HomeMy WebLinkAboutCCMPacket2014-07-01ROLL CALL
INVOCATION
PLEDGE OF ALLEGIANCE
ADDITIONS/DELETIONS
CITY COMNIISS[ON NIEETING
AGENDA FOR TULY 1, 2014
5:30 P.V1.
CITY HALL COMMISSION CHA'\-IBERS
300 SOUTH FIFTH ST
ORDINANCES - ADOPTION
A. 2005 Police & Fire Fighter Pension Bond Refinancing - J.
PERKINS
B. 20 L -2015 Ky Household Hazardous Waste Grant Award - S.
ERVIN i
C. Authorize an Agreement with Sliawnee Professional Services for
Engineering Services for Olivet Church Road Improvement
Project - R. MURPHY
D. Authorize a Contract with Nichols Electric Co for the Fire
Station No. 1 Generator Project - R. MURPHY
E. Approve Lease Agreement with Genova - CITY NIGR
II.
ORDINANCES - INTRODUCTION �
A. Reimbursement Agreement with Paducah Water for the Olivet
Church Roadway Water- Construction Expenses - R. 'MURPHY
III.
CITY MANAGER REPORT !
IV.
MAYOR & CONINIISSIONTR COMMENTS
i
i
V.
PUBLIC COMMENTS
V1.
EXECUTIVE SESSION
V/
Agenda Action Form
Paducah City Commission
Nfeeting Date: June 24, 201-1
Short Title: 2005 Taxable Police & Firefighter Pension Fund (PFPF)
Unfunded Pension Liability General Obligation Bonds (GOB), Refinancing
Bonds authorization — Taxable Series 2014B
®Ordinance ❑ Emergency ❑ Municipal Order ❑ Resolution ❑ Motion
Staff Work By: Jonathan Perkins, Audra Herndon
Presentation By: Jonathan Perkins
Background Information:
The 2005 taxable Police and Firefighter Pension Fund (PFPF) Unfunded Pension
Liability General Obligation Bonds (GOB) were originally sold November 8, 2005. The
proceeds were used to fully fund all unfunded PFPF pension liability" as reported in the
Bryan, Pendleton, Swats & McAllister actuary valuation report as of July 1, 2005 on page 10.
net amount 55,992,75 t . The 20 -year PFPF GOB issue was scheduled to be paid in full in
2025.
It is our intention to refinance the 2005 taxable PFPF GOBswith proceeds fi-om another bond
sale scheduled for July 9, 2014. We will use bond proceeds from the July 9, 2014 taxable
bond sale to pay off (retire) the outstanding 2005 PFPF GOB taxable issue. A second reading
of this ordinance is scheduled for July 1, 2014.
By refinancing the 2005 PFPF taxable GOB issue, it is our intention to reduce the cost of
borrowing money. The issue was first put in place in 2005 to eliminate the City's Police and
Firefighter Pension Fund's unfunded liability, approaching S6.1 million (including the cost of
issuance).
The bond market appears to be favorable to refinance the entire bond issue over the
remaining life of the issue (to 2025) at an interest savings e;tirnated to exceed 5200;000. The
savings is driven by the fact that the market is such that interest rates in general may be more
attractive now than in the past.
Goal ®Strong Economy ❑ Quality Services❑ Vital Neighber•.ioods❑ Restored Downtowns
Funds Available: Account Name: Bond Issue (PFPF) - 2014Bob 13
Account Number: Bond Fund in
S. Jon Perkins Word'Debt Manaoeinent Bond Issue S6.1 \t - 2005, PFPF. File 3 63 _005ODB Refinancin; (20 14 Seriesl - Suinmei
2014 Agenda - 2014B Bond Ordinance 12005 PFPF Refinance). Inun.Doc
\genda .action Form
Page
Staff Recommendation: That the Commission approve ordinance and all appropriate
related agreements to refinance the 2005 Taxable PFPF GOBS and reduce the amount of
interest expense over the life of the remaining debt issue throagh 2025.
Attachments: Draft of Ordinance
Department Head City Clerk Ci y iVlanager
x - The following excerpt was taken from the City of Paducah Police and Firefighters
Pension Fund valuation as of July 1, 2006 dated November 9, 2006.
...If actual experience results in future unfunded Past Service Liability, the
City lt)ill be responsible for making additional contributions to eliminate the
unfunded liability. Further, the City will not be responsible for fitture
unfunded Past Service Liability that arises due to the Pension Board 's granting
of cost -of -living increases when not supported on an acti;arially sound basis as
determined by the annual actuarial valuation. "
In other words, the City will continue to be financially responsible to fund any
liability caused by unfavorable investment experiences; but not for COLAs given
when the fund is not actuarially, sound to support it.
Agenda Action Form
Paducah City Commission
i'vleeting Date: June 24, 2014
Short Title- 2014/2015 Kentucky Household Hazardous Waste Grant Award
®Ordinance ❑ Emergency ❑ Municipal Order ❑ Resolution ❑ Motion
Staff Work By: Chris Yarber, Sheryl Chino
Presentation By: Steve Ervin
Background Information: The Kentucky Division of Waste Management, through the Household Hazardous
Waste Award Program funds cities across the commonwealth for annual clean-up days. This grant award program
provides a partial reimbursement for the expenses incurred by the city for the disposal and advertising/education of Spring
C(ean-up Day. For the past 24 years this project has been a collaborative effort between the McCracken County Fiscal
Court and the City of Paducah.
Through Municipal Order :1762 the Engineering/Public Works and Planning Departments submitted an application for the
2014i2015 -Kentucky Division of Waste Management -Household Hazardous Waste :Award Program on March 27, 2014,
The City as Lead Agency/Fiscal Agent has received an award of $26,800. This holding requires a local match of
S 14,637.0 to be divided between equally between the city and the county. The City's share of the local 'cash match, as in
previous years will be paid through the Engineer,Public Works 2014-2015 Budget.
This award requires an Inter -local Agreement to be signed by the City and Fiscal Court
If the Commission desires to accept this joint award, it must authorize and direct the Mayor and/or Mayor's designee to
execute all required application documents.
Goal: ®Strong Economy ® Quality Services ❑ Vital Neighborhoods ❑ Restored Downtowns
Funds Available: Account Name: ) G/lR Xj
Account Number: 050-2209-513-2004 Finance
Project Number:
Staff Recommendation:
Attachments:
Department Head
City ClerkCiry
Manager
Agenda Action Forms ._
Paducah City Commission -
Meeting Date: June 24, 2014
Short Title: Authorize an Agreement with Shawnee Professional Services for
Engineering Design Services related to updating the Utility and Roadway plans
for the Olivet Church Road Improvement Project
®Ordinance ❑ Emergency ❑ Municipal Order ❑ Resolution ❑ Motion
Staff Work By: Angela Weeks, EPW Proj Nlgr
Presentation By: Rick Murphy, P.E., City Engineer -Public Works Director
Background Information:
In 2006, a professional engineering design services for the Olivet Church Roadway
Improvement Project was entered into with Civil Design Grcup, Inc. Subsequently, design
plans related to the Utility and Roadway plans for the Project were essentially completed. At
this time, the utility relocation portion of the Project is beingcompleted by the individual
utility companies. After completion of the utility portion, the City will be proceeding with
the advertisement and Construction of the Roadway portion of the Project.
Due to the excessive time lapse, the Utility and Roadway plans are in need of being updated
and/or revised. Shawnee Professional Services (previously Civil Design Group, Inc.) has
provided a cost estimate of $52,000 to update the Utility and Roadway plans and
specifications for this Project. A copy of Shawnee's proposal identifying the items that will
be completed in order to update the Project plans has been attached.
Goal: ❑Strong Economy ®Quality Services []Vital Neightorlhoods []Restored Downtowns
Funds Available: Account Name: 040-3315-532-2307 2d yb�
Project Number: ST0027 ina ce
Staff Recommendation:
To adopt an Ordinance authorizing the Mayor to execute an Agreement with Shawnee
Professional Services for Engineering Design Services related to updating the Utility and
Roadway plans for the Olivet Church Road Improvement Project in an amount not to exceed
$52,000.
Attachments:
Shawnee Professional Services Proposal and proposed Agreement
Depart nt e City Clerk City 'Tanager
Agenda Action Form
Paducah City Commission
Meeting Date: June 24, 2014
Short Title: Authorize a Contract with Nichols Electric Company, LLC, for the
Fire Station # 1 Emergency Generator Project
®Ordinance ❑ Emergency ❑ Municipal Order F1 Resolution F1 Motion
Staff Work By: Angela Weeks, EPW Proj Mgr
Presentation By: Rick Murphy, P.E., City Engineer -Public Works Director
Background Information:
On June 10, 2014, sealed written bids were opened and read aloud for the Fire Station # 1
Emergency Generator Project. The Project consists of the installation of a 125 KW diesel
powered emergency generator with an automatic transfer switch on a newly constructed
concrete pad at Fire Station #1. Two responsive bids were received for the installation of the
generator, with Nichols Electric Co., LLC, submitting the lo`vest responsive bid in the
amount of $83,900.00.
This Project is being funded thru a FEMA -Kentucky Division of Emergency Management
Hazardous Mitigation Grant in the total amount of $120,570 with a 75% Federal share of
$90,428, a 12% KYENIA match of $14,468 and a 13% City natch in the amount of $15,674.
Goal: ❑Strong Economy ®Quality Services []Vital Neighborhoods ❑Restored Downtowns
Funds Available: Project Account: FI0026 1
Account Number: 040-1802-522.23-0i'Finan
Staff Recommendation:
To receive and file the bids and adopt an Ordinance authorizing the Mayor to execute a
contract with Nichols Electric Co., LLC, in the amount of $83,900 for the Fire Station #1
Emergency Generator Project.
Attachments
Bids, Bid/lab, Advertisement and Proposed Contract
City Clerk City
AGENDA ACTION FORyl
PADUCAH CITY CONLXIISSION
Meeting Date: , 2014
Short Title: Authorizing a Lease :agreement between City of Paducah. Kentucky,
iVlcCracken County, Kentucky and Genova Products, Inc., for the real property and industrial
building located at 5400 Commerce Drive in .Paducah, Kentacky for the public purpose of
economic development
X Ordinance ❑ Emergency ❑ Llunicipat Order ❑ Rcsoluton ❑ 14otion
Staff Work By: Jeff Pederson, City ivlanager
Presentation By: Jeff Pederson, City Manager
Background Inforrrcation:
GPEDC, as agent for the City of Paducah and IVIcCraclen County entered into a
rvlemorandum of Understanding (""IOU") with Genova Productions, Inc., ("Genova")
whereby certain public incentives were to be provided to Genova to defray certain costs and
expense to be incurred by Genova in locating, equipping, operating and managing its
manufacturing and distribution facility at 5400 Commerce Drive within the boundaries of
Paducah, N[cCracken County. The NIOU was previously approved by the City Commission.
In order to induce Genova to locate its facility to Paducah, McCracken County. GPEDC, as
agent for the City and County, has negotiated with Genova a definitive lease agreement
incorporating the essential terms of the commitments of the Parties as outlined in the NIOU.
The definitive lease agreement is scheduled to be executed as of June 30. 2014 or shortly
thereafter. Negotiations are still continuing between the parties as to the City and County
providing to Genova a $L,100,000.00 revolving credit agreement to defray the costs of
purchasing trade fixtures„ equipment and other fixtures Co enhance its operations at the
property and thereby create additional new job opportunities. The final version of the lease is
attached to the ordinance for review.
These transactions further the public purpose of the City to achieve long-term economic
growth and employment opportunities for its citizens
Therefore, I seek approval from the City Commission to enter into and have the Mayor
execute the Lease Agreement between City of Paducah, Kentucky, &1cCracken County,
1.3
Kentucky, and Genova Products, Inc., in substantially the same form attached hereto as
Exhibit A.
A2s2ndI Aa:Lt0rn Form
Goal: KStrong Economy ❑ Quality Services❑ Viral �iel&orboods❑ restored Do%�nto�kns
Funds Availabte: Account Name:
Finance
Account Number:
Staff Recommendation:
Attachments:
Department Head City Clerk CI v \/tanager
Agenda Action Form
Paducah City Commission
Meeting Date: July 1, 2014
Short Title: Reimbursement Agreement with Paducah Water for the Olivet
Church Roadway Water Constriction Expenses
®Ordinance ❑ Emergency ❑ Municipal Order ❑ Resolution ❑ Motion
Staff Work By: Angela Weeks, EPW Proj Mgr
Presentation By: Rick Murphy, P.E., City Engineer -Public Works Director
Background Information:
In order to construct the Olivet Church Roadway Project, the water lines within the Roadway
Project area will require relocation, extension and/or new construction, the "Water
Construction." In order to reduce the costs associated with the Roadway Project, Paducah
Water has agreed to complete the "Water Construction" at its own expense.
Upon completion of the "Water Construction' work by Paducah Water, the City will
reimburse Paducah Water for all costs involving the Water Construction, which is estimated
at $460,000. This amount is an estimate only. to the event the actual costs to complete the
"Water Construction" exceed this estimate, payment for all materials actually installed and
the labor required for the "Water Construction" work shall be made by the City to Paducah
Water.
In accordance with a 2007 Agreement, the Kentucky Transportation Cabinet agreed to
reimburse the City of Paducah for expenses associated with the Right of Way Acquisition
and Utility Relocation for the Olivet Church Road Improvement Project in an amount not to
exceed $2,000,000. It is expected that the remaining funds from the KYTC agreement will
be able to reimburse the City for the majority of this Water Construction. However,
estimates of the remaining Right of Way Acquisitions to be obtained and the approved Utility
Relocation Reimbursements committed, the overall reimbursement amount may exceed the
KYTC's authorized $2,000,000 amount by approximately $127,000.00. Therefore, it is
requested that the transfer of the funds from the General Fund fund reserve (unappropriated
and undesignated) in an amount not to exceed $127,000, if necessary, be authorized to cover
the excess amount over and above the KYTC agreed $2,000,000 reimbursement amount.
Goal: ®Strong Economy ®Quality Services ®Vital Neighborhoods ❑Restored Downtowns
Funds Available: Account Name: Olivet Church Roadway Proj(p Z -7
Account Number: 040-3315-532-2307 Fin nce7
Project Number: ST0027
Agenda Action Form Page 2.
Staff Recommendation:
To adopt an Ordinance authorizing:
1. The Mayor to execute a Reimbursement Agreement with the Paducah Water for
"Water Construction" work related to the Olivet Church Road Improvement Project
2. To authorize the Finance Director to issue payment to Paducah Water for the actual
total costs upon completion of the Water Construction work which is estimated to be
-$4-60)000,
3. To authorize the transfer of the funds from the General Fund fund reserve
(unappropriated and undesignated) not to exceed $121,000, if necessary, to cover the
excess amount over and above the $2,000,000 KYTC agreed reimbursement amount.
Attachments:
Reimbursement Agreement.
r
Depart nt City Clerk City Manager
ORDINANCE NO. 2014 -7 -
AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE .A
REWBURSEMENT AGREEMENT WITH PADUC.AH NATER FOR THE WATER
CONSTRUCTION RELATED TO THE OLIVET CHURCH ROAD ROADWAY
DwIPROVENIENT PROJECT .AND :AUTHORIZES THE FINANCE DIRECTOR TO
TRANSFER FUNDS FROM THE GENERAL FUND FUND RESERVE (UNAPPROPRIATED
.AND UNDESIGNATED) .ACCOUNT
BE IT ORDAINED BY THE CITY OF P.ADUCAH, KENTUCKY:
SECTION L That the City of Paducah hereby authori2es the Mayor to execute a
reimbursement agreement between Paducah Water and the City of Paducah, Kentucky. for
reimbursement for actual labor and materials necessary for water constntction to complete the
Olivet Church Road Roadway Improvement Project at the estimatedcost of 5160.000.00. In the
event the total invoice amount exceeds the estimated amount required to complete said project.
the City hereby authorizes the Finance Director to issue payment for the actual total costs to
Paducali Power System,
SECTION 2. That the Finance Director be authorized to transfer funds in an
amount not to exceed 5127.000 from the General Fund hind reserve (unappropriated and
undesignated) account to the Olivet Church Roadway Project account.
SECTION 3. Funds will be expended from Project .account ST0027.
SECTION 4. This ordinance shall be read on two separate days and will become
effective upon summary publication pursuant to KRS Chapter 424.
Nlayor
ATTEST:
Tammara S. Sanderson. City Clerk
Introduced by the Board of Commissioners July 1. 2014
Adopted by the Board of Commissioners. July , 2014
Recorded by Tammara S. Sanderson. City Clerk. July 2011
Published by The Paducah Sun.
\ord\en_\reim-PPS(Olivet Church Rd Improv)
33 -
REIMBURSEMENT AGREEMENT
OLIVET CHURCH ROADWAY IMPROVEMENT PROJECT
THIS REIMBURSEMENT AGREEMENT is made and executed on this day of
, 2014, by and between CITY OF PADUCAH, KENTUCKY, a Municipal Corporation
of the Second Class, with a mailing address of P.O. Box 2267, Paducah, Kentucky 42002-2267,
hereinafter referred to as "City," and PADUCAH WATER, with a mailing address of 1800 North
Sth Street, Paducah, Kentucky 42001, hereinafter referred to as "PW;"
WITNESSETH:
WHEREAS, the City, is in the process of constructing the Olivet Church Roadway
mprovement Project, hereinafter referred to as "Roadway Project"; and
WHREAS, PW currently owns, operates and maintains the water lines within the
Roadway Project area; and
WHEREAS, the- Roadway Ilroject necessitates the -revocation, extension and/or
construction of the water lines, hereinafter referred to as "Water Construction;" and
WHEREAS, in order to reduce the costs associated with the Roadway Project, PW
agrees to purchase and install the materials, procure bids for the boring contract, administer and
oversee the necessary work associated with the Water Construc`ion separately at its own
expense; and
WHEREAS, the City will reimburse PW for all actual costs and expenditures associated
with the Water Construction upon completion of the work. Applicable costs and expenditures
shall include, but not be limited to, the following: engineering and- design, permitting, materials,
construction, labor, equipment, inspection, certification, as-builts, advertisement and copy
expenditures/fees.
NOW, THEREFORE, in consideration of the -foregoing, the legal -adequacy and sufficiency
of which is hereby acknowledged by both parties hereto, the parties do covenant and agree as
follows:
1. Purchase of Materials. PW agrees to purchase the materials required for the
Water Construction at its own expense.
2. Construction. PW agrees to install the materials, procure bids for the boring
contract, administer and oversee the work as required for the Water Construction
at its own expense.
3, Reimbursement. The City agrees to reimburse PW the total actual costs
associated with the Water Construction upon completion, which is estimated at
$460,000.00. This amount is an estimate only. In the event the costs exceed this
estimated amount, the City agrees to reimburse PW for the total costs required to
complete the Water Construction.
4. Pude. The City intends to reimburse PW for costs associated with the Water
Construction to reduce costs associated with the Roadway Project,
5. Release of All Claims. Upon final payment to PW for the Water Construction, the
City shall have been deemed to release PW from any and all claims, demands,
and causes of action regarding any costs and expenses incurred by the City.
6. Miscellaneous Provisions. This Agreement represents the entire understanding
by and between the parties regarding the reimbursement of the costs and
expenses incurred by PW and all prior statements, promises, and agreements are
merged herein by reference. This Agreement shall be binding upon the parties
hereto, their heirs, successors, and assigns.
PADUCAH WATER
Title:
CITY OF PADUCAH, KENTUCKY
By:
Title: