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HomeMy WebLinkAbout09-23-2014476 SEPTEMBER 23, 2014 At a Regular Meeting of the Board of Commissioners, held on Tuesday, September 23, 2014, at 5:30 p.m., in the Commission Chambers of City Hall located at 300 South 5th Street, Mayor Kaler presided, and upon call of the roll by the City Clerk, the following answered to their names: Commissioners Abraham, Gault, Rhodes, Wilson and Mayor Kaler (5). PLEDGE OF ALLEGIANCE Payton Kraft led the pledge. PROCLAMATION HYDROCEPHALUS AWARENESS MONTH Mayor Kaler presented a proclamation proclaiming September as "Hydrocephalus Month" to Payton Kraft and Sarah Wilson -Kraft. ADULT EDUCATION WEEK The Mayor presented a proclamation proclaiming the week of September 22 through 28, 2014, as "Adult Education Week" to West Kentucky Community and Technical College Director of Adult Learning Centers, Samantha Williams. PRESENTATION PRAIRIE STATE ENERGY CAMPUS At the request of Mayor Kaler, the representatives of PPS and the Prairie State Generating Company gave an update on the current situation regarding plant operations. Dave Clark, General Manager of Paducah Power Systems, introduced the following Prairie State representatives: Marc Gerken, Interim CEO and Chairman of the Board [Prairie State Generating Company (PGSC) Management Committee]; Randy Short, Chief Operating Officer; and Paul Krivokuca, Senior Vice President — Mining. Also, in attendance was Rick Soderholm, Senior Project Manager of Leidos Engineering, Inc. (Consulting Engineer for Paducah Power Systems). For more details, an excerpt from the City Commission Highlights prepared by Public Information Officer, Pam Spencer is located at the end of the minutes. PUBLIC COMMENTS REGARDING THE IMPLEMENTATION OF THE PCA FOR PADUCAH POWER CUSTOMERS Comments concerning the Power Cost Adjustment (PCA) implemented by Paducah Power System were given by the following: Gayle Frye Mark Bryant Jay Campbell Jeff Parsley Vicky Holland Jeff Parker Ronald Ward PUBLIC COMMENTS Mary Lamble, Paducah resident, requested trash cans be placed on the Greenway Trail. MINUTES Commissioner Abraham offered motion, seconded by Commissioner Gault, that the reading of the Minutes for the September 16, 2014 City Commission meeting be waived and that the Minutes of said meetings prepared by the City Clerk be approved as written. Adopted on call of the roll, yeas, Commissioners Abraham, Gault, Rhodes, Wilson and Mayor Kaler (5). - APPOINTMENT BOARD OF ADJUSTMENT Mayor Kaler made the following reappointment: "WHEREAS, subject to the approval of the Board of Commissioner, I hereby reappoint William Baxter as a member of the Board of Adjustment. This term will expire August 31, 2018." Commissioner Gault offered motion, seconded by Commissioner Abraham, that the Board of Commissioners approve the action of Mayor Kaler in reappointing William Baxter as a member of the Board of Adjustment. 477 SEPTEMBER 23, 2014 Adopted on call of the roll, yeas, Commissioners Abraham, Gault, Rhodes, Wilson and Mayor Kaler (5). MOTIONS R & F DOCUMENTS Commissioner Rhodes offered motion, seconded by Commissioner Wilson, that the following documents be received and filed: DOCUMENTS 1. Certificates of Liability Insurance a. Taber Crane Construction Services b. Faughn Electric, Inc. C. Murtco, Inc. d. Heflin, Inc. 2. Commissioner's Deeds: a. 1131 Tennessee Street b. 1234 North 12th Street 3. Notice of Cancellation for the Board of Commissioners of the City of Paducah for September 9, 2014 4. Owens Property -5065 Concord Avenue (ORD # 2014-08-8166): a. Settlement Agreement and Release between the City of Paducah, Allstate Insurance Company, and Betty Owens b. Quitclaim Deed 5. Contracts For Services: a. Yeiser Art Center (Executed by the City Manager) b. Paducah Symphony Orchestra (ORD # 2014-09-8184) c. Luther F. Carson Four Rivers Center, Inc. (ORD # 2014-09-8183) 6. West Kentucky Community & Technical College Television Department Annual Report for July 2013 -June 2014 7. Paducah Water Works Financial Highlights for July 2014 8. Transcript of Proceedings for City of Paducah, Kentucky Taxable General Obligation Refunding Bonds, Series 2014B (Police and Firefighters Pension Plan) - $4,225,000 (ORD # 2014-07-8158) Adopted on call of the roll, yeas, Commissioners Abraham, Gault, Rhodes, Wilson and Mayor Kaler (5). RESOLUTION PADUCAH POWER SYSTEM: CALL TO ACTION Mayor Kaler offered motion, seconded by Commissioner Rhodes, that the following resolution be adopted. RESOLUTION A Resolution of the Board of Commissioners of the City of Paducah, Kentucky Paducah Power — Electric Plant Board: Call to Action Whereas, the Electric Plant Board was formed by the Little TVA Act of 1942, and the board has a separate governance structure with board members appointed by the Mayor of Paducah and approved by the Board of Commissioners; and and Whereas, our community depends on abundant, reliable, and affordable power; Whereas, for several months the citizens of McCracken County, who depend on Paducah Power for services, have expressed great concern over rising power cost associated with the unreliability of the Prairie State Campus Generation Facility; and Whereas, the community demands action from Paducah Power System to find a solution to the rising rates of electricity and to secure our community's future; and 478 SEPTEMBER 23, 2014 Whereas, the Mayor has contacted the Kentucky Attorney General, the Secretary of Energy and members of the congressional delegation to express our community's concern; and Whereas, the Electric Plant Board discussed at its September 22, 2014 meeting steps to investigate current fiscal obligations, look at cost cutting measures, and conduct a process to select a new General Manager. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY: SECTION 1. That the Board of Commissioners s4eng tffges demand the Electric Plant Board to do the following on behalf of our city and its citizens: • Hire an independent expert to investigate the information on which the decision to invest in the Prairie State campus was made; • Hire an expert in utility matters to investigate current financial obligations; • Promptly proceed with the process currently underway to hire a search firm to assist in the recruitment and selection of a successor to the retiring Paducah Power System general manager; • Enhance and communicate to the public attainable programs to help customers with current bills created from recent Power Cost Adjustment (PCA); and • Consider and provide opportunities for the community to become a full and open partner in determining the fate of our community and Paducah Power System. SECTION 2. This Resolution shall be in full force and effect from and after its adoption. Adopted on call of the roll, yeas, Commissioners Abraham, Gault, Rhodes, Wilson and Mayor Kaler (5). MUNICIPAL ORDER PERSONNEL ACTIONS Commissioner Wilson offered motion, seconded by Commissioner Rhodes, that the Board of Commissioners of the City of Paducah order that the personnel changes on the attached list be approved. (SEE MUNICIPAL ORDER BOOK) Adopted on call of the roll, yeas, Commissioners Abraham, Gault, Rhodes, Wilson and Mayor Kaler (5). APPROVE A BICYCLE AND PEDESTRIAN GRANT Commissioner Abraham offered motion, seconded by Commissioner Gault, that a Municipal Order entitled, "A MUNICIPAL ORDER AUTHORIZING THE APPLICATION FOR A GRANT IN THE AMOUNT OF $5,000, THROUGH THE KENTUCKY TRANSPORTATION CABINET FOR THE PAULA NYE MEMORIAL EDUCATION GRANT FOR BICYCLIST AND PEDESTRIAN SAFETY", be adopted. Adopted on call of the roll, yeas, Commissioners Abraham, Gault, Rhodes, Wilson and Mayor Kaler (5). M.O.#1791; BK 9 ORDINANCES — ADOPTION HVAC EXPANDED JURISDICTION AGREEMENT WITH DEPARTMENT OF HOUSING, BUILDINGS & CONSTRUCTION Commissioner Gault offered motion, seconded by Commissioner Abraham, that the Board of Commissioners adopt an ordinance entitled, "AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE COMMONWEALTH OF ___ LI -- , _ I I 479 SEPTEMBER 23, 2014 KENTUCKY, DEPARTMENT OF HOUSING, BUILDINGS AND CONSTRUCTION, DIVISION OF HVAC AND THE CITY OF PADUCAH, KENTUCKY." This ordinance is summarized as follows: That the Mayor is hereby authorized to execute an agreement between the Commonwealth of Kentucky, Department of Housing, Buildings and Construction, HVAC Division and the City of Paducah, Kentucky. The City shall assume primary plan review, inspection and enforcement responsibility under 815 KAR 7:120 (the Kentucky Building Code), 815 KAR 7:125 (the Kentucky Residential Code), and other applicable law for initial HVAC installations and major repairs or substantial alterations to an HVAC system within the geographic boundaries of the City of Paducah. Said jurisdiction is limited to HVAC systems installed in buildings over which the City of Paducah has jurisdiction pursuant to KRS 198B.060. This agreement is for a term of three years; however, it may be canceled as described in KRS 198B.6673 and 815 KAR 8:100. Adopted on call of the roll, yeas, Commissioners Abraham, Gault, Rhodes, Wilson and Mayor Kaler (5). ORD.#2014-9-8188; BK 34 UNIFORM SERVICES FOR THE FIRE DEPARTMENT CHANGE ORDER #4 Commissioner Rhodes offered motion, seconded by Commissioner Wilson, that the Board of Commissioners adopt an ordinance entitled, "AN ORDINANCE APPROVING CHANGE ORDER NO.4 WITH BLUEGRASS UNIFORMS, INC., FOR UNIFORMS FOR THE FIRE DEPARTMENT EMPLOYEES AND AUTHORIZING THE MAYOR TO EXECUTE SAID CHANGE ORDER". This ordinance is summarized as follows: That the City of Paducah hereby approves and accepts Change Order No. 4 with Bluegrass Uniforms, Inc., to update and add items to the original contract along with additional items that have been discontinued by the manufacturer. Adopted on call of the roll, yeas, Commissioners Abraham, Gault, Rhodes, Wilson and Mayor Kaler (5). ORD. #2014-9-8189; BK 34 CONTRACT FOR SERVICES FOR PJC — COMMUNITY SCHOLARSHIP Commissioner Wilson offered motion, seconded by Commissioner Rhodes, that the Board of Commissioners adopt an ordinance entitled, "AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT WITH PADUCAH JUNIOR COLLEGE, INC. FOR THE COMMUNITY SCHOLARSHIP PROGRAM." This ordinance is summarized as follows: That the Mayor is hereby authorized to execute a contract with Paducah Junior College, Inc. in the amount of $125,000 for the Community Scholarship Program. This contract shall expire June 30, 2015. Adopted on call of the roll, yeas, Commissioners Abraham, Gault, Rhodes, Wilson and Mayor Kaler (5). ORD.#2014-9-8190; BK 34 BARKLEY REGIONAL AIRPORT FY2015 CONTRACT FOR SERVICES Commissioner Abraham offered motion, seconded by Commissioner Gault, that the Board of Commissioners adopt an ordinance entitled,"AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT WITH BARKLEY REGIONAL AIRPORT FOR PROVIDING GENERAL AVIATION AND AIR CARRIER SERVICES." This ordinance is summarized as follows: That the Mayor is hereby authorized to execute a contract with Barkley Regional Airport in the amount of $136,430, payable in quarterly installments of $34,107.50 each, for providing general aviation and air carrier services to the citizens of McCracken County and surrounding regions. This contract shall expire June 30, 2015. Adopted on call of the roll, yeas, Commissioners Abraham, Gault, Rhodes, Wilson and Mayor Kaler (5). ORD.#2014-9-8191; BK 34 AMEND ORDINANCE TO CHANGE RESIDENTIAL REQUIRMENT FOR APPOINTMENT TO THE PADUCAH-McCRACKEN COUNTY RIVERPORT AUTHORITY Commissioner Gault offered motion, seconded by Commissioner Abraham, that the Board of Commissioners adopt an ordinance entitled, "AN ORDINANCE AMENDING CHAPTER 2, ADMINISTRATION OF THE CODE OF ORDINANCES OF THE CITY OF PADUCAH, KENTUCKY." This ordinance is summarized as follows: That the City of Paducah hereby amends the ordinance in Chapter 2, of the Paducah Code of Ordinances by deleting the residency requirement to serve on the Paducah -McCracken County Riverport Authority. M:I SEPTEMBER 23, 2014 TABLE ORDINANCE TO CHANGE RESIDENTIAL REQUIREMENT FOR APPOINTMENT TO THE PADUCAH-McCRACKEN COUNTY RIVERPORT AUTHORITY Commissioner Wilson offered motion, seconded by Commissioner Rhodes, that the ordinance introduced on September 16, 2014, and entitled, "AN ORDINANCE AMENDING CHAPTER 2, ADMINISTRATION OF THE CODE OF ORDINANCES OF THE CITY OF PADUCAH, KENTUCKY," be tabled. Adopted on call of the roll, yeas, Commissioners Abraham, Gault, Rhodes, Wilson and Mayor Kaler (5). CITY MANAGER REPORT A report was not given at tonight's meeting. MAYOR AND COMMISSIONER COMMENTS No comments. PUBLIC COMMENTS Public comments were given at the end of the Prairie State presentation. Upon motion the meeting adjourned. ADOPTED: October 7, 2014 City Clerk Excerpt from City Commission Highlights Prepared by Public Information Officer Pam Spencer "Presentation About Prairie State Generating Company Operations With residential and commercial customers feeling the financial pinch of the Power Cost Adjustment (PCA) implemented by Paducah Power System (PPS), Mayor Gayle Kaler invited representatives of PPS and the Prairie State Generating Company (PSGC) to provide an update on the current situation regarding the plant operations. Mayor Kaler says, "We have no question that Paducah Power is providing citizens abundant and reliable power. However, the rates are this community's concern." PPS in partnership with Princeton is an equity owner in the plant located in Illinois that has a coal mine with a 30 year supply. Construction on the plant began in 2007. However, since the Prairie State plant came online in 2012 and over the past nearly two years, the plant has not been able to operate at a stable and reliable level that Paducah Power needs. As a result, PPS has had to purchase power on the open market which has led to the PCA showing up on bills. At this meeting Paducah Power System General Manager Dave Clark introduced three Prairie State Generating Company (PSGC) representatives: Interim CEO - and PSGC Management Committee Chairman Marc Gerken, Chief Operating Officer Randy Short, and Senior Vice President of Mining Paul Krivokuca. PPS engineering consultant Rick Soderholm also made a presentation regarding residential rate trends. Soderholm says, "Yes, your rates are higher than they should be. This has taken longer than expected based on my experience in the industry." However, he added, "I'm very certain that you are at the top of the crest." He also says the goal of removing the PCA is achievable. 481 SEPTEMBER 23, 2014 Regarding the plant, Gerken says this summer the plant has been operating at a capacity factor of nearly 74 which is a significant improvement over the July 2013 capacity factor of 43. The capacity factor is a measure of the plant's productivity. Gerken says, "This is nothing that we are proud of, but it's a measurement of where it [the plant] is today. The goal is to bring the plant to a capacity factor of 85 or higher which according to Paducah Power System General Manager Dave Clark would lead to the reducing of the PCA showing up on bills to zero or close to it. Gerken adds, "I wouldn't be here today if we didn't think we could meet those goals." Krivokuca says, "We believe we have built the best [plant] in the county, and we are going to hold to that." Regarding the plant's performance, the representatives provided explanations about the quality of the coal and how it has affected the plant's mechanical systems leading to an extended "shakedown phase" period. The coal is a high - silica, high -ash content variety that has led to mechanical issues requiring the plant to go off line in order to make system modifications. If a system trips off, then there is a period of troubleshooting and correcting which limits the capacity of the plant. The representatives expect the number of mechanical issues to drop since several modifications have been made. After asking several of their own questions, the Mayor and Commissioners heard nine public comments at the end of the presentations. Also at this meeting, the Paducah Board of Commissioners approved a resolution demanding the Electric Plant Board, the governing body of Paducah Power System, to do the following: • Hire an independent expert to investigate the information on which the decision to invest in the Prairie State campus was made; • Hire an expert in utility matters to investigate current financial obligations; • Promptly proceed with the process currently underway to hire a search firm to assist in the recruitment and selection of a successor to the retiring Paducah Power System general manager; • Enhance and communicate to the public attainable programs to help customers with current bills created from the recent Power Cost Adjustment (PCA); and • Consider and provide opportunities for the community to become a full and open partner in determining the fate of our community and Paducah Power System. At yesterday's Electric Plant Board meeting, the board approved steps to investigate current fiscal obligations, look at cost cutting measures, and conduct a process to select a new General Manager."