City Commission - Regular Meeting

Heat. Heat. [music] Heat. Heat.

[music] Welcome. Uh, thanks for being here. I'll go ahead and call this meeting to order on December 9th, 2025, and ask the city clerk to please call roll. Commissioner Henderson, present. Commissioner Smith, here. Commissioner Thomas, present. Commissioner Wilson, present. Mayor Bray present. Uh I would ask Commissioner Smith to say the invocation tonight and then we'll remain standing for the pledge of allegiance. [clears throat] Father, we thank you for your grace and goodness. May your face continually shine upon us so that your ways may be known in our communities. Amen. Amen.

Amen. I pledge algiance to the flag of [clears throat] the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. [clears throat]

Okay. City manager, are there any additions or deletions to the agenda tonight? Uh, mayor, no additions but one deletions uh in agreement by both parties. The employee grievance appeal will be removed from tonight's agenda. Okay. Very good. Thank you. And uh first up is a new employee introduction. And uh I would invite uh Taylor Moring and Greg Shelton to come up and uh introduce them. And I don't think Greg's here. He is out sick. Oh, okay. Welcome Taylor. [clears throat]

All right, thank you for having us here today. Um, first I'm going to introduce Lammyra Ascu right here. Um, she is our new recreation specialist for Paduka Parks and Recreation. Um, it's a new role for Lammyra. Um, joined the recreation division after serving the last six plus years as our administrative assistant. Um, Lamra is a graduate of West Kentucky Community and Technical College. Um she's supported our department in many ways in the past. Um but moving forward as a recreation specialist, you'll see her helping with our day camps, our summer camps, operations at the Robert Cherry Civic Center, and conducting many special events throughout the year. Um just last Saturday, she ran the candy cane hunt in downtown Paduka. Um beyond her career, Lammyra is busy raising her six children. Uh she also loves to bake in her free time. Um, I know she's excited for a new role with Paduka Parks and Recre and we're happy to have her on the recreation team. You're

welcome. [applause] Congratulations, Amaya. Um, also to my left is uh Coen Gray, who I'd like to introduce as our new park supervisor. Um, he started December 1st in that role. Um he spent the last 10 plus years in construction, property and building maintenance and most recently is working at Baptist Health Paduka. Um Coin will be leading our parks maintenance crews as they work to keep our park system uh safe, functional, and attractive. Um he'll be helping with special event support as well. And he got a crash course in the Christmas parade this last [laughter]

coin's originally from Livingston County um right here on the rink of an Eagle Scout as a youth. and he currently lives in West Feduka with his wife and two kids [clears throat] and he is still active in the scout serving as a cub cub master for PAC 105. Um and always looking forward to serving the city of Paduca, our citizens and all of our visitors. So Coen, GREAT. [applause] Welcome aboard, Cohen. Welcome aboard.

Okay, next up uh and Taylor can just stay up. Uh the next uh we had quite a Christmas parade this past weekend and uh so we we have some awards and I'll turn it over to you Taylor uh to tell us about them.

All right. Thank you. Um first off, I would like to thank all of the groups and entries that participated in last Saturday's City of Paduka, Kentucky Christmas parade, which was themed Sounds of Christmas. Um the parade was held Saturday, [snorts] December 6th, and we had 100 parade entrance, which was very consistent with last year. Um, I'd also like to thank all of our city staff who work the parade as well. Um, there are around 60 [clears throat] people working the streets, um, trying to keep everyone safe so they could have fun at the Christmas parade. Uh, today we would like to recognize the winners from our six judging categories as voted on by our three Christmas parade judges. Um, the third place winners do receive $200. Second place receives $250 and first place receives $30 and those checks will be mailed to the participants. Um, the first place winners were invited to be here with us tonight. And it looks like we [clears throat] have a number of them with us. And, uh, when we announce your name, we'll ask you to come up. We have a certificate for you. Then we'll have you stand over there by um, the backdrop there where we'll take a group picture at the end. [clears throat] All right. So, we'll get going. All right. In our themed float category, third place was Drake Lighting. Second place was Hooks Events Incorporated. And first place was Darling Ingredients here tonight. [applause]

Hey everybody. We'll have them all. You want to do it one group? Okay. Just just hang out. Just hang out up there for a minute. Sorry. [laughter] You won't look as conspicuous as it in a moment. All right, next category was our religious float category. Uh, third place was St. Matthew Lutheran Church, second place was Rest Church, and first place was Washington Street Baptist Church. [applause] That sounds that sounds like an inside deal.

That sounds like an inside deal tonight. [laughter] We won't be able to stand him the rest of the movie. [laughter] [laughter]

All right, next category is the nonflat division. Uh, third place was rather ride than work. [clears throat] Second place was Little [snorts] Tractor and Equipment Company. And first place was Goodwin Farms. [applause] And they could not be here with us tonight. They let me know that. All right, next category is our school float division. Uh, third place was Morgan Elementary School. Second place was Lono Middle School, Every Flash Matters. And first place was Forest Friends. [applause] [applause] Go ahead. [laughter] Next division was drill team. Uh third place was center stage dance academy. Second place was Fingerprint Dance Studios. [clears throat] And first place was Explosive Force Dance Team. [applause] Shouldn't they be like dancing to the [laughter]

I think they danced out Saturday. Yes. [clears throat] All right. Then our final category was the bands. Uh third place was Paduka Tilman High School Band of Blue. Second place was McCran County High School Band. And first place was Massac County High School Marching Patriots. [applause] You guys beat some tough competition. Congratulations. We'll do our best here with this photo. Two.

THANK YOU EVERYONE AGAIN. [applause]

AND JUST A REMINDER, UH, next year's Christmas parade will again be on the first Saturday in December, and we look forward to having everyone back for that. Thank you, Taylor. Thank you. It was a great job. [cough] [clears throat] Okay. Next up on the agenda is a um annual presentation from Paduka Power and uh Doug Hanley's going to uh give us the exciting audit report. [clears throat] Yeah. Yeah, that was fun. This will not be fun. [laughter] I told him to keep it short. I said I said keep it short.

He's got some good news though. Yeah, I did uh prepare this based on uh almost the exact same uh presentation that I made last year. Um with with a couple of little changes highlighted in red there. I want to go over highlights. I'll talk about uh financial stability and control, but I also want to talk about this year I want to really emphasize financial strength. And last year was talking about uh an additional revenue opportunity. Well, this year that opportunity is realized and you can see it in the in the results. Also want to add a few comments about looking forward and then the reason I'm here is to ask you to receive and file this report. So, first of all, financial stability and uh this is a a graph of the actual PUCA power system rates for the past four years compared to what the rate would have been if you had taken the January 2022 rate and adjusted it for inflation every year. And so the lower number is our rate. The higher number is uh what it would be ju just for inflation. So our rates are 17% below what they would have been if you had adjusted them just for inflation. So we're pretty proud that Paduka Power System rates to consumers are helping consumers control their monthly bills.

So I would talk about um financial control. That's where last year this chart this uh table of numbers I was uh bragging about how all of our actuals came in at like 95% of budget. And if you look at this, you might want to just scratch the word control cuz this looks out of control, but kind of in a good way. Bear with me. It's if you look at the revenue, it's a lot more than budgeted. It's cuz we sold a lot more kilowatt hours. You sell a lot more kilowatt hours, then you have a lot more purchase power and generation expense. That's why those are so much higher. the um items that we control locally, TND expense and overhead well within budget and as long as you're revenues are growing by more than your expenses, the bottom line is a lot more. So this is really a pretty strong financial picture.

It's very positive.

So what happened? Well, that gets to the the um additional revenue opportunity that we talked about as an opportunity that has now been realized that and that is uh the revenues that we're getting from Bitcoin mining customers. And just to show you how big they are in terms of sales, their two customers are the top two largest customers in terms of electricity sales and they make up over 1/4 of the total system sales. Those two customers are bigger than the other eight customers in the top 10 by double. So that's a lot of kilowatt hours that we're selling. And and the reason that these budget numbers or these actual numbers are so far out of line with the budget is and I I tried to um explain this last year is that we don't budget for these customers because you know they arrive in these uh containers, they set up like that and they can leave like that. So, we don't want to budget and rely on those revenues and have them go away and now we're stuck with uh costs that we have to recover from all of our other customers. So, we treat these revenues as um sort of outside the budget so that it's extra and uh and it's always good news when we get it. So we have the effect of the Bitcoin mining revenues is a lot more revenues but a lot more power costs. We have a low margin on what we sell to

them but we've structured it in a way to practically eliminate any risk to the utility. Uh we take in a big deposit. We bill them what our costs are directly related to them and uh and then we add a margin to that that distribution charge that we collect we take 10% of that and immediately apply that to our power cost adjustment calculation. So every month all customers in the system are getting an immediate benefit from the Bitcoin revenues. The other 90% goes into a rate stabilization fund. Now that that means it's not like budgeted for current operating expenses, but we can take that rate stabilization fund and um pay off long-term debt or uh use it for capital expenditures and that has a long-term uh effect of lowering their rates to everybody in this on the system. So kind of this graph is Bitcoin revenues go into the piggy bank and the piggy bank is used to build a substation and the other line is like with bigger and more capacity from our substation we could actually add more Bitcoin customers to the system. So that kind of leads into, you know, looking forward what's going on. Um kind [clears throat] of the financially the big expenses that we've had or and are having is two major substation upgrades. Uh one's just recently completed and it costs $5 million. Another one is now in

progress and it's going to end up costing $6.5 million. Now these are these are huge expenses for uh a utility to absorb uh on a uh annual basis. So what we've been able to do is uh finance these. Most of the time this would be a long-term debt bond or something like that and spread out over 30 years. We're financing these using short-term [clears throat] borrowings with a 5-year amortization and we're going to use the Bitcoin revenues to pay it off probably sooner than that. So, um that's a big deal and it's a big positive. It's going to have a long-term beneficial impact on the on our rates. Uh the other thing that's going on, you probably are starting to hear about the fiber to the home project. We're uh being very uh strategic about where we're rolling that out and we're we've done a pilot to uh develop data on the cost and the take rates based on different [clears throat] demographics and uh the the types of homes, the types of neighborhoods and um the type of electricity service that you get. And so we're using that cost data and the take rates that we we learn from that to um prioritize different zones uh based on um what the likelihood is that uh we'll be able to achieve positive cash flow from that uh that that zone. Um so that's that's in the works and that's gearing up and you'll probably hear more about it. The other thing you're probably going to hear more about is over the next year or so is we're

going to have a pretty significant turnover in our management team. We're planning for that. We have succession planning uh strategy underway. We've had one significant new hire already and we'll start uh we have some people that are probably going to be elevated from within and and uh at least one person more probably hired from outside. But that's our strategy. But we've we've got a plan. So uh in summary the financial audit uh the the report the audit opinion is clean the remarks and comments were all positive. Uh the financial condition is solid and strong and uh even improving and [clears throat] uh and our prospects are very promising. So I'm here to ask you to receive and file the report. If you have any questions go ahead. I just really a comment. I know that we're busy with the fiber, but I would like to make a comment that people that have Puka Power Fiber are very happy with it. It's very fast and but also that uh there's u that if you buy Puka Power Fiber, you're shopping at home because it's a homegrown, home-owned uh company. And so I would and also may help with our power rates too. So that was just I'm putting a plug in the great [laughter] work that y'all are doing.

It's a good it's a good service. It's fast. We have good uh response times. We, you know, and if you have a question or could, you know, problem, you call, we're right there. We hear you. We're out there that same day. Doug, Doug, how many fiber customers do we do you have? It's uh I I can't Don't quote me because I don't know, [laughter] but it's um a lot. Not well, it's not a lot yet. It's really not a lot yet. We have uh Are you adding customers?

Yes, we we've been, like I said, deliberate about it. We did a pilot project and we didn't we're not trying to canvas the whole city all at once. we we just want to look at these areas and see what we get and and we got um in a range of 100 or so in that just to get data. And um and then we're just now rolling out this um uh crowd source uh program where uh people can go on the website and say yes, I'd like to get uh that in my neighborhood. So, we'll start to collect the um the responses by zone and say what which zones are most interested in getting the fiber. And then we look at our data, our experience from the pilot project and it says, well, uh this would be a a very expensive neighborhood to serve. This other neighborhood, they want it just as bad, but it's going to [clears throat] be real easy to roll it out there. So, we might go there first. The re the reason I ask is because there's just a lot of competition. It seems like, you know, right now in the city, I mean, I ran into another company over the chamber uh last week, you know, I got introduced to and, you know, there's people laying, you know, laying fiber and people are using our fiber, you know, uh competitors, uh I guess you'd say. And so, you know, I'm just kind of wondering about the landscape in general.

Yeah. Well, we uh we have to be um we have to be careful and we can't just go everywhere all at once and and um they may beat us in some places and but we're going to where we go, we're going to be the better service provider. Doug, what what would make a neighborhood easy to serve as opposed to another neighborhood?

Sure. Uh, good question. The you know the if you have a overhead electric service in your neighborhood, then the the fiber comes in overhead and that's that's easy. And uh if you have underground electric service, then [clears throat] the fiber has to come underground. That means we have to dig holes and you know run things from the you know down the street underground and then each location from the uh those little green boxes that are out there in the yard those from there to the corner of your house somewhere

that has to be underground too. So that's a little bit more expensive. Thank you. And it and again just as important is the take rate. You know, if everybody in the neighborhood, everybody wants it, we'll do it underground, you know, but if it's only two or three, you know, it's going to be hard to justify. But but are you out calling on I mean going doortodoor and are you trying to promote the service in in areas where it would be economically advantageous to

we we we're just rolling out this online program to collect responses from people and and we've already started to collect responses without this this program. You do you want would you like get on the website? do you want to uh uh get Paduka Power Fiber? And uh so we have little red dots all over the map and we start to see where it it's more dense, but we haven't committed to, you know, go here now yet because we haven't collected all the data yet.

Commissioner Wilson, you're on the board. Do you have any comments or input on into all this? Doug covered it all. Great job. You're in a hurry. Good. [laughter] I know that you have a good st a great staff that works really hard and they've looked for a lot of opportunities to be able to lower the cost. Okay. Any other questions? All right. Thank you very much, Doug, for being here. We appreciate good presentation. [cough and clears throat] Thank you, Doug.

Thank you. Okay, we have uh Shannon Crockett here who wants to make some comments. Uh tonight we only have one. Just remind you Shannon, you got three minutes. So really slow. So

appreciate everybody uh giving me opportunity [clears throat] to talk here for a second. Um, I'm I'm here tonight just as a a concerned um citizen of of the community. Um, I've been here in town about about seven years. I started came from Illinois. So, um, just across the [clears throat] river, but I worked over here, went to church over here, did a lot of activities over here, and about seven years we ago, we decided to move to Paduka. And during that time, we've um we love the community. We love the the the charm, the character of our town. Uh I started doing some real estate investing. And I read some things on the uh the agenda today or this week and just a little bit concerned about the uh the proposal for the [clears throat] the way I read it. I'm not an attorney, so I'm just a you know, a redneck trying to read, you know, stuff. And what I the way my take on it is we're get, you know, we're getting ready to get a basically an occupancy tax um for all residential u real estate um for rentals. And um [clears throat] my concern is one, it's a it's a pretty big cost for folks who do have their own rentals. Um that cost is going to get passed on to our renters. Um it's u you know there there are some deadbeat and lousy landlords in the town and you know nobody will disagree with that but um I I I would I'd urge urge you all to think about the fee structure uh the cost it's going to have on folks. Um you know there should be avenues already in place to go after folks who are not taking care of their properties and who have hazardous you know things in their properties. Uh my my big concern is just a the for a few years I guess years ago when I first moved here the reception of

Paduka from people I worked with people that I knew I was kind of negative on being a place um to promote people to invest in like especially real estate folks. Um and I think the city's done a lot of having a lot of effort in the last few years to improve that. And um I I think that adding [clears throat] the extra cost and and burden to the landlords and also the tenants to to get a yearly um inspection and and to coordinate that just puts a an extra burden on folks. It's going to put a burden on, you know, the city staff as well. And um it just it looks like another just another way to get more money from us. Um, you know, I don't want to be insulting, but we we had a large tax increase with the 911 parcel fee. Um, every year we have public hearings required by law because we go over the the the minimum or the max that we can raise taxes and we go up every year. It's just a little bit every year. It's not, you know, thousands and thousands every year for anybody, but it's it's just it's a an amount that it adds up over time and makes it difficult. So, um I just ask for y'all to think about it really hard, you know, and maybe my um perception of what we're looking at having is is not really what it is, but to me it it just kind of looks like that. And I have a lot of friends who kind of think the same way. So, I just ask y'all's very u sincere um looking into it.

Thank you. Thank you. [clears throat and cough]

Thank you very much. Um, I hope you'll be able to stay for the discussion, you know, because we're going to introduce the ordinance tonight. I'm sure we'll have a lot of discussion. Uh, this is the first reading and um, you know, so we'll get into it when we do the reading. Thank thank you for your comments very okay we um before we move to the consent agenda I just wanted to mention [clears throat] that um you know we've had a couple of meetings where we have discussions about golf carts and so you know there's been a lot of uh discussion I think in the community for for for and against golf carts we're really trying to find a way you know that uh the folks that want want to and can safely um operate golf carts, you know, in the right areas uh that we give people that opportunity uh but not be a burden on people who who do not. Um, so we haven't arrived at that just yet, but uh, but we haven't forgotten it and it's not something that we're going to uh just bury. Uh, it's something that hopefully that we can uh talk about uh hopefully on the first uh the first meeting in January. So, I just wanted to mention that in case people were wondering. [clears throat] And with that, I'll move uh to the consent agenda. items on the consent agenda are considered to be routine by um our board of commissioners and they'll be enacted by one motion and one vote. There'll be no separate discussion of these items unless one of our board members uh 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 unless there's anybody that has any. And so I'll go ahead and ask the clerk to read. Please

approve minutes for the November 25th, 2025 meeting of the board of commissioners. [clears throat] Receive and file documents. Reappoint of Greg McKielle to the Brook Stadium Commission. Said term shall expire December 5th, 2029. Personnel actions. a municipal order authorizing and approving a contract for services between the city of Aduka [snorts] and Bacon Farmer Workman Engineering and Testing Incorporated for a not to exceed amount of $153,000 [clears throat] for the design and engineering services for the Greenway Trail phase 7 Southside expansion project and authorizing the mayor to execute all documents related to same a municipal order of the city of Paduka authorizing an access agreement and addendum with Terracon Consultants Incorporated and ratifying the mayor's execution of set agreement and addendum. Om. So move.

Second. Caro. Commissioner Henderson. I. Commissioner Smith. I. Commissioner Thomas. I. Commissioner Wilson. I. Mayor Bray. I. Uh, we have one municipal order uh tonight and it's uh for a a promotion and I'll go ahead and ask the city clerk to please read it. A proposed motion that the board of commissioners adopt a municipal order entitled a municipal order approving [clears throat] an employment agreement between the city of Aduca and Audrey Kyle for employment as director of finance and authorizing the mayor to execute same. So moved second city manager

mayor and commission uh it was with great pleasure uh to bring forth this recommendation uh to you this evening. uh Jewelry Carl [clears throat] um you know this past summer uh we had our longtime finance director uh decide that uh it was uh time for him to retire and seek other opportunities and and slow down life a little bit. Um and we wish him well in that. Uh but uh we we [clears throat] did a nationwide search and we came to the conclusion that our top candidate was right inside the finance department and is with uh great pleasure and honor that I recommend us entering into an appointment contract with Audrey Kyle to be our next director of finance.

Great. Uh I was involved in the you know the final interview process and it became clear to me that Audra was well qualified and the best candidate for the for the job. And so I'm proud to uh to be able to uh support that recommendation, you know, myself. And uh looks like the host staff's here. Yeah. [applause] Wait till we vote. [laughter] Don't Don't get ahead of yourself. We didn't vote. [clears throat] I think you're good. All right. Call roll. Commissioner Henderson. I. Commissioner Smith. I. Commissioner Thomas. Hi. Commissioner Wilson. Hi. Mayor Bray.

Hi. NOW, [applause]

CONGRATULATIONS, AUDREY. Now the hard work begins. Um, so we have uh two ordinances to adopt uh tonight and I'll ask the city clerk to read the first one. A proposed motion that the board of commissioners adopt an ordinance entitled an ordinance creating a new article of chapter 106 taxation of the code of ordinances of the city of Paduca Kentucky related to abandoned urban properties. This ordinance is summarized as follows. This ordinance would [clears throat] create a new tax category for properties classified as abandoned urban property under Kentucky law. This tool authorized by KRS 92.305 and KRS32.012 012 is intended to address long-term vacant and neglected properties that create safety [clears throat] hazards and negatively affect neighborhoods. An abandoned urban property means any vacant structure or vacant or unimproved lot or parcel of ground in a predominantly developed urban area which has been vacant or unimproved for a period of at least one year and which because of its dilapitated, unsanitary, unsafe, vermin infested or otherwise dangerous to the safety of persons, it is unfit for its intended use.

[clears throat]

by reason of neglect or lack of maintenance, has become a place for the accumulation of trash and debris, or has become infested with rodents or other vermin, has been tax delinquent for a period of at least three years, has had a methamphetamine contamination notice posted as provided in KRS 224.1-410 [clears throat] for a period of at least 90 days and owner has neither appealed the notice nor provided a certificate of decontamination during 90 days or it is located within a development area established under KRS as 65.7049, 65.7051, and 65.7053. This ordinance would apply a tax rate of $1.50 per $100 of assessed value to qualifying properties. Further, the fire prevention division shall adopt a policy for compiling the list of abandoned urban property. The code enforcement board shall be responsible for reviewing the fire preventions re recommended list each year and determining which properties legally meet the definition of abandoned urban property. Code enforcement board will also hear and decide all owner appeals and its certified list shall become the official list used for the applying of the bandon urban property tax rate.

So moved. Second.

So this uh you know we've discussed this ordinance at length. Um, we're trying to, you know, we did a lot of analysis and research to figure out the best way to try to get at some of these empty buildings where people acquire them and they just sit there and they deteriorate. You know, I had lunch with uh, you know, with David Wilkins Main Street today and uh, we've got a couple of buildings downtown. Uh I'm not sure who owns them, but uh he's had a a construction e expert come in there and take a look at them and and uh I mean he they said it I mean deteriorating roofs uh take a couple hundred,000 you know really just to stabilize them. So you know nothing that we do is going to do anything quickly. Nothing's going to happen as a result of this overnight tomorrow next week. But we've got to I think the whole purpose is we've got to do something, you know, to try to put in place uh a mechanism uh to take a look at these buildings as they begin to age and be able to be more proactive. So, um, you know, I pushed this ordinance, uh, you know, for the last 12 months and, uh, again, you know, it's nothing's going to happen overnight, but but at least it's it's a first step. So, any comments or thoughts from anyone? I just I agree with it because if these buildings if they deteriorate reach that point uh more often than not it's the city and the taxpayers that are on the hook for exactly

demolishing the building. So it's not a good situation for anyone really and it's not like we're making money on this. It's really an incentive for the owner to um you know the increased tax rate is it's negligible for us. It's negligible really. you know, it it's just it's it's a it's a means to try to incentivize people to do something. So, I mean, I know life happens that may keep somebody from doing it after they bought the building, but if you can't are not going to be able [clears throat] to invest in it, then you shouldn't buy the building. Exactly. So, okay. All right. Uh, call roll, please. Commissioner Henderson, I. [clears throat] Commissioner Smith, I. Commissioner Thomas, I.

Commissioner Wilson, I. Mayor Bray.

I And uh now we come to our long awaited adoption of the Southside Revitalization Plan. And I'll ask our city clerk to please read it. A proposed motion that the board of commissioners adopt an ordinance entitled an ordinance abolishing ordinance number 2023-06-8782 and establishing [clears throat] and approving simplified southside incentives for homeowners and developers and authorizing the director of planning and urban renewal and community development agency to administer the incentive programs and provide financial assistance to eligible applicants for improvements, repair, [clears throat] remodel, reconstruction of existing homes and construction of new homes to support the southside revital revitalization. ation plan. This ordinance is summarized as follows. This ordinance repeals the existing pilot southside housing and business incentive grants and their corresponding ordinance and introduces the expanded homeowner and developer incentive grants for new housing redevelopment and construction as part of the southside revitalization plan.

So moved. Second. Any discussion? We've talked about it a lot. we have been and and I know that uh you know planning departments worked real hard uh uh talked with a lot of developers and they're ready to get started on phase one and um so I would ask our city clerk to please call roll. Commissioner Henderson I. Commissioner Smith [clears throat] I. Commissioner Thomas I. Commissioner Wilson I. Mayor Bray I. [applause]

All right. Uh, congratulations on both those ordinance ordinances being adopted. Um, and we have one in one ordinance to introduce tonight. Um, and I'll let the city clerk read it and then Deputy Chief Cherry is going to come up and talk about it. A proposed motion that the board of commissioners introduce [clears throat] an ordinance entitled an ordinance amending section 42 of the code of ordinances related to rental occupancy permits and inspections. This ordinance is summarized as follows. This ordinance amends chapter 42 article 3 of the code of ordinances relating to residential rental occupancy permits. The amended ordinance removes the definition for nuisance and now instead includes a definition for safety issue meaning conditions constituting distinct fire hazards or which endanger life, health, safety or welfare of others. The ordinance includes the addition of the landlord and or landlord's agents email address in the application for the rental occupancy permit. The amended ordinance changes the time period in which the initial inspection shall occur following application for a rental occupancy permit from 3 to 5 business days. As amended, the ordinance will allow the code official to confer with engineers, building, electrical or fire inspectors as deemed necessary to determine compliance and any such area of expertise. In addition, landlord shall attest that he or she includes his or her lease agreement pro provisions providing a mechanism under which the landlord and or code official may enter the premises with reasonable notice as to revocation of the rental occupancy permit for criminal acts of [clears throat] nuisance. A provision is added permitting the code official to reference local law enforcement or criminal records as well as final orders relating to nuisances and adds the code official may take status of criminal proceedings into consideration such that a mere charge may not automatically result in revocation. The amended ordinance provides that unless otherwise prohibited by law, an order that tenants vacate a rental dwelling due to denial, suspension, or revocation of a rental occupancy permit, shall not otherwise

prohibit the occupation of the premises for purposes other than as a rental unit. A provision is added to provide for a certificate of compliance for rental dwelling units which have no visible and determinable determinable violations of plumbing, electrical, building or fire codes. A provision is also added which allows for compliant rental dwelling units to be placed on a publicly available list of compliant properties advising prospective tenants that as of the last inspection the subject property was not noted to have any visible violations of plumbing, electrical, building or fire codes. Removal for the compliant properties list may result in from condemnation evacuation under the fire code. three failed follow-up inspections and landlord's refusal to permit entry for inspection on two or more occasions. Tenants refusal to permit entry on one occasion shall not subject the landlord from removal from the complaint properties compliant properties list of landlord provides the reasonable proof reasonable proof that landlord provided reasonable notice of the city's inspection to tenant under the terms of the lease or rental agreement in setting a policy for the systematic inspection and prior prioritization of all rental dwelling units. The amended ordinance clarifies that five or more code violations and five reports of police calls for illegal drug offenses, prostitution, violent crimes, or disorderly conduct may be factors in the system for prioritizing inspections. A provision is added indicating that absent extended circumstances, nothing in this ordinance shall be interpreted to override privacy protections afforded to tenants by law. Finally, the amended ordinance removes the provision indicated that a valid occupancy permit must be produced prior to the establishment of utility service.

So moved. Second. Good evening, mayor, commissioner, city manager. So I've brought Kristen with me also because there, you know, there's been a lot of legal work that has gone into this ordinance change. So a couple highlights that that I have if y'all have any questions. Uh the goal is to make sure all rentals meet minimum life safety standards. So the minimum is, you know, that's they don't have to supersede anything, just a minimum. Um want to point out that hotels and apartment buildings are inspected by the fire marshall every year per state law. So those will not be included in this ordinance. We're doing them anyway. So those do not apply. Whereas So what is included in this?

Single family dwellings in a duplex. Anything above a duplex is considered a regulated building that we do through the fire marshall side. Okay. So, want to make sure we're clear on that. Um, as uh Lindsay said, we will have a list of approved rentals that anybody that is looking for rental property in the city. We'll have a list of ones that are approved and have passed inspections. The changes that we're making are being or recommendations from Kentucky League of Cities on uh, you know, statewide rental program. So we are changing our ordinance to be uh following line what they recommend. Uh the most significant change is there's no longer subjective things in this. It's strictly by the co in other words if I think this house needs to be repainted and one of y'all don't think it needs to be repainted stuff like that we're kind of eliminating. So it's if it's electrical you know what code references we can specify. Um, as mentioned, there will be an $100 initial cost on the first inspection, then $50 a year to renew. Our starting point for this list, uh, will be obtained from finance. They already have a landlord list. However, they have about 1,200 property owners listed, but with that, their list, uh, correct me if I'm wrong, Stephanie, includes all commercial rental property. So, we'll have to go through that and kind of weed out what we're going to inspect and what we're not. Then all appeals uh to this will go to the code enforcement board after they have the opportunity to appeal to uh either myself or battman.

Chris, you got anything to add? The only thing I have to add is that in reference to um citing to specific codes and removing the subjective criteria um it was specifically brought to our attention by Kentucky League of Cities um that there are issues with referring to properties and citing them or removing um property owners rights or tenants rights related to unfit or substandard conditions. Well, what you think is unfit or substandard may differ from what the next person thinks is unfit or substandard. So, we sort of clarified and made sure that everything will reference the fire code, the electrical code, the building code, um plumbing, so that both property owners and tenants um and our code officials know exactly where to go to to look for what is required by the code and by um Pico's ordinance.

What about mobile homes? You guys mobile homes, too. mobile home. Go ahead. Yes, it's mobile home. We'll still be having that on the on the list. So, let me let me make sure I understand. You made a statement earlier, Cherry, that if someone thinks that the home needs to be painted. Yes, sir. I just use that example. And we So, can unpack that for me. And you said [clears throat] unpack that for me if you don't mind. Well, that whole statement what you're trying to

in my opinion might be different than your opinion on if this looks bad, needs to be repainted or if it don't. So if unless it's a specific code reference, there's no discretionary I got. I guess you might say with the inspector, they have to be able to say yes, this is a violation. Okay. I'm with you. This particular code for us, whatever the hazard is. Okay. So I'm sorry. Go ahead. So, if there is a house that has passed inspection before something happens and some things mess up, did I miss the provision to was required to to get that house to where it needs to be?

Yes. If we get a complaint on the house from a tenant or landlord, either one. Yes. We'll go do a follow-up inspection to see if something's happened since the last time we inspected. Yes. So if something has happened then what kind of timeline do they have to get it in compliance? They'll we'll give them the normal 30 days to get it unless it's an immediate life safety issue that we feel like the power needs to be pulled or something like that. Okay. And so the only cost associated with this ordinance would be that $100 inspection for the first time and $50 a year after that per unit. [clears throat] Per unit

per unit is correct. Unless unless it's a duplex on one property then it'll be $50 for the duplex. So if you get units, it's $100 per unit. That's another tax plus the $50 inspection plus somebody. I don't think it's fair. I think everybody's rent 200 a month, two 300 a month, sir. I understand. [clears throat] Um why don't you set up an appointment with with somebody and talk through this? Greg, would you talk to this gentleman? Sure. Uh do you know do you guys know each other? Yeah. Okay. Why don't you talk through it and and we'll try to listen to your concerns. Is it it's about the money, the the $100?

Yeah. What it's a big expense that you're putting on the landlord plus time, plus effort. We have to go through the city before we ever rent the house, have them come out and see it. You guys are talking about 1,200 landlords. I'm not talking about units. I personally have 60 70 units. So now I have every time a unit empties. Sometimes I have a unit empty three times a year. And now I got to pay $100 just to be in the business again and pay the property tax has been raised up double and triples. In the past four or five the past five years property values have tripled around here. I don't think they triple but everybody around here thinks they used to rent houses for three to 500 a month. They all any two-bedroom house now between 8,200 a month. You guys are raising those houses,

sir. Sir, we're we're not raising the the the the the assessments come from someone else, but I I would I would suggest that you you make an appointment, and I'll I'll be glad to sit in on that, you know, and uh talk with you. I mean, we what we're trying to do is make sure that rental units are safe, you know, and they follow code. I understand but at the end of the day the cost is going to be passed down to the tent. So your suggestion you know again I I don't think we ought to have that discussion here. Make an appointment and I'll be glad to sit in with you. Okay. Thank you.

Yeah. I I'm concerned obviously about the the assessing on the landlords. I get that. But I'm more concerned Why are your faces all frowned up? [laughter] Okay. Come on. Let me get this out. Okay. I am more concerned [clears throat] about the kind of the places that people have been living in. Right.

What I have seen with my own eyes from landlords who are charging exorbitant amounts of rents, water is all I mean just all kinds of mess. But yet they they kindly excitingly collect rent from people and then have no issue with putting people out on the [clears throat] street if the rent is not paid. That's what I'm concerned about and that's that's why I obviously will be in favor of this cuz we got to take care of citizens. We have to take care of people who cannot take care of themselves and to continue to allow that to go on would be absolutely sin and a shame.

Well, just like in anything that we do, there's two sides. I mean, there's there's the safety side and the, you know, the the human side, you know, and then there's a landlord on the other side. And there's a lot of landlords out there that are doing it right. and and and and those who are doing it right, uh they're not at all being penalized in any way. It's those landlords who are not doing it right and who have no desire to do it right. That's what I'm jumping at. 6,000 $7,000. So question I've got

is it that uh so this is designed to really deal with our problem landlords. We've got landlords that are not a problem. [clears throat] Is there is it one sizefits-all? Yes sir. To be fair across the board I think we have to do it as one side fits all. There's no way to moderate it. So, we know that uh we've getting complaints on one landlord or we know that there's issues with particular property or properties to um I don't know to focus our attention on those areas versus a shotgun approach so to speak.

So, generally um by law we should treat everyone the same and and that's how it's it's laid out. But there are there is a provision you'll see in there um in setting the policy for um inspections that um indicates that the city should be taking into consideration essentially problem properties. So properties where there have been condemnations or properties where there have been um frequent complaints or frequent um code violations before um or failures for reinspection. There's a provision there that sort of allows the city to revisit these properties [clears throat] more frequently. Although generally in terms of being inspected and your fees um and the rights that are afforded to property owners and tenants, it's fair across the board and is even.

I mean, when we when we began the process of introducing this ordinance, I mean, I I knew there was going to be landlords out there that would be concerned about it. So, that was anticipated. And I do think that we ought to listen, you know, to to everybody. It's the first reading. So, you know, we hadn't put any, you know, the ordinance hadn't been established yet, but certainly, uh, I'm look, you know, Greg set an appointment up with this gentleman and I'll sit in and I want to understand, you know, the issues there,

correct? And um but I will say you know to um commissioner's point um you know it's we do not want people living in being taken advantage of by landlords who are not taking care of their places. You know that's not the si that's not the kind of city that any of us want to be. Well, and I think I've shared, you know, some pictures with all of y'all throughout the last couple years that shows some of the conditions some of these houses are in. We found one last week that they had a gas fired hot water heater that was venting into the house instead of venting outside. So, you know, that's the type of stuff that that we're trying to eliminate and go from there.

Any more questions? So, so Greg, we we just for clarification, this is not a new ordinance. This is an ordinance that's been on our books and we're only taking the opportunity to amend that based on recommendation from legal and uh what Kentucky League of Cities has advised we should look at. Correct. Yes. But we haven't been enforcing the ordinance that's on our books now and what we're proposing to do is enforce this ordinance. So it's, you know, it's um putting some teeth into it, right? Yeah. Can I ask one question? Go ahead.

I don't want to My understand is that individual homes get this this inspection. The multifamilies, my understand is they get one per multif family and they don't get the $100 per the $100. No, the multif family dwellings such as apartment buildings are regulated by the state. Uh we it's regulated by the state fire marshall's office. So in turn, since we have a local fire marshal, we do those ourselves. So they do not qualify for for this. They don't get they don't get 40 unit. No, those No. No. Single families are not being Yes. That's not fair.

Well, I talked to one property owner today that that owns both apartment buildings and single family dwellings and he was supportive of the thing he he said wasn't any different what he's dealing with already. So, I know he's talking about apartments. Okay. Any other comments from commissioners? Okay, we're all good. Thank you.

Okay, we will move to comments. City manager comments. Um, you heard Taylor uh mention uh the number of team members it takes to pull off the parade [clears throat] and just wanted to highlight that again is that it's not while our parks uh department uh it you know over 60 additional people out there during the parade and and we doesn't even encount the the public works departments that are having to go out and do that the cleanup and everything. So, I just wanted to recognize that we enjoy providing that opportunity of a parade for our citizens, but it does take a lot of work and I appreciate all of our team members that that give up their time and away from their families to put that on for our community.

And the other thing was uh just as a reminder that uh we uh [clears throat] at this time do not plan to have our second regularly scheduled meeting of of the month and so this will be our final planned uh meeting for uh for the uh for December. No. All right. Comments from commissioners. I would like to ask if we could set up a tour of the sports the new sports. Okay. Yes. Okay. [laughter] Yeah. I was out there the other day and it's pretty muddy. Yeah. I was going to say that's the only Can we just drive through it or Well, you're going to need someone to drive you through it. Okay. I haven't been offered a tour and I'd really like to go on a tour.

Yeah. You got some boots? I do. Yeah. I'm a farm girl. I I just wanted to I'm sorry. Go ahead, Commissioner Thomas.

Well, all I wanted to say was just um it's the end of the year and my first year on the commission. I just wanted to publicly thank all of you um for working with me, for helping guide me in situations [clears throat] while also um accepting and listening to my perspective that I brought to the table as well. So, just wanted to wish you all a merry Christmas and a happy new year and just thank y'all uh for all the work we've been able to do as a city. So, thank y'all. Well, it's been a challenge to one, but [laughter] but no, no, I'm I'm just kidding. It's uh it's been great. You brought a new perspective uh on a lot of things and it's opened our eyes to a lot of things and so we appreciate your perspective. It's important. I was going to ask if he had Christmas gifts for all. [laughter]

It's It's been a It's been a real challenge. No, I'm just kidding.

Or a Chris $50 bill. [laughter] I just I just wanted to uh I was excited. The Christmas parade was absolutely awesome. And I just wanted to thank the judges and their good taste [laughter] for the decisions that they made. My my comment was crisp raid was beautiful. It was great. And I just my thing is I want to point out it's a service the city provides using city taxpayers money for the entire community. [clears throat] And so 60 people, that's a lot of money that we spend on that. I'm not complaining about it. I'm just saying people need to recognize that there's a lot of things the city pays for that they enjoy that may not be a taxpayer [cough] for. [clears throat] So

that's it. Thank you. Okay. Uh we do have an executive session tonight and we do not anticipate taking any action afterwards. And I'll ask the city clerk to please read the motion.

A proposed motion that the board of commissioners go into close session for discussion of matters pertaining to the following topics. Proposed or pending litigation is permitted by KRS61.810 subsection 1C. Issues which might lead to the appointment, dismissal, or disciplining of an employee is permitted by KRS61.810 810 subsection 1F and a specific proposal by a business entity where public discussion of the subject matter would jeopardize the location, retention, expansion or upgrading of a business entity as permitted by KRS61.810 subsection 1G. So move second. Call. Commissioner Henderson. I. Commissioner Smith I. Commissioner Thomas. I. Commissioner Wilson. Hi.

Mayor Bray. I [music]

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