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Home My WebLink About06-12-2023569 Safety Moment Consent Agenda 2023 Classification and Compensation Study J Cost of Living (COLA) Adjustment 12,2023 The Electric Plant Board of the City of Paducah, Kentucky d/b/a SEP 13 2023 CITY CLERK System ("PPS") held a regular Board Meeting on June 12, 2023, in the Room at the offices of Paducah Power System. The meeting was called to order at 12:00 p.m, by Chairman Ed Hely who Member; of the Electric Plant Board present in addition to Chairman Hely were Mark Workman, Darryl Pea, Sandra Wilson, and Evan Ringers. PPS employees present were Dave Carroll, Andrea Underwood, Doug Handley, and Sarah Durbin. Others in attendance at the meeting were Mason Blandford (Paducah Sun), and Kent Price (McMurry & Livingston). Chairman Hely opened the meeting by calling on Andrea Underwood who presented this month's Safety Moment on the topic of First Aid Awareness. Member Wilson then offered a motion, seconded by Member Ringers, that the Electric Plant Board approve the Consent Agenda which consisted solely of approval of the minutes of a regular meeting of the Electric Plant Board held on May 8, 2023. The motion was then adopted unanimously with all members saying aye. Member Ringers then offered a motion, seconded by Member Wilson, that the Electric Plant Board adopt the salary ranges for non -trade positions based on the results of The Johanson Group's 2023 Classification and Compensation Study. Dave Carroll reminded the Board that the PPS Strategic Plan anticipated that a study such as that recently performed by The Johanson Group will be conducted every three to five years. He observed that the latest study demonstrated that the annual cost of living (COLA) adjustments made to employee compensation has kept PPS salaries in line with peer group averages. After Board discussion, the motion was adopted unanimously with all members saying aye. The next item ofbusiness was a motion made by Member Pea and seconded by Member Workman that the Electric Plant Board approve the cost -of -living adjustment of 4.9% to all PPS salaries and salary ranges, with exception of that of the Chief Executive Officer, beginning with the first pay period in July 2023. 570 J Approval of FY24 Budget Election of Officers New Hire — Generation Technician June 12,2023 Hely recounted the history and functioning of the COLA program by the Board and Member Workman noted that the program has achieved one of its purposes being the retention of valuable employees. Andrea Underwood noted that the annual COLA over the past ten years has averaged 2.5%. Following brief discussion, the motion was adopted unanimously with all members saying aye. Member Workman then offered a motion, seconded by Chairman Pea, that Electric Plant Board approve the proposed FY 2024 Budget for the fiscal year aing July 1, 2023 through June 30, 2024, as submitted. Doug Handley, PPS actor of Finance, Power Supply and Rates, then presented the major features of the proposed FY 24 budget to the Board, including the principal assumptions and estimates underlying the budget. He noted that operation under the proposed budget is expected to leave PPS in a very strong financial position with the ability to forestall any increase in base rates for a period of five to seven years. After questions and comments of Board members, the motion was unanimously adopted with all members saying aye. Member Wilson then offered a motion, seconded by Member Ringers, that the Electric Plant Board elect as its officers, with terms beginning July 1, 2023, the state of officers, as follows: Board Chairman — Mark Workman; Vice Chairman — Darryl Pea; and Secretary/Treasurer— Ed Hely. The motion was then unanimously adopted with all members saying aye. Member Rittgers next offered a motion, seconded by Member Wilson, that the Electric Plant Board approve the hiring of David Burton as Employee #386 for the position of Generation Technician, After Dave Carroll reviewed with the Board the staffing plan needed for the expected operation of the PPS peaking plant in the foreseeable future, the motion was unanimously adopted with all members saying aye. 571 J New Hire — Apprentice Line Tech First Period Substation #3 Construction Bid J Comments by Chief Executive Officer 12, 2023 Member Pea then offered a motion, seconded by Chairman Hely, that the Plant Board approve the hiring of Kaleb Cosby as Employee #387 for the of Apprentice Line Tech First Period. Dave Carroll reported that this hire a retiring lineman. The motion was then unanimously adopted with members saying aye. Member Workmen then offered a motion, seconded by Member Wilson, the Electric Plant Board accept the bid from 5 -Star Electric, LLC in the amount of $639,129.68 as the lowest and best evaluated bid for reconstruction of Substation #3, subject to such changes in the contract with 5 -Star Electric, LLC as may be approved by legal counsel and the Chief Operating Officer of Paducah Power System. After discussion the motion was unanimously adopted with all members saying aye. Chairman Hely then called on CEO Dave Carroll who reported on the Order on Remand issued May 18, 2023 by the Federal Energy Regulatory Commission in the Depancaking proceedings. The Order on Remand requires Kentucky Utilities Company to re -instate de -pancaked transmission rates for Paducah Power System purchases ofpower (through Kentucky Municipal Power Agency) from the Mideontinent Independent System Operator and to make certain refunds to PPS. Mr. Carroll next informed the Board that, although emission allowances from the Environmental Protection Agency have since 2017 covered the required annual allowances needed by PPS for the May 1 through September I Ozone Season, PPS will now need to purchase allowances by the end of July 2023 to cover its current NOx emissions. He reported that historic prices for allowances have ranged from $6,500 to $40,000 each, but that current pricing is more in the range of $8,500 to $11,000. PPS will require 29 allowances for the 2023 calendar year. Some of the cost may be recoverable under the existing capacity contract with Kentucky Municipal Energy Agency. Mr. Carroll next reported that a meeting with the consultants engaged to perform an EV Readiness Study will take place during the last week in June 2023. 572 JJune 12, 2023 Member Wilson then offered a motion, seconded by Member Rittgers, that Executive Session Ithe Electric Plant Board enter into Executive Session for discussion of: (i) issues Adjournment which might lead to the appointment, dismissal, or disciplining of an employee, as permitted by KRS 61.810(1)(f), and (ii) a specific proposal by a business entity where public discussion of the subject matter would jeopardize the location, retention, expansion or upgrading of a business entity, as permitted by KRS 61.810(1)(g). The motion was adopted unanimously with all members saying aye whereupon the Board entered into Executive Session. After emerging from Executive Session, Member Wilson offered a motion, seconded by Chairman Hely, that the Board return from Executive Session. Said motion was unanimously adopted. Member Wilson then offered a motion, seconded by Member Workman, that the meeting of the Electric Plant Board be adjourned. The motion was adopted with all members saying aye, whereupon the meeting was adjourned. L%4� CHAIRMAN ATTESTED BY: