City Commission Briefing Session Notes

CITY COMMISSION WORK SESSION NOTES March 9, 2010 @ 12:00 p.m. Meeting Attendees

Mayor Ron Payne Joe Schepers, Deputy P.W. Director/Engineering Mayor Pro Tem Charlie Castlen Beth Cecil, Executive Secretary Commissioner John Kazlauskas Beverly Lovan, City Clerk Commissioner Candance Brake Mark Welte, I.T. Manager Commissioner David Johnson Guests: Bill Parrish, City Manager Steve Vied, Messenger-Inquirer Tony Cecil, Operations Manager Corey Alan, Channel 25 Ed Ray, City Attorney Stan Conn, OMU Jim Tony Fulkerson, Finance & Support Services Director Sue Napper, OMU Wayne Shelton, Public Works Director Jim Grise, OMU Chief Glenn Skeens, Police Dept. Dick Cecil, OMU Keith Free, Community Development Director Dean Stanley, OMU Board Chief Steve Mitchell, Fire Dept. Dean Ehrenheim, YMCA Angela Hamric, Deputy Finance Director Fred Reeves Amanda Rogers, Parks & Recreation Manager Roger Stacy Kerry Bodenheimer, Parks & Recreation Rodney Berry, PLFO

Mayor Ron Payne called the meeting to order at 12:00 p.m.

1) YMCA

Dean Ehrenheim, CEO of Owensboro YMCA, presented a proposal to create Camp Greenbelt. Mr. Ehrenheim explained the outdoor summer day camp would be located on 25 acres of land already owned by the YMCA, located on New Hartford Road between the Greenbelt trail and Copper Creek neighborhood. The camp would serve approximately 1,000 children in the summer, but would also be available year-round for other activities/events. Mr. Ehrenheim said camp activities would aide in combating child obesity, encourage nutrition, and allow free-range play in a supervised environment. He requested the City Commission make a one-time investment of $198,500 or a portion thereof, to the $238,500 project. The recurring expenses would be maintained by the YMCA through their fee-for-service. Several local organizations, including Atmos Energy, Sterrett Crane, and Bryant Engineering had already begun to provide in-kind services for the project. Mayor Ron Payne suggested that if the consensus was to assist in funding the project, the City utilize the wellness fund. Mayor Payne also asked City Attorney Ed Ray to research the legality of donating to a Christian affiliated organization. Mr. Bill Parrish, City Manager, stated the duplication of services between the YMCA and the City of Owensboro’s Parks and Recreation programs could be somewhat eliminated and shifted to the YMCA, therefore saving taxpayers money. Commissioner Candance Brake requested a business plan and asked for more time to digest the proposal. She also asked if the Daviess County Fiscal Court had been approached for funding to which Mr. Ehrenheim responded no. However, he said he would contact Fiscal Court. Commissioner Brake replied she would not be inclined to provide funding if Fiscal Court was not going to financially participate. Commissioner David Johnson asked if other donations or in-kind services had been sought. Mr. Ehrenheim responded that in-kind services were already being received and donations were anticipated based on historical data. Commissioner Johnson said he would like to see the financial participation of other organizations. He also encouraged Mr. Ehrenheim to approach the school systems for possible partnerships. 2) OMU Update

OMU General Manager, Stan Conn presented the Commission with an update on their electric revenue. Mr. Conn stated that although OMU had reduced expenses by $1.3 million through various methods, the revenues had fallen short of projections for the second half of 2009 by $1 million. The base rate has had two recent increases, one in June 2009 and the second in January 2010. Mr. Conn said it was too early to know if the second increase would have a significant impact on the revenue shortfall. Mayor Pro- Tem Castlen asked if the $1 million shortfall was included in their budget, to which Mr. Conn responded affirmatively. Mr. Conn also discussed OMU’s upcoming opportunity to sell power on the open market, which is scheduled to begin May 17. Mr. Conn explained that ACES Power Marketing had been hired to assist with marketing surplus power, contract development, risk management, and a variety of other duties. A five-person Wholesale Market Team and a three-person Independent Risk Audit Committee have both been created and will report to the Utility Commission. The Wholesale Market Team consists of the Manager of Wholesale Power Market, a new OMU position, Director of Power, Director of Transmission, Jim Grise and Stan Conn. The Risk Audit Committee includes an independent auditor, a newly created position at OMU, the Finance Director and Administrative Director. Commissioner Brake asked if the Commission would be best served by having a city representative appointed to the Committee to protect the City and its dividend. Mayor Payne responded that he was comfortable with OMU giving periodic updates to the Commission and he did not want to get involved with all the local boards. Commissioner Brake and Mayor Pro-Tem Castlen both said they wanted to be aware of any problems or concerns up front and not wait for a six-month update. Mayor Payne asked if the Risk Audit Committee meetings would be open or closed sessions; Mr. Conn replied that it depended on the items being discussed. Mayor Payne asked if the extension of the 60 Bypass would allow OMU to add additional service territory. Mr. Conn responded that no new territory would be serviced; however, there would be some satellite growth. Mayor Payne requested Mr. Conn to contact Kenergy Corporation to discuss negotiating some of the east side territory. Mayor Pro- Tem Castlen said he had received several citizen calls relating to the increase in electrical bills. He requested OMU look at different options that could be printed on the statements to assist citizens with tracking their usage. Mayor Payne echoed Mayor Pro-Tem Castlen and requested an easy and helpful comparison be provided. Commissioner Brake requested Mr. Parrish coordinate between OMU and City staff a response for citizens’ calls and complaints in regard to the increased bills.

3) City Projects List Update

Mr. Parrish presented the city project list update.

4) New Business

Mayor Payne stated that because of the upcoming substantial investment in the Dugan Best area, he would like for the Commission to take a bus tour of the area and see the detailed plans. He requested the tour be taken March 16 with the City Commission meeting to follow at the Dugan Best Community Center. Mayor Payne suggested future meetings of the City Commission be held outside of City Hall to give residents that would not normally attend the meetings an opportunity to be present. Mayor Pro-Tem Castlen asked if these would still be considered regular meetings and Mayor Payne responded affirmatively.

5) Closed Session

2 Motion was made by Commissioner Johnson, seconded by Commissioner Brake and carried 5-0 to go into closed session under KRS 61.810 to discuss specific proposals where open discussions would jeopardize the siting, retention, expansion or upgrading of the business enterprise.

After reconvening, the meeting adjourned by acclimation at 1:45 p.m.

______Beth Cecil Recording Secretary