HomeMy WebLinkAboutAgenda Packet 10-02-2025
SPECIAL CALLED CITY COMMISSION MEETING
AGENDA FOR OCTOBER 2, 2025
5:00 PM
CITY HALL COMMISSION CHAMBERS
300 SOUTH FIFTH STREET
Any member of the public who wishes to make comments to the Board of Commissioners is asked to fill out a Public
Comment Sheet and place it in the box located at the end of the Commissioner’s desk on the left side of the Commission
Chambers. The Mayor will call on you to speak during the Public Comments section of the Agenda.
ROLL CALL
INVOCATION
PLEDGE OF ALLEGIANCE
DELETIONS
PROCLAMATION Declaring October 2025 City Government Month
PRESENTATION Retail Dog/Cat Sales - Todd Blevins, Kentucky State Director - State Affairs - Humane
World for Animals
PUBLIC COMMENTS
MAYOR'S REMARKS
Items on the Consent Agenda are considered to be routine by the Board of Commissioners and will be enacted by one
motion and one vote. There will be no separate discussion of these items unless a Board member so requests, in which
event the item will be removed from the Consent Agenda and considered separately. The City Clerk will read the items
recommended for approval.
I. CONSENT AGENDA
A.Approve Minutes for September 15, 2025 Board of Commissioners Meeting
B.Receive & File Documents
C.Reappointment of Jonathan Perkins and appointment of Tyler Sanderson and
Bonnie Koblitz to the Tree Advisory Board
D.Appointment of Jeffrey Neubert to the Historical & Architectural Review
Commission (HARC)
E.Appointment of Lisa Humphrey to the Board of Adjustment
F.Appointment of Jim Chapman to the Paducah Planning Commission
G.Personnel Actions
H.Authorization to sign the Amendment to the Anthem Blue Cross Blue Shield
Administrative Services Agreement - S. WILCOX
I.Approve purchase of P25 mobile and portable radios from Communications
International. $273,121.04 - B. LAIRD
J.Employment agreement to re-hire retired police officer Travis Counts - B.
LAIRD
K.Approve contract with Motorola to re-program existing radios for the Police
Department. $237,420.22 - B. LAIRD
L.Purchase One (1) SUV for use by the Fire Department - C. YARBER
M.Fleet Maintenance Service Agreement between the City of Paducah Fleet
Division and City of Wickliffe, KY - C. YARBER
N.Authorize the Acceptance of a Community Development Block Grant in the
Amount of $583,406 - H. REASONS
O.Authorize the Acceptance of a FEMA Assistance to Firefighters Grant in the
Amount of $51,818 - S.KYLE
II. MUNICIPAL ORDER(S)
A.Authorize the purchase of real property located at 3047 Jackson Street from
Midway Management, LLC for an amount not to exceed $762,850. - B.
LAIRD
III. ORDINANCE(S) - ADOPTION
A.Approve a Ten (10) Year Non-Exclusive Cable Franchise with Ritter
Communications - M. SMOLEN
B.Repeal & Replace Article IV, Chapter 34 Urban Renewal of the Code of
Ordinances - C. GAULT
IV. ORDINANCE(S) - INTRODUCTION
A.Amend Section 20-23 of the Code of Ordinances related to Body Piercing -
C. MEEKS
B.Revisions to the City of Paducah Remote Worker Incentive Program - N.
UPCHURCH
C.Budget Amendment for CDBG Grant for Entitlement Community Funds - A.
KYLE
V. DISCUSSION
A.911 Radio Project Update - B. LAIRD
VI. COMMENTS
A.Comments from the City Manager
B.Comments from the Board of Commissioners
VII. EXECUTIVE SESSION
September 15, 2025
At a Special Called Meeting of the Paducah Board of Commissioners held on Tuesday,
September 15, 2025, at 5:00p.m. in the Commission Chambers of City Hall located at 300 South
5th Street, Mayor George Bray presided. Upon call of the roll by City Clerk, Lindsay Parish, the
following the following answered to their names: Commissioners Henderson, Smith, Thomas,
Wilson and Mayor Bray (5).
INVOCATION
Commissioner Smithled the Invocation.
PLEDGE OF ALLEGIANCE
The Mayor led the pledge.
PROCLAMATIONSAND PRESENTATION OF DUCHESS AWARD:
Communications Manager Pam Spencer provided the following summary:
Mayor Bray presented a proclamation to Myrna Redfield, Robert Hernandez, and several
city employees proclaiming September 15 through October 15 as Hispanic Heritage
Month. This proclamation celebrates the culture and historical contributions of people
from, or whose ancestors came from, Spain, Mexico, the Caribbean, or Central or South
America. Mayor Bray read the proclamation in English, and then Myrna Redfield read
the proclamation in Spanish. Redfield, who works as President & CEO of Four Rivers
Nuclear Partnership, is a native of Puerto Rico. Mayor Bray also named Redfield a
Duchess of Paducah.
Mayor Bray presented a proclamation to members of the Daughters of the American
Revolution, Paducah Chapter proclaiming September 17 through 23 as Constitution
Week. September 17 marks the anniversary of the drafting of the Constitution.
PUBLIC COMMENTS:
Jonathan Gericke and Parker Jaco both made comments in opposition of the tax increase.
CONSENT AGENDA
Mayor Bray asked if the Board wanted any items on the Consent Agenda removed for
separate consideration. Commissioner Thomas requested that Item I(G) be removed. Mayor
Bray asked the City Clerk to read the remaining items on the Consent Agenda.
I(A) Approve Minutes for the September 2, 2025, Board of Commissioners meeting.
I(B)Receive & File Documents:
Deed File:
1. Deed of Conveyance – City of Paducah to Paducah Independent School District –
th
200 South 25 Street – Softball field at Brooks Stadium – MO #3052
September 15, 2025
2. Temporary Construction Easement Agreement - City of Paducah to Paducah
th
Independent School District – 200 South 25 Street – Softball field at Brooks
Stadium – MO #3052
Contract File:
1. Change Order No. 1 – Communications International – MO #3098
2. Contract with Murtco – Repairs to the pump out lines – Transient Boat Dock –
MO #3108
3. Funding Agreement – Paducah-McCracken County Riverport Authority –
MO #3114
4. Memorandum of Agreement – 1541 Olivet Church Road – Daren and Kelly Hack –
MO #3115
5. Memorandum of Agreement – 6615 Blandville Road – Dustin Hawkins – MO #3116
6. Contract with Reliable Electric – Lighting at Dolly McNutt Plaza – MO #3117
7. Contract For Services – Paducah Alliance of Neighbors – MO #3122
8. Linwood Motors – Purchase of two Compact SUV’s for Parks Department – MO
#3123
9. Modification to Tolling Agreement – Jim Smith Contracting Company, JSC Terminal
and City of Paducah – MO #3125
10. Contract For Services FY2026 – GPEDC – MO #3126
11. Agreement For Design Services – RL Turner Corporation – Robert Coleman Spray
Park – MO #3127
Financials:
1. Forest Hills Village, Inc. – Financial Statements Year Ended May 31, 2025 and 2024
Bids and Proposals File:
1. Dolly McNutt Lighting – Reliable Electric – sole bidder – MO #3117
2. Two SUV’s for Parks Department – Linwood Motors sole bidder – MO #3123
3. Design Work for Coleman Spray Ground – RL Turner – sole bidder –MO #3127
I(C) Reappointment of Joseph Benberry to the Paducah Planning Commission. Said term shall
expire: August 31, 2029.
I(D) Reappointment of Ashley Johnson to the Paducah-McCracken County Riverport Authority.
Said term shall expire: September 26, 2029.
I(E)Personnel Actions
I(F) A MUNICIPAL ORDER AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED
AT 1302 TENNESSEE STREET, PADUCAH, McCRACKEN COUNTY, KENTUCKY
(MO #3128, BK 14)
I(G) A MUNICIPAL ORDER AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT
WITH SPROCKET, INC. IN THE AMOUNT OF $100,000 Commissioner Thomas requested
removal for separate discussion
I(H)
A MUNICIPAL ORDER AUTHORIZING THE ENGINEERING DEPARTMENT TO
PARTNER WITH THE PURCHASE AREA DEVELOPMENT DISTRICT TO
SUBMIT AN APPLICATION FOR THE GRANT PROGRAM FOR MATCHING
FUNDS FOR THE DRA 2025 APPLICATION, AND AUTHORIZING THE MAYOR
TO EXECUTE ALL DOCUMENTS RELATING TO THE APPLICATION
(MO #3130, BK 14)
I(I) A MUNICIPAL ORDER AUTHORIZING THE MAYOR TO EXECUTE A GRANT
APPLICATION AND ALL DOCUMENTS NECESSARY THROUGH THE KENTUCKY
September 15, 2025
TRANSPORTATION CABINET FOR A COUNTY PRIORITY PROJECTS PROGRAM
GRANT IN AN AMOUNT NOT TO EXCEED $500,000 FOR THE PADUCAH STREET
REHABILITATION PROGRAM (MO #3131, BK 14)
Commissioner Hendersonoffered Motion, seconded by CommissionerSmith, that the items
on the consent agenda be adopted as presented.
Adopted on call of the roll yeas, Commissioners Henderson, Smith, Thomas, Wilson, and
Mayor Bray (5).
MUNICIPAL ORDERS
CONTRACT WITH SPROCKET, INC. in the amount of $100,000
Commissioner Smith offered Motion, seconded by Commissioner Henderson, that the
Board of Commissioners adopt a Municipal Order entitled, “A MUNICIPAL ORDER
AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT WITH SPROCKET,
INC. IN THE AMOUNT OF $100,000 .”
Adopted on call of the roll yeas, Commissioners Henderson, Smith, Thomas, Wilson, and
Mayor Bray (5). (MO# 3129; BK 14)
CONTRACT MODIFICATION #3 – A&K CONSTRUCTION – CONSTRUCTION OF
ENTRY PLAZA
Commissioner Thomas offered Motion, seconded by Commissioner Wilson, that the Board of
Commissioners adopt a Municipal Order entitled, “A MUNICIPAL ORDER ADOPTING
CONTRACT MODIFICATION NO. 3 TO THE CONSTRUCTION CONTRACT WITH A&K
CONSTRUCTION, FOR THE CONSTRUCTION OF THE ENTRY PLAZA AT THE PADUCAH
SPORTS PARK IN AN AMOUNT NOT TO EXCEED $3,000,000 AND AUTHORIZING THE
MAYOR TO EXECUTE THE CONTRACT MODIFICATION AND ALL OTHER DOCUMENTS
RELATED TO SAME.”
Adopted on call of the roll yeas, Commissioners Henderson, Smith, Thomas, Wilson,and
Mayor Bray (5). (MO #3132; BK 14)
CONTRACT MODIFICATION #2 – SPRINTURF, LLC. – PADUCAH SPORTS PARK
Commissioner Wilson offered Motion, seconded by CommissionerThomas that the Board of
Commissioners adopt a Municipal Order entitled, “A MUNICIPAL ORDER ADOPTING
CONTRACT MODIFICATION NO. 2 TO THE CONTRACT WITH SPRINTURF, LLC, FOR THE
PADUCAH SPORTS PARK PROJECT TO EXTEND THE CONTRACT BY 73 DAYS, AND TO
APPROVE A DEDUCTION IN THE CONTRACT PRICE OF $129,992.49, AND AUTHORIZING
THE MAYOR TO EXECUTE THE CONTRACT MODIFICATION AND ALL OTHER DOCUMENTS
RELATED TO SAME.”
Adopted on call of the roll yeas, Commissioners Henderson, Smith, Thomas, Wilson, and
September 15, 2025
Mayor Bray (5). (MO #3133, BK 14)
CONTRACT MODIFICATION #1 – AVANTI – PADUCAH SPORTS PARK
Commissioner Hendersonoffered Motion, seconded by Commissioner Smith that the Board of
Commissioners adopt a Municipal Order entitled, “A MUNICIPAL ORDER ADOPTING
CONTRACT MODIFICATION NO. 1 TO THE CONTRACT WITH AVANTI SOLUTIONS FOR THE
PADUCAH SPORTS PARK PROJECT TO EXTEND THE CONTRACT BY 73 DAYS, REDUCE
THE CONTRACT PRICE BY $6,088.42 AND AUTHORIZING THE MAYOR TO EXECUTE THE
CONTRACT MODIFICATION AND ALL OTHER DOCUMENTS RELATED TO SAME.”
Adopted on call of the roll yeas, Commissioners Henderson, Smith, Thomas, Wilson, and
Mayor Bray (5). (MO #3134, BK 14)
CONTRACT MODIFICATION #2 – MUSCO SPORTS LIGHTING – PADUCAH
SPORTS PARK
Commissioner Smith offered Motion, seconded by Commissioner Henderson that the Board of
Commissioners adopt a Municipal Order entitled, “A MUNICIPAL ORDER ADOPTING
CONTRACT MODIFICATION NO. 2 TO THE CONTRACT WITH MUSCO SPORTS LIGHTING,
FOR THE PADUCAH SPORTS PARK PROJECT TO EXTEND THE CONTRACT BY 73 DAYS,
AND AUTHORIZING THE MAYOR TO EXECUTE THE CONTRACT MODIFICATION AND ALL
OTHER DOCUMENTS RELATED TO SAME.”
Adopted on call of the roll yeas, Commissioners Henderson, Smith, Thomas, Wilson, and
Mayor Bray (5). (MO #3135, BK 14)
CONTRACT WITH PFGW ARCHITECTS FOR DESIGN AND CONSTRUCTION
ADMINISTRATIVE SERVICES – MAINTENANCE BUILDING FOR PARKS AND
RECREATION DEPARTMENT
Commissioner Thomas offered Motion, seconded by Commissioner Wilson that the Board of
Commissioners adopt a Municipal Order entitled, “A MUNICIPAL ORDER APPROVING AN
CONTRACT WITH PFGW ARCHITECTS FOR DESIGN AND CONSTRUCTION
ADMINISTRATIVE SERVICES FOR A MAINTENANCE BUILDING FOR THE PARKS AND
RECREATION DEPARTMENT IN THE AMOUNT OF $289,500, AND AUTHORIZING THE
MAYOR TO EXECUTE THE CONTRACT AND ALL OTHER DOCUMENTS RELATED TO
SAME.”
Adopted on call of the roll yeas, Commissioners Henderson, Smith, Thomas, Wilson, and
Mayor Bray (5). (MO #3136, BK 14)
ORDINANCE ADOPTIONS
SETTING TAX LEVIES: AD VALOREM PROPERTIES – FY2026
September 15, 2025
Commissioner Wilson offered Motion, seconded by Commissioner Thomas that the Board of
Commissioners adopt an Ordinance entitled, “AN ORDINANCE SETTING THE LEVIES AND
RATES OF TAXATION ON ALL PROPERTY IN THE CITY OF PADUCAH, KENTUCKY,
SUBJECT TO TAXATION FOR MUNICIPAL PURPOSES AND FOR SCHOOL PURPOSES
FOR THE PERIOD FROM JULY 1, 2025, THROUGH JUNE 30, 2026, WITH THE
PURPOSES OF SAID TAXES HEREUNDER DEFINED.”
Purpose Rate per $100
GENERAL FUND OF THE CITY:
Real Property $0.271
Personal Property (except inventory) $0.356
Motor Vehicles and Watercraft $0.390
SCHOOL PURPOSES:
PADUCAH JUNIOR COLLEGE:
Real Estate $0.014
Personal Property (except inventory) $0.014
Motor Vehicles and Watercraft $0.031
SECTION 11. The City of Paducah shall collect the following taxes for the Board of Education:
PADUCAH INDEPENDENT SCHOOL DISTRICT:
Real Property $0.882
Personal Property (including inventory) $0.882
Property taxes levied herein shall be due and payable in the following manner:
(1) In the case of tax bills which reflect an amount due of less than Two Thousand Dollars
($2,000.00), the payment shall be due on November 1, 2025, and shall be payable
without penalty and interest until November 30, 2025.
(2) In the case of all other tax bills, payment shall be in accordance with the following
provisions:
(a) The first half payment shall be due on November 1, 2025, and shall be payable
without penalty and interest until November 30, 2025.
(b) The second half payment shall be due on February 1, 2026, and shall be payable
without penalty and interest until February 28, 2026.
Adopted on call of the roll yeas, Commissioners Henderson, Smith, Wilson, (4) , nays -
Commissioner Thomas (1). (ORD NO. 2025-09-8856; BK 37)
September 15, 2025
ORDINANCE INTRODUCTION
TEN-YEAR EXCLUSIVE CABLE FRANCHISE WITH RITTER COMMUNICATIONS
Commissioner Henderson offered Motion, seconded by Commissioner Smith that the Board of
Commissioners introduce an Ordinance entitled, “AN ORDINANCE GRANTING A NON-
EXCLUSIVE FRANCHISE TO E. RITTER COMMUNICATIONS, LLC TO OPERATE AND
MAINTAIN A CABLE SYSTEM WITHIN THE CORPORATE LIMITS OF THE CITY OF
PADUCAH, KENTUCKY, PURSUANT TO THE TERMS AND PROVISIONS OF THE
PADUCAH ORDINANCE FOR REGULATION OF CABLE COMMUNICATIONS, AND
APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE THE FRANCHISE
AGREEMENT BETWEEN THE CITY OF PADUCAH, KENTUCKY, AND E. RITTER
COMMUNICATIONS, LLC.” This ordinance is summarized as follows: This ordinance
authorizes the Mayor to execute a Termination of Telecommunications Franchise Agreement and
a non-exclusive Cable Franchise Agreement between the City of Paducah and E. Ritter
Communications, LLC. Said Cable Franchise Agreement shall be for a term of ten (10) years and
be in accordance with the terms and provisions of Chapter 22, Cable Communications, of the
Code of Ordinances of the City of Paducah, Kentucky.
REPEAL AND REPLACE ARTICLE IV, CHAPTER 34 URBAN RENEWAL OF THE
CODE OF ORDINANCES
Commissioner Henderson offered Motion, seconded by Commissioner Smith that the Board of
Commissioners introduce an Ordinance entitled, “AN ORDINANCE REPEALING AND
REPLACING ARTICLE VI, “URBAN RENEWAL AND COMMUNITY DEVELOPMENT
AGENCY”, OF CHAPTER 35 “COMMUNITY PLANNING AND DEVELOPMENT”, OF
THE CODE OF ORDINANCES OF THE CITY OF PADUCAH, KENTUCKY.” This ordinance
is summarized as follows: This ordinance repeals and replaces Article VI, “Urban Renewal and
Community Development Agency,” of Chapter 35, “Community Planning and Development” of
the Code of Ordinances of the City of Paducah, Kentucky, to establish the Urban Renewal and
Community Development Agency separately from the Paducah Planning Commission, and to set
the powers, authority, composition, terms, and meetings of said Agency.
DISCUSSION
Communications Manager Pam Spencer provided the following summary:
Tree Voucher Program
“Director of Parks and Recreation Amie Clark presented to the Board a program to provide
financial incentives to property owners to plant shade trees. The proposed Tree Voucher Program
would help replenish Paducah’s tree canopy, educate the public about the benefits of planting
trees, and remove barriers that may exist for residents interested in planting trees on their private
property. Applications for the proposed Tree Voucher Program will open to the public November
15 with only one voucher per applicant/household. Applications will be accepted through
September 15, 2025
January 9. After an application review period, vouchers would be issued to approved applicants
beginning February 1, 2026.
Below are a few of the program elements:
Vouchers will be in the amount of $250 and valid for one calendar year.
Vouchers will be available until the designated funds are depleted. The City is setting
aside $150,000 for this program.
Applicant information will be stored for a future tree-mapping project.
Vouchers can be redeemed at the participating nurseries.
Vouchers only can be used for the purchase of an approved tree species and size as listed
in the guidelines.
The delivery, planting, and long-term maintenance of the tree will be the responsibility of the
property owner. Once planted, a member of the Tree Advisory Board will inspect to ensure
proper planting.”
ADJOURN
CommissionerHenderson offered Motion, seconded by CommissionerSmith, that the
meeting be adjourned.
Adopted on call of the roll yeas, Commissioners Henderson, Smith, Thomas, Wilson, and Mayor Bray
(5).
TIME ADJOURNED: 6:06 p.m.
ADOPTED: October 2, 2025
George Bray, Mayor
ATTEST:
Lindsay Parish, City Clerk
October 2, 2025
RECEIVE AND FILE DOCUMENTS:
Minute File:
1. Letter from Collins & Company – re: Deborah Jones v. City of Paducah
Deed File:
1. Commissioner’s Deed – Marshall, et al to City of Paducah – 715 Jones Street
2. Commissioner’s Deed – Anderson, et al to City of Paducah- 718 Jones Street
Contract File:
1. Construction Change Directive No. 1 – A&K Construction – Sports Park – Soil
Stabilization (no commission action required)
2. Construction Change Directive No. 2 -A&K Construction – Sports Park – Cement
Stabilization (no commission action required)
3. Construction Change Directive No. 3 -– A&K Construction - Sports Park – Various
items (no commission action required)
4. Contract For Services – Family Service Society - $25,000 –signed by CM
5. Contract For Services – Paducah Tennis Association - $3,000 –signed by CM
6. Contract For Services – Luther F. Carson Four Rivers Center $25,000 –signed by CM
7. Contract For Services – Market House Theatre $20,000 – signed by CM
8. Contract For Services – National Quilt Museum $15,000 – signed by CM
9. Contract For Services – Paducah Arts Alliance $3,000 – signed by CM
10. Contract For Services – Child Watch $4,999 – signed by CM
11. Contract For Services –Housing Authority of Paducah $4,999 – signed by CM
12. Contract For Services – Paducah Historical Preservation Group $2,500 – signed by CM
13. Contract For Services – Paducah-McCracken County Senior Center - $5,000 – signed by
CM
14. Contract For Services – Paducah Interfaith Ministry d/b/a Paducah Cooperative Ministry
(PCM) – Grant in aid - $15,000 – signed by CM
15. Contract For Services – Friends of the Lower Town Arts and Music Festival $25,000 –
signed by CM
16. Contract For Services – The B.L.O.O.M Initiative $10,000 – signed by Cm
17. Contract For Services – Family Service Society ($50,000) – MO #3103
18. Contract For Services – Washington Street Community Development Corp. $25,000 –
MO #3104
19. HUD Consolidated Plan – MO #3105 (complete document can be found in LaserFiche)
20. Contract For Services – Sprocket, Inc. - $100,000 – MO #3129
21. Contract with Peck Flannery Gream Warren (PFGW) – Parks and Recreation
Maintenance Building – MO #3136
Financials:
1. Paducah Water Works – Month Ended August 31, 2025
Bidsand ProposalsFile:
1. Bids for Parks and Recreation Maintenance Building
a. PFGW – Awarded Bid MO #3136
b. Sherman Carter Barnhart
c. Brandstetter Carroll
Agenda Action Form
Paducah City Commission
Meeting Date: October 2, 2025
Short Title: Authorization to sign the Amendment to the Anthem Blue Cross Blue Shield Administrative
Services Agreement - S. WILCOX
Category: Municipal Order
Staff Work
By: Stefanie
Wilcox
Presentation
By: Stefanie
Wilcox
Background Information: This Amendment is made part of the Administrative Services Agreement with
Anthem Health Plans of Kentucky and is effective January 1, 2025. The Amendment replaces the Pharmacy
Benefits Administrative Services Schedules for increased discounts on prescription drug coverage.
Does this Agenda Action Item align with a Commission Priority? No
If yes, please list the Commission Priority: Commission Priorities List
Communications Plan:
Account Name:
Funds Available:
Account Number:
Staff Recommendation: Authorize the Mayor to sign and accept the Amendment updating the Pharmacy
Benefits Administrative Services Schedules.
Attachments:
1.MO - Amendment Anthem BCBS Administrative Services Agreement
2.09 2025 Updated Anthem ASO Agreement
MUNICIPAL ORDER NO. __________
A MUNICIPAL ORDER AUTHORIZING THE MAYOR TO EXECUTE AN AMENDMENT
TO THE ANTHEM BLUE CROSS BLUE SHIELD ADMINISTRATIVE SERVICES
AGREEMENT
NOW, THEREFORE, BE IT ORDERED BY THE BOARD OF
COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY:
SECTION 1. The City Commission hereby authorizes the Mayor to execute an
Amendment to the Administrative Services Agreement with Anthem Health Plans of Kentucky,
which replaces the Pharmacy Benefits Administrative Services Schedule for increased discounts
on prescription drug coverage. The retroactive effective date of this Amendment is January 1,
2025.
SECTION 2. This Order shall be in full force and effect from and after the date
of its adoption.
______________________________
George Bray, Mayor
ATTEST:
____________________________________
Claudia S. Meeks, Assistant City Clerk
Adopted by the Board of Commissioners, October 2, 2025
Recorded by Claudia S. Meeks, Assistant City Clerk, October 2, 2025
\\mo\\Amendment Anthem BCBS Administrative Services Agreement
2025 AMENDMENT TO THE
ADMINISTRATIVE SERVICES AGREEMENT
WITH
CITY OF PADUCAH
This Amendment is made part of the Administrative Services Agreement and is effective January 1, 2025. This
Amendment supplements and amends the Agreement between Employer and Anthem Health Plans of Kentucky, Inc.
dba Anthem Blue Cross and Blue Shield dba Anthem. If there are any inconsistencies between the terms of the
Agreement or its Schedules and this Amendment, the terms of this Amendment shall control.
1.SCHEDULE A is replaced by the attached SCHEDULE A.
2.SCHEDULE B is replaced by the attached SCHEDULE B.
3.PHARMACY BENEFITS ADMINISTRATIVE SERVICES SCHEDULE is replaced by the attached
PHARMACY BENEFITS ADMINISTRATIVE SERVICES SCHEDULE.
4.EXHIBIT A OF THE PHARMACY BENEFITS ADMINISTRATIVE SERVICES SCHEDULE is replaced by the
attached EXHIBIT A OF THE PHARMACY BENEFITS ADMINISTRATIVE SERVICES SCHEDULE.
5.EXHIBIT B OF THE PHARMACY BENEFITS ADMINISTRATIVE SERVICES SCHEDULE is replaced by the
attached EXHIBIT B OF THE PHARMACY BENEFITS ADMINISTRATIVE SERVICES SCHEDULE.
6.EXHIBIT C OF THE PHARMACY BENEFITS ADMINISTRATIVE SERVICES SCHEDULE is replaced by the
attached EXHIBIT C OF THE PHARMACY BENEFITS ADMINISTRATIVE SERVICES SCHEDULE.
IN WITNESS WHEREOF, Anthem has caused this Amendment to be executed by affixing the signature of its duly
authorized officer.
Anthem Health Plans of Kentucky, Inc. dba Anthem Blue
Cross and Blue Shield
By:Todd Axtell
Title:Regional Vice President
Date:May 29, 2025
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
1
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
SCHEDULE A
TO
ADMINISTRATIVE SERVICES AGREEMENT
WITH
City of Paducah
This Schedule A shall govern the Agreement Period from January 1, 2025 through December 31, 2025. For purposes
of this Agreement Period, this Schedule shall supplement and amend the Agreement between the Parties. If there are
any inconsistencies between the terms of the Agreement including any prior Schedules, and this Schedule A, the terms
of this Schedule A shall control.
Section 1.Effective Date and Renewal Notice
This Agreement Period shall be from 12:01 a.m. January 1, 2025 to the end of the day of December 31, 2025.
Paid Claims shall be processed pursuant to the terms of this Agreement when incurred and paid as follows:
Incurred from 01/01/2011 through 12/31/2024 and
Paid from 01/01/2024 through 12/31/2024.
Anthem shall provide any offer to renew this Agreement at least 30 days prior to the end of an Agreement
Period.
Section 2.Broker or Consultant Base Compensation
Not Applicable
Section 3.Administrative Services Fees
Change to Administrative Services Fees. In addition to the provisions in Article 18(c), Anthem reserves the
right to change the Administrative Services Fees provided in this Section 3 of Schedule A during the
Agreement Period based upon the occurrence of any of the following events:
Employer's Member to Subscriber ratio is not within +/-5% of 2.05;
Anthem is not the sole administrator for medical and pharmacy benefits under Employer's Plan;
Employer's enrollment is not within +/-10% of 289 Subscribers;
The total number of average monthly Subscribers falls below 100;
Employer moves any of the Plan benefits administered under this Agreement to another administrator
or to a public or private exchange;
A material reduction in Provider billed or published charges that results in a decrease in Anthem's
discount of 10% or more;
A change in law or regulation that materially impacts underwriting assumptions made at the time of
the offer or renewal.
If Employer terminates the Pharmacy Services Schedule with PBM at any time, then Anthem shall have the
right to amend the Administrative Services Fees indicated in Section 3 of Schedule A of this Agreement.
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
2
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
A.Base Administrative Services Fee
PPO (PPO)
The fees below apply from 01/01/2025-12/31/2025
Base Administrative Services Fee$48.35per Subscriber per month
Less Pharmacy Rebate Offset from Exhibit A to the Pharmacy
($36.93)per Subscriber per month
Schedule
Total Administrative Services Fee After Offsets $11.42 per Subscriber per month
HSA (HSA)
The fees below apply from 01/01/2025-12/31/2025
Base Administrative Services Fee$48.35per Subscriber per month
Less Pharmacy Rebate Offset from Exhibit A to the Pharmacy
($36.93)per Subscriber per month
Schedule
Total Administrative Services Fee After Offsets $11.42 per Subscriber per month
Article 3(a) Retroactivity.
Notwithstanding anything to the contrary in the Agreement, Anthem reserves the right to limit the effective
date of retroactive enrollment to a date not earlier than 60 days prior to the date the notice is received and
Anthem reserves the right to limit retroactive terminations to a maximum of 60 days prior to the date the notice
is received. Anthem reserves the right to not process Claims for retroactive additions beyond 60 days and to
not pursue recovery of Claims for retroactive terminations beyond 60 days. Additionally, Anthem is not required
to initiate recovery services if the Provider agreement or any law or regulation precludes recovery. Anthem
shall credit per Subscriber per month and per Member per month Administrative Services Fees for each
retroactive deletion up to a maximum of 60 days and shall charge Administrative Services Fees for each
retroactive addition up to a maximum of 60 days.
B.Health and Wellness Program Fees
PPO (PPO)
The fees below apply from 01/01/2025-12/31/2025
Wellbeing Solutions
ASO Core Foundational $1.27per Subscriber per month
Program
per Subscriber per month. These charges are included in the
Wellbeing Solutions
musculoskeletal condition-based category, are included in Paid Claims on
ASO Core Foundational $1.69
the invoice, and may accumulate towards aggregate stop loss purchased
Program
from Anthem.
Wellbeing Solutions per Subscriber per month. These charges are included in the oncology
ASO Core Foundational $0.87condition-based category, are included in Paid Claims on the invoice, and
Programmay accumulate towards aggregate stop loss purchased from Anthem.
per Subscriber per month. These charges are included in the behavioral
Wellbeing Solutions
health condition-based category, are included in Paid Claims on the
ASO Core Foundational $1.66
invoice, and may accumulate towards aggregate stop loss purchased from
Program
Anthem.
per Subscriber per month. These charges are included in the radiology
Wellbeing Solutions
and imaging condition-based category, are included in Paid Claims on the
ASO Core Foundational $2.85
invoice, and may accumulate towards aggregate stop loss purchased from
Program
Anthem.
Wellbeing Solutions per Subscriber per month. These charges are included in the care support
ASO Core Foundational $0.60condition-based category, are included in Paid Claims on the invoice, and
Programmay accumulate towards aggregate stop loss purchased from Anthem.
HSA (HSA)
The fees below apply from 01/01/2025-12/31/2025
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
3
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
Wellbeing Solutions
ASO Core Foundational $1.27per Subscriber per month
Program
per Subscriber per month. These charges are included in the
Wellbeing Solutions
musculoskeletal condition-based category, are included in Paid Claims on
ASO Core Foundational $1.69
the invoice, and may accumulate towards aggregate stop loss purchased
Program
from Anthem.
Wellbeing Solutions per Subscriber per month. These charges are included in the oncology
ASO Core Foundational $0.87condition-based category, are included in Paid Claims on the invoice, and
Programmay accumulate towards aggregate stop loss purchased from Anthem.
per Subscriber per month. These charges are included in the behavioral
Wellbeing Solutions
health condition-based category, are included in Paid Claims on the
ASO Core Foundational $1.66
invoice, and may accumulate towards aggregate stop loss purchased from
Program
Anthem.
per Subscriber per month. These charges are included in the radiology
Wellbeing Solutions
and imaging condition-based category, are included in Paid Claims on the
ASO Core Foundational $2.85
invoice, and may accumulate towards aggregate stop loss purchased from
Program
Anthem.
Wellbeing Solutions per Subscriber per month. These charges are included in the care support
ASO Core Foundational $0.60condition-based category, are included in Paid Claims on the invoice, and
Programmay accumulate towards aggregate stop loss purchased from Anthem.
C.Other Fees or Credits
Fee for Subrogation Services. The charge to Employer is 25% of gross subrogation recovery.
Fee for Overpayment Identification, Prevention, and Claims Prepayment Analysis Activities. The charge to
Employer is 25% of (i) the amount recovered from review of Claims and membership data and audits of
Provider and vendor activity to identify overpayments and (ii) the difference between the amount Employer
would have been charged absent prevention or prepayment analysis activities and the amount that was
charged to Employer following performance of prevention or prepayment analysis activities. This includes,
but is not limited to, COB, Host Blue activities, contract compliance, and eligibility. The fee for Overpayment
Identification, Prevention, and Claims Prepayment Analysis Activities will not exceed $25,000.00 per Claim.
Fee for Independent Claims Review: $500.00 per independent review.
Fees and Costs for Independent Dispute Resolution. Notwithstanding anything to the contrary in the
Agreement, Employer shall assume liability for payment of all fees and costs, including but not limited to
arbitrator fees, charged to or paid by Anthem as part of independent dispute resolution processes.
Enhanced Personal Health Care Fee. A fee shall be charged for Anthem's oversight of Enhanced Personal
Health Care with Providers or Vendors. Such fee shall be 25% of the per attributed Member per month amount
charged to Employer for the Provider performance bonus portion of the Enhanced Personal Health Care
program. These charges are included in Paid Claims on the invoice and may accumulate towards any stop
loss policy amounts.
Discount Share. Employer agrees to pay an additional amount based on the difference between Billed
Charges for Covered Services and the Negotiated Amount. The "Negotiated Amount" is the amount Anthem,
an Anthem Affiliate and/or Host Blue is contractually obligated to pay a Network Provider under a negotiated
reimbursement arrangement, before application of Member cost-share amounts, such as deductibles,
copayments and coinsurance. Prescription Drug Claims, Payment Innovation Program payments and Claims
paid on a capitated basis are all excluded from the fee calculation. In addition, Claims paid at the out-of-
network level of benefits using the Traditional Network fee schedule are excluded from the fee calculation.
The Discount Share is equal to: 2% per Claim. up to $5,000.00 per Claim (up to an aggregate maximum of
$21.00 per Subscriber per month (PSPM) per Agreement Period). (The minimum aggregate charge is
eighteen dollars and thirty five cents ($18.35) per Subscriber per month (PSPM) per Agreement Period).
These charges are included in Paid Claims as claim related charges on the invoice and may not accumulate
towards any stop loss policy amounts.
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
4
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
Traditional Network Savings Fee. Employer agrees to pay an additional amount based on the difference
between Billed Charges for Covered Services and the Traditional Provider Negotiated Amount. The
"Traditional Provider Negotiated Amount" is the amount Anthem, an Anthem Affiliate and/or Host Blue is
contractually obligated to pay a Traditional Provider under a negotiated fee schedule, before application of
Member cost-share amounts, such as deductibles, copayments and coinsurance. Prescription Drug Claims,
Claims paid on a capitated basis and Payment Innovation Program payments are excluded from the fee
calculation. This fee applies to certain Providers who are paid by Anthem, an Anthem Affiliate and/or Host
Blue according to a Traditional Network fee schedule ("Traditional Provider").
The Traditional Network Savings Fee is equal to 50% per Claim
Non-Network Savings Fee. If Anthem or its Vendor negotiates with a non-Network Provider for Covered
Services from the non-Network Provider, Employer will pay a fee equal to 50% of the difference between the
non-Network Provider's Billed Charges and the amount Anthem uses to calculate Plan liability for the Covered
Service (the "Plan Liability Amount"). In the case of facility-based Provider Claims, Plan Liability Amount will
be based on the negotiated rate; if negotiations are not successful, the Plan Liability Amount shall be
determined using a pricing tool. Fees paid to Anthem for Claims priced through such tool will not exceed
$25,000 per claim. In the case of professional Provider Claims, Plan Liability Amount will be based upon the
negotiated rate obtained by Anthem or its Vendor, if applicable (in the absence of successfully negotiated
Claims, there will be no fee charged as the amount will be determined by the local Blue plan).
Unidentified Recoveries. Anthem shall retain any funds received through recovery processes that are paid
to Anthem and, following good faith and reasonable efforts, cannot be tied to a specific Employer or Member.
Third Party Stop Loss Coordination Fee. Employer will pay a fee of $5.00 per Subscriber per month for
generation of reports delivered to Employer related to use of an external stop loss carrier. Anthem shall
assume no liability or responsibility to Employer if the stop loss carrier determines that a stop loss claim is not
covered for any reason.
Fee for Ad Hoc Reports. Anthem shall provide, on an annual basis, up to 20 hours of time needed to generate
custom or ad hoc reports at no additional charge. The charge to Employer beyond 20 hours per year is
$150.00 per hour for time needed to generate custom or ad hoc reports.
Fee for Article 11(e) Data Audits. $150.00 per hour. Maximum of 250 Claims.
Fee for Electronic Data Feeds to an Outside Vendor. Anthem shall provide, on an annual basis, up to 12
electronic data feeds to an outside vendor in Anthem's standard format. The charge to Employer is $1,000.00
for each additional feed.
Section 4.Paid Claims, Billing Cycle and Payment Method
A.Paid Claims
Paid Claims are described in Article 1-Paid Claims Definition of the Agreement.
B.Billing Cycle
Weekly
Anthem shall notify Employer of the amount due to Anthem as a result of Claims processed and paid by
Anthem according to the billing cycle described above. The actual date of notification of Paid Claims and the
Invoice Due Date will be determined according to Anthem's regular business practices and systems
capabilities.
C.Payment Method
ACH Demand Debit Reimbursement for Paid Claims. Anthem will initiate an ACH demand debit transaction
that will withdraw the amount due from a designated Employer bank account no later than the next business
day following the Invoice Due Date, however, if the Invoice Due Date falls on either a banking holiday, a
Saturday or a Sunday, the withdrawal shall be made on the following banking day.
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
5
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
Section 5.Administrative Services Fees Billing Cycle and Payment Method
A.Billing Cycle
Monthly List Bill (pay as billed)
Anthem shall notify Employer of the amount due to Anthem pursuant to Section 3 of Schedule A according to
the billing cycle described above. The actual date of notification of amounts due and the Invoice Due Date
will be determined according to Anthem's regular business practices and systems capabilities.
B.Payment Method
ACH Demand Debit Reimbursement. Anthem will initiate an ACH demand debit transaction that will withdraw
the amount due from a designated Employer bank account no later than the next business day following the
Invoice Due Date, however, if the Invoice Due Date falls on either a banking holiday, a Saturday or a Sunday,
the withdrawal shall be made on the following banking day.
Section 6.Claims Runout Services
A.Claims Runout Period
Medical:
Claims Runout Period shall be for the 12 months following the date of termination of this Agreement.
B.Claims Runout Administrative Services Fee
Medical:
The fee for Claims Runout Services will be equal to 9% of Paid Claims. Fees in Sections 3(B), 3(C), and 7 of
this Schedule A that (i) are associated with Claims processed or reviewed during the Claims Runout Period
including without limitation subrogation fees, Claims prepayment analysis fees, recovery fees, discount share
fees, network access fees; or (ii) apply to the Agreement Period but were not billed during the Agreement
Period, will be billed and payable during the Claims Runout Period. Payment is due to Anthem by the Invoice
Due Date.
Section 7.Inter-Plan Arrangements
Certain fees and compensation are charged each time a Claim is processed through the BlueCard Program
and include, but are not limited to, Access Fees, Administrative Expense Allowance Fees, Central Financial
Agency Fees and ITS Transaction Fees. Other Inter-Plan Arrangement related fees that Anthem may charge
include, but are not limited to, fees for BlueCross Blue Shield Global Core® Program services. These fees
may be separately billed or included in Paid Claims. The extent to which these fees and compensation are (i)
included in the Base Administrative Services Fee; or (ii) included in Paid Claims or separately billed to
Employer is as follows:
BlueCard Fees
Access Fees and AEA will be included in the Base Administrative Services Fees for Claims incurred in the
Anthem Service Areas for the following states: California, Colorado, Connecticut, Georgia, Indiana, Kentucky,
Maine, Missouri, Nevada, New Hampshire, New York, Ohio, Virginia, and Wisconsin.
Access Fees (Network Provider Claims only):
• 3.31% for fewer than 1,000 PPO traditional enrolled Blue Subscribers of network savings, capped at
$2,000.00 per Claim.
Administrative Expense Allowance Fees ("AEA") (Network Provider and Non-Network Provider Claims):
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
6
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
• Network Provider - $5.00 per professional Claim and $11.00 per institutional Claim for fewer than 1,000 PPO
or traditional enrolled Blue Subscribers.
• Non-Network Provider - $3.00 per Claim.
Central Financial Agency Fee ("CFA") (Network Provider, Non-Network Provider and Blue Cross Blue Shield
Global Core Claims):
• $0.35 per payment notice.
ITS Transaction Fee ("ITS") (Network Provider, Non-Network Provider and Blue Cross Blue Shield Global
Core Program Claims):
• $0.05 per transaction.
Negotiated Arrangement Fees - Not Applicable
Blue Cross Blue Shield Global Core Fees
Administrative Expense Allowance Fee:
• $4.35 per Member-submitted Claim;
• $5.50 per professional Claim; and
• $18.55 per institutional Claim.
All other fees associated with the Blue Cross Blue Shield Global Core program, except the CFA and ITS Fees
described above, are included in the Base Administrative Services Fee.
Section 8.Other Amendments. The Administrative Services Agreement is otherwise amended as
follows:
Not Applicable
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financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
7
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
SCHEDULE B
TO
ADMINISTRATIVE SERVICES AGREEMENT
WITH
City of Paducah
This Schedule B shall govern the Agreement Period from January 1, 2025 through December 31, 2025. For purposes
of this Agreement Period, this Schedule B shall supplement and amend the Agreement between the Parties. If there
are any inconsistencies between the terms of the Agreement including any prior Schedules and this Schedule B, the
terms of this Schedule B shall control.
The following is a list of services that Anthem will provide under this Agreement for the Base Administrative Services
Fee listed in Section 3(A) of Schedule A. These services will be furnished to Employer in a manner consistent with
Anthem's standard policies and procedures for self-funded plans.
Anthem may also offer additional, optional services to Employer, and such services, whether or not purchased by
Employer, are not included in the services set forth below in this Schedule B. By way of example and not limitation,
Anthem may offer certain optional programs that include utilization management activities. In such event, the services
associated with those programs are not included in the services described below. Services under Article 13 will only
be pursued or performed for Claims associated with these programs or that would have been impacted by these
programs if the programs are purchased by Employer. If Employer has purchased such services, those services and
any additional fees are also listed in Schedule A.
SERVICES INCLUDED IN THE BASE ADMINISTRATIVE SERVICES FEE IN SECTION 3A OF SCHEDULE A
Management Services
Anthem's benefits and administration as described in this paragraph:
Anthem definitions, and exclusions
Anthem complaint and appeals process (One mandatory level of appeal, one voluntary level of appeal)
Claims incurred and paid as provided in Schedule A, excluding activities related to Claim recovery
Accumulation toward plan maximums beginning at zero on effective date
Anthem Claim forms
ID card
Explanation of Benefits (Non-customized)
• Acceptance of electronic submission of eligibility information in HIPAA-compliant format
• Preparation of Benefits Booklet (accessible via internet)
• Account reporting - standard data reports
• Standard billing and banking services
• Plan Design consultation
• Employer eServices
- Add and delete Members
- Download administrative forms
- View Member Benefits and request ID cards
- View eligibility
- View Claim status and detail
• Responsible Reporting Entity for the Plan
• Information for preparation of SBC
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
8
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
Claims and Customer Services
• Claims processing services
• Medicare crossover processing
• Employer customer service, standard business hours
• Member customer service, standard business hours
• 1099s prepared and delivered to Providers
• Residency-based assessments and/or surcharges and other legislative reporting requirements
• Member eServices
• Member identity theft and credit monitoring and identity repair
Care Management
• Health Care Management
- Referrals
- Utilization management
- Case management
- Anthem Medical Policy
• SpecialOffers
• Member Digital Tools
Networks
• Network Access and Management
• Online Provider directory
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
9
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
Other Services Required by Federal Law not Otherwise Specified in the Agreement (as of the applicable
effective date)
•For Claims that qualify as no surprises Claims, Anthem shall calculate and apply the Member’s cost share at
the in-network benefit level using the qualifying payment amount. Anthem shall post a disclosure of the patient
protections against balance billing on www.anthem.com and shall include applicable language in Claim denial
notices and explanations of benefits.
•Prepare advanced explanations of benefits to Members after receiving a notice of scheduled services from a
Provider
•Provide cost transparency tool/self-service tool access
•Provide for continuity of care administration for Provider termination from the network
•Provide air ambulance Provider reporting
•Provide aggregated reporting as required under Section 204 of the CAA for the services that Anthem
administers under the Agreement. This reporting does not include the D1 Premium and Life Years Report.
•Anthem represents that it is administering its Provider agreements consistent with the requirements set forth
in Section 201 of the CAA. Anthem will provide a statement of compliance to Employer pertaining to Section
201 of the CAA on an annual basis.
•Upon request, Anthem will provide the non-quantitative treatment limitation analysis for the standard services
that Anthem provides under the Agreement. Anthem will also provide reasonable assistance to Employer in
the event of a regulatory audit for compliance with the Mental Health Parity and Addiction Equity Act.
•Post machine readable files on a monthly basis for the services Anthem administers for the Plan on
www.anthem.com
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
10
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
PHARMACY BENEFITS ADMINISTRATIVE SERVICES SCHEDULE
TO
ADMINISTRATIVE SERVICES AGREEMENT
WITH
City of Paducah
This Pharmacy Benefits Administrative Services Schedule (“Pharmacy Services Schedule”) is by and between
Employer and CarelonRx, Inc., an Anthem Health Plans of Kentucky, Inc. dba Anthem Blue Cross and Blue Shield
Affiliate that will be referenced as the pharmacy benefits manager (“PBM”) for the purposes of this Pharmacy Services
Schedule. The Pharmacy Services Schedule supplements and amends the Agreement between the Parties and is
effective from 1/1/2025 through 12/31/2025 (which, for purposes of this Pharmacy Services Schedule and its Exhibits,
is defined as the “Agreement Period”). Description of the Pharmacy Services and applicable fees for such services are
set forth in the Exhibits (the “Exhibits”) to this Pharmacy Services Schedule and made a part of this Pharmacy Services
Schedule. In the event of an inconsistency between the applicable provisions of this Pharmacy Services Schedule and
the Agreement, the terms of this Pharmacy Services Schedule shall govern, but only as they relate to the Pharmacy
Services. Except as set forth herein, all other terms and conditions of the Agreement remain in full force and effect. If
there are any inconsistencies between the terms contained in this Schedule, and the terms contained in any of the
Exhibits to this Pharmacy Benefits Schedule, the terms of the Exhibits shall control.
A.Definitions. The following definitions apply to this Pharmacy Services Schedule. Terms not otherwise defined in
this Pharmacy Services Schedule shall have the same meaning as such term is otherwise defined in the
Agreement.
340B Claims. Prescription Drug Claims submitted by 340B pharmacies for Covered Prescription Services
that price at the 340B price, dispensed to 340B eligible members, pursuant to a dispensing pharmacy’s
participation under Section 340B of the Public Health Service Act, 42 U.S.C. §256b. When a Prescription
Drug Claim is classified as a 340B Claim, it shall be considered a 340B Claim for all purposes under this
Pharmacy Services Schedule (e.g., a Prescription Drug Claim classified as a 340B Claim for purposes of
Prescription Drug Rebates must also be classified as a 340B Claim for purposes of pharmacy pricing).
Annualized Adjusted Prescription Drug Claims. The annualized sum of the total number of: (i) retail
Prescription Drug Claims with less than 84 days’ supply; (ii) retail Prescription Drug Claims with greater than
or equal to 84 days’ supply multiplied by a factor of 3; (iii) mail order Prescription Drug Claims multiplied by a
factor of 3; and (iv) Specialty Prescription Drug Claims.
Average Wholesale Price (AWP). The average wholesale price of a Prescription Drug at the date and time
the Prescription Drug is dispensed by the Network Pharmacy as established and reported by the Pricing
Source. The AWP of a Prescription Drug shall be the AWP as reported by the Pricing Source and updated
daily for the 11-digit NDC, drug specific, quantity appropriate actual package size dispensed as reported by
the Network Pharmacy.
Biosimilar Products. Drugs that (a) are highly similar to a US-licensed referenced biological product,
notwithstanding minor differences in clinically inactive components, where there are no clinically meaningful
differences between the biological product and the reference product in terms of the safety, purity, and
potency of the product; and/or (b) are approved pursuant to 42 USC Section 262(k) or any successor
legislative provision thereto.
Brand Name Prescription Drug or Brand Drug. A Prescription Drug that is not a Generic Drug. Single-
source and/or multi-source non-Generic Prescription Drugs set forth by utilizing Medi-Span drug
identification. A Prescription Drug product that is indicated as either “O”, “M”, or “N”.
Branded Generic Claims. Multi-source Brand Drugs that were billed to the Employer at the Generic Drug
cost.
Compound Drug. A mixture of two or more ingredients when at least one of the ingredients in the
preparation is an FDA-approved Prescription Drug, excluding the addition of only water or flavoring to any
preparation.
Covered Prescription Services. A Covered Service that is Prescription Drugs or other pharmaceutical
products, services or supplies dispensed by a pharmacy to a Member for which coverage is provided in
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
11
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
accordance with the Member's Benefits Booklet.
Dispense As Written Claims With Code 1. Claims where a Brand Drug was dispensed when a Generic
Drug is available, because substitution was not allowed by the Provider.
Dispense As Written Claims With Code 2. Claims where a Brand Drug was dispensed when a Generic
Drug is available, because the Member requested the Brand Drug.
Dispense As Written Claims With Code 3. Claims where a Brand Drug was dispensed when a Generic
Drug is available, because the pharmacist selected the Brand Drug.
Dispense As Written Claims With Code 4. Claims where a Brand Drug was dispensed when a Generic
Drug exists, because the Generic Drug was not in stock.
Dispense As Written Claims With Code 5. Claims where a Brand Drug was dispensed when a Generic
Drug is available, because the pharmacy dispensed the Brand Drug at the Generic Drug cost (also known
as “House Generic Claims”).
Dispense As Written Claims With Code 6. Claims where a Brand Drug was dispensed when a Generic
Drug is available, because of an override.
Dispense As Written Claims With Code 7. Claims where a Brand Drug was dispensed when a Generic
Drug is available, because the Brand Drug is mandated by state and federal laws and regulations.
Dispense As Written Claims With Code 8. Claims where a Brand Drug was dispensed when a Generic
Drug exists, because the Generic Drug is not available in the marketplace.
Dispense As Written Claims With Code 9. Claims where a Brand Drug was dispensed when a Generic
Drug is available, because of other non-specified reason.
Dispense As Written Claims. Claims where a Brand Drug was dispensed when a Generic Drug exists and
is available.
Dispensing Fee. The amount paid for professional services rendered by a licensed pharmacist in
dispensing Prescription Drugs.
Drug Rebates. Drug Rebates as referenced herein shall include Medical Drug Rebates and/or Prescription
Drug Rebates.
Formulary. The list of Prescription Drugs or products (which may include over-the-counter drugs, supplies,
devices, equipment, and other items such as disposable insulin syringes, and other diabetic supplies)
developed, published, and revised from time to time by PBM.
Generic Dispensing Rate. The total number of Generic Prescription Drug Claims received by PBM divided
by the total number of Prescription Drug Claims received by PBM.
Generic Prescription Drug or Generic Drug. Single-source and/or multi-source non-Brand Name
Prescription Drugs, whether identified by its chemical, proprietary, or non-proprietary name as set forth by
utilizing Medi-Span drug definition. A Prescription Drug product that is indicated as “Y”.
Ingredient Cost. The component of the prescription price that represents the charge for the ordered
Prescription Drug product, supply, or other product (excluding any Dispensing Fee or taxes).
Mail Order Pharmacy. A Network Pharmacy that provides Covered Prescription Services to Members via
mailing or shipping utilizing the United States Postal Service and/or other common shipping carrier, including
FedEx and/or United Parcel Service.
Manufacturer Administrative Fees. Amounts received by PBM from manufacturers for administering,
allocating, and collecting Prescription Drug Rebates that are attributable to Prescription Drugs.
Medical Drug Rebates. Rebates Anthem and/or PBM receives directly from pharmaceutical manufacturers
associated with utilization that is contingent upon and related directly to a Member's use of a Prescription
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
12
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
Drug administered by Anthem and covered under the medical benefit portion of the Plan(s). Medical Drug
Rebates do not include any discount, price concession, or other direct or indirect remuneration Anthem
and/or PBM receives for the provision of any products or services to pharmaceutical manufacturers.
Most Favored Nations Limitations. Government restrictions that preclude pharmacies from making pricing
agreements with PBMs or others that are more favorable than those afforded to state-run programs, such as
Medicaid.
Network Pharmacy or Network Pharmacies. A Mail Order Pharmacy, Retail Pharmacy, Specialty
Pharmacy or other facility that is duly licensed to operate as a pharmacy at its location and to dispense
Covered Prescription Services to Members and has entered into a participating pharmacy Agreement with
PBM or its Vendor to dispense Covered Prescription Services to Members.
New-to-Market Drug. A Specialty Drug or product that is newly introduced for sale by pharmaceutical
manufacturers and made available for dispense at pharmacies and shall be deemed as such for one
hundred eighty (180) days following its NDC effective date.
Pharmacy Benefit Plan. That portion of the Benefits Booklet that describes Covered Prescription Services
that is administered by PBM. Pharmacy Benefit Plan coverage includes any deductible or co insurance
provided for under the Covered Prescription Services.
Powder Claims. Claims for drugs where the dosage form, as identified by Medispan database or other
nationally recognized pricing source selected by PBM in its sole discretion from time to time, is powder.
Prescription Drug. Insulin and those drugs and drug compounds that are included in the U.S.
Pharmacopoeia and that are required to be dispensed pursuant to a prescription or that are otherwise
included on PBM’ s Formulary (e.g., certain over-the-counter drugs).
Prescription Drug Claim. A Claim submitted to PBM for payment of Prescription Drug benefits that PBM
invoices Employer for Prescription Drugs dispensed to Members by pharmacies. PBM’s invoice shall be
included as part of the invoice Anthem Health Plans of Kentucky, Inc. dba Anthem Blue Cross and Blue
Shield bills for other Paid Claims, as further set forth in the Agreement.
Prescription Drug Rebates. Any rebate and/or price protection payment associated with utilization that
PBM receives and that is contingent upon and related directly to a Member’s use of a Prescription Drug
during the Agreement Period. Prescription Drug Rebates do not include any discount, price concession,
Manufacturer Administrative Fees, or other direct or indirect remuneration PBM receives for the purchase of
a Prescription Drug or for the provision of any products or services to manufacturer(s).
Pricing Source. Medi-Span (or other nationally recognized third-party pricing source) selected by PBM in
its sole discretion from time to time).
Retail Pharmacy. A Network Pharmacy that provides Covered Prescription Services to Members at the
point of sale or via delivery by an employee of the Network Pharmacy or contracted delivery courier. For
purposes of clarification, delivery does not include mailing or shipping Covered Prescription Services to
Members utilizing the United States Postal Service and/or other common shipping carrier, including FedEx
and/or United Parcel Service.
Secondary Claims. Claims where PBM is the secondary payer due to Coordination of Benefits (COB) with
one or more other payers.
Specialty Drugs. A drug identified on PBM’s list of Specialty Drugs. Specialty Drugs may be high-cost,
injected, infused, oral, or inhaled medications (including therapeutic biological products) that are used to
treat chronic or complex illnesses or conditions. Specialty Drugs may have special handling, storage, and
shipping requirements, such as temperature control. Specialty Drugs may require nursing services or
special programs to encourage patient compliance.
Specialty Service Pharmacy. A Network Pharmacy that provides Specialty Drugs to Members.
Specialty Starter Fill. A prescription dispensed to Members who are initiating treatment on select
medications for which: (a) the days’ supply is typically limited to 15 days or less; (b) is a split fill and (c) the
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
13
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
NDC utilized for such medication is a specialty NDC.
Usual and Customary (U&C) Charge. The lowest price a Network Pharmacy would charge in an uninsured
transaction for an identical prescription on that day at that location, as submitted by the Network Pharmacy
to PBM with the Prescription Drug Claim.
Zero Balance Claim. A Claim for which the Member pays the full cost of the Prescription Drug.
B.Obligations of PBM.
In addition to the services provided by Anthem Health Plans of Kentucky, Inc. dba Anthem Blue Cross and Blue
Shield under Article 2 of this Agreement, and if applicable to the Pharmacy Benefit Plan and as indicated in Exhibit
B, PBM will provide the following pharmacy benefit management administrative and support services (the
“Pharmacy Services”):
1.Network Pharmacy Services.
a. PBM shall offer Employer access to a network of pharmacies that have entered into contractual
arrangements with PBM or its Vendors under which such pharmacies agree to provide pharmacy services
to Members and accept negotiated fees for such services (“Network Pharmacies”). PBM shall determine,
in its sole discretion, which pharmacies shall be Network Pharmacies, and the composition of Network
Pharmacies may change from time to time.
b. PBM shall arrange for the dispensing of covered Prescription Drugs to Members through one or more
networks of Network Pharmacies. If a Member obtains a covered Prescription Drug from a pharmacy that
is not in the network, the Member shall be responsible for the total cost of the covered Prescription Drug.
PBM’s network will provide Members adequate access to the covered Prescription Drugs at the Network
Pharmacies. Employer acknowledges that the availability of Prescription Drugs is subject to market
conditions and that PBM cannot, and does not, assure the availability of any Prescription Drug from a
Network Pharmacy.
c. PBM and/or its Vendors shall perform periodic onsite or field audits of Network Pharmacies to ensure
compliance with billing requirements as well as other terms and conditions of the Network Pharmacy
agreements. PBM will pay Employer or apply as a credit to invoices, one hundred percent (100%) of the
amounts PBM recovers from these audits, minus a recovery fee as set forth in Exhibit A and, if applicable,
Attachment 1 to Exhibit D. These audits are separate and distinct from daily Claims review audits, for
which there is no additional fee and which are included in the list of services offered as part of the
Pharmacy Administrative Services Fee as set forth in Exhibit B. Employer will be financially responsible
for all expenses incurred in connection with audits of Network Pharmacies requested by Employer that
are not required by applicable law.
d. Pursuant to the terms of the contract between PBM and Network Pharmacy, no Network Pharmacy shall
charge, collect a deposit from, or have any recourse against a Member for the covered Prescription Drugs
other than applicable cost shares, including in the event of breach of the Agreement and/or this Pharmacy
Services Schedule by Employer or insolvency of Employer. This provision shall survive the termination of
the Agreement and/or this Pharmacy Services Schedule for any covered Prescription Drug provided to a
Member prior to such termination.
e. PBM shall offer Employer a Mail Order Pharmacy program through which Members may receive mail order
covered Prescription Services. The Mail Order Pharmacy shall dispense Covered Prescription Drugs
upon receipt from a Member of (i) a valid new or refill prescription order and (ii) applicable cost share.
The covered Prescription Drug shall be mailed or shipped to the Member’s address set forth in the
eligibility file, or as appearing on the face of the prescription, so long as such address is within the United
States. Additional fees for express mail, shipping or handling may be charged to Members. PBM may
suspend such services to a Member if Member fails to remit any applicable cost share due.
f. PBM shall offer Employer a specialty pharmacy program through which Members may receive specialty
pharmacy drug services. PBM shall provide all necessary information and forms to Members to obtain
these specialty Prescription Drug services. The Specialty Drug list is a PBM developed and maintained
list of Specialty Drugs and is modified by PBM from time to time.
g. PBM shall operate a toll-free call center to respond to inquiries from Network Pharmacies regarding
Pharmacy Services provided by PBM provided pursuant to this Pharmacy Services Schedule, including
but not limited to technical and claims processing issues and Member eligibility verification (“Pharmacy
Help Desk”). The Pharmacy Help Desk shall be available 24 hours a day, 7 days a week.
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
14
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
2.Drug Formularies.
a. PBM will furnish and maintain a drug Formulary for use with the Pharmacy Benefit Plan, and PBM shall
periodically review and update its Formulary. Employer shall adopt such Formulary as part of the design
of the Pharmacy Benefit Plan. The drug Formulary will be made available to Members on PBM’s web
site and upon request may be provided to Employer in a mutually acceptable format for Employer’s
distribution to Members.
b. PBM has placed certain Prescription Drugs on formularies that are developed through a process involving
two committees, the Pharmacy and Therapeutics Committee (“P&T”) and the Value Assessment
Committee (“VAC”). The P&T examines the safety and efficacy of a Prescription Drug in comparison to
similar drugs within a therapeutic class or used to treat a particular condition. The VAC examines member
impact, provider impact, economics, law and regulations, and market dynamics as it determines tiering
and utilization management edit placement of Prescription Drugs on the formularies in a manner
consistent with the clinical determinations of the P&T.
c. This provision is intentionally removed.
d. If a Formulary exception process is included in the Employer’s Plan design, in the event a Member or
Provider believes that a Prescription Drug or supply not included on a Formulary is medically necessary
to treat the Member’s individual condition, the Member or Provider may request a coverage exception. In
the coverage exception process, PBM will consider a variety of factors that include, but are not limited to,
Prescription Drugs previously tried and failed by the Member to treat a particular diagnosis or condition,
whether the Member is clinically stable on the Prescription Drug, and/or whether switching to a covered
Prescription Drug would result in a clinically significant adverse reaction or other harm to the Member.
3.Claims Processing Services.
a. PBM shall perform administrative services for Employer, including but not limited to, processing Claims
with a Claims Incurred Date indicated in Section 1 of Exhibit A for Covered Prescription Services in
accordance with the Pharmacy Benefit Plan. PBM will pay, on Employer's behalf, only Claims that are:
(1) timely submitted by Network Pharmacies through PBM’s point-of-sale service system; and (2) properly
submitted by Members as requests for reimbursement for Covered Prescription Services. Employer may
request PBM, on an exception basis, to process and pay Claims that were denied by PBM or take other
actions with respect to the Pharmacy Benefit Plan that are not specifically set forth in this Agreement or
the Benefits Booklet. PBM may honor such requests subject to system override capability and Employer
paying a processing fee that has been mutually agreed to by the Parties.
b. PBM will implement certain administrative overrides to authorize the dispensing of Prescription Drugs in
response to certain requests that include but are not limited to requests for lost/stolen drugs and vacation
supplies.
c. PBM shall disburse to Member or Network Pharmacies payments that it determines to be due according
to the provisions of the Pharmacy Benefit Plan.
d. PBM shall provide notice in writing when a Member submitted Claim has been denied or a prior
authorization request has been denied which notice shall set forth the reasons for the denial and the right
to a full and fair review of the denial under the terms of the Pharmacy Benefit Plan and shall otherwise
satisfy applicable law governing the notice of a denied Claim.
e. Notwithstanding anything to the contrary in the Agreement, PBM will provide pharmacy Coordination of
Benefits (COB) services as described in this provision if listed in Exhibit A and, if applicable, Attachment
1 to Exhibit D for the fee set forth in Exhibit A and, if applicable, Attachment 1 to Exhibit D. Employer shall
be responsible for providing other party insurance liability information for Members on its eligibility file. If
the eligibility file is provided by Employer and PBM determines that coverage under this Agreement is
deemed secondary, the Member Claim will reject at point of sale and instruct the Member to submit the
Claim to the third-party payer that is deemed primary. PBM shall coordinate benefits with the third-party
payers as appropriate.
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
15
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
4.Utilization and Clinical Management Programs.
a. PBM will provide a concurrent drug utilization program that assists pharmacies in identifying potential
drug interactions, incorrect drug dosage, and inappropriate drug use and misuse. The program utilizes
real-time Member health and safety protocols designed to monitor and screen each claim against the
Member’s Prescription Drug profile and is designed to help promote appropriate Prescription Drug use
and help prevent adverse Member reactions. PBM shall make available to prescribing Providers, subject
to such prescribing Providers’ system capabilities, electronic access to Member eligibility; Prescription
Drug Formulary status; Member medication history; a listing of Formulary alternative Prescription Drugs;
and applicable cost share.
b. PBM shall offer additional programs to help ensure clinically appropriate use of Prescription Drugs, and
effectively manage the cost of care that may include but not be limited to drug edits (i.e. prior authorization,
step therapy, quantity limits, and dose optimization), enhanced fraud waste and abuse program, and
medication review. Employer shall pay fees for the programs selected by Employer as set forth on Exhibit
A. Employer shall abide by all applicable policies and procedures of the programs selected that may
require Employer to provide requested information prior to PBM initiating the service.
5.General Provisions.
a. PBM shall assist Employer in determining whether its Prescription Drug benefit constitutes “creditable
prescription drug coverage” as that term is used under the Medicare Part D laws (specifically, 42 C.F.R.
423.56). Unless otherwise agreed to by the Parties, Employer shall be solely responsible for
communicating with Members regarding creditable prescription drug coverage matters.
b. PBM shall make available a toll-free number staffed by adequately trained personnel to address
Member questions.
c. PBM will provide Employer with PBM’s standard management and utilization reporting package in
connection with the Pharmacy Services provided pursuant to this Pharmacy Services Schedule. At
Employer’s expense, PBM may prepare and provide custom and ad hoc reports within an agreed-upon
time and format, at the rate set forth in Exhibit A of this Pharmacy Services Schedule, as applicable.
d. PBM will provide Pharmacy Services in accordance with the Pharmacy Benefit Plan and the Plan
document(s) adopted by Employer. The Pharmacy Services shall be procedural only and shall be
performed by PBM within the framework of policies, interpretations, rules, practices, and procedures
made, established, and provided in writing to PBM by Employer.
e. PBM will maintain all licenses, permits, certifications, registrations, and other regulatory approvals required
by law necessary for the performance of PBM’s obligations pursuant to this Pharmacy Services Schedule.
f. PBM will maintain at least one of the following accreditations during the term of the Agreement and this
Pharmacy Services Schedule: (a) National Committee for Quality Assurance (“NCQA”) certification; (b)
Utilization Review Accreditation Commission (“URAC”) Drug Utilization Management accreditation;
and/or (c) such other NCQA certifications and URAC accreditations applicable to the Pharmacy Services
provided hereunder.
g. This provision is intentionally omitted.
h. PBM agrees to be bound by its obligations under HIPAA as a Business Associate under the same terms
as entered into by Anthem Health Plans of Kentucky, Inc. dba Anthem Blue Cross and Blue Shield under
its Business Associate Agreement with Employer.
C.Obligations of Employer. To the extent not already provided under Article 3 of this Agreement, Employer shall:
1.Provide PBM with timely, accurate and complete information necessary for PBM to provide the Pharmacy
Services. PBM shall be under no obligation to verify the accuracy and completeness of information
provided to it by Employer.
2.Provide accurate, timely, complete, and ongoing Member eligibility information to PBM using PBM’s
prescribed format and methods. Such information shall include, but shall not be limited to, the number and
names of Members eligible for and covered under the Pharmacy Benefit Plan and any other information
determined by PBM to be necessary to provide Pharmacy Services. PBM will load Member eligibility data
no later than three business days after receipt from Employer. PBM will be entitled to rely on the accuracy
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
16
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
and completeness of the Member eligibility data from Employer. Employer shall be solely responsible for
any errors in Member eligibility data that Employer provides to PBM.
D.Drug Rebate Management.
1.During any Agreement Period, Employer shall not contract, directly or indirectly through a third party, with a
manufacturer or any other third party for rebates, discounts, or other financial incentives on claims that are
eligible for Prescription Drug Rebates under this Agreement. In the event that PBM determines such
violation of this paragraph, Employer shall be deemed ineligible to earn Prescription Drug Rebates, the Drug
Rebate Program will be suspended, and Employer shall be required to reimburse PBM for any Prescription
Drug Rebates that were previously earned. If Employer fails to reimburse PBM for such Prescription Drug
Rebates within 10 business days of PBM’s request, PBM shall have the right to recover said amounts by
offsetting such amounts against any amounts PBM owes Employer under this Agreement or any other
agreement between Employer and PBM. Additionally, PBM may renegotiate the guarantees and/or any
pricing terms of the Agreement.
2.Employer acknowledges and agrees that Prescription Drug Rebate amounts are subject to change for reasons
including but not limited to:
a.Prescription Drug Rebate eligibility is modified under an agreement between PBM and/or its Vendor and
a manufacturer; or
b.any action(s) or inaction(s) by manufacturer that impacts the availability or amount of Prescription Drug
Rebate earned, that includes, but is not limited to, manufacturer’s discontinuation of the covered
Prescription Drugs.
If any change set forth in (a) - (b) above occurs, PBM may provide written notice to Employer of such change
as soon as reasonably practicable. In such event, PBM shall notify Employer and revise or eliminate such
payment as of the effective date of the reduction or elimination of the Prescription Drug Rebate payment.
Such reduction or elimination of the Prescription Drug Rebate payment shall result in either a change in the
Base Administrative Services Fee as described in Article 18(c) of the Agreement or a change in the percentage
of Prescription Drug Rebates retained by PBM.
3.PBM will use reasonable efforts to negotiate and collect Prescription Drug Rebates from manufacturers. PBM
shall not be required to institute litigation to negotiate and collect Prescription Drug Rebates from
manufacturers. If PBM or its designee does elect to bring suit to recover Prescription Drug Rebates from
manufacturers, PBM shall be entitled to deduct all reasonable attorney’s fees and other expenses incurred in
such litigation prior to payment of the Prescription Drug Rebates to Employer. Neither Party shall be
responsible to the other Party, its affiliates, directors, employees, agents, successors, or permitted assigns for
any claim arising from: (i) any failure by a manufacturer to pay any Prescription Drug Rebates; (ii) any breach
of an agreement relating to the transactions contemplated by or otherwise relating to this Agreement by any
manufacturer; or (iii) any negligence or misconduct of any manufacturer.
4.In the event that PBM, its Vendor, and/or manufacturer identifies through audit or other means that Employer
has received an overpayment or an erroneous Drug Rebate payment, Employer shall immediately refund such
amounts. If Employer fails to do so, PBM shall have the right to recover said amounts by offsetting such
amounts against any amounts PBM owes Employer under this Agreement or any other agreement between
Employer and PBM.
5.Prescription Drug Rebates paid pursuant to the Agreement and Exhibit A of the Pharmacy Services Schedule
are intended to be treated as “discounts” pursuant to the Federal Anti-Kickback Statute set forth at 42 C.F.R.
§ 1320a-7b and implementing regulations.
6.PBM shall continue to provide Employer its share of the Prescription Drug Rebates under this provision until
the termination of this Agreement and any applicable Claims Runout Period. PBM shall provide a final report
of the Prescription Drug Rebates received attributable to Employer’s Plan after the end of the Claims Runout
Period. Any Prescription Drug Rebates received by PBM after the end of the Claims Runout Period shall be
retained by PBM.
7.Employer acknowledges and agrees that no Prescription Drug Rebates shall be paid pursuant to Exhibit A
unless and until this Pharmacy Benefit Services Schedule is fully executed.
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
17
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
E.Pharmacy Base Administrative Services Fees and Expenses
1.Employer agrees to pay PBM fees for the Pharmacy Services as set forth on Exhibit A.
2.PBM’s fees for the Pharmacy Services may be renegotiated in the event of substantial changes that would
increase or decrease the obligations or costs of providing the Pharmacy Services, including but not limited to
changes in the Pharmacy Benefit Plan, legislative changes, or postal rate changes. In addition to other rights
set forth in Article 18(c) of the Agreement, PBM shall have the right to change the Pharmacy Base
Administrative Services Fees or other fees provided in Exhibit A if: (a) PBM is no longer the sole provider of
the Covered Prescription Services contemplated in this Pharmacy Services Schedule; (b) Employer
implements an on-site pharmacy; or (c) a change in applicable law occurs resulting in an increase in the cost
or amount of Covered Prescription Services under this Agreement. PBM shall provide notice to Employer of
the change in the Pharmacy Base Administrative Services Fees at least 30 days prior to the implementation
date of such change. Any change in the Pharmacy Base Administrative Services Fees will be effective as of
the date the change occurs, even if that date is retroactive. If such change is unacceptable to Employer,
either Party shall have the right to terminate this Pharmacy Services Schedule by giving written notice of
termination to the other Party before the effective date of the change. If Employer accepts the proposed
Pharmacy Base Administrative Services Fees, PBM shall provide a revised Exhibit A, and, if applicable,
Schedule A, that will then become part of this Agreement without the necessity of securing Employer’s
signature on the Exhibit and, if applicable, Schedule A.
3.If changes in the Pharmacy Benefit Plan are incompatible with existing systems and procedures and require
PBM or its subcontractor to perform additional programming, reports, or services, such additional activities will
be performed at the expense of Employer, if agreed to by PBM.
4.Employer shall be responsible for out-of-pocket production costs, travel expenses, and banking expenses
incurred by PBM in carrying out implementation activities at the request of Employer.
5.PBM shall not provide or be responsible for the expenses or costs of services furnished by attorneys,
actuaries, certified public accountants, investment counselors, or investment analysts, or for similar services
performed for Employer. PBM shall not be authorized to engage such services or incur any expense or cost
therefore without the written consent of Employer. In the event that such services are engaged by PBM at the
written request of Employer, Employer shall be responsible for all costs and expense thereof, that shall be
separately billed by the provider of the services or by PBM as incurred.
6.Employer agrees to pay PBM fees for Claims Runout Services described in Section 5 of Exhibit A of the
Pharmacy Services Schedule.
F.Audits.
1.To the extent any conflict exists between this Section F of the Pharmacy Services Schedule and the Claims
audit provisions in Article 12 of the Agreement, the terms and conditions of this Pharmacy Services Schedule
shall govern with respect to the provision of Pharmacy Services.
2.Employer may audit PBM directly or through a third-party auditor mutually acceptable to PBM. Employer must
provide at least 60 days prior written notice to PBM of its intent to conduct an audit of PBM's performance
under this Pharmacy Services Schedule to ensure compliance with the Agreement and applicable laws. The
scope of an audit including time, place, type and duration of all audits must be reasonable, mutually agreed
to in writing by the Parties prior to the commencement of the audit, and in accordance with PBM's audit
procedures and guidelines. Employer may conduct an audit once each contract year and such audit may only
relate to the last two preceding contract years from the current contract year (the “Audit Period”). Neither
Employer nor anyone acting on Employer’s behalf shall have a right to audit for the period prior to the Audit
Period. A pharmacy Claims audit will be limited to no more than 250 randomly selected Prescription Drug
Claims. Employer acknowledges and agrees that Employer is not entitled to audit: (i) documents that are
identified as proprietary or trade secret; and (ii) documents that PBM is barred from disclosing by law. All
information and records reviewed pursuant to this Section F of the Pharmacy Services Schedule shall be
considered Confidential Information for purposes of this Pharmacy Services Schedule.
3.Audit Procedures.
a.Any audit shall be contingent upon Employer’s third-party auditor executing PBM’s confidentiality
agreement prior to conducting an audit.
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
18
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
b.No Audit Period may be audited twice unless required by a governmental body. An audit performed
pursuant to this Pharmacy Services Schedule shall be the final audit for the Audit Period and for any
prior Audit Period unless otherwise agreed to in writing by the Parties.
c.Onsite audits and access to Claims processing systems will not be permitted except as otherwise
provided herein.
d.Employer shall provide to PBM copies of all final audit reports within 30 days of the end or the audit or at
the same time as they are made available by the third party auditor to Employer. PBM shall have a
minimum of 60 days to review and respond to each audit finding. Employer or its respective auditor
shall have 30 days to respond to PBM's response to each audit finding. If Employer or its respective
auditor fails to provide a final audit report within the timeframe set forth above or fails to respond within
30 days of PBM’s response, the audit will be considered closed.
e.Any errors identified and/or amounts identified as owed to Employer as the result of the audit shall be
subject to PBM’s review and approval prior to initiating any recoveries pursuant to this Pharmacy
Services Schedule.
f.PBM reserves the right to terminate any audit being performed by or for Employer if PBM determines
that the confidentiality of its information is not properly being maintained or if PBM determines that
Employer or the auditor is not following PBM’s audit policy.
4.Third party auditors must be independent and objective with no breach of PBM’s Confidential Information.
Any Employer requests for a third-party auditor to audit will constitute Employer's direction and authorization
to PBM to disclose Employer-specific information, including Member information and PHI, to Employer’s
auditor. PBM will provide Employer's auditor with access to all applicable Employer-specific information
reasonably necessary to determine the accuracy of Claims payments and verify PBM’s performance under
this Pharmacy Services Schedule, subject to PBM's third party confidentiality obligations; provided, however,
any other documentation requested during the course of an audit not in the audit scope or necessary for the
audit, will be provided at PBM's discretion.
5.Employer shall not be permitted to audit any contract between PBM, and Network Pharmacies, or Vendors.
Employer, through an independent third-party auditor, shall be entitled to perform a review of up to 10
pharmaceutical company contracts directly related to Employer’s Prescription Drug Rebates. PBM will share
such contracts with Employer’s third-party auditor during an onsite audit. Any such audit shall be contingent
upon Employer's third-party auditor signing a confidentiality agreement acceptable to PBM.
G.Termination. In addition to the provisions in Article 19 of this Agreement,
1.Either Party may terminate this Pharmacy Services Schedule by giving 90 days’ notice prior to the date of
the termination.
2.This Pharmacy Services Schedule shall terminate on the date the Agreement is terminated unless otherwise
agreed to by the Parties. If the Parties agree to continue the Pharmacy Services Schedule after termination,
applicable provisions of the Agreement shall remain in effect until a new agreement is reached by the
Parties.
3.This Pharmacy Services Schedule shall terminate on the effective date of any governmental body’s action
that prohibits all activities contemplated under this Pharmacy Services Schedule.
4.Following termination of only this Pharmacy Services Schedule, the remainder of the Agreement shall
continue in full force and effect during the Agreement Period. Termination of this Pharmacy Services
Schedule will not terminate the rights or obligations of either Party arising out of the period during which this
Agreement was in effect.
5.In the event of termination of this Pharmacy Services Schedule, PBM shall not be responsible for notifying
Members of such termination or of the procedure to be followed to retain or obtain Plan coverage.
6.Upon notice of termination of this Pharmacy Services Schedule for any reason other than for non-payment
of amounts due under this Schedule, the Parties will mutually develop a transition plan that includes but is
not limited to: (1) a schedule of transition activities and timelines for completion; (2) a detailed description of
the respective roles of PBM and Employer; and (3) such other information and planning as necessary to
ensure that the transition takes place according to an agreed upon schedule and with minimum disruption to
Members. The transition plan shall be subject to written approval by both Parties.
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
19
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
7.Unless mutually agreed to in writing by the Parties, upon termination of this Pharmacy Services Schedule,
Employer shall cease adoption and use of PBM’s Formulary as part of its Plan and agrees that it shall not
copy, distribute, or sell PBM’s Formulary.
H. Indemnification.
Each of PBM and Employer shall hold harmless, indemnify and defend the other Party, and its directors,
officers, shareholders, employees, agents and affiliates, from and against any third party losses, claims,
damages, liabilities, costs and expenses (including without limitation, reasonable attorneys' fees and costs)
imposed upon or incurred by the indemnified Party arising out of or as a result of the negligence or willful
misconduct of the indemnifying Party or its Vendors or subcontractors in the performance of the obligations
under this Pharmacy Services Schedule. The obligation to provide indemnification under this Pharmacy
Services Schedule shall be contingent upon the Party seeking indemnification: (1) providing the indemnifying
Party with prompt written notice of any claim for which indemnification is sought; (2) allowing the indemnifying
Party to control the defense and settlement of such claim; provided, however, that the indemnifying Party
agrees not to enter into any settlement or compromise of any claim or action in a manner that admits fault or
imposes any restrictions or obligations on an indemnified Party without that indemnified Party's prior written
consent, which consent will not be unreasonably withheld; and (3) cooperating fully with the indemnifying Party
in connection with such defense and settlement. Failure to provide prompt notice as set forth herein shall only
constitute a violation of this Section H of the Pharmacy Services Schedule to the extent such failure materially
prejudices the indemnifying Party with respect to its obligations to defend and indemnify pursuant to this
Section H of the Pharmacy Services Schedule. To the extent any conflict exists between this Section H of the
Pharmacy Services Schedule and the indemnification provisions in Article 16 and 17 of the Agreement, the
terms and conditions of this Pharmacy Services Schedule shall govern with respect to the provision of
Pharmacy Services.
IN WITNESS WHEREOF, the Parties have executed this Schedule to be effective as of the Effective Date.
CITY OF PADUCAHAnthem Health Plans of Kentucky, Inc. dba Anthem
Blue Cross and Blue Shield
By:
By:
Title:
Title:
Date:
Date:
CarelonRx, Inc.
By:
Title:
Date:
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
20
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
EXHIBIT A – FEES & EXPENSES
OF THE PHARMACY BENEFITS ADMINISTRATIVE SERVICES SCHEDULE
TO
ADMINISTRATIVE SERVICES AGREEMENT
WITH
City of Paducah
This Exhibit A shall govern the Agreement Period from 1/1/2025 through 12/31/2025 and is made part of this Pharmacy
Benefits Administrative Services Schedule. This Exhibit is intended to supplement the Agreement between the Parties
as it relates to Pharmacy Services only. In the event of an inconsistency between the applicable provisions of this
Pharmacy Services Schedule and the Agreement, the terms of this Pharmacy Services Schedule shall govern, but only
as they relate to Pharmacy Services. Except as set forth herein, all other terms and conditions of the Agreement remain
in full force and effect.
Section 1. Effective Date and Renewal Notice
This Agreement Period shall be from 12:01 a.m. 1/1/2025 to the end of the day of 12/31/2025.
Paid Claims shall be processed pursuant to the terms of this Pharmacy Services Schedule when incurred and paid
as follows:
Incurred from 1/1/2025 through 12/31/2025 and
Paid from 1/1/2025 through 12/31/2025.
PBM shall provide any offer to renew this Pharmacy Services Schedule at least 30 days prior to the end of an
Agreement Period.
Section 2. Broker or Consultant Base Compensation
Not Applicable
Section 3.Pharmacy Administrative Services Fees
Change to Administrative Services Fees. The Administrative Services Fees in Section 3 of Schedule A of the
Agreement and the Pharmacy Administrative Services Fees in Section 3 of Exhibit A may be changed during the
Agreement Period based upon an event in Article 18(c) of the Agreement or Section E(2) of the Pharmacy Services
Schedule.
A.Pharmacy Base Administrative Services Fee
Pharmacy Base Administrative Services Fee. The Pharmacy Administrative Services Fees shall also include
a fee that will be charged monthly for services related to pharmacy benefits management including, but not
limited to, pharmacy mail services, clinical services, and customer services. Such fee shall be:
$0.00
B. Drug Rebate Allocation
1.Minimum Pharmacy Rebate Offset and Guarantee: PBM shall transfer to Anthem Health Plans of Kentucky,
Inc. dba Anthem Blue Cross and Blue Shield an amount that will be used by Anthem Health Plans of Kentucky,
Inc. dba Anthem Blue Cross and Blue Shield to reduce the Base Administrative Services Fee set forth in
Section 3(A) of Schedule A. The amount of such offset, also referred to as the Pharmacy Rebate Offset is set
forth in Section 3(A) of Schedule A. PBM shall reconcile each quarter the Pharmacy Rebate Offset that
Employer received against the amount representing 100% of the actual Prescription Drug Rebates PBM has
guaranteed in the Prescription Drug Rebate Performance Guarantee as defined in Exhibit C. If the actual
Prescription Drug Rebate amount the PBM receives is greater than the Pharmacy Rebate Offset the Employer
received from PBM, then PBM shall return the difference between the actual Prescription Drug Rebate amount
and the Pharmacy Rebate Offset to the Employer. Provided, however, if the total Prescription Drug Rebates
Performance Guarantee as defined in Exhibit C, exceeds the amount described herein, the PBM will pay the
Employer the difference at annual true up.
2.Medical Drug Rebates: PBM shall retain 100% of the Medical Drug Rebates.
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
21
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
C. Other Fees or Credits
Fee for Pharmacy Prior Authorization. $55.00 per authorization.
Fee for Step Therapy. PBM shall charge a fee of $0.30 per pharmacy Claim.
Fee for Quantity Limits. PBM shall charge a fee of $0.55 per pharmacy Claim for applying frequency and
quantity limits to certain Prescription Drugs.
Fee for Pharmacy Physician Review. $800.00 per review.
Fee for Vaccine Administration. PBM shall charge a fee for the administration of vaccines at a retail pharmacy
location of $2.50 per vaccine.
Fee for Custom Communications. PBM shall charge a fee of $2.00 per custom communication requested by
the Employer.
Fee for Member-Submitted Claims. PBM shall charge a fee of $2.50 per Claim for each Member-submitted
Claim.
Fee for Clinical Care Gap Outreach Program (Standard)(also referred to as Care Optimization Program) PBM
shall charge a fee of $0.25 per pharmacy claim for clinical, quality and cost of care messages in personalized
Member communications.
Fee for Specialty Cost Optimization. PBM shall retain the difference between the amount charged to Employer
for Specialty Drugs subject to the Specialty Cost Optimization Program and the amount charged to PBM as
reasonable compensation for PBM’s administration of the Specialty Cost Optimization Program.
Fee for Pharmacy Network Audit. The charge to Employer is 25.00% of the total amount recovered from
periodic onsite or field audits of Network Pharmacies, including but not limited to, audits to determine
compliance with billing requirements and the terms and conditions of the Network Pharmacy agreements.
These audits are separate and distinct from Claims processing and financial accuracy audits
Pass-Through Pricing Administrative Fee. $1.50 per Prescription Drug Claim in those applicable states that
do not permit margin pricing
Fee for Member Communications. PBM shall charge a fee of $1.30 per letter for the following programs:
•Non-FDA approved drug block
•Re-labeler program
•Safety Communications /Drug Recalls and Withdrawals
•New Implementation Formulary Disruption Letters
•Commercial Formulary Member Notifications (includes Newly Available Generic Notification when
required by law)
Fee for Employer Reporting – Base Package. PBM’s Base Package is included at no cost and includes access
to RxGuide (unlimited). All custom reporting requests will be charged at $150 per hour of time needed to
generate customized ad hoc reports
Invoices for Prescription Drug Claims When PBM invoices Employer for Prescription Drug Claims, the amount
billed will reflect pricing that may be greater than the amount that is paid to pharmacies for those Claims
(Margin Pricing). The use of Margin Pricing provides some control over price swings that Members may
otherwise experience when filling prescriptions.
Ongoing Pharmacy Management Allowance Credit. Employer shall receive an ongoing Pharmacy
Management Allowance Credit (“Ongoing PMA Credit”) in the amount of $3,465.00 for year 1 of the Agreement
Period, , that shall be apportioned across all lines of business based on either drug spend or Member lives.
This Ongoing PMA Credit shall be used by Employer to offset the cost of legitimate, necessary, and
commercially reasonable services that are directly related to administering and managing pharmacy benefits
and/or enhancing the value of Employer’s pharmacy program. Subject to PBM approval, the Ongoing PMA
Credit may be used for items including:
•Plan communications, including formulary letters and Member materials
•Clinical programs
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
22
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
•Wellness programs offered by PBM
•Consulting fees (if directly related to Employer’s pharmacy benefit)
•IT programming
•Additional reporting or data feeds
•Data and other fees charged by other vendors; and
•Any other pharmacy related expense not referenced above that PBM approves in advance.
.
Employer shall submit all requests for reimbursement under the Ongoing PMA Credit noted above to PBM
with documentation of Employer expenses and costs no later than thirty (30) days after the end ofeach year
of the Agreement period. PBM shall reimburse Employer within 30 days of receipt of Employer’s request and
supporting documentation. Any unused portion of the Ongoing PMA Credit for the current contract year will
not carry forward to the next contract year. PBM will not reimburse Employer’s vendors directly.
In the event that Employer terminates the pharmacy portion of this Agreement prior to the end of the
Agreement Period for any reason other than PBM’s failure to comply with a material duty or obligation related
to the administration of the pharmacy portion of Plan benefits under this Agreement, the Ongoing PMA Credit
amount shall be reduced. The revised credit amount will be based on the prorated portion of the total credit
amount which will be calculated by dividing the number of months from the beginning of the Agreement Period
through the effective date of termination by the total number of months in the full Agreement Period and by
then multiplying that result by the total credit amount. Employer shall reimburse PBM for any excess Ongoing
PMA Credit amounts based upon this calculation within thirty (30) days of the termination of the pharmacy
portion of this Agreement.
It is the intention of the Parties that, for the purposes of the Federal Anti-Kickback Statute, this Ongoing PMA
Credit shall constitute and shall be treated as a discount against the price of drugs within the meaning of 42
U.S.C. 1320a-7b(b)(3)(A). To the extent required by laws or contractual commitment, Employer agrees to fully
and accurately disclose and report any such discount, rebate, credit or allowance to Medicare, Medicaid or
other government health care program as a discount against the price of the Prescription Drugs provided
under this Pharmacy Services Schedule.
Unidentified Recoveries. PBM shall retain any funds received through recovery processes that are paid to
PBM and, following good faith and reasonable efforts, cannot be tied to a specific Employer or Member.
Section 4. Pharmacy Administrative Services Fees and Paid Claims Billing Cycle and Payment Method
Billing cycles and payment methods are contained in Schedule A.
Section 5.Claims Runout Services
A.Claims Runout Period
Claims Runout Period shall be for the 12 months following the date of termination of this Pharmacy Services
Schedule.
B.Claims Runout Administrative Services Fee
Pharmacy:
The fee for Claims Runout Services will be waived. Fees in Section 3(C) of this Exhibit A that (i) are associated
with Claims processed or reviewed during the Claims Runout Period including without limitation subrogation
fees, Claims prepayment analysis fees, recovery fees, network access fees; or (ii) apply to the Pharmacy
Services Schedule Period but were not billed during the Pharmacy Services Schedule Period, will be billed
and payable during the Claims Runout Period. Payment is due to PBM by the Invoice Due Date.
Section 6.Other Amendments. The Pharmacy Benefits Administrative Services Schedule is otherwise
amended as follows:
Not Applicable
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
23
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
EXHIBIT B – PHARMACY SERVICES
OF THE PHARMACY BENEFITS ADMINISTRATIVE SERVICES SCHEDULE
TO THE
ADMINISTRATIVE SERVICES AGREEMENT
WITH
City of Paducah
This Exhibit B shall govern the Agreement Period from 1/1/2025 through 12/31/2025 and is made part of this Pharmacy
Benefits Administrative Services Schedule. This Exhibit is intended to supplement the Agreement between the Parties
as it relates to Pharmacy Services only. In the event of an inconsistency between the applicable provisions of this
Pharmacy Services Schedule and the Agreement, the terms of this Pharmacy Services Schedule shall govern, but only
as they relate to Pharmacy Services. Except as set forth herein, all other terms and conditions of the Agreement remain
in full force and effect.
The following is a list of standard services that PBM will provide under this Pharmacy Services Schedule for the
Pharmacy Administrative Services Fees set forth on Section 3 of Exhibit A. These services will be furnished to
Employer in a manner consistent with PBM’s standard policies and procedures for self-funded plans. PBM may also
offer services to Employer that have an additional fee. If Employer has purchased such services, those services and
any additional fees are also set forth on Exhibit A.
Prescription Benefit Services
Mail Order Pharmacy
Specialty Pharmacy Services
Prescription eServices
Pharmacy locator
Online Formulary
Point of sale Claims processing (not including pharmacy COB services)
Mail order Claims processing
Mail order call center with toll free number
Mail order regular mailing or shipping and handling
Standard management reports
Concurrent Drug Utilization Review (DUR) programs
Retrospective DURs
Pharmacy help desk with toll free number
Daily Claims review audits of Network Pharmacies
Assistance in determining “creditable prescription drug coverage” under Medicare Part D
Integration of medical and pharmacy Claims data for proactive prior authorizations (i.e., a Member’s diagnosis
from medical Claims is incorporated into the pharmacy Claim system to seamlessly approve prior authorizations
where diagnoses are required)
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
24
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
EXHIBIT C - PERFORMANCE GUARANTEES
OF THE PHARMACY BENEFITS ADMINISTRATIVE SERVICES SCHEDULE
TO THE
ADMINISTRATIVE SERVICES AGREEMENT
WITH
City of Paducah
This Exhibit C provides certain guarantees pertaining to PBM’s performance under the Agreement between the Parties
(“Performance Guarantees”) and shall be effective for each year in the period from 1/1/2025 through 12/31/2025 (the
“Performance Period”). Descriptions of the terms of each Performance Guarantee applicable to the Parties are set
forth in the Attachments (the “Attachments”) to this Exhibit C and made a part of this Exhibit C. This Exhibit shall
supplement and amend the Pharmacy Benefits Administrative Services Schedule between the Parties. If there are any
inconsistencies between the terms of the Agreement and this Exhibit C, the terms of this Exhibit C shall control. If there
are any inconsistencies between the terms contained in this Exhibit, and the terms contained in any of the Attachments
to this Exhibit C, the terms of the Attachments to this Exhibit C shall control.
Section 1.General Conditions
A.The Performance Guarantees described in the Attachments to this Exhibit C shall be in effect only for the
Performance Period indicated above, unless specifically indicated otherwise in the Attachments. Each
Performance Guarantee shall specify a/an:
1.Allocation. The term Allocation is the percent of total Amount at Risk to each Performance Guarantee.
2.Amount at Risk. The term Amount at Risk means the amount PBM may pay if it fails to meet the
target(s) specified under the Performance Guarantee.
3.Measurement Period. The term Measurement Period is the period of time under that PBM’s
performance is measured, that may be the same as or differ from the period of time equal to the
Performance Period.
4.Performance Category. The term Performance Category describes the general type of Performance
Guarantee.
5.Reporting Period. The term Reporting Period refers to how often PBM will report on its performance
under a Performance Guarantee.
6.Service Feature. The term Service Feature is a service standard stipulated and defined to be
guaranteed.
B.PBM shall conduct an analysis of the data necessary to calculate any one of the Performance Guarantees
within the timeframes provided in the Attachments to this Exhibit C. In addition, any calculation of
Performance Guarantees, reports provided, or analysis performed by PBM shall be based on PBM’s then
current measurement and calculation methodology, that shall be available to Employer upon request.
C.This provision is intentionally omitted.
D.If the Agreement is not executed, PBM shall have no obligation to make payment under these Performance
Guarantees.
E.Unless otherwise specified in the Attachments to this Exhibit C, the measurement of the Performance
Guarantee shall be based on data that is maintained and stored by PBM or its Vendors.
F.If Employer terminates the Agreement or the Pharmacy Services Schedule between the Parties prior to the
end of the Performance Period, or if the Agreement or the Pharmacy Services Schedule is terminated for
non-payment, then Employer shall forfeit any right to collect any further payments under any outstanding
Performance Guarantees, whether such Performance Guarantees are for a prior or current Measurement
Period or Performance Period.
G.Guarantees apply only as long as there are 7,523 Annualized Adjusted Prescription Drug Claims.
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
25
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
H.Prescription Drug Rebate and Prescription Drug Pricing Guarantee Changes.
1.Employer Directed Changes. PBM reserves the right to modify the financial provisions of this Pharmacy
Services Schedule if any of the following occur and to the extent of any adverse financial impact to the
overall economic value of the Pharmacy Services Schedule: (a) a change in the scope of services
(retail network management, mail, specialty and rebate services) to be performed under this Pharmacy
Services Schedule upon which the financial provisions included in this Pharmacy Services Schedule are
based; (b) a material change in Plan design or (c) any substantive deviation from Employer’s Formulary,
which may impact Prescription Drug Rebates “Directed Changes”).
Employer agrees to provide PBM with written notice of its desired Directed Changes. Upon receipt of the
notice, PBM will have thirty (30) days to determine and inform Employer in writing of any such change to
the financial provisions. PBM agrees to discuss its rationale and calculations with Employer’s consultant.
Employer will inform PBM of its decision of whether or not it will move forward with the Directed Changes.
In the event Employer moves forward with the Directed Changes, such changes and pricing will be
implemented in 60 days or as otherwise agreed to by the Parties and the Agreement will be amended to
reflect the changes.
PBM shall have the right to revise Pricing Guarantees in the event there is a greater than 20.00% change
in total membership or Claims volume.
2.Market Event Conditions. PBM reserves the right to modify or amend the financial provisions of this
Pharmacy Services Schedule upon at least sixty (60) days prior written notice, if possible, to Employer
in the event of a government-imposed change in federal, state or local laws or industry wide change
that materially impacts the financial economics of the Pharmacy Services Schedule. For modifications
or amendments made pursuant to the above, PBM agrees to modify the pricing in an equitable manner
to preserve the financial interest of both Parties. PBM shall provide documentation demonstrating that
the revised pricing terms are equitable based on the new industry standard. In the event Employer
demonstrates the revised pricing terms are not equitable and the Parties are unable to reach agreement
on revised pricing terms, Employer may terminate this Pharmacy Services Schedule upon ninety (90)
days prior written notice.
I.For the purposes of calculating compliance with the Performance Guarantees contained in the Attachments
to this Exhibit C, if a delay in performance of, or inability to perform, a service underlying any of the
Performance Guarantees is due to circumstances that are beyond the control of PBM, or its Vendors,
including but not limited to any act of God, civil riot, floods, fire, pandemics, acts of terrorists, acts of war or
power outage, such delayed or non-performed service will not count towards the measurement of the
applicable Performance Guarantee.
J.As determined by PBM, Performance Guarantees may be measured using either aggregated data or
Employer-specific Data. The term Employer-specific Data means the data associated with Employer’s Plan
that has not been aggregated with other Employer data. Performance Guarantees will specify if Employer-
specific Data shall be used for purposes of measuring performance under the Performance Guarantee.
K.If any Performance Guarantees are tied to a particular program and its components, such Performance
Guarantees are only valid if Employer participates in the program and its components for the entirety of the
Measurement Period associated with the Performance Guarantee.
L.Employer acknowledges and agrees that each Performance Guarantee will be measured based on the
Measurement Period as described in the Attachments to this Exhibit C and prorated to account for Employer
specific Effective or renewal dates when measured using aggregated data. The Performance Guarantee
will begin on the Employer Effective Date. However, if the Employer terminates the Pharmacy Benefits
Schedule before the end of a Measurement Period, the Performance Guarantee measured will be based on
the entire Measurement Period during which the termination occurred.
M.Any Pharmacy Implementation Performance Guarantee payment and/or any Pharmacy Operations
Performance Guarantee payment owed to Employer represents Employer's sole and exclusive remedy for
any failure by PBM to meet such Pharmacy Implementation Performance Guarantee and/or Pharmacy
Operations Performance Guarantee; any such failure will not be deemed a material breach of this Pharmacy
Service Schedule and PBM will have no additional liability.
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
26
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
Section 2.Payment
A.If PBM fails to meet any of the obligations specifically described in a Performance Guarantee described in
the Attachments to this Exhibit C, PBM shall pay Employer the amount set forth in the Section describing the
Performance Guarantee. Payment shall be in the form of a credit on Employer’s invoice for Administrative
Services Fees that will occur annually unless otherwise stated in the Performance Guarantee.
B.Notwithstanding the above, PBM has the right to offset any amounts owed to Employer under any of the
Performance Guarantees contained in the Attachments to this Exhibit C against any amounts owed by
Employer to PBM under: (1) any Performance Guarantees contained in the Attachments to this Exhibit C; or
(2) the Agreement.
C.Notwithstanding the foregoing, PBM’s obligation to make payment under the Performance Guarantees is
conditioned upon Employer’s timely performance of its obligations provided in the Agreement and the
Pharmacy Schedule, in this Exhibit C and the Attachments, including providing PBM with the information or
data required by PBM in the Attachments. PBM shall not be obligated to make payment under a
Performance Guarantee if Employer or Employer’s vendor’s action or inaction adversely impacts PBM’s
ability to meet any of its obligations provided in the Attachments related to such Performance Guarantee,
that expressly includes but is not limited to Employer or its vendor’s failure to timely provide PBM with
accurate and complete data or information in the form and format expressly required by PBM.
D.Where the Amount at Risk for a Performance Guarantee is on a percentage of a Per Subscriber Per Month
(PSPM) fee basis, the Guarantee will be calculated by multiplying the PSPM amount by the actual annual
enrollment during the Measurement Period.
E.PBM shall reconcile the Pricing Performance Guarantees described in Attachment 1 to Exhibit C on an
annual basis, calculated in accordance with Section 4 of this Exhibit C. The reconciliation for each year of
the Performance Period will be submitted to Employer within 120 days after the end of the Measurement
Period and any resulting value shortfall shall by paid by PBM to Employer within 30 days following
submission of the reconciliation report.
F.PBM shall pass through rebate amounts guaranteed by PBM as described in Attachment 1 to Exhibit C on a
quarterly basis in accordance with Section 3 of this Exhibit C to Employer within 90 days after the end of the
quarter. PBM will pass through additional collections from prior quarters in subsequent quarterly
disbursements. PBM shall reconcile the Performance Guarantees for each rebate Performance Guarantee
described in Attachment 1 to Exhibit C on an annual basis, calculated in accordance with Section 3 of this
Exhibit C. The reconciliation for each Measurement Period will be submitted to Employer within 10 months
following the end of the Measurement Period and any resulting value shortfall shall be paid by PBM to
Employer within 30 days following the reconciliation. Prescription Drug Rebates collected post annual
reconciliation attributable to the reconciled Measurement Period shall be retained by PBM.
Section 3.Prescription Drug Rebate Performance Guarantees
A.Any payment due to Employer under a rebate Performance Guarantee will be offset by favorable results
achieved in any other rebate Performance Guarantee.
B.This Performance Guarantee will be determined by comparing the total Prescription Drug Rebates
Performance Guarantee to the Prescription Drug Rebates credited to the Employer pursuant to the
Pharmacy Services Schedule and Section 3(B) of Exhibit A. If the total Prescription Drug Rebates
Performance Guarantee exceeds the Prescription Drug Rebates credited to the Employer, PBM will credit
Employer the difference.
C.For purposes of these Performance Guarantees, the following Claims will not be included in the calculation:
Medicare Part D ;
340B Claims;
Vaccines;
Prescriptions filled through the Employer’s on-site pharmacy;
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
27
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
Compound Drugs;
Member-submitted Claims;
Coordination of Benefits (COB)/ Secondary Claims;
New to Market Drugs;
Out-of-Network Claims;
Subrogated Claims;
Indian Health Claims;
Long Term Care Claims;
IV Infusion Drugs
Military VA Claims;
Formulary Exception Claims;
Specialty Drug Starter Fill;
D.The Parties acknowledge and agree that Prescription Drug Rebate Guarantees may be revised in the event
of product offering decisions by drug manufacturers that result in: (a) a reduction of Prescription Drug
Rebates, including the introduction of a lower cost alternative product which may replace an existing
rebatable Brand Drug; (b) an unexpected launch of a Brand Drug and/or Generic Drug; (c) unforeseen
delays in expected Brand Drug and/or Generic Drug launches; or (d) a Brand Drug converted to over-the-
counter (“OTC”) status, recalled or withdrawn from the market.
E.Prescription Drug Rebate Guarantees do not apply to Paid Claims processed through institutional, hospital or staff
model/hospital pharmacies where the pharmacy, most likely, has its own manufacturer contracts (rebate or purchase
discounts), or through pharmacies that participate in the federal government pharmaceutical purchasing program.
F.COVID test kits, COVID anti-viral medication and COVID vaccines are excluded from the Prescription Drug
Rebate Guarantees under this Pharmacy Services Schedule.
G.In the event of market changes that impact drug price or in the event that clinically comparable lower rebate
Prescription Drugs impact the level of Prescription Drug Rebates expected, a Prescription Drug Rebate
Credit toward the Prescription Drug Rebate Guarantee amount will be applied (“Prescription Drug Rebate
Guarantee Credit”). This Prescription Drug Rebate Guarantee Credit will be calculated as the difference
between the originator Brand Drug rebates and the new product rebates or the drug cost savings from a
lower drug cost due to a pricing change from a pharmaceutical manufacturer, resulting in neutrality for
Employer.
Section 4.Prescription Drug Pricing Performance Guarantees
A.To determine any payment due to Employer under these Prescription Drug Pricing Performance
Guarantees, each Performance Guarantee is calculated based on the Prescription Drugs that were paid
during the Measurement Period for:
Retail pharmacy
Mail Order
Retail 90
Specialty Drugs
(each such subset of Paid Claims for Prescription Drugs is referred to as a “Pricing Guarantee Category”).
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
28
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
Each guarantee within a Pricing Guarantee Category is then compared to the sum of appropriate portion of
the Paid Claims for Prescription Drugs plus any Member cost shares associated with each Performance
Guarantee within that Pricing Guarantee Category. Paid Claims for Prescription Drugs include Ingredient
Costs plus Dispensing Fees. Therefore, Paid Claims for Prescription Drugs dispensed by a Retail Pharmacy
are separated into Brand and Generic Ingredient Costs and Brand and Generic Dispensing Fees. These
Ingredient Costs and Dispensing Fees are compared against each identified Performance Guarantee provided
in this Pharmacy Services Schedule to determine if the Performance Guarantee is met.
B.Any payment due to Employer under a pricing Performance Guarantee within a Pricing Guarantee Category
will be offset by favorable results achieved in any other Performance Guarantee within that same Pricing
Guarantee Category. Overall favorable results for a Pricing Guarantee Category will not be used to offset
unfavorable results under overall Performance Guarantees in another Pricing Guarantee Category.
C.The following conditions apply to this Performance Guarantee:
1.This Performance Guarantee applies to Claims submitted by Network Providers applicable to
Employer’s Plan.
2.Drugs identified at the time the prescription is filled as Dispense As Written Claims with code 5 will be
included in the Generic Discount and Generic Dispensing Fee Performance Guarantees.
3.“Discount” and “Dispensing Fee” shall refer to and mean effective rate/aggregate pricing, not per Paid
Claim discount rates or dispensing fee.
4.COVID test kits, COVID anti-viral medication and COVID vaccines are excluded from the Prescription
Drug Pricing Guarantees under this Pharmacy Services Schedule.
5.Claims for Covered Prescription Services delivered by a Retail Pharmacy to a Member will be included
in the Retail Pharmacy Network Pricing Guarantees and not within the Mail Order Pharmacy Pricing
Guarantees.
D.PBM reserves the right to make changes to any of the Prescription Drug Pricing Performance Guarantees
provided in the Attachments to this Exhibit C upon the occurrence, in the PBM’s determination, of the
following:
This Guarantee shall only apply to Pharmacy Benefit Plans for which the PBM’s Specialty
Pharmacy is the exclusive pharmacy that may fill Specialty Drugs for Members.
E.The following Claims will be excluded from this Performance Guarantee:
Medicare Part D Claims;
340B Claims;
Vaccines
Prescriptions filled through the Employer’s on-site pharmacy;
Compound Drugs;
Member-submitted Claims;
Coordination of Benefit (COB) Claims/Secondary Claims;
Out-of-Network Claims;
Indian Health Claims;
Long Term Care Claims;
IV Infusion Drugs;
Military VA Claims;
F.In the event that there are court or government imposed or industry wide or pricing source initiated changes
in the AWP reporting source or source changes in the methodology used for calculating AWP, including,
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
29
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
without limitation, changes in the mark-up factor used in calculating AWP (collectively, the “AWP Changes”),
the terms of any financial relationship between the Parties that relate to AWP will be modified by PBM such
that the value of AWP for the purpose of such relationship(s) will have the same economic equivalence in
the aggregate to the value used by the Parties prior to the AWP Change. The intent of this provision is to
preserve the relative economics of both Parties for such financial relationships based upon AWP to that
which existed immediately prior to the AWP Change.
In the event that the AWP pricing benchmark used by PBM’s PBM hereunder is replaced with another
benchmark calculation, PBM may switch to such new pricing benchmark. If a change to Pricing Guarantees
is deemed necessary PBM will provide written notice of new pricing terms at least 30 days before the effective
date of the change.
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
30
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
ATTACHMENT 1 TO EXHIBIT C
Performance Guarantees
TO ADMINISTRATIVE SERVICES AGREEMENT
WITH
City of Paducah
Pharmacy Performance Guarantees
This Attachment is made part of Exhibit C and will be effective for the Performance Period from 1/1/2025 through
12/31/2025. This Attachment is intended to supplement and amend the Agreement between the Parties. The
Measurement Period for these Performance Guarantees will be annual, unless otherwise specified herein. These
Performance Guarantees are guaranteed upon offer and acceptance of renewal of the medical portion of the
Agreement.
Measurement and
Pharmacy Performance Guarantee Reporting Period
Prescription Drug Rebate GuaranteesMeasurement Period
Annual
NATIONAL FORMULARY
Reporting Period
Minimum Drug Rebates:
Annual
(a)The Drug Rebates Employer receives from PBM will not be less than the following
amounts (“Total Drug Rebates Guarantee”):
NON-SPECIALTY DRUGS
BRAND NAME PRESCRIPTION DRUGS
(1) An amount equal to the sum of $315.00 (YR1) per Paid Claim for Non-Specialty
Brand Name Prescription Drugs dispensed at Retail Pharmacies for a supply of less
than 84 days; plus
(2) An amount equal to the sum of $810.00 (YR1) per Paid Claim for Non-Specialty
Brand Name Prescription Drugs dispensed at Retail Pharmacies for a supply of 84 days
or greater.
(3) An amount equal to the sum of $840.00 (YR1) per Paid Claim for Non-Specialty
Brand Name Prescription Drugs dispensed at Mail Order Pharmacies.
SPECIALTY DRUGS
BRAND NAME PRESCRIPTION DRUGS
(1) An amount equal to the sum of $4,060.00 (YR1) per Paid Claim for Specialty Brand
Name Prescription Drugs dispensed at Retail Pharmacies
Prescription Drug Pricing GuaranteesMeasurement Period
Annual
Prescription Drug Pricing:
(a) The Prescription Drug Pricing Guarantees for Ingredient Cost Discount and
Reporting Period
Dispensing Fees will be the amounts listed under the following Pricing Guarantee
Annual
Categories :
BASE RETAIL PHARMACY NETWORK
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
31
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
Measurement and
Pharmacy Performance Guarantee Reporting Period
RETAIL PHARMACIES
The guarantees for Retail Pharmacies will be the following amounts:
1. Brand Discount: AWP minus 20.00% (YR1)
2. Brand Dispensing Fee:$0.35 (YR1)
3. Generic Discount: AWP minus 86.80% (YR1)
4. Generic Dispensing Fee: $0.25 (YR1)
RETAIL 90 PHARMACY NETWORK PROVIDERS
The guarantees for Retail Pharmacy RETAIL 90 Network Providers dispensing 84-90
day supplies will be the following amounts:
1. Brand Discount: AWP minus 23.80% (YR1)
2. Brand Dispensing Fee:$0.00 (YR1)
MAIL ORDER OPTIONS
MAIL ORDER PHARMACY
The guarantees for mail order will be the following amounts:
1. Brand Discount: AWP minus 25.30% (YR1)
2. Brand Dispensing Fee:$0.00 (YR1)
3. Generic Discount: AWP minus 89.30% (YR1)
4. Generic Dispensing Fee: $0.00 (YR1)
SPECIALTY SERVICE PHARMACY OPTIONS
SPECIALTY SERVICE PHARMACY
The guarantees for Specialty Service Pharmacy will be the following amounts:
1. Discount: AWP minus 23.00% (YR1)
2. Dispensing Fee: $0.00 (YR1)
This document contains confidential and proprietary information, including trade secrets, and commercial and
financial information, any and all of which are protected from disclosure under the Freedom of Information Act,
32
pursuant to 5 U.S.C. § 552(b)(4) and 45 C.F.R. Part 5, and any and all state equivalents.
Agenda Action Form
Paducah City Commission
Meeting Date: October 2, 2025
Short Title: Approve purchase of P25 mobile and portable radios from Communications International.
$273,121.04 - B. LAIRD
Category: Municipal Order
Staff Work By: William Hodges, Ariana
Kitty, Brian Laird
Presentation By: Brian Laird
Background Information: This radio purchase will provide new radio hardware for the Parks Department, Engineering
Department, and Public Works. These radios are necessary for communication on the new radio system that is being
installed. The pricing was previously negotiated and approved by the City and County under contract 2023-1 with
Communications International.
Does this Agenda Action Item align with a Commission Priority? Yes
If yes, please list the Commission Priority: Commission Priorities List
Communications Plan:
Account Name: Other Contractual Service
Funds Available:
Account Number: EQ0036-000-70000-70008
Staff Recommendation: Approve the purchase
Attachments:
1. MO - agree – Communications International – Parks, Engineering and Public Works
2.Paducah Add on Radios Rev E - 8-12-25 parks-engineering-etc PD purchase
MUNICIPAL ORDER NO. __________
A MUNICIPAL ORDER AUTHORIZING THE PURCHASE OF RADIOS AND
ACCESSORIES FROM COMMUNICATIONS INTERNATIONAL IN THE TOTAL
AMOUNT OF $273,121.04 TO BE USED BY THE PARKS, ENGINEERING AND PUBLIC
WORKS DEPARTMENTS AND AUTHORIZES THE MAYOR TO EXECUTE ALL
DOCUMENTS RELATING TO SAME
NOW, THEREFORE, BE IT ORDERED BY THE BOARD OF
COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY:
SECTION 1. The City Commission hereby authorizes the Mayor to execute all
documents related to the purchase ofradios and accessories from Communications International
in the amount of $273,121.04 for use by the Parks Department, Engineering Department and
Public Works Department.
SECTION 2. This expenditure will be paid from the City-Wide Radio Purchase,
Equipment Communication – Account Number EQ0036-000-70000-70008.
SECTION 3. This Order shall be in full force and effect from and after the date
of its adoption.
______________________________
George Bray, Mayor
ATTEST:
____________________________________
Claudia S. Meeks, Assistant City Clerk
Adopted by the Board of Commissioners, October 2, 2025
Recorded by Claudia S. Meeks, Assistant City Clerk, October 2, 2025
\\mo\\agree – Communications International – Parks, Engineering and Public Works
Quote
Date:8/12/2025
Valid Until 12/31/2025
Quote #:
P25 Mobile & Portable Radios under
contract 2023-01
City of Paducah
Presented by:
Capt. William Hodges
Wayne Farro, Regional Account
Manager
Unit Price vƷǤ9ǣƷĻƓķĻķ tƩźĭĻ5źƭĭƚǒƓƷ і
LƷĻƒ5źƭĭƚǒƓƷĻķ tƩźĭĻ
XL-45P Portables
$2,300.00 ЏЎυЊЍВͲЎЉЉ͵ЉЉ ЋЏі
PORTABLE, XL-45P, 7/800 MHZ, PH1, GRAY υЊЊЉͲЏЌЉ͵ЉЉ
$200.00 ЏЎυЊЌͲЉЉЉ͵ЉЉ ЊЉЉі
SERVICE ASSIST, EXT WARRANTY 3YR, XL45P bƚ /ŷğƩŭĻ
$0.01 ЏЎυЉ͵ЏЎ ЊЉЉі
OPERATION,LOAD NIFOG PERSONALITY bƚ /ŷğƩŭĻ
FEATURE,PROFILE OTAP OVER-THE-AIR
$350.00 ЏЎυЋЋͲАЎЉ͵ЉЉ ЊЉЉі
bƚ /ŷğƩŭĻ
PRGM
$275.00 ЏЎυЊАͲБАЎ͵ЉЉ ЊЉЉі
FEATURE,P25 PHASE 2 TDMA bƚ /ŷğƩŭĻ
$0.01 ЏЎυЉ͵ЏЎ ЊЉЉі
FEATURE, ENCRYPTION LITE bƚ /ŷğƩŭĻ
$0.01 ЏЎυЉ͵ЏЎ ЊЉЉі
FEATURE,SINGLE-KEY AES ENCRYPTION bƚ /ŷğƩŭĻ
$0.01 ЏЎυЉ͵ЏЎ ЊЉЉі
FEATURE,SINGLE-KEY DES ENCRYPTION bƚ /ŷğƩŭĻ
υЋЉͲЊЎЉ͵ЉЉ ЊЉЉі
$310.00 ЏЎbƚ /ŷğƩŭĻ
GPS OPTION - XL-45
υЋЎͲЏАЎ͵ЉЉ ЊЉЉі
$395.00 ЏЎbƚ /ŷğƩŭĻ
WI-FI OPTION - XL-45
$155.00 ЏЎυЊЉͲЉАЎ͵ЉЉ ЋЏі
BATTERY,LI-ION,3100MAH υАͲЍЎЎ͵ЎЉ
$45.00 ЏЎυЋͲВЋЎ͵ЉЉ ЋЏі
ANTENNA,WHIP,1/4 WAVE,762-870MHZ υЋͲЊЏЍ͵ЎЉ
$20.00 ЏЎυЊͲЌЉЉ͵ЉЉ ЋЏі
BELT CLIP,STANDARD,XL-45 υВЏЋ͵ЉЉ
$170.00 ЏЎυЊЊͲЉЎЉ͵ЉЉ ЋЏі
CHARGER,1-BAY,TRI-CHEMISTRY υБͲЊАА͵ЉЉ
Portable Profile Development &
$46.93 ЏЎυЌͲЉЎЉ͵ЍЎ Љі
υЋͲЋЎА͵ЌЌ
Programming
$131,646.33
Options/Accessories
$175.00 ЊυЊАЎ͵ЉЉ ЋЏі
SPEAKER MIC, STRAIGHT CORD υЊЋВ͵ЎЉ
$160.00 ЊυЊЏЉ͵ЉЉ ЋЏі
SPEAKER MIC, COILED CORD υЊЊБ͵ЍЉ
$920.00 ЊυВЋЉ͵ЉЉ ЋЏі
υЏБЉ͵БЉ
6-BAY CHARGER, TRI-CHEMISTRY
XL-85M Mobile Radio - Front Mount
Unit Price vƷǤ9ǣƷĻƓķĻķ tƩźĭĻ5źƭĭƚǒƓƷ і
LƷĻƒ5źƭĭƚǒƓƷĻķ tƩźĭĻ
ЌЎυБАͲЎЉЉ͵ЉЉ ЋЏі
υЏЍͲАЎЉ͵ЉЉ
MOBILE, XL-85M, 700/800 MHZ$ 2,500.00
ЌЎυВͲЏЋЎ͵ЉЉ ЊЉЉі
bƚ /ŷğƩŭĻ
SERVICE ASSIST, EXT WARRANTY 3YR, XL85M$ 275.00
ЌЎυЊЌͲБЋЎ͵ЉЉ ЊЉЉі
bƚ /ŷğƩŭĻ
FEATURE P25 OTAP PROFILE$ 395.00
ЌЎυЉ͵ЌЎ ЋЏі
υЉ͵ЋЏ
FEATURE, SINGLE-KEY DES ENCRYPTION$ 0.01
ЌЎυЉ͵ЌЎ ЋЏі
υЉ͵ЋЏ
FEATURE, SINGLE-KEY AES ENCRYPTION$ 0.01
ЌЎυВͲЏЋЎ͵ЉЉ ЊЉЉі
bƚ /ŷğƩŭĻ
FEATURE, PHASE 2 TDMA$ 275.00
ЌЎυЉ͵ЌЎ ЋЏі
υЉ͵ЋЏ
FEATURE, SINGLE BAND, 7/800$ 0.01
ЌЎυЍЋͲЉЉЉ͵ЉЉ ЋЏі
υЌЊͲЉБЉ͵ЉЉ
FEATURE PACKAGE, P25 TRUNKING$ 1,200.00
ЌЎυЌͲЏАЎ͵ЉЉ ЊЉЉі
bƚ /ŷğƩŭĻ
MICROPHONE, XL, STANDARD MOBILE$ 105.00
ЌЎυЌͲЎЉЉ͵ЉЉ ЋЏі
υЋͲЎВЉ͵ЉЉ
ANTENNA, ELEMENT, 700/800 3DB$ 100.00
ЌЎυЋͲБЉЉ͵ЉЉ ЋЏі
υЋͲЉАЋ͵ЉЉ
ANTENNA, BASE, STD ROOF MOUNT LOW LOSS$ 80.00
ЌЎυЋͲЊЉЉ͵ЉЉ ЋЏі
υЊͲЎЎЍ͵ЉЉ
SPEAKER, EXTERNAL, MOBILE$ 60.00
ЌЎυБͲАЎЉ͵ЉЉ ЋЏі
υЏͲЍАЎ͵ЉЉ
KIT, MOUNTING XL-85 MOBILE UNIVERSAL$ 250.00
ЌЎυЌͲЉЍЎ͵ЉЉ ЋЏі
υЋͲЋЎЌ͵ЌЉ
CABLE, POWER, XL-CH$ 87.00
$ 57.93 ЌЎυЋͲЉЋА͵ЎЎ Љі
Profile Development & Programming υЋͲЉЋА͵ЎЎ
ЌЎυЋЋͲАБВ͵ВЉ Љі
$651.14 υЋЋͲАБВ͵ВЉ
Front Mount Radio Installation
ЉυЉ͵ЉЉ Љі
Removal of Existing Radio$141.09 υЉ͵ЉЉ
$135,592.53
Options/Accessories
υЏЉЉ͵ЉЉ ЋЏі
υЍЍЍ͵ЉЉ
GPS Kit$600.00 $1.00
XL-85M Control Station
Unit Price vƷǤ9ǣƷĻƓķĻķ tƩźĭĻ5źƭĭƚǒƓƷ і
LƷĻƒ5źƭĭƚǒƓƷĻķ tƩźĭĻ
υЋͲЎЉЉ͵ЉЉ ЋЏі
ЊυЊͲБЎЉ͵ЉЉ
MOBILE, XL-85M, 700/800 MHZ$ 2,500.00
υЋАЎ͵ЉЉ ЊЉЉі
Њbƚ /ŷğƩŭĻ
SERVICE ASSIST, EXT WARRANTY 3YR, XL85M$ 275.00
υЌВЎ͵ЉЉ ЊЉЉі
Њbƚ /ŷğƩŭĻ
FEATURE P25 OTAP PROFILE$ 395.00
υЉ͵ЉЊ ЋЏі
Њbƚ /ŷğƩŭĻ
FEATURE, SINGLE-KEY DES ENCRYPTION$ 0.01
υЉ͵ЉЊ ЋЏі
Њbƚ /ŷğƩŭĻ
FEATURE, SINGLE-KEY AES ENCRYPTION$ 0.01
υЋАЎ͵ЉЉ ЋЏі
Њbƚ /ŷğƩŭĻ
FEATURE, PHASE 2 TDMA$ 275.00
υЉ͵ЉЊ ЋЏі
Њbƚ /ŷğƩŭĻ
FEATURE, SINGLE BAND, 7/800$ 0.01
υЊͲЋЉЉ͵ЉЉ ЋЏі
ЊυБББ͵ЉЉ
FEATURE PACKAGE, P25 TRUNKING$ 1,200.00
SPEAKER, EXTERNAL, MOBILE$60.00
υЏЉ͵ЉЉ ЋЏі
ЊυЍЍ͵ЍЉ
MICROPHONE, XL-MOBILE, DESKTOP$245.00
υЋЍЎ͵ЉЉ ЋЏі
ЊυЊБЊ͵ЌЉ
KIT, MOUNTING XL-85 MOBILE UNIVERSAL$250.00
υЉ͵ЉЉ ЋЏі
ЉυЉ͵ЉЉ
Control Station Power Supply & Antenna $1,944.83
υЊͲВЍЍ͵БЌ ЋЏі
ЊυЊͲЍЌВ͵ЊА
Package
Profile Development & Programming$66.93
υЏЏ͵ВЌ Љі
ЊυЏЏ͵ВЌ
Control Station Installation$1,412.38
υЊͲЍЊЋ͵ЌБ Љі
ЊυЊͲЍЊЋ͵ЌБ
Removal of Existing Radio$141.09
υЉ͵ЉЉ Љі
ЉυЉ͵ЉЉ
υЉ͵ЉЉ
υЎͲББЋ͵ЊБ
TOTAL EQUIPMENT & SERVICES$273,121.04
Removal of Existing Radio$141.09
υЊЍЊ͵ЉВ Љі
ЊυЊЍЊ͵ЉВ
Radios for:
Engineering
Parks
Public Works
Agenda Action Form
Paducah City Commission
Meeting Date: October 2, 2025
Short Title: Employment agreement to re-hire retired police officer Travis Counts - B. LAIRD
Category: Municipal Order
Staff Work By: Brian
Laird, Jordan Murphy
Presentation By: Brian
Laird
Background Information: Travis Counts worked as a police officer for the Paducah Police Department
from 2001-2025. He retired in good standing and is eligible for rehire. Kentucky Revised Statutes allow for
the re-hire of retired police officers and the Kentucky Retirement System requires an annual contract for retired
police officers to return to work. Upon re-hire under a contract, the City is not required to pay into the pension
system for the employee and does not pay for health insurance.
Does this Agenda Action Item align with a Commission Priority? No
If yes, please list the Commission Priority: Commission Priorities List
Communications Plan:
Account Name:
Funds Available:
Account Number:
Staff Recommendation: Approve agreement
Attachments:
1. MO - agree-employment – Travis Counts – PD
2.Travis Counts Employee Agreement 2025
MUNICIPAL ORDER NO. _________
A MUNICIPAL ORDER APPROVING AN EMPLOYMENT AGREEMENT BETWEEN THE
CITY OF PADUCAH AND POLICE OFFICER TRAVIS COUNTS, AND AUTHORIZING
THE MAYOR TO EXECUTE SAME
BE IT ORDERED BY THE CITY OF PADUCAH, KENTUCKY:
SECTION 1. Authorization. The Board of Commissioners of the City of
Paducah hereby approves and the Mayor of the City of Paducah, Kentucky, is hereby authorized
to execute an Employment Agreement with Police Officer Travis Countsto be employed in the
Paducah Police Department.
SECTION 2. Effective Date. This Order shall be in full force and effect on and
after the date as approved by the Board of Commissioners of the City of Paducah, Kentucky.
_______________________________
George Bray, Mayor
ATTEST:
______________________________________
Claudia Meeks, Assistant City Clerk
Adopted by the Board of Commissioners, October 2, 2025
Recorded by Claudia Meeks, Assistant City Clerk, October 2, 2025
\\mo\\agree-employment – Travis Counts – PD
Agenda Action Form
Paducah City Commission
Meeting Date: October 2, 2025
Short Title: Approve contract with Motorola to re-program existing radios for the Police Department.
$237,420.22 - B. LAIRD
Category: Municipal Order
Staff Work By: Ariana Kitty, William
Hodges, Brian Laird
Presentation By: Brian Laird
Background Information: This flash programming will update existing Police APX4000 and APX4500
radios to operate on the new P25 radio system. This programming is necessary for existing Motorola radios to
operate on the L3Harris radio system while eliminating the need to purchase brand-new portable and mobile
radios for the police department.
Does this Agenda Action Item align with a Commission Priority? Yes
If yes, please list the Commission Priority: Commission Priorities List
Communications Plan:
Account Name: Other Contractual Service
Funds Available:
Account Number: EQ0036-000-70000-70008
Staff Recommendation: Approve the contract
Attachments:
1. MO - agree –Motorola - PD
2.PaducahPD_QUOTE-3311355-1PhaseIIAPX4000
3.PaducahPD_QUOTE-3311435-1PhaseIIAPX4500Mobile
MUNICIPAL ORDER NO. __________
A MUNICIPAL ORDER AUTHORIZING A CONTRACT WITH MOTOROLA IN THE
AMOUNT OF $237,420.22 TO RE-PROGRAM EXISTING RADIOS FOR THE POLICE
DEPARTMENT, AND AUTHORIZING THE MAYOR TO EXECUTE ALL DOCUMENTS
RELATING TO SAME
NOW, THEREFORE, BE IT ORDERED BY THE BOARD OF
COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY:
SECTION 1.TheCityCommissionhereby authorizes the Mayor to execute a
contract with Motorolain the amount of $237,420.22 to re-program existing radios for the Police
Department.
SECTION 2. This expenditure will be paid from “Other Contractual Services”
Account Number EQ0036-000-70000-70008.
SECTION 3. This Order shall be in full force and effect from and after the date
of its adoption.
______________________________
George Bray, Mayor
ATTEST:
____________________________________
Claudia S. Meeks, Assistant City Clerk
Adopted by the Board of Commissioners, October 2, 2025
Recorded by Claudia S. Meeks, Assistant City Clerk, October 2, 2025
\\mo\\agree – Motorola - PD
Agenda Action Form
Paducah City Commission
Meeting Date: October 2, 2025
Short Title: Purchase One (1) SUV for use by the Fire Department - C. YARBER
Category: Municipal Order
Staff Work By: Jim Scutt,
Debbie Collins
Presentation By: Chris Yarber
Background Information: On August 28, 2025 sealed written bids were opened for the purchase of One (1)
SUV to be used by the Fire Department. One bid was received. Linwood Motors was the responsive and
responsible bidder in accordance with the specifications at a price of $43,902.00.
Does this Agenda Action Item align with a Commission Priority? No
If yes, please list the Commission Priority: Commission Priorities List
Communications Plan:
Account Name: Fleet Lease Trust Fund
Funds Available:
Account Number: 71000210 540050
Staff Recommendation: To receive and file the bid and adopt a Municipal Order authorizing the Mayor to
execute an agreement with Linwood Motors for the Purchase of One (1) SUV for use by the Fire Department in
accordance with the specifications in the amount of $43,902.00.
Attachments:
1.MO - Linwood Motors - Fire SUV
2.00020 - Invitation to Bid
3.Bid Tab -One (1) SUV - Fire Dept
4.Spec Pick Up List
5.LINWOOD BID
6.0050 - Agreement_proposed_signed
MUNICIPAL ORDER NO. _________
A MUNICIPAL ORDER ACCEPTING THE BID OF LINWOOD MOTORS FOR SALE TO
THE CITY OF PADUCAH ONE (1) SUV FOR USE BY THE PADUCAH FIRE
DEPARTMENT IN THE AMOUNT OF $43,902, AND AUTHORIZING THE MAYOR TO
EXECUTE A CONTRACT FOR SAME
BE IT ORDERED BY THE CITY OF PADUCAH, KENTUCKY:
SECTION 1. The City of Paducah accepts the bid of Linwood Motors for one (1)
SUVin the amount of $43,902 for use by the Paducah FireDepartment, said bid being in
substantial compliance with bid specifications, and as contained in the bid of Linwood Motors of
August 28, 2025.
SECTION 2. The Mayor is hereby authorized to execute a contract with Linwood
Motors for the purchase of one (1) SUV in the amount of $43,902, for use by the Paducah Fire
Department, authorized in Section 1 above, according to the specifications, bid proposal and all
contract documents heretofore approved and incorporated in the bid. In addition, Linwood
Motors.
SECTION 3. This purchase shall be charged to Fleet Lease Trust Fund Account
No. 71000210-540050.
SECTION 4. This Order shall be in full force and effect from and after the date
of its adoption.
_____________________________
George Bray, Mayor
ATTEST:
____________________________________
Claudia Meeks, Assistant City Clerk
Adopted by the Board of Commissioners, October 2, 2025
Recorded by Claudia Meeks, Assistant City Clerk, October 2, 2025
MO\\Linwood Motors - Fire SUV
00020
INVITATION TO BID
PAGE 1 OF 1
INVITATION TO BID
RECEIPT OF PROPOSALS:
The City of Paducah, Public Works Department will receive sealed bids for the purchase of ONE
(1) SUV for use by the PADUCAH FIRE DEPARTMENT on Thursday, August 28, 2025 at 1:00 P.M.
CST. All Bids received will be publicly opened and read aloud in the Commission Chambers, Second
Floor, City Hall, 300 South 5th Street, Paducah, Kentucky.
OBTAINING CONTRACT DOCUMENTS:
Copies of specifications may be obtained at the office of the Public Works Fleet Department
th
located at 1120 North 10 Street.
BID EVALUATION - AWARD OF CONTRACT
After reasonable consideration of all bids received, a Notice of Award will be given to the
responsible bidder who submits the responsive bid of the lowest evaluated bid price in accordance
with the specifications.
PREFERENCE TO KENTUCKY BIDDERS
In accordance with KRS 45A.365, prior to a contract being awarded, a resident bidder of the
Commonwealth shall be given a preference against a non-resident bidder registered in any state that
gives or requires a preference to bidders from that state. The preference shall be equal to the preference
given or required by the state of the non-resident bidder.
EQUAL EMPLOYMENT OPPORTUNITY
The Contractor shall ensure that employees and applicants for employment are not discriminated
against because of their race, religion, color, sex, national origin, age or disability.
DRUG FREE WORKPLACE
The City of Paducah has adopted a Drug and Alcohol Free Workplace Policy in compliance with
803 KAR 25.280, in which drug and alcohol use and abuse in the workplace is prohibited. All contractors
and subcontractors doing business for the City of Paducah shall adhere to this policy.
OWNER'S RIGHTS RESERVED:
The City reserves the right to reject a
Code of Ordinances and the Specifications.
CITY OF PADUCAH, KENTUCKY
PUBLIC WORKS DEPARTMENT
One (1) SUV - Fire Dept
LOWEST EVALUATED BID
BID OPENING: 1:00 p.m. CST on Thursday, August 28, 2025
OFFICIAL BIDDER OF RECORDLinwood Motors
Contact: Jake Brenningmeyer
Mailing Address: 3345 Park Ave
Paducah, KY 42001
One (1) SUV$43,902.00
Delivery Time3-6 Months
Manufacturer:Dodge
DOCUMENTS REQUIRED FOR COMPLIANCE SUBMITTED:
1. Bidder's Required Certification
Yes
2. Manufacturer Specifications
Yes
3. Warranty Information
Yes
4. Compliance with Tech Specs form
Yes
5. Deviations with Information
None
6. Addendum Signed and Included
N/A
Kentucky State Bidder
Yes
Responsive & Responsible Bidder:
Yes
Evaluation Score:
1000.00
BID RECOMMENDED FOR ACCEPTANCE
Yes
Agenda Action Form
Paducah City Commission
Meeting Date: October 2, 2025
Short Title: Fleet Maintenance Service Agreement between the City of Paducah Fleet Division and City of
Wickliffe, KY - C. YARBER
Category: Municipal Order
Staff Work By: Jim
Scutt, Debbie Collins
Presentation By: Chris
Yarber
Background Information: On September 23, 2025, a Fleet Maintenance Service Agreement was entered
into for the City of Paducah Fleet Division to provide all professional labor, materials, equipment, and
operations necessary for scheduled maintenance, upkeep, repair and preventive maintenance, pursuant to the
fee schedule for the City of Wickliffe, KY.
Does this Agenda Action Item align with a Commission Priority? No
If yes, please list the Commission Priority: Commission Priorities List
Communications Plan:
Account Name:
Funds Available:
Account Number:
Staff Recommendation: Approve a Municipal Order for the Fleet Maintenance Service Agreement for the
City of Paducah Fleet Division to provide all professional labor, materials, equipment, and operations necessary
for scheduled maintenance, upkeep, repair and preventive maintenance, pursuant to the fee schedule for the
City of Wickliffe, KY.
Attachments:
1. MO - agree-fleet maintenance services – City of Wickliffe, Kentucky
2.City of Wickliffe_Service Ageement
MUNICIPAL ORDER NO. _____________
A MUNICIPAL ORDER APPROVING A FLEET MAINTENANCE,
MOTORIZED EQUIPMENT AND EMERGENCY APPARATUS SERVICE
AGREEMENT WITHCITY OF WICKLIFFE, KENTUCKY TO PROVIDE
FLEET MAINTENANCE SERVICES AT HOURLY RATES AND
AUTHORIZING THE EXECUTION OF ALL DOCUMENTS RELATED TO
SAME
WHEREAS, the City of Paducah wishes to enter into a Fleet Maintenance Service
Agreement with City of Wickliffe, Kentucky for the City of Paducah Fleet Department to
provide fleet services at hourly rates.
NOW, THEREFORE, BE IT ORDERED BY THE CITY OF PADUCAH,
KENTUCKY:
SECTION 1. That the Board of Commissioners hereby authorizes the Mayor to
execute the City of Paducah Fleet Maintenance, Motorized Equipment and Emergency
Apparatus Service Agreement (hereinafter the “Agreement”) with City of Wickliffe, Kentucky in
substantially the form attached hereto and made part hereof (Exhibit A).
SECTION 2. That the hourly labor rates are as follows:
Shop Hourly Labor Rate
Heavy Truck $95 per hour
Heavy Equipment $95 per hour
Passenger Vehicle$95 per hour
Light Truck$95 per hour
Small Engine$95 per hour
SECTION 3. That the initial term of the Agreement shall be for a period of one
(1) year. Such term shall automatically renew at the end of the Initial Term unless either party
terminates the Agreement upon sixty days written notice in accordance with Paragraph 7 of the
Agreement. In addition, the City of Paducah may terminate the Agreement with cause upon a
thirty-day written notice for non-payment of fees.
SECTION 4. This Order shall be in full force and effect from and after the date
of its adoption.
______________________________________
George Bray, Mayor
ATTEST:
___________________________________
Claudia S. Meeks, Assistant City Clerk
Adopted by the Board of Commissioners, October 2, 2025
Recorded by Claudia S. Meeks, Assistant City Clerk, October 2, 2025
mo/agree-fleet maintenance services – City of Wickliffe, KY
Agenda Action Form
Paducah City Commission
Meeting Date: October 2, 2025
Short Title: Authorize the Acceptance of a Community Development Block Grant in the Amount of
$583,406 - H. REASONS
Category: Municipal Order
Staff Work
By: Hope
Reasons
Presentation
By: Hope
Reasons
Background Information: On September 16, 2024, the City of Paducah received notification from the US
Department of Housing and Urban Development that Paducah had been selected as an entitlement community
for the purpose of Community Development Block Grant funding. The City of Paducah accepted the
designation and was allocated $583,406 in funding for the 2025-26 federal fiscal year. On August 12, 2025, the
Commission approved Municipal Order 3105 to submit a 5-year Consolidated Plan to the US Department of
Housing and Urban Development describing local needs and plans for allocating the funding. The Consolidated
Plan was submitted and approved, and now the City has received the Grant Agreement for signature to release
the funding. This action will authorize the mayor to execute any necessary additional agreements to ensure
funding in future years for the life of the 5-year Consolidated Plan.
Does this Agenda Action Item align with a Commission Priority? No
If yes, please list the Commission Priority: Commission Priorities List
Communications Plan:
Account Name:
Funds Available:
Account Number:
Staff Recommendation: Authorize the acceptance of the CDBG Grant and the Mayor to sign all documents
related to same.
Attachments:
1. MO acceptance – CDBG Grant - $583,406
MUNICIPAL ORDER NO. _________
MUNICIPAL ORDER ACCEPTING A COMMUNITY DEVELOPMENT
BLOCK GRANT IN THE AMOUNT OF $583,406 AND AUTHORIZING THE
MAYOR TO EXECUTE ALL REQUIRED GRANT AWARD DOCUMENTS
WHEREAS, on September 16, 2024, the City of Paducah received notification
from the US Department of Housing and Urban Development that Paducah had been selected as
an entitlement community for the purpose of Community Development Block Grant funding.
The City of Paducah accepted designation and was allocated $583,406 in funding for the 2025-
2026 federal fiscal year; and
WHEREAS, on August 12, 2025, the Commission approved Municipal Order
3105 to submit a 5-year Consolidated Plan to the US Department of Housing and Urban
Development, describing local needs and plans for allocating the funding; and
WHEREAS, the City has received the Grant Agreement for signature to release
the funding.
NOW, THEREFORE, BE IT ORDERED BY THE CITY OF PADUCAH,
KENTUCKY:
SECTION 1. That the Board of Commissioners hereby authorizes the Mayor to
sign the Grant Agreement and all other documents necessary to release funding. Further, the
Mayor is hereby authorized to execute any additional agreements as necessary to ensure funding
in future years for the life of the Consolidated Plan.
SECTION 2. This order shall be in full force and effect from and after the date
of its adoption.
______________________________
George Bray, Mayor
ATTEST:
______________________________
Claudia S. Meeks, Assistant City Clerk
Adopted by the Board of Commissioners, October 2, 2025
Recorded by Claudia S. Meeks, Assistant City Clerk, October 2, 2025
\\mo\\grants\\acceptance – CDBG Grant - $583,406
Agenda Action Form
Paducah City Commission
Meeting Date: October 2, 2025
Short Title: Authorize the Acceptance of a FEMA Assistance to Firefighters Grant in the Amount of
$51,818 - S.KYLE
Category: Municipal Order
Staff Work By: Chris
Owens, Hope Reasons
Presentation By: Steve
Kyle
Background Information: The Assistance to Firefighters Grant (AFG) is an annual grant program
administered by the Federal Emergency Management Agency (FEMA) that offers grant funding to fire
departments across the country. The grants focus on enhancing the safety of firefighters, and therefore public,
with respect to fire and fire-related hazards. The AFG program provides funding for critical training and
equipment. The Paducah Fire Department has been awarded $51,818 in federal funding for Fire Ground
Survival Training and an additional prop for the training. The Fire Department will be required to contribute a
10% match in the amount of $5,818 for a total project cost of $57,636.
Does this Agenda Action Item align with a Commission Priority? No
If yes, please list the Commission Priority: Commission Priorities List
Communications Plan:
Account Name:
Funds Available:
Account Number:
Staff Recommendation: Authorize the acceptance of the FEMA Assistance to Firefighters Grant and the
Mayor to sign all documents related to same.
Attachments:
1. MO - acceptance – FEMA AFG - Fire Ground Survival Training
MUNICIPAL ORDER NO. _________
MUNICIPAL ORDER ACCEPTING A FEDERAL EMERGENCY
MANAGEMENT AGENCY ASSISTANCE TO FIREFIGHTERS GRANT IN
AN AMOUNT OF $51,818 FOR THE PADUCAH FIRE DEPARTMENT AND
AUTHORIZING THE MAYOR TO EXECUTE ALL REQUIRED GRANT
AWARD DOCUMENTS
WHEREAS, on November 27, 2024, the Paducah Board of Commissioners
approved Municipal Order #2988, approving a Grant Application in the amount of $51,300 for
Fire Ground Survival Training and an additional prop for training; and
WHEREAS, the City has been awarded $51,818 in federal funding for Fire
Ground Survival Training and an additional prop for the training.
NOW, THEREFORE, BE IT ORDERED BY THE CITY OF PADUCAH,
KENTUCKY:
SECTION 1. That the Board of Commissioners hereby authorizes the Mayor to
sign any documents relating to the award of grant funding in the amount of $51,818.
SECTION 2. The grant required a 10% match in the amount of $5,818, for a total
project cost of $57,636. This match amountshall be paid through Account Number 1000 1801
523070 (Other Contractual Services).
SECTION 3. This order shall be in full force and effect from and after the date
of its adoption.
______________________________
George Bray, Mayor
ATTEST:
______________________________
Claudia S. Meeks, Assistant City Clerk
Adopted by the Board of Commissioners, October 2, 2025
Recorded by Claudia S. Meeks, Assistant City Clerk, October 2, 2025
\\mo\\grants\\acceptance – FEMA -AFG – Fire Ground Survival Training
Agenda Action Form
Paducah City Commission
Meeting Date: October 2, 2025
Short Title: Authorize the purchase of real property located at 3047 Jackson Street from Midway
Management, LLC for an amount not to exceed $762,850. - B. LAIRD
Category: Municipal Order
Staff Work By: Daron
Jordan, Brian Laird
Presentation By: Brian
Laird
Background Information: The police department headquarters is in need of replacement and the current
location does not meet the current and future needs. Property located at 3047 Jackson Street, consisting of
approximately 7 1/2 -8 acres, has been identified as the best available location to re-locate and construct a new
police department. With Commission approval, and under the direction of the City Manager, a broker acting on
behalf of the City negotiated a per acre price for the property. On September 17, 2025, Midway Management,
LLC signed a Letter of Intent to sell the property to the City for $95,000 per acre. The exact sale price will be
determined upon the completion of an accurate boundary survey.
The purchase is contingent upon acceptable results of environmental testing and other items outlined in the
Letter of Intent and purchase agreement.
Does this Agenda Action Item align with a Commission Priority? No
If yes, please list the Commission Priority: Commission Priorities List
Communications Plan:
Account Name: Police Headquarters
Funds Available:
Account Number: PO0137-000-70000-70008
Staff Recommendation: Approve the property purchase in an amount not to exceed $762,850 plus all
closing costs.
Attachments:
1.MO - prop purchase -3047 Jackson Street
2.ESCROW AGREEMENT 3047 Jackson Street
3.REAL ESTATE SALE AND PURCHASE AGREEMENT - 3047 JACKSON STREET (CITY OF
PADUCAH)
MUNICIPAL ORDER NO. ___________
A MUNICIPAL ORDER AUTHORIZINGPURCHASE OF REAL
PROPERTY LOCATED AT 3047 JACKSON STREET, PADUCAH,
McCRACKEN COUNTY, KENTUCKY
WHEREAS, the Midway Management, LLC owns certain real property located at 3047
Jackson Street, Paducah, Kentucky (hereinafter “Property”); and
WHEREAS, the City of Paducah desires to acquire said Property fromMidway
Management, LLC; and
WHEREAS, the City of Paducah has offered, and Midway Management, LLC has
accepted, an offer to purchase said Property for $95,000 per acre; and
WHEREAS, the total number of acres shall be determined based on a boundary survey
but it is estimated to contain approximately 8.0 acres;
WHEREAS, the Board of Commissioners of the City of Paducah find that the acquisition
of the Property for the amount of $95,000 per acre is reasonable and fair, advances a particular
public purpose of the City, and is in the best interest of the City.
NOW, THEREFORE, IT IS ORDERED BY THE BOARD OF COMMISSIONERS OF
THE CITY OF PADUCAH, KENTUCKY:
Section 1. Recitals and Authorizations. The Board of Commissioners declares that the
acquisition of the Property by the City of Paducah advances a particular public purpose of the
City, is in the best interest of the Cityand is hereby approved and authorized.
Section 2. Recitals and Authorizations. That the Mayor of the City of Paducah,
Kentucky be and is hereby authorized to purchase on behalf of the City said Property for and in
consideration of Ninety-Five Thousand Dollars ($95,000) per acre, which total amount shall be
1
determined by a boundary survey but that such total shall not exceed Seven Hundred Sixty
Thousand Dollars ($762,850). The Mayor is further authorized to execute all documentation
necessary to effectuate the transferof the Propertytothe City of Paducah.
Section 3. Earnest Money Deposit. The Finance Department for the City of Paducah is
hereby authorized to issue a check in the amount of Ten Thousand Dollars ($10,000) to Keuler,
Kelly, Hutchins, Blankenship & Sigler, LLP to be held in its escrow account and to be applied to
the purchase price at the time of closing, as more particularly described in the Real Estate
Closing Escrow Agreement, attached hereto as Exhibit A.
Section 4. Realtor’s Commission. The Finance Department is further authorized to issue
a check to Trifecta Real Estate Services, who served as realtor with respect to this transaction, for
a total of 5 percent of the final purchase price, not to exceed $38,142.50.
Section 5. Purchase Price. The Finance Department for the City of Paducah is further
authorized to distribute funds for the purchase price of this property, as more particularly
described in the Real Estate Purchase Agreement, attached hereto as Exhibit B.
Section 6. Severability. If any section, paragraph or provision of this Ordershall be held
to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section,
paragraph or provision shall not affect any of the remaining provisions of this Order.
Section 7. Compliance with Open Meetings Laws. The City Commission hereby finds
and determines that all formal actions relative to the adoption of this Order were taken in an open
meeting of the City Commission, and that all deliberations of this City Commission and of its
committees, if any, which resulted in formal action, were in meetings open to the public, in full
compliance with applicable legal requirements.
2
Section 8. Conflicts. All ordinances, resolutions, orders or parts thereof in conflict with
the provisions of this Order are, to the extent of such conflict, hereby repealed and the provisions
of this Order shall prevail and be given effect.
Section 9. Effective Date. This Order shall be in full force and effect on and after the
date as approved by the Board of Commissioners of the City of Paducah, Kentucky.
__________________________________________
George P. Bray, Mayor
ATTEST:
________________________________
Claudia S. Meeks, Assistant City Clerk
Adopted by the Board of Commissioners, October 2, 2025.
Recorded by Claudia S. Meeks, Assistant City Clerk, October 2, 2025.
MO/prop purchase 3047 Jackson Street
3
REAL ESTATE CLOSING ESCROW AGREEMENT
THIS ESCROW AGREEMENT (the “Agreement”) is made and entered
into as of the Effective Date hereinafter defined by and among THE CITY OF PADUCAH,
KENTUCKY,hereinafter referred to as "Buyer," and MIDWAY MANAGEMENT, LLC,
hereinafter referred to as "Seller," and Keuler, Kelly, Hutchins, Blankenship & Sigler, LLP,
th
a limited liability partnership, of 100 South 4Street, Suite 400, Paducah, KY 42001,
hereinafter referred to as “Escrow Holder.”
WITNESSETH:
WHEREAS, Buyer and Seller have entered into a Real Estate Purchase Agreement
dated as of October ______, 2025, (the “Principal Agreement”) for the purchase and sale
of that certain tract of real property located in McCracken County, Kentucky and which is
commonly known as 3047 Jackson Street and is more particularly described in the Principal
Agreement,which provides, among other things, for the deposit by Buyer into escrow of
the amount of Ten Thousand Dollars ($10,000.00), as an earnest money deposit more
particularly described in Section 1 of the Principal Agreement (the “Deposit”); and
WHEREAS, at the request of Buyer and Seller, Escrow Holder has agreed to hold
and administer the Deposit subject to and in accordance with the provisions of the Principal
Agreement and this Agreement;
NOW, THEREFORE, in consideration of the premises, for other valuable
consideration, the receipt of which is hereby acknowledged, and intending to be legally
bound, it is hereby agreed as follows:
1. Escrow and Deposit. Buyer will deposit with Escrow Holder the Deposit as
required under the terms and provisions of the Principal Agreement, the Deposit to be held
in escrow by the Escrow Holder in a non-interest bearing account maintained at
INDEPENDENCE BANK and shall be paid in accordance with the provisions of Section
2 of this Agreement.
2. Disposition of the Deposit. Buyer and Seller presently intend that the
closing of the transactions contemplated by the Principal Agreement (the “Closing”) will
take place on or before one-hundred eighty (180) days from the effective date of the
Principal Agreement, (the “Closing Date”) and that in conjunction with such Closing the
Deposit shall be applied to the amounts due from Buyer to Seller pursuant to the Principal
Agreement. In any event, the preceding sentence notwithstanding, Escrow Holder is
authorized and directed by Buyer and Seller to continue holding the Deposit until, and to
dispose of the same when, but only when, either Escrow Holder receives joint written
instructions for the disposition of same signed by both Buyer and Seller or by duly
authorized representatives of both Buyer and Seller, in which case (i) Escrow Holder shall
dispose of the Deposit in accordance with such instructions, or (ii) Escrow Holder has
delivered the Deposit to a “Successor”, as defined in Section 6 of this Agreement, in
connection with the resignation of Escrow Holder pursuant to Section 6 of this Agreement,
1
or (iii) in accordance with a final and non-appealable order of a court having jurisdiction
over the parties of this Agreement and the disposition of the Deposit.
3. Cost of Services. The services of the Escrow Holder under this Agreement
shall be provided without a fee to Buyer or Seller. However, Seller and Buyer specifically
agree to share equally and promptly pay all out-of-pocket costs and expenses incurred by
Escrow Holder under this Agreement.
4. Role of Escrow Holder. The Escrow Holder is acting under this Agreement
as a depository only. The Escrow Holder shall not be liable for any act or omission
whatsoever by it under or in connection with this Agreement except to the extent the same
constitutes bad faith, negligence or willful misconduct. Without limitation of the preceding
sentence, it is agreed that:
A. In the event of a disagreement between Seller and Buyer or any person or
entity claiming under or through Seller and Buyer with regard to the Deposit or the
obligations of the Escrow Holder under this Agreement, and without limitation of the right
of the Escrow Holder to deliver the Deposit to a Successor and resign pursuant to Section
6 of this Agreement, the Escrow Holder shall be entitled to commence an interpleader
action in the McCracken County Circuit Court to resolve the controversy (“Applicable
Court”) and to pay the Deposit to the clerk of the Applicable Court. Each of the parties to
this Agreement agrees for the purpose of any such interpleader action to submit to the
jurisdiction of the Applicable Court, and to pay or reimburse Escrow Holder, promptly
upon written request of Escrow Holder made from time to time for all costs and expenses,
including but not limited to reasonable attorneys’ fees, incurred by Escrow Holder as a
result of, arising out of or connected with such action.
B. The Escrow Holder shall not be responsible or liable in any manner
whatsoever hereunder for the sufficiency, correctness, genuineness or validity of any
document or instrument or for the identity, authority or rights of any person or entity
executing or depositing any such document or instrument, and the Escrow Holder shall be
protected in acting hereunder upon any notice, request, waiver, consent, receipt, document
or any other writing believed by the Escrow Holder to be genuine and to have been made,
signed, sent or presented by the party or parties purporting to have done so. The Escrow
Holder shall not be responsible or liable for any mistake in fact or law or otherwise absent
willful misconduct, bad faith or gross neglect.
C. Anything contained in this Agreement or the Principal Agreement to the
contrary notwithstanding, the duties, responsibilities and immunities of the Escrow Holder
under this Agreement shall be determined solely pursuant to the provisions of this
Agreement. Moreover, the Escrow Holder shall have no duties under this Agreement
except those which are expressly set forth herein.
D. The Escrow Holder shall not be bound by or charged with notice of any
transfer or assignment,in whole or in part, made by a party to this Agreement or its
2
successor or assigns, unless or until written notice thereof is delivered to and acknowledged
by the Escrow Holder.
E. Notwithstanding its relationship to the parties under this Agreement, the
Escrow Holder shall have the right to represent Buyer in the interpleader action following
the payment of the Escrow Fund to the clerk of the Applicable Court or to a Successor
pursuant to Section 6 of this Agreement; provided, however, that Seller shall have no
obligation to pay the Escrow Holder for services rendered for the benefit of Buyer, except
as otherwise provided herein.
5. Indemnification of Escrow Holder. Buyer and Seller, for themselves and
their respective heirs, executors, administrators, successors and assigns, hereby jointly and
severally, unconditionally and irrevocably indemnify and hold the Escrow Holder harmless
from and against any and all claims, actions and suits, whether groundless or otherwise,
and from and against any and all liabilities, losses, damages, costs, charges and other
expenses of every nature and character, including but not limited to reasonable attorneys’
fees, arising out of, occasioned by, or in any manner related to, directly or indirectly, this
Agreement and the agreement by Escrow Holder to serve in such capacity hereunder
(collectively, the “Indemnified Claims”), except to the extent the Indemnified Claims result
from the willful misconduct , bad faith or gross neglect of the Escrow Holder. The
indemnification under this Section shall apply to any fees and expenses incurred by the
Escrow Holder in any interpleader action referenced above, and shall survive any
disbursement of the Deposits and any termination of this Agreement, including pursuant to
any resignation of the Escrow Holder as provided below.
6. Resignation of Escrow Holder. The Escrow Holder may resign under this
Agreement by giving five (5) days prior written notice to the Buyer and Seller and upon
delivery of the Deposit to a successor (“Successor”) which shall be designated by joint
written instructions from the Buyer and Seller to the Escrow Holder on or before the
expiration of such five (5) day notice or, if no Successor has been designated by joint
written instructions from the Buyer and Seller within such time period, by delivery of the
Deposit to a commercial bank reasonably acceptable to Buyer and Seller for such purpose,
and pursuant to a replacement escrow agreement or similar documentation customarily
used by (and providing for fees for such services customarily charged by) such commercial
bank for such purpose. In the event of a disagreement between the Buyer and Seller as to
the designation of a Successor, Escrow Holder may proceed under Section 4 of this
Agreement. Upon the deliveryof the Deposit to a Successor the Escrow Holder shall be
fully released and discharged from any further obligations under this Agreement.
7. Notices. All notices required, permitted, or given pursuant to the provisions
of this Agreement shall be in writing, and either (i) hand delivered, (ii) delivered by
certified mail, postage prepaid, return receipt requested, (iii) delivered by an overnight
delivery service, or (iv) delivered by facsimile machine or email, followed within twenty-
four (24) hours by delivery under options (i), (ii) or (iii) addressed to the parties to the
addresses given above.
3
Notices shall be deemed delivered twenty-four (24) hours after being sent in a
manner described above. The addresses given above may be changed by any party by
notice given in the manner provided herein.
8. Miscellaneous Provisions.
A. This Agreement constitutes the final, complete and exclusive
agreement among the parties to it with respect to its subject matter.
B. This Agreement may not be changed, amended, waiver, discharged
or terminated orally, but only by an instrument in writing signed by
all of the parties to it.
C. This Agreement shall inure to the benefit of and be binding upon the
parties to it and their respective heirs, executors, successors and
assigns.
D. This Agreement may be executed in any number of counterparts but
all such counterparts shall constitute one and the same instrument.
E.The Section headings contained in the Agreement are inserted for
convenience only and shall not control or offset the meaning or
construction of any of the provisions of this Agreement.
F. This Agreement shall be construed and otherwise governed in all
respects by the laws of the Commonwealth of Kentucky.
G. Each party to this Agreement not a natural person represents and
warrants to each other party hereto that this Agreement has been
signed by a representative of such first party duly authorized to
execute and deliver the same on behalf thereof.
H. This Agreement shall become effective when, and only when, it has
been signed by or on behalf of each of the parties to it and then shall
be deemed dated as of the latest date signed by a party to it (the
“Effective Date”).
9. Counterparts. This Agreement may be executed in two or more counterparts,
each of which (or the individual signature pages thereof) shall be deemed an original and
all of which together shall constitute one and the same instrument. Counterparts may be
executed by facsimile. Facsimile signatures or other reproductions shall have the same
force and effect as an original signature.
4
IN WITNESS WHEREOF, the parties have respectively caused this Agreement to
be executed as of the respective dates shown below.
BUYER:
THE CITY OF PADUCAH, KENTUCKY
By:______________________________
George Bray, Mayor
SELLER:
MIDWAY MANAGEMENT, LLC,
a Kentucky Limited Liability Company
By:______________________________
Theresa M. Lundberg, Authorized Member
ESCROW HOLDER:
KEULER, KELLY, HUTCHINS
BLANKENSHIP & SIGLER, LLP
By:________________________________
Date: _______________________________
5
4904-3236-3371
REAL ESTATE PURCHASE AGREEMENT
THIS REAL ESTATE PURCHASE AGREEMENT (this "Agreement") is entered
into on the ______ day of ___________________, 2025, by and among MIDWAY
MANAGEMENT, LLC, a Kentucky limited liability company (hereinafter “Seller"); and
THE CITY OF PADUCAH, KENTUCKY (hereinafter “Buyer”).
W I T N E S E T H
WHEREAS, Seller is the owner in fee simple of certain real property consisting of
approximately 8.03 +/- acres commonly known as 3047 Jackson Street, Paducah, Kentucky
42003, which is more particularly described in Exhibit “A” attached hereto, and made a
part hereof, together all property rights and interests connected with or ancillary to the real
property, including but not limited to any interest in improvements, fixtures, and
appurtenances thereto, and any strips or gores (the “Property”);
WHEREAS, Buyer has offered to purchase the Property in accordance with the
terms that are contained in this Agreement; and
WHEREAS, Seller has agreed to those terms and has agreed to proceed with the
consummation of the sale transaction as defined hereunder.
NOW, THEREFORE, in consideration of the mutual agreements set forth herein,
and for other valuable consideration, the legal adequacy and sufficiency of which is hereby
acknowledged by the parties hereto, the parties do hereby covenant and agree as follows:
SECTION 1.PURCHASE AND SALE OF THE PROPERTY
1.1Extent of Property to be Sold. Subject to the provisions of this Agreement,
Seller shall sell, deliver and assign to Buyer, and Buyer shall purchase and receive from
Seller, all of Seller’s right, title, and interest in and to the Property.
1.2Purchase Price. The purchase price for the Property shall be $95,000.00 per
surveyed acre, subject to an accurate boundary survey acceptable to both parties; provided,
however, the purchase price shall in no event exceed the sum of $762,850.00 (the
“Purchase Price”). The Purchase Price, less credit for such credits, prorations and
adjustments as are provided herein, shall be paid to Seller upon delivery of the general
warranty deed at Closing in the form of a cashier’s or certified check or other immediately
available funds acceptable to Seller.
1.3Earnest Money. Within five (5) business days of the Effective Date, Buyer
shall tender to Seller an earnest money deposit in the amount of $10,000.00 (the “Earnest
Money”). The Earnest Money shall be applied to the Purchase Price at Closing unless
otherwise disposed of as set forth herein. The Earnest Money shall be held by the law firm
of Keuler, Kelly, Hutchins, Blankenship & Sigler, LLP in accordance with an Escrow
Agreement of even date herewith. In the event of Buyer's or Seller's default, or in the event
the conditions precedent are not satisfied fully, the Earnest Money shall be disposed of as
set forth in this Agreement.
SECTION 2.REPRESENTATIONS, WARRANTIES, INDEMNITIES, AND
COVENANTS OF THE SELLER.
2.1Making of Representations, Warranties and Covenants. As a material
inducement to Buyer to enter into this Agreement and consummate the transactions
contemplated hereby, the Seller hereby makes to Buyer the representations, warranties,
indemnities, and covenants contained in this Section:
(a)Authority. The Seller is a Kentucky limited liability company duly
authorized to transact business in the Commonwealth of Kentucky with full power
and authority to own the Property and carry on its business as it has prior to this
date and with full power and authority to enter into this Agreement and carry out
its obligations hereunder.
(b)Authorization, Execution and Delivery. This Agreement has been
duly authorized by all requisite action on the part of the Seller, has been duly
executed and delivered by the Seller, and constitutes the legal, valid, and binding
obligation of the Seller enforceable against Seller in accordance with its terms.
(c)No Prohibition. The execution and delivery of this Agreement and
the consummation of the transactions called for herein do not and will not (i) violate
any provision of law or applicable governmental regulation concerning the Seller;
(ii) contravene, conflict with, result in a violation or breach of any provision of, or
result in the right of acceleration of any obligation under any mortgage, note, lease,
agreement, instrument, order, arbitration award, judgment, or decree to which the
Seller is a party or by which the Seller is bound; (iii) violate any law, rule, order or
regulation applicable to the Seller or the Property; or (iv) give any governmental
body the right to revoke, withdraw, suspend, cancel, terminate, or modify any
governmental authorization that is held by the Seller concerning the Property.
(d)Fee Interest.The Seller has good and marketable title in fee
simple to the Property, and when such title is conveyed to the Buyer at Closing, it
shall be free and clear of all mortgages, deeds of trust, liens, pledges, charges,
security interests, leases, restrictions of any kind, rights of refusal, options, or
encumbrances of any nature whatsoever, subject only to (i) liens for taxes or
assessments which have accrued since January 1, 2024, which shall be prorated at
Closing and (ii) easements and conditions of record as provided in this Agreement.
(e)No Undisclosed Claims. There are no claims, actions, suits, or
proceedings pending or threatened against or affecting the Seller or the Property
that could have a material adverse effect on the Property. There is no basis for any
such claim or proceeding known to the Seller. The Seller is not bound by nor has
consented to any judgment, decree, or order which might have a material ongoing
2
effect on the Property. There are no judgments, decrees, injunctions, rules, or
orders of any court, governmental department, commission, agency,
instrumentality, or arbitrator which might in any way affect the ability of the Buyer
to continue leasing the Property in the manner in which it has been operated prior
to this date.
(g)FIRPTA. Seller is not a “foreign corporation”, “foreign
partnership” or “foreign estate” as those terms are defined in the Internal Revenue
Code of 1986, as amended, and that Seller will furnish to Buyer such further
assurances with respect to this representation and warranty as Buyer shall
reasonably request.
(h)Environmental. The condition of the Property is in compliance in
all material respects with all applicable Environmental Laws (as hereinafter
defined). There has been and will be no disposal or release of Hazardous Materials
on the Property during Seller’s use or ownership of the Property. “Hazardous
Materials” shall refer to (a) all materials and substances which are defined as such
in (or for purposes of) all applicable Environmental Laws; (b) asbestos; or (c) any
other hazardous, toxic or dangerous waste, substance or material. No release of
any Hazardous Materials has occurred at, upon or under the Property in an amount
which violates any Environmental Law or could reasonably be expected to give rise
to an obligation to remediate under or pursuant to any Environmental Law. The
Seller is not aware of any violation and has not received any notice of any violation
of any Environmental Law relating to the Property or the operation of the business
or to any of the processes used or followed by the Seller. There are no actions
pending or threatened against the Seller alleging the violation of or imposing
liability pursuant to any Environmental Law. For purposes of this Agreement,
“Environmental Laws” means any federal, state, local or foreign law (including
common law), statute, code, ordinance, rule, regulation or other requirement
relating to the environment, natural resources, or public or employee health and
safety as in effect as of the date of this Contract and includes, but is not limited to,
the Comprehensive Environmental Response, Compensation and Liability Act
(“CERCLA”), 42 U.S.C. § 9601 et seq. the Resource Conservation and Recovery
Act, 42 U.S.C. § 6901 et seq., the Clean Water Act, 33 U.S.C. § 1251 et seq. the
Clean Air Act, 33 U.S.C. § 2601 et seq. the Toxic Substances Control Act, 15 U.S
.C.§ 2601 et seq. the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C.
§ 136 et seq. the Oil Pollution Act of 1990,33 U.S.C. § 2701 et seq. and the
Occupational Safety and Health Act, 29 U.S.C. § 651 et seq. as such laws have been
amended or supplemented to the date hereof, and the regulations promulgated
pursuant thereto, and all analogous state or local statutes.
(i)Compliance with Laws. The Property is in full compliance with applicable
environmental, zoning and land use laws, and other applicable local, state and
federal laws and regulations.
(j)Contracts. At the time of the Closing, there will be no outstanding
3
contracts executed by Seller for any improvements to the Property, and Seller
shall cause to be discharged prior to the Closing all mechanics’ or materialmen’s
liens arising from any labor or materials furnished to the Property or arising from
contracts executed by Seller prior to the Closing (whether or not such contracts
have been fully performed), and Seller shall terminate all such contracts at
Closing at Seller’s sole cost.
(k)Leases. Seller currently has no lease with any tenant and there are no third
parties who can or have asserted a leasehold interest in the Property.
(l)Licenses and Permits. There are no licenses or permits held by Seller
concerning the Property.
2.2Survival of Representations, Warranties, Indemnities, and Covenants. In
the event any of Seller’s representations, warranties or covenants hereunder are determined
to be false or misleading prior to Closing, Buyer shall have the option of (i) waiving such
failure and proceeding to the Closing subject thereto; or (ii) declaring this Agreement to be
in default and exercising the remedies available to Buyer under Section 7, including but
not limited to the right to terminate this Agreement. All of Seller’s representations,
warranties, indemnities or covenants hereunder shall survive the Closing of the transaction
contemplated under this Agreement indefinitely.
SECTION 3.INSPECTIONS BY BUYER.
3.1Inspections. Buyer shall have an inspection period which shall commence
on the Effective Date and continue until one hundred twenty (120) days after the Effective
Date (the "Inspection Period") to conduct any testing, measurements, examinations,
studies, inspections, or surveys of the Property, at Buyer's cost, for the purpose of
determining the current condition of the Property and its acceptability for Buyer’s intended
purposes. Buyer shall have the option to extend the Inspection Period for an additional
thirty (30) days upon written notice to Seller. Seller shall cooperate with Buyer in the
making of the foregoing investigations. Accordingly, within five (5) days after the
Effective Date, Seller shall deliver to Buyer the following items (each to the extent
available or reasonably obtainable by Seller):
(a)Copies of all tax bills for the last three (3) years for the Property;
(b)Surveys, plats, site plans, topographical maps and engineering studies
related to the Property;
(c)Any and all information regarding zoning requests for the Property;
(d)Any and all environmental reports/testing and soil reports/testing related to
the Property;
(e)Any and all documentation required for conducting environmental testing,
soil testing, and a survey of the Property;
(f)Copies of all utility documents related to the Property;
(g)Any and all title insurance policies and title exception documents for the
Property;
4
(h)Any and all leases on the Property; and
(i)Any other relevant information related to the Property.
3.2Access to the Property. Seller hereby grants to Buyer and Buyer's agents
and representatives the right to enter upon the Property at Buyer's expense from the
Effective Date until the termination of this Agreement for the purpose of making
inspections, measurements, surveys and conducting such tests and examinations as Buyer
deems necessary, including but not limited to engineering studies, core borings, drillings,
environmental studies and hazardous waste studies. Seller acknowledges, and Buyer
agrees, that during the foregoing period, Seller will have complete control of the Property
and Buyer will have only the rights with respect thereto specifically set forth in this
Agreement.
3.3Defects. If the inspections disclose any defect in the Property which in the
Buyer’s sole discretion materially affect Buyer’s ability to use and occupy the Property for
its intended purpose, Buyer shall have the right, at Buyer's sole option, to cancel this
Agreement, in which case the Earnest Money shall be returned to Buyer and the parties
released from all further obligations under this Agreement. This right of cancellation shall
be exercised by Buyer by giving written notice to Seller.
SECTION 4. TITLE EXAM/SURVEY/APPRAISAL.
4.1Title Commitment. During the Inspection Period, as defined below, Buyer
may obtain a title commitment (the "Commitment") with respect to the Property showing
Seller as the fee simple owner of the Property and the terms by which the title company
agrees to issue to Buyer an owner’s policy of title insurance (the "Title Policy") in the
amount of the Purchase Price insuring Buyer’s fee simple title to the Property subject to
the terms of such policy. Buyer shall deliver to Seller in writing Buyer’s objections to title
for any items contained in the Commitment prior to the expiration of the Inspection period.
If such objections are not resolved to Buyer’s satisfaction within ten (10) days, then Buyer,
in its sole discretion, may extend such cure period, waive its objection(s), or terminate the
Agreement, in which case the Seller shall return the Earnest Money to Buyer. Buyer’s
obligation to close shall be contingent upon Buyer’s receipt of title acceptable to Buyer.
4.2.Survey. During the Inspection Period, Seller shall procure a survey which
depicts the boundaries of the Property to be sold (the “Survey”). Buyer understands that
Seller will carve off a portion of land surrounding a cell phone tower located on the
Property (the “Cell Phone Tower Tract”), which Cell Phone Tower Tract will be retained
by Seller following closing. The Cell Phone Tower Tract shall not exceed 0.50 acres and
shall include all such rights of ingress and egress as may be necessary. Seller shall provide
a copy of the Survey to Buyer promptly upon receipt. The cost of the Survey shall be split
50/50 between Buyer and Seller.
4.3Appraisal. Buyer may have the Property appraised by an appraisal company
or other entity acceptable to Buyer. If the Property appraises for less than the Purchase
Price, Buyer shall have the right to terminate this Agreement, in which case Seller shall
5
return the Earnest Money to Buyer. Buyer’s obligation to close shall be contingent upon
Buyer’s receipt of an appraisal that determines the value of the Property to be at least the
Purchase Price.
SECTION 5.CLOSING OF SALE TRANSACTION.
5.1Time and Place of Closing. Subject to the full performance or waiver of
performance of all parties of their respective duties set forth in this Agreement and the
satisfaction or waiver of all of the conditions to Closing set forth in this Agreement, the
Closing of the sale contemplated hereby shall be held no more than thirty (30) days from
the expiration of the Inspection Period, at such time and place as is mutually agreeable by
the parties hereto.
5.2Conditions of Buyer’s Obligations. The obligation of Buyer to consummate
the purchase transaction under this Agreement is subject to the satisfaction of or
compliance with each of the following conditions precedents as of the date of Closing:
(a)Seller shall have complied with and otherwise satisfied all of
Seller’s covenants, and warranties made herein, and all matters that are represented and
warranted are true, complete and accurate at time of Closing.
(b)Seller, at Seller’s expense, shall have brought all utilities necessary
for Buyer’s intended use to the boundary line of and be available to the Property.
(c)Any defects discovered during the Inspection Period have been
cured by Seller to Buyer’s satisfaction or waived by Buyer.
(d) Buyer shall have received all approvals necessary to consummate
the Closing.
(e) Buyer shall be satisfied, in its sole and absolute discretion, with the
results of all due diligence inspections and reports.
(f) Buyer shall have reviewed and approved all items depicted on the
Survey, including the boundaries and dimensions of the Property.
In the event of the failure of any of the conditions set forth above, the Buyer
shall have the right, at Buyer’s option, to terminate this Agreement upon written notice to
the Seller.
5.3Closing Statement. The closing agent shall prepare a "Closing Statement"
which reflects adjustments which will be made to the Purchase Price for the balance of any
mortgage or lien encumbering the Property; any title defect that can be cured by expending
money; and any additional amounts owed by Buyer or credits due to Buyer. Buyer and
Seller shall execute the Closing Statement at Closing. The Closing Statement shall allocate
closing costs as follows:
6
(a)The following fees shall be charged to Buyer:
(i)title commitment; and
(ii)appraisal and any other due diligence studies performed at
the request of the Buyer.
(b)The following fees shall be charged to Seller:
(i)preparation of the Deed;
(ii)transfer taxes;
(iii)any other amounts required to deliver the Property to Buyer
free and clear of all encumbrances.
(c)The following fees shall be split equally between Buyer and Seller:
(i)the settlement agent’s closing fee;
(ii)the premium for the ALTA owner’s policy of title insurance
and any municipal taxes thereon;
(iii)the surveyor’s invoice; and
(iv)recording fee for the deed.
5.4Documents to be Delivered by Seller. At the Closing, Seller shall deliver
to Buyer: (i) a duly executed and acknowledged general warranty deed conveying the
Property, free and clear of all encumbrances (the "Deed"); (ii) evidence satisfactory to
Buyer that any encumbrances or liens theretofore affecting the Property have been paid
and discharged of record; (iii) such other instruments and documents as are necessary or
appropriate to properly and completely vest title to the Property in Buyer; and (iv)
possession of the Property.
5.5 Deliveries by Buyer at Closing. Buyer shall deliver immediately available
funds for the Purchase Price, less the Earnest Money, and such other documents, records,
and items as may be reasonably necessary and appropriate to consummate the sale
transaction under this Agreement.
5.6Ad Valorem Taxes, Real Property Taxes and Governmental Assessments.
Ad valorem taxes and/or real property taxes against the Property shall be prorated as of the
date of Closing.
5.7Brokers. Buyer shall pay a brokerage fee to Trifecta Real Estate Services
in the amount of 5% of the Purchase Price. Seller represents and warrants that it is not
represented by a realtor or brokerage with regard to this transaction. Seller agrees if any
brokerage or finder's fee claims other than that of Trifecta Real Estate Services shall be
made based on this Agreement, the defense of any such claim shall be the responsibility
of the Seller, and additionally, Seller shall pay and satisfy such claim. Additionally,
Seller shall indemnify the Buyer from any and all costs and expenses incurred by reason
of such claim, including reasonable attorney fees.
7
SECTION 6.RISK OF LOSS AND POSSESSION.
6.1Risk of Loss. Seller shall bear all risk of loss to the Property by fire or other
casualty until Closing and conveyance to Buyer. Buyer shall assume all risk of loss to the
Property after the Closing. In the event the Property shall be damaged to the extent that it
is wholly or partially untenable or is totally destroyed from any cause, this Agreement may
be voidable at the option of Buyer upon written notice to Seller. In the event of such
damage, if Buyer does not exercise Buyer's right to terminate under this provision or any
other contingency provision of this Agreement, Buyer shall have the right to the insurance
proceeds pertaining to such damage and this Agreement shall continue in full force and
effect.
6.2Possession. Possession of the Property shall be delivered to Buyer at
Closing.
SECTION 7.DEFAULT AND REMEDIES.
7.1Default by Buyer; Remedies of Seller. If Buyer defaults under this
Agreement, and if Seller is not in default and all conditions precedent to Buyer's obligations
either have been satisfied or waived in writing by Buyer, then Seller may terminate this
Agreement and receive the Earnest Money as liquidated damages and not as a penalty,
which sum shall be Seller's sole remedy in full satisfaction and settlement of all damages
for Buyer's default.
7.2Default by Seller; Remedies of Buyer. If Seller fails to comply with any or
all of the obligations, covenants, representations, warranties or agreements to be
performed, honored or observed by Seller under and pursuant to the terms and provisions
of this agreement, and such default is not cured within the cure period, then Buyer may, at
its option, (a) elect to enforce the terms hereof by action for specific performance, (b)
proceed to close this transaction notwithstanding such breach or failure (without waiving
any right or remedy which might otherwise be available to Buyer at law or in equity arising
from such breach or failure), or (c) terminate this Agreement and preserve its rights to seek
damages and other relief available at law or equity.
SECTION 8. MISCELLANEOUS.
8.1Disputes. This Agreement shall be governed and construed under the laws
of the Commonwealth of Kentucky. Should any dispute arise between the parties, the
parties shall submit the dispute for administered mediation. In the event the parties are
unable to resolve the dispute through mediation, the dispute shall be presented to the
appropriate state court in McCracken County, Kentucky for resolution. By execution of
the Agreement, each of the parties consent to the exclusive jurisdiction of such courts, and
waive their right to challenge jurisdiction or venue in such courts. Each party also waives
their right to trial by jury. In the event a dispute must be resolved through litigation, the
prevailing party shall be entitled to recover the costs and expenses of the dispute from the
other party, including their reasonable attorney fees.
8
8.2Eminent Domain. If after the Effective Date and prior to date of Closing,
all or a substantial portion of the real property subject to this Agreement is subject to a
bona fide threat of condemnation or is taken by a body having power of eminent domain,
this Agreement may terminate and become void at the option of Buyer by written notice to
Seller. If no such election is made, Seller shall assign, transfer, and set over to Buyer all
its right, title, and interest to any awards that may have been or may hereafter be made for
such taking, subject to the remaining provisions of this Agreement.
8.3“Effective Date.” This Agreement shall not become effective and binding
until the Agreement is fully executed and delivered by both Buyer and Seller.
8.4Captions. The captions employed in this Agreement are for convenience
only and are not intended to in any way limit or amplify the terms and provisions of this
Agreement.
8.5Merger Clause. It is agreed and understood between the parties that this
Agreement together with the attached schedules represents the entire and exclusive
agreement between the parties, and that all prior representations, covenants, warranties,
understandings and agreements are merged herein. This Agreement may only be modified
in a writing executed by all parties hereto.
8.6Successors and Assigns. This Agreement shall apply to, inure to the benefit
of and be binding upon and enforceable against the parties hereto and their respective
successors, assigns, heirs, executors, administrators and legal representatives to the same
extent as if specified at length throughout this Agreement. The Buyer shall have the right
to assign its rights and obligations hereunder, in whole or in part, without the prior consent
of the Seller.
8.7Gender and Number. The plural shall include the singular and the singular,
the plural, wherever the context so permits. The masculine shall include the feminine and
the neuter; the feminine, the masculine and the neuter, and the neuter, the masculine and
the feminine.
8.8Notice. All notices required, permitted, or given pursuant to the provisions
of this Agreement shall be in writing delivered to the addresses first above listed, and either
(i) hand delivered, (ii) delivered by certified mail, postage prepaid, return receipt requested,
(iii) delivered by an overnight delivery service, or (iv) delivered by facsimile machine or
email and addressed. Notices shall be deemed delivered upon receipt. The addresses given
above may be changed by any party by notice given in the manner provided herein.
8.9Periods of Time. Whenever any determination is to be made or action is to
be taken on a date specified in this Agreement, if such date shall fall on a Saturday, Sunday
or legal holiday under the laws of the state in which the Property is located, then in such
event said date shall be extended to the next day which is not a Saturday, Sunday or legal
holiday.
9
8.10Preparation of Agreement. This Agreement shall not be construed more
strongly against either party regardless of who is responsible for its preparation.
8.11Further Agreements. Seller and Buyer agree to execute, acknowledge, and
deliver, or cause to be delivered, any and all such conveyances, assignments,
confirmations, satisfactions, releases, instruments of further assurance, approvals, consents
and such other instruments and documents as may be reasonably necessary to carry out the
intent and purpose of this Agreement and the transactions contemplated hereby.
8.12Agreement to Cooperate. Seller agrees prior to Closing to fully cooperate
with Buyer in the investigation and review of the Property.
8.13Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed an original. A PDF or other electronic signature of any party shall
be considered to have the same binding legal effect as an original signature upon delivery
thereof. Upon the request of any party, each party or signatory hereto shall also deliver
this Agreement with its original signature, provided that any failure to do so shall not affect
the preceding sentence or any provisions of this Agreement or obligations of any party or
signatory hereto
8.14Time of Essence. Time will be of the essence with respect to the
performance of the terms and conditions of this Agreement.
IN WITNESS WHEREOF, the parties have respectively caused this Agreement to
be executed as of the respective dates shown below.
SELLER:
MIDWAY MANAGEMENT, LLC,
a Kentucky limited liability company
By:_____________________________________
Theresa M. Lundberg, Authorized Member
BUYER:
THE CITY OF PADUCAH, KENTUCKY
By:_______________________________By:_______________________________
George Bray, Mayor
10
EXHIBIT A
TRACT NO. 1:
BEGINNING AT A STAKE IN THE SOUTHEAST CORNER OF THE INTERSECTION OF CLARK
ST
STREET AND 31 STREET; THENCE EASTWARDLY IN AND ALONG THE SOUTH LINE OF
CLARK STREET 321 FEET TO A STAKE ON THE WESTERLY RIGHT-OF-WAY LINE OF THE
ILLINOIS CENTRAL GULF RAILROAD, INC. (FORMERLY PADUCAH AND ILLINOIS
RAILROAD COMPANY) RIGHT-OF-WAY; THEN SOUTHWARDLY AND ALONG THE
WESTERLY LINE OF SAID RAILROAD RIGHT-OF-WAY 867.4 FEET TO A STAKE IN THE
NORTHERLY LINE OF JACKSON STREET WHERE IT INTERSECTS THE WESTERLY LINE
OF SAID RAILROAD RIGHT-OF-WAY; THENCE WESTWARDLY AND ALONG THE
NORTHERLY LINE OF JACKSON STREET 533.7 FEET TO A STAKE IN THE NORTHEAST
ST
CORNER OF JACKSON STREET AND 31 STREET; THENCE NORTHWARDLY AND ALONG
ST
THE EASTERLY LINE OF 31 STREET 839 FEET TO POINT OF BEGINNING.
EXCEPT THAT PROPERTY CONVEYED FROM MODINE MANUFACTURING COMPANY TO
THE COMMONWEALTH OF KENTUCKY, DEPARTMENT OF HIGHWAYS IN DEED BOOK
294, PAGE 254, MCCRACKEN COUNTY CLERK’S OFFICE AND BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:
ST
COMMENCING AT A POINT IN THE EASTERLY LINE OF 31 STREET 7 FEET
NORTHWARDLY OF THE NORTHERLY LINE OF JACKSON STREET (AS MEASURED
ST
ALONG THE EASTERLY LINE OF 31 STREET); THENCE IN AN EASTERLY DIRECTION IN
A STRAIGHT LINE TO A POINT IN THE WESTERLY LINE OF THE PADUCAH & ILLINOIS
RAILROAD RIGHT-OF-WAY 33.42 FEET NORTHWARDLY OF THE NORTHERLY LINE OF
JACKSON STREET (AS MEASURED ALONG THE WESTWARDLY RIGHT-OF-WAY LINE OF
SAID RAILROAD); THENCE SOUTHWARDLY AND ALONG WITH WESTWARDLY LINE OF
SAID RAILROAD RIGHT-OF-WAY 33.42 FEET TO THE NORTHERLY LINE OF JACKSON
STREET; THENCE ALONG THE NORTHERLY LINE OF JACKSON STREET WESTWARDLY
STST
TO THE EASTERLY LINE OF 31 STREET; THENCE ALONG THE EASTERLY LINE OF 31
STREET, NORTHWARDLY 7 FEET TO THE POINT OF BEGINNING.
Being the same property conveyed to MIDWAY MANAGEMENT, LLC, a Kentucky Limited Liability
Company, by Deed dated October 31, 2012, of record in Deed Book 1240, page 662, McCracken County
Court Clerk’s Office.
11
Agenda Action Form
Paducah City Commission
Meeting Date: October 2, 2025
Short Title: Approve a Ten (10) Year Non-Exclusive Cable Franchise with Ritter Communications - M.
SMOLEN
Category: Ordinance
Staff Work By: Lindsay Parish,
Michelle Smolen
Presentation By: Lindsay Parish
Background Information: The proposed ordinance authorizes the City of Paducah to enter into a new Cable
Franchise Agreement with Ritter Communications. This action transitions Ritter from operating under its
existing Telecommunications Franchise in Chapter 108 of the City Code to a Cable Franchise governed by
Chapter 22. The change updates the City’s regulatory framework for Ritter, aligning its operations with the
correct section of the Code for providing cable services within Paducah. Adoption of this ordinance will
dissolve the prior telecommunications franchise and formally establish Ritter as a cable franchisee.
The agreement grants Ritter Communications a non-exclusive franchise for a term of ten (10) years. During this
time, Ritter is authorized to construct, operate, and maintain its cable system within the City’s rights-of-way.
The franchise does not give Ritter exclusivity over these public spaces but does establish the City’s conditions
for use of them, ensuring that operations are consistent with public safety, City ordinances, and established
standards of construction.
As part of the agreement, Ritter is bound to comply fully with the provisions of Chapter 22 of the Paducah
Code of Ordinances, as well as the commitments made in its bid and application, which are incorporated by
reference. Ritter and its successors must faithfully perform all requirements under the franchise. Importantly,
the agreement requires Ritter to provide the City with engineering drawings and documentation at least 90 days
before any proposed construction in City rights-of-way. These plans must be reviewed and approved in writing
by the City’s Engineering Department before work begins, ensuring coordination and protection of public
infrastructure.
This new Cable Franchise Agreement modernizes the City’s relationship with Ritter Communications by
placing its services under the appropriate legal and regulatory framework. It provides clarity for the City, the
company, and the public, while maintaining protections for the community through oversight of construction
and adherence to local ordinances. Approval of this ordinance will complete Ritter’s transition from
telecommunications to cable operations under City law and secure a clear, enforceable franchise agreement for
the next decade.
This ordinance also authorizes the Mayor to execute a termination agreement with Ritter Communications for
their current Telecommunications franchise.
Does this Agenda Action Item align with a Commission Priority? No
If yes, please list the Commission Priority:
Communications Plan:
Account Name:
Funds Available:
Account Number:
Staff Recommendation: Approve.
Attachments:
1.ORD Ritter Cable Franchise Agreement
2.CITY-RITTER AGREEMENT TO TERMINATE TELECOMMUNICATIONS FRANCHISE
3.9-2 RDL Franchise with Ritter - Paducah (002)
ORDINANCE 2025-____-______
AN ORDINANCE GRANTING A NON-EXCLUSIVE FRANCHISE TO E. RITTER
COMMUNICATIONS, LLC TO OPERATE AND MAINTAIN A CABLE SYSTEM WITHIN
THE CORPORATE LIMITS OF THE CITY OF PADUCAH, KENTUCKY, PURSUANT TO
THE TERMS AND PROVISIONS OF THE PADUCAH ORDINANCE FOR REGULATION
OF CABLE COMMUNICATIONS, AND APPROVING AND AUTHORIZING THE MAYOR
TO EXECUTE THE FRANCHISE AGREEMENT BETWEEN THE CITY OF PADUCAH,
KENTUCKY, AND E. RITTER COMMUNCATIONS, LLC
WHEREAS, E. Ritter Communications, LLC currently holds a franchise under the City
of Paducah’s Telecommunications Ordinance; and
WHEREAS, the pursuant to the City of Paducah’s Telecommunications Ordinance, the
grant of a Telecommunications franchise does not authorize the provision of cable services; and
WHEREAS, E. Ritter Communications, LLC now seeks to operate a cable television
system within the City of Paducah and to terminate its existing telecommunications franchise;
and
WHEREAS, the City of Paducah issued a request for proposals for a Cable Television
Franchise in May of 2025;
WHEREAS, E. Ritter Communications, LLC submitted the only proposal; and
WHEREAS, the purpose of this Franchise is to grant a non-exclusive franchise to E.
Ritter Communications, LLC to establish, operate and maintain a cable television system within
the City of Paducah.
NOW THEREFORE, BE IT ORDAINED BY THE CITY OF PADUCAH,
KENTUCKY:
SECTION 1. The Mayor is hereby authorized, by and on behalf of the City, to execute the
Termination of Telecommunications Franchise Agreement between the City of Paducah,
Kentucky and E. Ritter Communications, LLC dated _____________________, 2025.
SECTION 2: The Mayor is hereby authorized, by and on behalf of the City, to execute the Cable
Franchise Agreement between the City of Paducah, Kentucky, and E. Ritter Communications,
LLC dated ______________, 2025.
SECTION 3. There is hereby granted by the City of Paducah, Kentucky to E. Ritter
Communications, LLC the right and privilege to construct, operate, maintain, and extend a Cable
System within the City in accordance with the provisions set forth in the Franchise Agreement.
SECTION 4. Franchisee shall assume the reasonable publication costs as shall be presented to
the Franchisee by the City Clerk after acceptance of this Franchise by the City and appropriate
publication has occurred.
SECTION 5. If any section, paragraph or provision of this ordinance shall be found to be
inoperative, ineffective or invalid for any cause, the deficiency or invalidity of such section,
paragraph or provision shall not affect any other section, paragraph or provision hereof, it being
the purpose and intent of this ordinance to make each and every section, paragraph and provision
hereof separable from all other sections, paragraphs and provisions.
SECTION 6. This ordinance shall be read on two separate days and will become effective upon
summary publication pursuant to KRS Chapter 424.
______________________________
George Bray, Mayor
ATTEST:
______________________________
Lindsay Parish, City Clerk
Introduced by the Board of Commissioners, September 15, 2025
Adopted by the Board of Commissioners, __________________________
Recorded by Lindsay Parish, City Clerk, ___________________________
Published by The Paducah Sun, ________________________________
Ord\\Ritter Cable Franchise
Prepared by Holly Homra, Denton Law
FRANCHISE TERMINATION AGREEMENT
THIS FRANCHISE TERMINATION AGREEMENT, made and entered into on this the
___ day of _______________________, 2025 , by and between the City of Paducah, Kentucky
Cityand E. Ritter Communications, LLC Franchisee,
(“”) (“”).
W I T N E S S E T H:
WHEREAS, the City and Franchisee entered into that certain Telecommunications
Franchise Agreement dated ________________, 2023 wherein Franchisee was granted a non-
exclusive ten-year franchise to provide telecommunications services within the City of Paducah
pursuant to Chapter 108 of the City of Paducah Code of Ordinances; and
WHEREAS, the pursuant to the City of Paducah’s Telecommunications Ordinance, the grant of a
Telecommunications franchise does not authorize the provision of cable services; and
WHEREAS, Franchisee now seeks to operate a cable television system within the City of
Paducah and to terminate its existing telecommunications franchise; and
WHEREAS, Franchisee was awarded a Cable Television Franchise on
_____________________, 2025 and now seeks to operate pursuant to such franchise;
NOW, THEREFORE, in consideration of mutual promises contained herein and for other
good and valuable consideration, the City and the Franchisee hereby declare that the
Telecommunications Franchise Agreement dated _____________________, 2023, authorized
pursuant to Ordinance No. 2023-12-8798 is hereby terminated, and of no legal force and effect,
as of the effective date of this Termination.
WITNESS our signatures as of the date first above written.
CITY OF PADUCAH, KENTUCKY
By: _
George Bray, Mayor
ATTEST:
CITY CLERK
1
E. RITTER COMMUNICATIONS, LLC:
By:
Title:
STATE OF )
:ss
COUNTY OF )
Subscribed, sworn to and acknowledged before me by _______________________________, on
behalf of E. RITTER COMMUNICATIONS, LLC, , on this the ____ day of
_____________________, 2025.
My commission expires _____________________
Notary ID # __________________
__________________________________________
Notary Public, State at Large
2
CABLE TELEVISION FRANCHISE AGREEMENT
FOR THE
CITY OF PADUCAH, KENTUCKY
AND
E. RITTER COMMUNICATIONS, LLC
_____________, 2025
TABLE OF CONTENTS
PAGE
Section 1. Short Title ............................................................................................................... 1
Section 2. Definitions............................................................................................................... 1
Section 3. Grant of Authority................................................................................................... 2
Section 4. Reservation of Authority ......................................................................................... 2
Section 5. Compliance with Applicable Laws and Ordinances ............................................... 2
Section 6. Provision of Service ................................................................................................ 3
Section 7. Insurance, Bonds and Indemnification ................................................................... 4
Section 8. System Design: Minimum Channel Capacity ......................................................... 5
Section 9. Interruption of Service ............................................................................................ 5
Section 10.Emergency Alert Capability ................................................................................... 5
Section 11. Technical Standards ................................................................................................ 5
Section 12. Special Testing ........................................................................................................ 5
Section 13. Access Facilities ...................................................................................................... 6
Section 14. Other Business Licenses ......................................................................................... 6
Section 15. Franchise Fees ......................................................................................................... 6
Section 16. Reports .................................................................................................................... 7
Section 17. Customer Service .................................................................................................... 7
Section 18. Conflicts .................................................................................................................. 7
Section 19. Publication Costs .................................................................................................... 7
Section 20. Notices .................................................................................................................... 7
Section 21. Miscellaneous Provisions........................................................................................ 7
Section 22. Term of Agreement ................................................................................................. 8
Section 23. Force Majeure ......................................................................................................... 8
i
Section 24.Entire Agreement .................................................................................................... 8
Section 25. No Third Party Beneficiaries .................................................................................. 8
Section 26. No Waiver of Rights ............................................................................................... 8
Section 27. Renewal of Franchise .............................................................................................. 8
Section 28. Enforcement and Termination of Franchise ........................................................... 8
Section 29.Transfer of the Franchise ...................................................................................... 10
Attachment A Description of System ......................................................................................... A-1
Attachment B PEG Fiber Transport ........................................................................................... B-1
Attachment C Access Channels ................................................................................................. C-1
ii
FRANCHISE AGREEMENT
THIS AGREEMENT, with an effective date of __________, 2025, is between the City of
Paducah, Kentucky, a municipal corporation of th
Ritter Communications, LLC, a Delaware limited liability company d/b/a Ritter Communications,
WHEREAS, the City offered at bid a non-exclusive Cable Television Franchise Agreement
WHEREAS, Ritter submitted an application with the City to activate the formal process
for granting this Franchise pursuant to 47 U.S.C. § 546(a)-(g);
WHEREAS, the City reviewed the performance of Ritter under its existing
Telecommunications Franchise Agreement dated effective December 12, 2023;
WHEREAS, the City reviewed the qualifications of Ritter to operate a cable system and
provide cable services under the Franchise;
WHEREAS, the Paducah Board of Commissioners approved the terms of the Franchise
expressed herein.
NOW, THEREFORE, in consideration of the foregoing and the mutual promises contained
herein, it is agreed as follows:
Section 1. Short Title. This agreement may be referred to
Section 2.Definitions. Except as provided below, the terms, phrases, words, and their
derivations used in this Franchise shall have the meaning given in
not defined therein, the term shall have the meaning defined in the Cable Act, and if not defined
therein, such undefined term shall be construed to reflect common usage as would apply, especially
in the cable television industry where applicable:
(a)
from time to time, 47 U.S.C. § 521 et. seq.
(b)
of Ordinances.
(c)
transferee or assignee.
(d) is a multichannel video programming distributor that
utilizes the Streets to install cable or fiber and is engaged in the business of making
available for purchase, by Subscribers, multiple Channels of video programming in the
City.
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Section 3.Grant of Authority.
(a) There is hereby granted by the City to the Franchisee the right and privilege
to construct, operate, maintain, and extend a Cable System to all places within the City in
accordance with the provisions herein. The rights granted hereunder shall be non-exclusive
and shall not be transferred or assigned without the prior approval of the City as provided
for in Section 29, herein.
(b) The Franchisee shall have the right to use and occupy Streets and Public
Ways and Utility Easements for the purpose of installing and maintaining its wires, cables,
and associated equipment in or on poles, by direct burial, or in underground conduits as
necessary for the operation of the Cable System to provide Cable Service. This authority,
however, does not obviate the need for obtaining permits from the City for construction
involving the disturbance of Streets and for compliance with all City regulations and
requirements relative to construction and operation of facilities in the Public Ways. The
Cable System constructed and maintained by Franchisee or its agents shall not interfere
with other uses of Streets. Nothing in this Franchise shall be construed to prohibit the
Franchisee from providing services other than Cable Services as permitted by Applicable
Law. The City hereby reserves all of its rights to regulate such other services to the extent
not prohibited by Applicable Law and no provision herein shall be construed to limit or
give up any regulatory right of the City.
Section 4. Reservation of Authority. The Franchisee specifically agrees to comply
with thelawful provisions of the City Code and applicable regulations of the City. Subject to the
police power exception below, in the event of a conflict between: (A) the lawful provisions of the
City Code or applicable regulations of the City; and (B) this Franchise, the express provisions of
this Franchise shall govern. Subject to express federal and state preemption, the material terms
and conditions contained in this Franchise may not be unilaterally altered by the City through
subsequent amendments to the City Code, ordinances or any regulation of City, except in the
chisee acknowledges that the City may modify its
City Code and regulatory policies by lawful exer
term of this Franchise. Franchisee agrees to comply with such lawful modifications to the City
Code; however, Franchisee reserves all rights it may have to challenge such modifications to the
City Code whether arising in contract or at law. The City reserves all of its rights and defenses to
such challenges whether arising in contract or at law. Nothing in this Franchise shall (i) abrogate
the right of the City to perform any public works or public improvements of any description, (ii)
be construed as a waiver of any codes or ordinances of general applicability promulgated by the
City, or (iii) be construed as a waiver or release of the rights of the City in and to the Streets.
Section 5.Compliance with Applicable Laws and Ordinances.
(a) The Franchisee voluntarily makes the following express representations:
(1) Franchisee has examined all provisions of the Cable Ordinance and
accepts and agrees to all the provisions of the Cable Ordinance as of the date of this
herwise provided for herein.
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(b) Notwithstanding any provision to the contrary, if a non-wireless facility
based entity, legally authorized by state or federal law, makes available for purchase by
its functional equivalent (including, but not
limited to, Video Programming under 47 U.S.C. § 571(a)(3) or § 573) within the Franchise
hout a Franchise or other similar lawful
authorization granted by the City, and the City has the legal authority to mandate that new
Wireline MVPD obtain a franchise or other similar lawful authorization from the City, then
the City shall permit the Franchisee to construct and/or operate its Cable System and
provide multi-channel video programming or its equivalent to Subscribers in the City under
equivalent material terms and conditions when considered as a whole, as applicable to the
Franchise Fees and Annual Gross Revenues definition; the number of Public, Education
and Government Access Channels and the transportation of those PEG Channels to the
headend and the PEG Fee; customer service standards; and proportionate courtesy Cable
Services. Within ninety (90) days after the Franchisee submits a written request to the
City, the Franchisee and the City shall, following good faith negotiations and mutual
agreement, enter into an agreement or other appropriate authorization (if necessary)
containing the equivalent Material terms and conditions as are applicable to the new
Wireline MPVD. If the parties are unable to reach agreement, following good faith
negotiations, either party may seek review in a court of competent jurisdiction. Nothing
right to regulate Fran
Cable Service in the City under Applicable Laws. The provisions of this Section 5(b) shall
apply to any wireline facility owned or operated by the City.
Section 6. Provision of Service.
(a) The Franchisee shall extend Cable Service to all residents within the City
in accordance with the following standards.
(1) General Service Obligation. The Franchisee shall provide Cable
Service to every residential dwelling unit within the Franchise Area reaching the
minimum density of at least twenty (20) dwelling units per mile measured from the
nearest technically feasible point of conn
cable. The Franchisee shall offer Cable Service to all new homes or previously
unserved homes located within one hundred
existing distribution cable.
(2) The Franchisee may elect to provide Cable Service to areas not
meeting the above density and distance standards. In so doing, the Franchisee may
impose an additional charge in excess of its Standard Installation charge for any
service installation requiring a Drop in excess of the above standards. Any such
additional charge shall be computed on a time plus materials basis to be calculated
on that portion of the installation which exceeds the one hundred fifty (150) foot
standard set forth above. In the event of annexation into the Franchise Area, the
Franchisee is not obligated to provide service to the area unless it meets the twenty
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(20) dwelling units per mile measured from the nearest technically feasible point of
isting distribution cable.
(b) Franchisee shall provide one (1) Drop and one (1) outlet at City Hall, the
McCracken County Public Library, each fire and police station, the public works facility
and floodwall maintenance shop, the parks department and Paducah-McCracken County
Senior Center, the information technology/911 facility, the Paducah Recreation Center and
each public and private accredited K-12 school within the City including the Board of
Education. Any charge for relocation of such installation sha
current rate for such work. Additional installations at the same location shall be made by
(1) No sooner than thirty (30) days of the effective date of this
Franchise, the Franchisee may provide the City with a price list for the purchase of
Cable Services and equipment at the locations listed in Section 6(b) above. The
City shall have up to one hundred and twenty (120) days within which to designate
the level of Cable Service to be provided at each location. The total charge for the
Cable Service requested and necessary equipment shall be invoiced to the City as
elected by the City. Franchisee agrees that charges for Cable Service imposed upon
the City shall be set at rates no more burdensome nor less favorable than those
charged by Franchisee to its cable customers within the Franchise Area.
(2)
reversed on appeal as to the issue of complimentary Cable Services constituting
Franchise Fees, the City may request, and Franchisee shall provide, at no cost, Basic
Cable Service be provided at the locations listed in Section 6(b) above. However,
in no event shall Franchisee be obligated to provide such complimentary Basic
Cable Service to more than twenty (20) locations in the City.
(c) To the extent prohibited by Applicable Law, no complimentary service
obligations shall be enforceable if it would cause the Franchisee or the receiving entity to
violate e-rate gift prohibitions or similar restrictions.
(d) Unless otherwise preempted by Applicable Law, Subscriber rates may be
set and modified pursuant to Sec. 22-71 of the Cable Ordinance. The City reserves the
right to implement rate regulation and prescribe procedures for establishing and modifying
rates when, and to the extent, permitted by federal law and/or FCC rules.
Section 7. Insurance, Bonds and Indemnification.
(a) The insurance, performance bond and indemnification obligations as
specified in Sec. 22-46 of the Cable Ordinance shall apply. Franchisee shall continue to
comply with Section 22-46 of the Cable Ordinance. Upon the effective date of this
Franchise, nothing in this Section 7 shall require Franchisee to refile documentation with
the City so long as Franchisee is currently in compliance with Section 22-46 of the Cable
Ordinance. Notwithstanding the foregoing, the Franchisee shall not be obligated to
4
indemnify the City for any damages, liability or claims resulting from the willful
Section 8.System Design: Minimum Channel Capacity.
(a) Franchisee shall develop, construct, operate, and maintain for the term of
this Franchise, a System providing a minimum of one hundred twenty (120) Channels of
programming consistent with the specifications attached hereto as Exhibit A.
(b) The System is a hybrid fiber-coaxial architecture. In addition, the System
will be designed with the capability to transmit return signals upstream in spectrum to be
determined by Franchisee.
(c) All programming decisions shall be made by Franchisee in accordance with
applicable law, provided that Franchisee notifies City and Subscribers in writing thirty (30)
days prior to any Channel deletions or realig
signal carriage obligations pur
rights pursuant to 47 U.S.C. § 545. Location and relocation of the PEG Access Channels
shall be governed by Attachment C attached hereto. Such written notices may be delivered
electronically.
Section 9. Interruption of Service. Franchisee shall interrupt Service only for good
cause and for the shortest time possible. Such interruption shall occur during periods of minimum
use of the System. If Service is interrupted for a total period of more than twenty-four (24)
continuous hours in any thirty (30) day period, Subscribers shall, upon request, be credited pro rata
for such interruption.
Section 10. Emergency Alert Capability. At all times during the term of this Franchise,
Franchisee shall provide and maintain an Emergency Alert System (EAS) consistent with
Applicable Laws including 47 C.F.R., Part 11, as may be amended or modified from time to time,
and the Kentucky Emergency Management (KYEM) requirements. The City may identify
authorized emergency officials for activating the EAS consistent with the KYEM requirements.
The City may also develop a local plan containing methods of EAS message distribution, subject
to applicable laws and the KYEM requirements. Nothing in this section is intended to expand
quired by the KYEM requirements and Applicable
Law.
Section 11. Technical Standards. The technical standards used in the operation of the
System shall comply, at minimum, with the technical standards promulgated by the FCC relating
to Cable Systems pursuant to Title 47, Section 76, Subpart K of the Code of Federal Regulations.
To the extent those standards are altered, modified or amended during the term of this Franchise,
the Franchisee shall comply with such alterations, modifications or amendments within a
reasonable period after their adoption by the FCC. In addition, Franchisee is subject to the
technical standards outlined in Attachment A, attached hereto.
Section 12.In re Cable
Television Technical and Operational Standards issued September 25, 2017, the City may request
testing of compliance with signal quality standards in response to a pattern of customer complaints
5
regarding signal quality. If such special testing establishes that the System meets all required FCC
technical standards, the City shall bear its expense for such special testing. If such special testing
establishes that the System does not meet all required FCC technical standards, Franchisee shall
r such special testing.
Section 13. Access Facilities.
(a) The Franchisee shall provide Access Channels and Services pursuant to the
requirements of Attachment C hereto. No later than sixty (60) days after the effective date
of this Franchise, Franchisee shall collect on behalf of City a per Subscriber fee of Nine
Tenths percent (.90%) of Annual Gross Revenues to support PEG access in the City
. The payment of PEG Fees shall be made
on a quarterly basis and shall be due forty-five (45) days after the close of each calendar
quarter in the same manner as Franchise Fee payments are remitted pursuant to Section 15
herein. The PEG Fee may be reduced based upon mutual agreement of the parties.
Consistent with Section 21(d) of this Franchise, in the event the imposition of a PEG Fee
is determined to be unenforceable under Applicable Law or is otherwise declared invalid
by any court, agency, commission, legislative body, or other authority of competent
jurisdiction the PEG Fee shall no longer be enforceable under this Franchise absent a
subsequent change in Applicable Law.
(b) The PEG Fee may be used by City to fund PEG expenditures in accordance
with Applicable Law.
(c) The PEG Fee may be categorized, itemized and passed through to
Subscribers as permissible, in accordance with 47 U.S.C. § 542 or other Applicable Laws.
Franchisee shall pay the PEG Fee to the City on a quarterly basis. Any PEG Fees owing
pursuant to this Franchise which remain unpaid more than thirty (30) days after the date
the payment is due shall be delinquent and shall thereafter accrue interest compounded at
the Wall Street Journal Prime rate plus two percent (2%).
(d) Franchisee shall provide PEG Fiber Transport as described in Exhibit B.
(e) Franchisee shall not be obligated to comply with Section 22-39(c) of the
Ordinance.
Section 14. Other Business Licenses. This Franchise authorizes only the operation of a
Cable System as provided for herein, and does not take the place of any other generally applicable
franchise, license, or permit which might be required of the Franchisee by law.
Section 15. Franchise Fees.
(a) Franchisee shall pay City a Franchise Fee in an amount equal to five percent
(5%) of Annual Gross Revenues derived by the Franchisee from the operation of the Cable
System in the Franchise Area to provide Cable Services. The payment of Franchise Fees
shall be made on a quarterly basis and shall be due forty-five (45) days after the close of
each calendar quarter. Each Franchise Fee payment shall be accompanied by a report
prepared by a representative of the Franchisee showing the basis for the computation of the
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Franchise Fees paid during that period. Any Franchise fees owing pursuant to this
Franchise which remain unpaid more than thirty (30) days after the date the payment is due
shall be delinquent and shall thereafter accrue interest compounded at the Wall Street
Journal Prime rate plus two percent (2%). The Ci
Franchise Fee payments in accordance with the Cable Ordinance at Section 22-72.
(b) Nothing in this Franchise shall in any way be construed to prohibit the City
from collecting any generally applicable fees, taxes or assessments as may be permitted by
Applicable Laws.
Section 16.Reports. Within ninety (90) days of the end of its fiscal year and only in
response to a written request by the City, the Franchisee shall file with the City the reports required
by Sec. 22-45 of the Cable Ordinance.
Section 17.Customer Service. The Franchisee shall provide customer service
Customer Protection and Service Standards of the
Cable Ordinance.
Section 18.Conflicts. In the event of a conflict between this Franchise and the Cable
Ordinance, the Franchise shall prevail and control.
Section 19.Publication Costs. Franchisee shall assume the reasonable publication costs
as shall be presented to the Franchisee by the City Clerk after acceptance of this Franchise by the
City and appropriate publication has occurred.
Section 20. Notices. All formal notices under this Franchise shall be delivered by hand,
U.S. mail (certified or registered), or any courier service that verifies the date of delivery and shall
be considered given upon the date of receipt. Notices shall be sent to the City and Franchisee as
follows:
City: Attention: City Manager
300 South Fifth Street
Paducah, Kentucky 42003
Franchisee: Ritter Communications
2400 Ritter Drive
Jonesboro, Arkansas 72401
Section 21.Miscellaneous Provisions.
(a) Whenever this Franchise shall set forth any time for an act to be performed
by or on behalf of the Franchisee, such time shall be deemed of the essence.
(b) This Franchise may not be amended except by written instrument agreed to
and executed by both parties hereto.
(c) This Franchise shall be deemed to be executed in the County of McCracken,
Commonwealth of Kentucky, and shall be governed in all respects, including validity,
7
interpretation and effect, and construed in accordance with the laws of the Commonwealth
of Kentucky, as applicable to contracts entered into and performed entirely within the
Commonwealth.
(d) If any section, subsection, sentence, clause, phrase, or other portion of this
Franchise is, for any reason declared invalid, in whole or in part, by any court, agency,
commission, legislative body, or other authority of competent jurisdiction, such portion
shall be deemed a separate, distinct and independent portion. Such declaration shall not
affect the validity of the remaining portions hereof, which other portions shall continue in
full force and effect.
Section 22. Term of Agreement. The term of this Franchise shall be ten (10) years,
beginning on ___________, 2025, unless renewed, revoked, or terminated sooner as herein
provided.
Section 23.Force Majeure. The Franchisee shall not be held in default under, or in
noncompliance with, the provisions of this Franchise or the Cable Ordinance, nor suffer any
enforcement or penalty relating to noncompliance or default (including termination, cancellation
or revocation of the Franchise), where such noncompliance or alleged defaults occurred or were
caused by strike, riot, war, earthquake, flood, tidal wave, unusually severe rain or snow storm,
hurricane, tornado, wild fire or other catastrophic act of nature, failure of utility service (through
no fault of Franchisee) necessary to operate the Cable System, governmental, administrative or
judicial order or regulation or other event that is reasonabl
anticipate or control.
Section 24. Entire Agreement. This Franchise, including all Attachments, embodies the
entire understanding and agreement of the City and the Franchisee, supersedes all prior agreements
or proposals except as specifically set forth herein, and cannot be changed orally but only by an
instrument in writing executed by the parties.
Section 25. No Third Party Beneficiaries. Nothing in this Franchise or any prior
agreement is or was intended to confer third-party beneficiary status on any member of the public
to enforce the terms of such agreements or Franchise.
Section 26.No Waiver of Rights. Nothing in this Franchise shall be construed as a
waiver of any rights, substantive or procedural, the Franchisee may have under federal or state law
unless such waiver is expressly stated herein.
Section 27. Renewal of Franchise. The renewal of this Franchise shall be governed by
and comply with the provisions of 47 U.S.C. § 546 of the Cable Act, as amended.
Section 28. Enforcement and Termination of Franchise.
(a) Notice of Violation or Default. In the event the City believes that the
Franchisee has not complied with the material terms of this Franchise, it shall notify the
Franchisee in writing with specific details regarding the exact nature of the alleged
noncompliance or default.
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(b) The Franchisee shall have thirty
ce described in Section 28(a), above: (i) to
respond to the City, contesting the assertion of noncompliance or default, or (ii) to cure
such default, or in the event that, by nature of the default, such default cannot be cured
within the thirty (30) day period, initiate reasonable steps to remedy such default and notify
the City of the steps being taken and the projected date that they will be completed.
(c) Public Hearings. In the event the Franchisee fails
notice described in Section 28(a), above, or in the event that the alleged default is not
remedied within thirty (30) days or such longer time period as may be mutually agreed
upon by City and Franchisee, pursuant to Section 28(b), above, the City shall schedule a
public hearing regarding the default. Such public hearing shall be held at the next regularly
scheduled meeting of the City that is scheduled at a time, which is no less than ten (10)
business days therefrom. The City shall notify the Franchisee in writing of the time and
place of such meeting and provide the Franchisee with a reasonable opportunity to be
heard.
(d) Enforcement. Subject to applicable federal and state law, in the event the
City, after such public hearing, determines that the Franchisee is in default of any provision
of the Franchise, the City may:
(1) draw from the performance bond required by Section 22-46 of the
Cable Ordinance;
(2) seek specific performance of any provision, which reasonably lends
itself to such remedy, as an alternative to damages or seek other equitable relief; or
(3) in the case of a substantial default of a material provision of the
Franchise, declare the Franchise to be revoked in accordance with the following:
(i) The City shall give written notice to the Franchisee of its
intent to revoke the Franchise on the basis of noncompliance by the
Franchisee, including one (1) or more instances of substantial
noncompliance with a material provision of this Franchise
Agreement. The notice shall set forth with specificity the exact
nature of the noncompliance. The Franchisee shall have thirty (30)
days from the receipt of such notice to object in writing and to state
its reasons for such objection. In the event the City has not received
a satisfactory response from the Franchisee, it may then seek
termination of this Franchise Agreement at a public hearing. The
City shall cause to be served upon the Franchisee, at least ten (10)
days prior to such public hearing, a written notice specifying the
time and place of such hearing and stating its intent to request
termination of the Franchise.
(ii) At the designated hearing, the City shall give the Franchisee
an opportunity to state its position on the matter, present evidence,
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after which it shall determine whether or not the Franchise shall be
revoked. The public hearing shall be on the record and a written
transcript shall be made available to the Franchisee within ten (10)
business days. The decision of the City shall be in writing and shall
be delivered to the Franchisee in the manner set forth in Section 20,
herein. The Franchisee may appeal such determination to an
appropriate court. Such appeal to the appropriate court must be
taken within sixty (60) days of the issuance of the determination of
the City.
(iii)The City may, at its sole discretion, take any lawful action
that it deems appropriate to enforce its rights under the Franchise in
lieu of revocation.
Section 29. Transfer of the Franchise. Notwithstanding anything to the contrary in the
Cable Ordinance or this Franchise, neither the Franchisee nor any other Person may transfer the
Cable System or this Franchise without the prior written consent of the City, which consent shall
not be unreasonably withheld or delayed. No transfer of control of the Franchisee defined as an
acquisition of fifty-one (51) percent or greater ownership interest in Franchisee shall take place
without the prior written consent of the City. No such consent shall be required, however, for a
transfer in trust, by mortgage, hypothecation, or by assignment of any rights, title, or interest of
the Franchisee in this Franchise or the Cable System in order to secure indebtedness. The City
shall, in accordance with FCC rules and regulations, notify the Franchisee in writing of information
it requires, if any, to determine the legal, financial, and technical qualifications of the transferee.
So long as required by applicable FCC regulations, if the City has not taken action on the
ndred twenty (120) days after receiving such
request, consent to the transfer shall be deemed given.
\[The remainder of this page is intentionally left blank; signature page follows.\]
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IN WITNESS WHEREOF, the parties hereto have set their hands and seals as follows:
st
1 Reading , 2025
nd
2 Reading , 2025
CITY OF PADUCAH, KENTUCKY ATTEST:
Date: , 2025 Date: , 2025
By: By:
Name: Name:
Title: Mayor Title: City Clerk
E. RITTER COMMUNICATIONS, LLC,
d/b/a Ritter Communications, d/b/a RightFiber
Date: , 2025
By:
Name:
Title:
STATE OF ____________ )
) ss.
COUNTY OF ___________)
The foregoing instrument was subscribed and sworn to before me this day of _____,
2025, by ___________ , as , of E. Ritter Communications, LLC.
Notary Public SEAL
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ATTACHMENT A
DESCRIPTION OF SYSTEM
1. System. The Cable System shall be designed, constructed, routinely inspected, and
maintained to guaranty the Cable System meets or exceeds the requirements of the most
current additions of the National Electrical Code (NFPA 70) and the National Electrical
Safety Code (ANSI C2).
2. General Requirements. Franchisee shall use equipment used in high-quality, reliable,
modern Cable Systems of similar design.
3. Technical Specifications. The System shall meet or exceed FCC requirements.
The System shall be designed such that no noticeable degradation in signal quality
attributable to the System will appear at the Subscriber terminal.
A-1
ATTACHMENT B
PEG FIBER TRANSPORT
PEG Fiber Transport.
1. Franchisee shall construct, implement, and provide, at no charge or reimbursement
the Franchise, the transmission of the PEG
origination locations via a bi-directional facility that connects the location(s) listed in
2. The Video Fiber Transport Network shall serve all of the PEG origination locations
listed below.
Access Channel Origination Location
Public West KY Community and Technical College
4810 Alben Barkley Drive,
Clements Fine Art Center, Room 107E
Government West KY Community and Technical College
4810 Alben Barkley Drive,
Clements Fine Art Center, Room 107E
Educational McCracken County Library
555 Washington Street
3. Transport equipment for the purpose of inserting Video Programming on the Video
Fiber Transport Network, to the extent not already installed as of the effective date of this
Franchise, shall be the responsibility of Franchisee. Franchisee shall purchase and install
the transmitters/encoders and receivers needed at the locations in paragraph 2 above, if
needed. Maintenance costs of the PEG tran
provide the City with prior notice of the
anticipated costs of the Transport Maintenance at the time such maintenance is suggested
by Franchisee or requested by the City, and Franchisee shall invoice the City for such costs
upon completion of the work.
4. All other PEG production equipment and
the demarcation point) shall be the responsibility of the City to purchase, install and
maintain.
B-1
5. The Video Fiber Transport Network shall be capable of carrying Video
Programming inserted at the location(s) in paragraph 2, above, upstream to the headend for
redistribution over the Subscriber network.
6. Franchisee will be given up to six (6) months from execution of this Franchise
Agreement to construct and implement the Video Fiber Transport Network to the locations
listed in paragraph 2 above that connect
B-2
PEG Fiber Transport Diagram
B-3
ATTACHMENT C
ACCESS CHANNELS
I. GENERAL
A. Franchisee shall provide Access Channels sufficient to meet community needs
during the term of the Franchise as provided for herein.
B. Access Channel operations must conform to the following minimum requirements:
1. Access Channels shall
Service offering in accordance with Section 611 of the Cable Act.
2. Subject to Section II.A.3 below, Franchisee shall have no control over the
content of any programming carried on Access Channels. The Authority may select
a non-profit corporation or other entity to manage the Access Channels consistent
with the requirements of the Cable Ordinance, this Franchise, and Applicable Law.
3. Franchisee agrees to provide three (3) Access Channels.
4. All programming transmitted over the Access Channels shall be non-
commercial in nature. Program material to be distributed on Access Channels shall
contain no advertising or commercial content. Franchisee and City agree that City
or the producer or distributor of such programming may include acknowledgments
for Persons, which sponsor or underwrite access programming in a manner
substantially similar to the sponsorship information provided on the Public
Broadcasting System (PBS).
C. Access Channels shall be operated in conformity with the provisions of this
Franchise and the Cable Ordinance.
D. An Access user, whether an individual, educational or governmental user, or any
other lawful entity, acquires no property or other interest by virtue of the use of a Channel
so designated, and may not rely on the continued use of a particular Channel number, no
matter how long the same Channel may have been designated for such use. Franchisee,
however, shall not relocate any Access Channel to a different Channel number without first
giving thirty (30) days advanced written notice to the City. Franchisee shall endeavor to
provide as much advance notice as possible to City for any Access Channel relocation.
E. In the event any Access Channel(s) is relocated, Franchisee shall reimburse City up
to Three Thousand and No/100 Dollars ($3,000.00) for all reasonable actual costs
associated with such a move including change of letterhead, promotion of the new Channel
location and promotional spots for the new location and inform Subscribers of the new
Channel location through bill inserts and newspaper or other advertisements.
F. Franchisee shall provide the Access Channels as part of the Cable Service provided
to any Subscriber, at no additional charge to the City, access users or Subscribers other
C-1
than the permitted basic services fee under applicable law so that the Access Channels are
viewable by the Subscriber without the need for additional equipment beyond that required
to receive the lowest priced Cable Service offering.
G. To the extent the configuration of the Cable System allows for detailed program
listings to be included on the digital Channel guide, Franchisee will allow City to make
arrangements with the Channel guide vendor to make detailed programming listings
available on the guide. The City will be solely responsible for providing the program
information to the vendor in the format and timing required by the vendor and shall bear
all costs of this guide service.
H. Franchisee shall make a reasonable effort to group Access Channels with like
Channels in the lowest cost SD and HD tier, and will be located in reasonable proximity to
broadcast channels and other basic mainstream cable/satellite Channels.
I. Franchisee shall maintain all its upstream and downstream Access Channels and
connections at the same level of technical quality and reliability required by this Franchise
and all other Applicable Laws. Franchisee, in accordance with Applicable Law, shall
provide routine maintenance and shall repair and replace all transmission equipment,
including transmitters/receivers, associated cable and equipment in use as necessary to
carry a quality Access Channel signal to and from a designated demarcation point between
the City and Franchisee as set forth in Attachment B.
J. In the event Franchisee makes any change in the Cable System and related
equipment and facilities or in Franchisee's signal delivery technology, which directly or
indirectly affects the signal quality or transmission of Access Channels or Access
programming or requires City to obtain new equipment in order to be compatible with such
change for purposes of transport of and delivery of any Access Channels (SD or HD),
Franchisee shall, at its own expense and free of charge to City, take necessary technical
steps or provide necessary technical assistance and training of City's Access personnel to
ensure that the capabilities of Access services are not diminished or adversely affected by
such change.
K. Unused Access Channel capacity may be utilized by Franchisee. Because blank or
underutilized Access Channels are not in the public interest, in the event the City or other
Access Channel user elects not to fully program its Channel(s), Franchisee may program
unused time on such Channels subject to reclamation by the City upon no less than sixty
L. Franchisee shall not be obligated to indemnify the City for any damages, liability
or claims resulting from the willful misconduct or gross negligence of the City for the
M. The City will obtain from any non-governmental Access Channel programmer or
user a written statement indemnifying Franchisee and the City from all claims regarding
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N. Indemnification. Franchisee shall not be required to indemnify City for any
liability, loss or damage due to violation of the intellectual property rights of third parties
or arising out of the content of programming shown on any PEG channel and from claims
ministration of the PEG Access Channels.
II. ACCESS CHANNELS
A. Public Access Channel
1. Franchisee shall provide capacity on one (1) Channel for public access
purposes originating at West Kentucky Community & Technical College located at
4810 Alben Barkley Drive.
2. The City shall provide access to such capacity on a first-come-first served,
non-discriminatory basis. The City, however, may reserve the right to limit the
amount of time granted any one party in order to ensure that all users have access
opportunity. Use limitations may be imposed only in those situations where
demand exceeds availability.
3. Franchisee shall not exercise any control over program content with the
following exceptions:
(a) A participant in public access cablecasting may not present any
advertisement of, or information concerning any lottery, gift, enterprise or similar
scheme, offering change, or any list of prizes. This prohibition does not apply to
advertisement of, or information concerning state-conducted lotteries where the
transmission is permitted by federal statute or FCC rules and regulations.
(b) A participant in public access cablecasting may not present obscene
material.
(1) Franchise shall not exercise editorial control over any use of
Access Channel capacity, except Franchisee may pre-screen or take other
appropriate steps to ensure that obscene materials are not cablecast. Such
steps may include, but not be limited to, requesting that the offending
portions be deleted or by refusing to allow the program on the System.
(2) A participant may not present any advertising material
designed to promote the sale of commercial products or services, including
advertising by or on behalf of candidates for public office on any Access
Channel. However, this is not to be construed to mean that candidates for
public office may not appear on any Access Channel in behalf of their
candidacy providing their appearance is in accordance with statutory
requirements and FCC rules and regulations.
B. Government Access Channel
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1. Franchisee shall provide capacity on one (1) Channel for government access
iginating at West Kentucky Community &
Technical College located at 4810 Alben Barkley Drive. This Channel shall be
made available in order to increase
governments by allowing for live or recorded coverage of Paducah City
Commission and the McCracken County Fiscal Court meetings, planning
commission meetings, special hearings, committee meetings, and discussions of
independent boards, commissions, and City and county departmental programs.
Franchisee shall cooperate with the City and provide assistance, advice and
technical aid necessary to provide maximum utilization of the governmental Access
Channel for whatever needs arise. This provision does not include actual
production assistance. To the extent Franchisee imposes charges on the City for
any assistance, advice and technical aid, Franchisee will provide advance written
notice to City before any charges are imposed and invoiced to the City.
2. The governmental Access Channel shall serve as a means for the Mayor,
Judge/Executive, City and County officials to communicate with the citizens of the
Paducah Community. More specifically this Channel shall be regularly used to
provide the Paducah Community with up to date information regarding day-to-day
operations of the City, County, state and Federal governments.
C. Educational Access Channel
1. Franchisee shall dedicate capacity on one (1) Channel for the use by
educational institutions such as primar
schools, in the City of Paducah and McCracken County. The Educational Access
Channel will originate at the McCracken County Public Library or another location
within McCracken County to be determined.
2. To the extent not otherwise provided for in Section II. A.3 above,
Franchisee shall not exercise any control over programming.
III. VIDEO ON DEMAND
A. To accommodate PEG programming in HD, Franchisee will provide, for as long as
twenty-five (25) hours of either SD or HD Access programming or a combination of both
or such greater amount as may be mutually agreed to by the parties, as designated and
supplied by the City to Franchisee. Franchisee and City shall execute a Video on Demand
Licensing Agreement. Franchisee will not charge the City for VOD unless Applicable Law
allows Franchisee to impose such a charge and any such change will be set at rates that are
not discriminatory against the City.
B. transmitted and/or transferred and shall
The City VOD Access programming will be
available to Subscribers twenty-four (24) hours per day, seven (7) days per week. Any
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City Access programming placed on VOD shall be available to Subscribers free of charge.
y aggregate data regarding Subscriber use
the VOD platform, if available to Franchisee. Access
programming content shall have the same viewing quality and features (including program
descriptions and search function) as all
System. Programming submitted for placement on the VOD system shall be placed on and
available for viewing from the VOD system as soon as possible from time of receipt of
said programming and Franchisee will make best efforts to provide a 24-hour turn-around,
and in no case longer than seventy-two (72) hours from receipt of said programming.
Franchisee agrees to treat Access VOD programming in a nondiscriminatory manner as
compared to other similarly situated providers of VOD content.
C. The City shall have the sole discretion to select the content of such Access VOD
Access VOD programming will be
D. To the extent permitted, Franchisee shall
third party vendor, free of charge and at no cost to the City, monthly viewership/traffic
reports showing statistics for Access VOD programs, or Franchisee shall provide (or
require its third party vendor to provide) the City with access to online dashboard analytics
allowing City staff to directly access traffic information.
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Agenda Action Form
Paducah City Commission
Meeting Date: October 2, 2025
Short Title: Repeal & Replace Article IV, Chapter 34 Urban Renewal of the Code of Ordinances - C.
GAULT
Category: Ordinance
Staff Work
By: Carol Gault
Presentation
By: Carol Gault
Background Information: A few years ago the Urban Renewal and Community Development Agency and
Planning Commission were joined as two boards utilizing the same members. This action would repeal that
action and separate the 2 boards each having their own members.
Does this Agenda Action Item align with a Commission Priority? No
If yes, please list the Commission Priority:
Communications Plan:
Account Name:
Funds Available:
Account Number:
Staff Recommendation:
Attachments:
1.Ordinance repealing and replacing Article IV Chapter 34 Urban Renewal
CITY OF PADUCAH
ORDINANCE NO._____________
AN ORDINANCE REPEALING AND REPLACING ARTICLE VI,
“URBAN RENEWAL AND COMMUNITY DEVELOPMENT
AGENCY”, OF CHAPTER 35 “COMMUNITY PLANNING AND
DEVELOPMENT”, OF THE CODE OF ORDINANCES OF THE
CITY OF PADUCAH, KENTUCKY
WHEREAS, the Paducah Board of Commissioners did adopt on August 12, 2025, the
Southside Revitalization Plan of the City of Paducah and designated Urban Renewal and
Community Development Agency (“URCDA”) to act on behalf of the City for the implementation,
oversight, administration and review responsibility for the Southside Revitalization Plan; and
WHEREAS, due its increased duties administering and implementing the Southside
Revitalization Plan, the City of Paducah has determined that it is in the best interest of the City to
repeal Article VI, “Urban Renewal and Community Development Agency” of Chapter 35
“Community Planning and Development” of the Code of Ordinances of the City of Paducah,
Kentucky, which establishes URCDA and governs the composition of URCDA as a subcommittee
of the Paducah Planning Commission, by repealing this Article VI in its entirety and replacing it
as stated herein;
NOW THEREFORE be it ordained by the City Commission of the City of Paducah as
follows:
SECTION A:. Article VI, “Urban Renewal and Community Development Agency” of Chapter
Community Planning and Development” of the Code of Ordinances of the City of Paducah,
Kentucky is hereby revoked in its entirety and replaced with the following:
ARTICLE VI. - URBAN RENEWAL AND COMMUNITY DEVELOPMENT AGENCY
Sec. 34-121. - Established.
The Urban Renewal and Community Development Agency of Paducah, hereinafter referred to as
the URCDA, was established by Resolution on February 23, 1960 by the City of Paducah.
(Ord. No. 2019-12-8608, § 1, 12-17-2019)
Sec. 34-122. - Composition; term and meetings.
(a) Generally. The URCDA shall consist of a total of five (5) residents within city limits
of the City of Paducah as members who shall be appointed by the Mayor with the approval of the
Board of Commissioners in conformity with applicable law.
1
(b) Terms. Three (3) of the members who are first appointed shall be designated to serve
for terms of one (1), two (2) and three (3) years respectively, and the remaining two (2) of such
members shall be designated to serve for terms of four (4) years each, from the date of their
appointment as indicated in KRS 99.350. Any appointments heretofore made for a term of five
(5) years are hereby confirmed and declared to be appointments for a term of four (4) years from
the date of such appointment. Thereafter, members shall be appointed as aforesaid for a term of
office of four (4) years, except that all vacancies occurring during a term shall be filled for the
unexpired term. A member shall hold office until his successor has been appointed and qualified.
The term of each URCDA member, except for the initial term, shall be for a staggered four (4)
year term A member shall hold office until a successor has been appointed and qualified.
(c) Meetings. The URCDA shall hold at least one (1) regular meeting per month at City
Hall on a day and time determined by URCDA.
Sec. 34-123. - Powers and authority.
The powers, functions and duties of the URCDA and its authority shall be in conformity with
KRS 99.330 to 99.510, as amended from time to time.
SECTION B. SEVERABILITY. If any section, paragraph or provision of this Ordinance shall
be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such
section, paragraph or provision shall not affect any of the remaining provisions of this Ordinance.
SECTION C. COMPLIANCE WITH OPEN MEETINGS LAWS. The City Commission
hereby finds and determines that all formal actions relative to the adoption of this Ordinance were
taken in an open meeting of this City Commission, and that all deliberations of this City
Commission and of its committees, if any, which resulted in formal action, were in meetings open
to the public, in full compliance with applicable legal requirements.
SECTION D. CONFLICTS. Upon the publication and on the effective date of this Ordinance,
the following Chapter shall be repealed in its entirety and superseded with this Ordinance: Chapter
108.
SECTION E. EFFECTIVE DATE. This Ordinance shall be read on two separate days and will
become effective upon summary publication pursuant to KRS Chapter 424.
____________________________________
MAYOR GEORGE P. BRAY
2
ATTEST:
____________________________________
City Clerk, Lindsay Parish
Introduced by the Board of Commissioners, September 16, 2025
Adopted by the Board of Commissioners, ___________________, 2025
Recorded by City Clerk, ________________, 2025
Published by The Paducah Sun, __________________, 2025
3
Agenda Action Form
Paducah City Commission
Meeting Date: October 2, 2025
Short Title: Amend Section 20-23 of the Code of Ordinances related to Body Piercing - C. MEEKS
Category: Ordinance
Staff Work By: Claudia Meeks, Daron Jordan
Presentation By: Claudia Meeks
Background Information: The Commonwealth of Kentucky regulates body piercing, allowing any person
who has completed bloodborne pathogen training and is registered with the local health department to perform
any and all body piercings.
The current Ordinance relating to body piercing below the waist prohibits this piercing unless it is performed
by a physician licensed to practice medicine in Kentucky.
Because the current City's Ordinance is in conflict with Kentucky Statute, this Ordinance necessary to amend
that portion of Chapter 20, Section 66-93(b) to delete the language relating to body piercing below the waist.
Does this Agenda Action Item align with a Commission Priority? No
If yes, please list the Commission Priority:
Communications Plan:
Account Name:
Funds Available:
Account Number:
Staff Recommendation: Adopt an Ordinance amending Chapter 20, Section 20-23(b) deleting language
"body piercing below the waist shall be prohibited unless performed by a physician licensed to practice
medicine in the State."
Attachments:
1.ORD 20 – Amend to delete language - body piercing below the waist
ORDINANCE NO. ___________________________
AN ORDINANCE AMENDING CHAPTER 20, SECTION 20-23(b) OF THE CODE OF
ORDINANCES OF THE CITY OF PADUCAH, KENTUCKY, SO AS TO DELETE
THAT PORTION WHICH STATES THAT “BODY PIERCING BELOW THE WAIST
SHALL BE PROHIBITED UNLESS PERFORMED BY A PHYSICIAN LICENSED TO
PRACTICE MEDICINE IN THE STATE.”
WHEREAS, the Commonwealth of Kentucky regulates body piercing, allowing any
person who has completed bloodborne pathogen training and is registered with the local health
department to perform any and all body piercings; and
WHEREAS, the City’s current ordinance relating to body piercing below the waist
prohibits such unless performed by a physician licensed to practice medicine in the
Commonwealth of Kentucky; and
WHEREAS, because the City’s Ordinance is in conflict with the Commonwealth’s
statute, this Ordinance is being enacted to amend that portion of the City’s Code, Section 66-
93(b), so as to delete the language relating to body piercing below the waist.
NOW THEREFORE, be it ordained by the City Commission of the City of Paducah as
follows:
SECTION 1. That portion of Section 20-23(b) is hereby amended to state as
follows:
Sec. 20-23. Operation Procedures for establishments and artists.
(b) Branding shall be prohibited unless performed by a physician licensed to
practice medicine in the Commonwealth. Body piercing below the waist shall be prohibited
unless performed by a physician licensed to practice medicine in the state.
SECTION 2. SEVERABILITY. That if any section, paragraph or provision of
this Ordinance shall be found to be inoperative, ineffective or invalid for any cause, the
deficiency or invalidity of such section, paragraph or provision shall not affect any other section,
paragraph or provision hereof, it being the purpose and intent of this Ordinance to make each and
every section, paragraph, and provision, hereof separable from all other sections, paragraphs and
provisions.
SECTION 3. COMPLIANCE WITH OPEN MEETINGS LAWS. The City
Commission hereby finds and determines that all formal actions relative to the adoption of this
Ordinance were taken in an open meeting of this City Commission, and that all deliberations of
this City Commission and of its committees, if any, which resulted in formal action, were in
meetings open to the public, in full compliance with applicable legal requirements.
SECTION 4. CONFLICTS. All ordinances, resolutions, orders or parts thereof
in conflict with the provisions of this Ordinance are, to the extent of such conflict, hereby
repealed and the provisions of this Ordinance shall prevail and be given effect.
SECTION 5. EFFECTIVE DATE. This Ordinance shall be read on two
separate days and will become effective upon summary publication pursuant to KRS Chapter
424.
______________________________
Mayor George Bray
ATTEST:
_________________________
Lindsay Parish, City Clerk
Introduced by the Board of Commissioners, _____________________
Adopted by the Board of Commissioners, _______________________
Recorded by Lindsay Parish, City Clerk, ________________________
Published by The Paducah Sun, ________________________
Agenda Action Form
Paducah City Commission
Meeting Date: October 2, 2025
Short Title: Revisions to the City of Paducah Remote Worker Incentive Program - N. UPCHURCH
Category: Ordinance
Staff Work
By: Nancy
Upchurch
Presentation
By: Nancy
Upchurch
Background Information: Ordinance # 2021-08-8700 created the City of Paducah Remote Worker
Program. Since the beginning of the program, 26 people have relocated to Paducah. Currently, the program
has no provision for a self-employed person. They make up 18% of the applications. This revision includes
provisions to make the program available to self-employed persons who can provide documentation of their
self-employment status. Additionally, the current incentives are confusing to the applicants. The changes
proposed would not substantially change the amount of incentives the applicant receives. The incentive would
change from a reimbursement of moving expenses and waiver of the first year of payroll taxes to a cash
incentive of $5000 payable in two installments of $2500 each. The first payment will be made upon
establishing residency in Paducah, the second paid at the one-year anniversary of their relocation.
Does this Agenda Action Item align with a Commission Priority? No
If yes, please list the Commission Priority: Commission Priorities List
Communications Plan:
Account Name: Remote Worker Incentive Program
Funds Available:
Account Number: ED-0118
Staff Recommendation: Approval of the revisions
Attachments:
1.Ord - amend Remote Worker Incentive Program 2025 (2)
ORDINANCE NO. 2025-____- __________
AN ORDINANCE REVISING THE EXISTING REMOTE WORKERS
INCENTIVE PROGRAM
WHEREAS, the City of Paducah wishes to attract new individuals, families, and talent
to the City;
WHEREAS, the City recognizes that technology is making work more easily accessible
from home or other remote locations and that workers are increasingly attracted to jobs and
industries which allow them to work remotely;
WHEREAS, the City recognizes that remote workers are often attracted to communities
and programs which offer financial incentives,
WHEREAS, the City wishes to establish a Remote Workers Incentive Program to attract
new, talented workers to live, work, shop, and attend school in the City of Paducah, thereby
helping to better the community and boost the local economy.
NOW THEREFORE BE IT ORDAINED BY THE CITY OF PADUCAH, KENTUCKY:
SECTION 1. That the City of Paducah, Kentucky hereby establishes the City Remote
Workers Incentive Program with the following conditions and/or requirements:
(a) Eligibility. In order to be eligible to participate in the City Remote Workers Incentive
Program, an applicant/employee must:
(1) Be 21 years old or older;
(2) Be a U.S. Citizen, lawful permanent resident, or have other credentials
necessary to work in the United States;
(3) Live at least 100 miles outside the limits of the City of Paducah at the time
of application for the City Remote Workers Incentive Program;
(4) Work full-time for a company in which all offices are located at least 100
miles outside the limits of the City of Paducah; or
(5) Self-employed person who can show evidence of self-employment by
providing at least one of the following:
a. Copies of Tax Records
b. Profit and Loss Statement
c. Business License/Permits from current jurisdiction
d. Other evidence you may provide
(5) (6) Be able to perform a majority of their employment duties remotely from a
home office or co-working space located inside the City of Paducah limits
evidenced by written documentation from their employer;
(6) (7) Acquire primary residency in the City of Paducah within three (3) months of
acceptance into the Remote Workers Incentive Program, as evidenced by a
lease with a physical address or a deed of conveyance of real estate which
includes a home;
(7) (8) Agree in writing that s/he will retain primary residence in the City of
Paducah for at least one (1) year beyond the initial twelve-month program;
(8) (9) Not be a participant in any other publicly-funded program/initiative.
(b) Incentives. Individuals accepted into the City Remote Workers Incentive Program
may be eligible to receive the following:
(1) Up to $2,500.00 reimbursement for expenses associated with relocating to
the City of Paducah. Expenses shall include: renter’s deposit, down
payment on a home, rental of moving trucks or trailers, the hiring of
professional movers, and/or the purchase of packing materials.
(2) Up to $70.00 per month reimbursement for fees associated with provision
of internet services provided to a residence located within the City of
Paducah. Such reimbursement shall be limited to twelve (12) months
(3) Waiver of City of Paducah Payroll taxes for twelve (12) months.
(1) $5000 cash incentive payable as follows:
(i) $2500 upon establishing residency in the City of Paducah
(ii) $2500 one year after the first installment is paid
(b) Equal Opportunity. All individuals who meet the eligibility criteria set forth in this
Ordinance shall have an equal opportunity to participate in the City Remote
Workers Incentive Program without regard to race, color, age, religion, sex,
disability, sexual orientation, or national origin.
SECTION 2. The Remote Workers Incentive Program shall be funded by Project
Number ED0118 Remote Workers Incentive Program.
SECTION 3. Severability. The provisions of this Ordinance are hereby declared to be
severable, and if any section, phrase or provision shall for any reason be declared invalid, such
declaration of invalidity shall not affect the validity of the remainder of this Ordinance.
SECTION 4. Effective Date. This Ordinance shall be read on two separate days and will
become effective upon summary publication pursuant to KRS Chapter 424.
___________________________________
GEORGE P. BRAY, MAYOR
ATTEST:
________________________________
Lindsay Parish, City Clerk
Introduced by t he Board of Commissioners October 2, 2025
Adopted by the Board of Commissioners ____________________________
Recorded by Lindsay Parish, City Clerk, ____________________________
Published by The Paducah Sun, _____________________________________
Ord\\amend Remote Workers Incentive Program 2025
Agenda Action Form
Paducah City Commission
Meeting Date: October 2, 2025
Short Title: Budget Amendment for CDBG Grant for Entitlement Community Funds - A. KYLE
Category: Ordinance
Staff Work By: Hope Reasons,
Audra Herndon
Presentation By: Audra
Herndon
Background Information: On September 16, 2024, the City of Paducah was notified by the U.S.
Department of Housing and Urban Development (HUD) that it had been designated as an “entitlement
community.” This means Paducah qualifies for Community Development Block Grant (CDBG) funding
directly from HUD (rather than competing with other cities or going through the state). As a result, the city was
allocated $583,406 for the federal fiscal year 2025–2026.
To actually use the funds, entitlement communities must prepare a 5-year Consolidated Plan. This plan
identifies local needs (housing, infrastructure, community services, etc.) and lays out how the city intends to
spend the grant money in line with federal rules. On August 12, 2025, the City Commission approved
Municipal Order 3105, which authorized submitting Paducah’s 5-year Consolidated Plan to HUD.
As part of the Grant Agreement the City must provide evidence of a budget ordinance/amendment indicating
inclusion of CDBG funds into the City's budget.
This ordinance will satisfy the Grant Agreement requirement for the budget amendment.
Does this Agenda Action Item align with a Commission Priority? No
If yes, please list the Commission Priority:
Communications Plan:
Account Name:
Funds Available:
Account Number:
Staff Recommendation: Approval.
Attachments:
1.ORD budget amend FY26 CDBG Entitlement Community
ORDINANCE NO. 2025-_____-________
AN ORDINANCE AMENDING ORDINANCE NO. 2025-06-8847, ENTITLED, “AN
ORDINANCE ADOPTING THE CITY OF PADUCAH, KENTUCKY, ANNUAL
OPERATING BUDGET FOR THE FISCAL YEAR JULY 1, 2025, THROUGH JUNE 30,
2026, BY ESTIMATING REVENUES AND RESOURCES AND APPROPRIATING FUNDS
FOR THE OPERATION OF CITY GOVERNMENT”
WHEREAS, on September 16, 2024, the City of Paducah received notification
from the US Department of Housing and Urban Development that Paducah had been selected as
an entitlement community for the purpose of Community Development Block Grant funding;
and
WHEREAS, The City of Paducah accepted designation and was allocated
$583,406 in funding for the 2025-2026 federal fiscal year; and
WHEREAS, as part of the Grant Agreement the City must provide evidence of a
budget ordinance/amendment indicating inclusion of CDBG funds into the City's budget.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF PADUCAH,
KENTUCKY:
SECTION 1. That the annual budget for the fiscal year beginning July 1, 2025,
and ending June 30, 2026, as adopted by Ordinance No. 2025-06-8847, be amended by the
following re-appropriations:
Increase revenues and expenditures for the CDBG Fund by $583,406.00.
SECTION 2. This ordinance shall be read on two separate days and will become
effective upon summary publication pursuant to KRS Chapter 424.
______________________________
George Bray, Mayor
ATTEST:
___________________________
Lindsay Parish, City Clerk
Introduced by the Board of Commissioners,_________________________
Adopted by the Board of Commissioners, __________________________
Recorded Lindsay Parish, City Clerk, _____________________________
Published by The Paducah Sun, __________________________________
\\ord\\finance\\budget amend FY26 CDBG Entitlement Community