Board Meeting Minutes- October 27, 2025

Monday, October 27, 2025 at 5:00 PM | 601 Cherokee Leavenworth, KS 66048-0576

Directors in Attendance

• Richard Gervasini
• Eric Peterson
• William Daniels
• Nick Poff

Directors Absent (Excused)

• Chad Lough

Staff in Attendance

• Joel Mahnken, General Manager
• Dana Splichal, Finance Manager
• John Hodgden, Distribution Manager
• Neil Seichepine, Treatment Manager
• Britni Huff, Staff Engineer

Others in Attendance

• Camalla Leonhard (Board Candidate)

Director Gervasini called the meeting to order at 5:00 PM.

Director Gervasini noted that a quorum was present.

None

The Board and Management Team received a question via email from Ronald Grossman, Board Candidate, regarding PFAS testing and results. Director Poff asked if the question had been answered and the Treatment Manager noted he had.

Upon motion from Director Poff and seconded by Director Peterson, motion passed 4-0…

RESOLVED (No. 15617), that the Board approved minutes from September 13, 2025.

Upon motion from Director Peterson and seconded by Director Poff, motion passed 4-0…

RESOLVED (No. 15618), that the Board approved the consent agenda as presented.

Upon motion from Director Daniels and seconded by Director Poff, motion passed 4-0…

RESOLVED (No. 15619), that the Board approved the September Financial Statements.

The General Manager presented a draft of the 2026 budget and capital improvements schedule for 2026.

He further noted that the proposed increase for 2026 had been incorporated into the sales revenue on the assumption that sales volume will remain fairly constant as compared to 2025.

Discussion turned to the Congressionally Directed Spending (CDS) that Representative Schmidt had requested for our South Treatment Plant expansion is included the project funding, along with an additional $1.25 million from cash reserves. It was noted that the CDS is not guaranteed.

Water consumption is estimated to be consistent compared to the last three years. With adjustment for inflation of chemical prices and other supplies, coupled with lower expenditures for labor costs due to new employees, the overall budget for water production remains constant.

The GM reminded the Board that while the Distribution Department appeared to have increased significantly from 2024 to 2026, the Staff Engineer position was vacant for over six months. Three Utility Worker positions were also vacant, but for a shorter period. Finally, we did not capitalize wages for projects. The budget line for main breaks remains high and meter replacements reflect an increase to counter a ten percent price increase from our supplier.

The Administration Department has significantly shuffled amounts between expenditure lines due to transitioning to cloud-based accounting and billing software, the contracted printing and mailing of the bills, and other software enhancements in the department. The largest increase in the administration budget was, and will be, if continued, the contract with Tenpenny Law for consulting services.

The estimated debt service coverage ratio for 2025 is 382% and for 2026, 419%, considerably more than the required 140%. The net income of the non-operating income and expenses appear to be approximately the same each year.

When discussing the capital improvement budget for 2026, he noted that it appears we will be able to put money into the reserves of a little over $800,000 in 2025. We are also looking to put about $270,000 in reserves in 2026. That is providing we will receive the $1.25 million CDS grant that Rep. Schmidt requested, and the design engineering for the South Plant is $2.5M or less.

Discussion was held and no action taken

The General Manager reminded the Board of the fire line discussion from the previous board meeting and that management recommended a revision in the amount of charges for private fire lines to a line size-based schedule, billed monthly versus annually. Effective January 1, 2026, the following was recommended:

Applicable Sales Tax charges will apply. Charges will be made monthly and will be included on the customer’s bill as a separate item. Although there is no charge for the consumption of water for fire suppression, customers are expected to maintain their system in good repair. Should their system develop leaks, the Waterworks may, at their discretion, discontinue service until repairs are completed.

Discussion held by the Board and Management.

Upon motion from Director Peterson and seconded by Director Poff, motion passed 3-0… Director Daniels abstained.

RESOLVED (No. 15620), that the Board approved increasing the private fire line fees and schedule as presented.

As discussed at the last board meeting, the General Manager presented again the recommended rate adjustment for both the retail and wholesale rates. For retail, recommended the base Customer Charge increase to $22.00 per month and the per unit charge increase $0.50 per CCF. Further recommended that the amount charged for water purchased through a hydrant meter increase by $0.50.

Noted that the recommended base rate charged to Wholesale Customers increases from $50.00 per month to $60.00, and the per unit charge by $0.10 per CCF except for the top usage level. He noted that the $1.90 per CCF is still applicable for this usage. He further noted that the Wholesale rates should cover the water production costs at these prices yet remain competitive.

Discussion held by the Board and Management

Upon motion from Director Peterson and seconded by Director Poff, motion passed 4-0…

RESOLVED (No. 15621), that the Board approved

Administration

1. September reconciliations and financial statements
2. 2026 budget prep
3. New CSR start date of 10/27/25
4. Reviewing new board member packet
5. Reviewing job descriptions
6. Reviewing the possibility of an RFQ for audit services

Distribution

Water Distribution Projects

1. Lead & Copper Service Inventory
   • Total 29/37 for the year.
2. Mount Olivet Project
   • Disinfection complete, first fill. Awaiting negative bacteria samples.
3. Lawrence Ave
   • 2nd Draft complete, in review

Water Distribution Operations

1. Main breaks since our last meeting.

Water Treatment

Ohio Street Booster Station

1. Nothing new to report.

North Plant Summary

1. CS Carey is finishing tree trimming on the east and west fence lines.
2. Sammy's landscape and lawn finished rocking both driveways.

South Plant Summary

1. Blaser is finished with all four lagoons.
2. R.E. Pedrotti continues to work on the SCADA upgrade.
3. Fall maintenance is ongoing.

General Manager

• KMU Safety Training held on October 13th on “SDS/Global Harmonizing System”
  • After discussion with management staff, we have decided to reduce the KMU safety program from level 3 to level 1 for next year in an effort to save some money. We will still have KMU lead safety meetings, but we will assume the lead with the Safety Committee and utilize professional development opportunities elsewhere.
• Water Tank Project
  • Contract #1 Pipeline: finished.
  • Contract #2 Tank: DN Tank has started the fill/chlorination process. Sitework proceeding.
• South Treatment Plant Resiliency Project
  • Waiting on the Federal Appropriations process/Government shutdown.
  • Our Grant Writer on the EPA application specifically for midsize and large water utilities realized he missed the submission date. He has returned the initial payment for services.
  • Began reviewing draft Request for Qualifications for engineering services.
• Received notice that the Centennial Bridge Project is in the KDOT IKE program with a bid letting of 2028. MEC recently provided plans and a current estimate for the Transmission Line Relocation Project of $1.32 million. This does not include the safety features we are asking for from KDOT, or any work that may be needed in the HSP room of the Plant.
• Worked on 2026 Rate Schedules.
• Working on the 2026 budget preparation. We have received the health insurance renewal for 2026 and are reviewing. Board action at the next meeting.
• Staff continues to work on the 2025 update of our Risk and Resiliency Assessment.

Upon motion from Director Peterson, seconded by Director Poff, motion passed 4-0.

Director Gervasini adjourned the meeting at 6:11 PM.