a breakdown would be coming soon. MAYOR STATON reported that in the interest of empathy, he’d like to propose that Henderson Water Utility and the City of Henderson jointly contribute to a relief fund for affected customers who would experience hardships as a result of the back billing. Mayor Staton reported that this would be further discussed at the City Commission Meeting on Tuesday, February 11, 2025. ________________________ APPEARANCE OF CITIZENS: JOSEPH HORTON, cited KAR Title 807, Chapter 005, Regulation 006, Section 17, Subsection (1), and queried as to who is responsible for reprogramming the meters. BART BOLES, Henderson Water Utility General Manager, answered that HWU field crews are responsible for reprogramming the meters; however, Mr. Boles ultimately takes responsibility for this, as he is the General Manager. JOSEPH HORTON, cited the City of Henderson Code of Ordinances Section 23-43, in his request of the Water & Sewer Commission to discharge the General Manager. ________________________ APPEARANCE OF CITIZENS: SIEGLINDE WILLIAMS expressed concern regarding personal billing, to include usage charges and receipt of her bill. WILLIAM L. “BUZZY” NEWMAN, JR., City Manager, addressed Ms. Williams to set up a phone call at a later time to address these issues. ________________________ APPEARANCE OF CITIZENS: CHRISTINA addressed her concerns regarding the time it took to identify the issue, the poor communication to the public regarding the issue, and the confusing, sometimes contradictory, information being shared. BART BOLES, Henderson Water Utility General Manager, clarified the timeline and process of uncovering the issue, the letters delivered to consumers. He stated that approximately 3 weeks transpired between the time that HWU was able to identify all affected meters on December 27, 2024, and the exact issue, and when the letters were drafted and mailed on January 20, 2025. ________________________ 32 CITY OF HENDERSON – RECORD BOOK Record of Minutes of A Called Joint City/Henderson Water & Sewer Commission Meeting on February 5, 2025 MEETING ADJOURN: MOTION by Commissioner Pruitt, seconded by Commissioner Hargis, to adjourn the meeting. The vote was called. On roll call, the vote stood: Commissioner Hargis ----- Aye: Commissioner Pruitt ------ Aye: Commissioner Thomas --- Absent: Commissioner Whitt ----- Aye: Mayor Staton ----- Aye: WITHOUT OBJECTION, Mayor Staton declared the Meeting adjourned at approximately 7:26 p.m. ___________________________ ATTEST: Bradley S. Staton, Mayor February 25, 2025 ______________________ Jessa Brandon, City Clerk