Michelle Holland

The committee initiated a new recurring financial statement "deep dive," focusing this meeting on materials inventory. Staff reported that total inventory on hand as of December 31, 2025, was $5,596,511, noting sand as the highest-value item. A discussion on finance hot topics covered the status of the U.S. penny, outlining the operational plan for managing remaining supplies and customer transactions. In Director of Finance comments, updates were provided on 2025 project cost variances attributed to unbudgeted investment in purchased water and board room upgrades. Proposed updates to the monthly financial reporting package were presented for review, alongside a review of policy and reporting requirements for CEO-approved expenditures exceeding $50,000. Operational updates included staff changes and the status of a Lead Service Line loan application.

The board meeting addressed several key items following the consent agenda approval, which included minutes from previous committee and board meetings. Discussions during the public comment period focused on regional governance and the progress toward establishing Central Iowa Waterworks, noting that several communities have already passed a resolution of intent. Action items included the renewal of the 2024 corporate insurance program, which saw an overall increase of 9.7%, largely driven by a 15% rise in property casualty insurance. The board also received and filed the Cost of Service Report, which analyzed budgeted expenses and influences future rate design, particularly for wholesale customers not joining the new regional entity. Furthermore, the board approved a proposed 6% increase for most retail and wholesale water customers, with some outside city customers facing a 10% increase, effective April 1, 2024. Finally, the board established a public hearing date in November to act on the proposed 2024 budget, which projects total operating revenues of almost $92 million, and moved to consider the resolution of intent to participate in the Central Iowa Waterworks.

The board meeting addressed several items on the consent agenda, including minutes from a prior planning committee meeting and financial statements. A significant discussion centered on the first employee health insurance renewal since joining the Iowa Governmental Health Care Plan Trust, noting a 7% increase from the trust, which was presented as favorable compared to historical increases. The board also discussed seeking authorization to execute a consent waiver regarding bonding provisions for a draft agreement for regional governance of water production (Central Iowa Waterworks Concept). Furthermore, authorization was sought to execute a license agreement with Landis Cooperative for demonstration plots in Waterworks Park focusing on agricultural best management practices, including corn, soybeans, and cover crops. The board also considered Phase Two of repairs for infiltration gallery valve chambers, with design nearly complete and seeking authorization to bid the project. A public hearing date was re-established for the Des Moines Water Main Replacement Contract One.

The meeting began with a roll call and discussion regarding a union president's excused absence due to taking the bar exam. The consent agenda, which included minutes from previous Water Works Trustees meetings in June and July, as well as committee meeting minutes from Planning, Customer Relation, and Finance and Audit committees, was approved. Public comment included concerns from the union president and another representative regarding the impact of proposed regionalization on employee welfare and job security, particularly concerning water production roles, with the Board assuring commitment to protecting employees and promising continued cooperation. A key action item involved the acceptance of the 2020 Pre-Sedimentation Basin Number Two Retaining contract completion by Waldinger Corporation, which included significant change orders related to project delays and specialized welding necessitated by the COVID-19 pandemic response. The Board also authorized the solicitation of bids for the Highway G14 Feeder Main project, which is an extension to serve the City of Norwalk's growing capacity needs, noting that Norwalk is fully funding this phase.

Key discussions during the meeting included the payment of $1.132 million to the City of Des Moines for taxes and the complex agreement involving billing services for stormwater, sanitary sewer, and solid waste. The board addressed numerous construction projects scheduled for the construction season, including requesting permission to solicit bids for $6.4 million in improvements for Phase One, which involves coordination regarding stormwater management and a passageway under Fleur Drive. The board also reviewed and requested permission to solicit bids for water main replacement contracts, utilizing a base bid and alternative bid process to optimize allocated funds, noting adjustments due to unanticipated water main relocations required by the City of Des Moines. Furthermore, the board received updates on the Polk County water main replacement program, which is funded by a special assessment, and considered coordination payments related to city sewer separation projects. A public hearing was held to consider bids for the Joint Method Lake Park Water Main Project, with staff recommending the award of a base bid contract to OnTrack Construction LLC. Additionally, there was an update on the search for a new water source to mitigate the need for nitrate treatment, and a positive report on the Des Moines Waterworks Park Foundation's finances, which are ahead of expectations. Finally, the board discussed the ongoing finalization of the 2080 agreement with the City, progress in presenting the project to the Enhance Iowa Board, and the importance of alluvial wells as a long-term water source strategy.