Public hearing on Missouri City power plant project set for July 6

On Thursday, July 6, 2017 at 10:30 am, the Independence MO Public Utilities Advisory Board ("PUAB") will hold a public hearing regarding the proposed sale, demolition and remediation of the City-owned Missouri City Power Plant. 

The meeting will be at the Independence Utilities Center, in Room 117, First Floor.  The Independence Utilities Center is located at 17221 East 23rd Street South.

Interested citizens and ratepayers are encouraged to attend and participate.

The project has the subject of considerable discussions and questions related to the selection of a high bidder to do the work.

BACKGROUND

During its regularly scheduled meeting on June 15, 2017 the PUAB considered a motion to recommend that the Independence City Council ("Council") authorize the City Manager to enter into a Sale, Demolition and Remediation Agreement related to the City-owned Missouri City Power Plant Project. 

If the agreement were to be approved by the Council, the City would contract with Missouri City Acquisition, LLC to purchase, demolish and remediate the Missouri City Power Plant for approximately $9 million, even though the City had received an alternative proposal fromCommercial Liability Partners,  L.L.C to complete the same project for $4.25 million. 

After considerable discussion the PUAB declined to approve the motion.

At its June 19th meeting the Council heard the first reading of proposed Ordinance 17-074-1R which, if adopted, would authorize an agreement between the City and Missouri City Acquisition, LLC for the sale, demolition and remediation of the Missouri City Power Plant in an amount not to exceed $9,765,000.

At a specially called meeting on June 23, 2017 the PUAB met with City staff to consider questions that the PUAB members had regarding the Missouri City Power Plant Project.  After considerable discussion the PUAB adopted a motion to submit 18 detailed written questions to the Council.  

On June 26th during a Council Study Session the Council received a staff report from Assistant City Manager Mark Randall regarding future Independence Power and Light projects, including the Missouri City Power Plant Project.  At the end of the study session the Council requested that the PUAB hold a public hearing regarding the Missouri City Power Plant Project.

PUAB RESPONSIBILITIES

Sections 3.12 through 3.18 of the Independence City Charter deal with public utilities.  Section 3.15 created the PUAB.

Section 3.16 sets forth the rather extensive powers of the PUAB.  Subsection 3.16(5) specifically authorizes the PUAB to hold public hearings on matters relating to public utilities and, through its chairperson to administer oaths and affirmations. 

Subsection 3.16(7) authorizes the PUAB to subpoena witness to testify and compel the production of documents and other effects as evidence. 

Section 3.17 requires the City-owed electric utility to be operated in a businesslike manner. 

Section 3.18 imposes on the Council an affirmative duty to consult and cooperate with the PUAB.