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HomeMy WebLinkAboutOrdinances Book 10, Page 1022, No Ordinance Numberlees; All ORDINANCE APPROPRIATli.,' :Wi8 3U&i 0;,' DOLLARS (tif2500.00) FOR TTIE EMPLOYMBIZT OP ALVORD, 13URDICK P7 1110'., ;O,:, LiiCTRICAL ENGIiTEERS Oh' CIiICA(CO3 ILLII;OI3, TO i i.,;li A :;;r, -VEL A 1D AhPRAISAL 01, 'IfiTE ELECT':IC ITILI`i"1 A:ID GAS 3_':'C ;.i3 Oen' i'I'UCKY UTILITIES C016PAIIY Ii: 'PIIS CI'I'1 OF PADUCAH, 1:zJ11Urily; 011IZli:(1 I::AfOR TO EITTER INTO AND E;Cn'Cu'PE, ?OR AM OlI sii:HAL ' Oi,TI:Ii Cl PC Op. PADUCA.!, A CONTRACT FOR 'TLE 6.:PLO'CI.: ijT 0:' .;A1D E:;( 'r;: i]iU, A:1D PRESCRIBII;G THE TERNS, CO:IDITIO:;r.1 A7;D A(:Ri cl.. saT3 'PO _z CGE'PA.ti'IED IAT 3AID CONTRACT BE IT ORDAIEED ;f THE iOARD 0? COidI.113Sloll ERS Op THE CI'Pf 01 PADUCAH, KENTUCKY: SECTT-Oi, 1. That the sum of T'.renty-five I'_undred (;;;2500.60) Dollars be and the same is hereby appropriated for payment of the fee of Alvord, Burdick t, Howson, -Electrical En ineers of Chicago, Illinois, for ma?:in^ a surve,r and appraisal of the electric utility an '-as systems of the Kontuc'.,y Utilities Company in the City of Paducah, Kentucky, the amount of said o_�p"opriation to be chanced to the Contingent Yund, and the Mayor is hereby authorized, for and on behalf of the City of Paducah, to enter into a contract for the employment of said 'Gh cineers upon the followin.; terms, conditions and acreements: "That the said Alvord, Burdick ee Howson (hereinafter referr d to as the Engineers) agree to serve the City of,Paducah (hereinafter referred to as the City), and the City hereby retains the Zhgineers as consultants on all questions pertaining to the advisability of initiating proceedings to acquire the electric utility system of the 1�entucky Utilities Company in Paducah, Kentucky, and the Entine rs hereby further agree: - (1) That they will make a survey of, appraise, and submit to the City in writing their valuation of said electric utility system and facilities located within the city and wh`.tclh are used and useful in the Kentucky Utilities Company's electric utility business in said city. To this valuation they shall add that amount which, in their opinion, would faikly represent coins concern value or severance damages not exceeding thirty- three and one-third (33-1/3") percent of the appraised value of the physical properties. The Enineers shall not be required to make a "bolt and nut inspection" or a detailed valuation of said properties, but it is understood and agreed that their opinion shall be based upon a careful study of the utility company's record and the records on file in the office of the Public Service Comrriss on, their personal inspection of the properties and facilities in Paducah, and such other finding•: as v.-Ij nable them to arrive 1023 at a conclusion as to the fair and reasonable driiue of said system and to furnish an opinion which the board of commissioners may use as a basis for negotiations with said company. (2) in their written report and appraisal, the LhC.ineers will (1) state their opinion as to the approximate cost of constructing any additional generating or distribution facilities which would be required in order for the City to generate and distribute its own power; will (2) furnish a schedule for financin,,7 the purchase of the system and any additional facilities which may be required, said schedule settin!* forth t:�eir recommendations as to the number and denominations of' the bonds to be issued, the date of maturities, the interest rate, and the amount each year d m-in� the bond i::sue period which the Electric Utilities Commission would be required to set aside in its sinkinj fund for paying the principal and interest maturities, the amount to be set aside in a de.reciation account durin. each year of the bond issue period, and the approximate amount in tax equivalents which rroulc. be paid the city and count;; each year out n4 the earnings of the electric system; (3) will state their opinion as to the approximate annual expense of ^enevating and distributing its own power and operatin.- the system; and, based upon these approximate firrtues, the En•;inecrs (4) will include in the report their recommenaation as to the schedule of rates which could be made immediately effective, and from which figures it could then be determined ihether the City of Paducah, by ownin, and operating the electric system, could charge cheaper rates for electric service than consumers now pay. (3) In the event it is the opinion of the Engineers that the purchase by the City of all power from the Tennessee Valley Authority or from the Kentucky �.-tilities Company by contract would be more economical or would result in a -realer reduction in electric rates than by the purchase of the entire system and the veneration by the city of its own power, assuming that the electric distribution system could be purchased from the I:entucky Utilities Company at a price not exceeding the amount of their appraisal of that part of the said company's system, the :E1hL,ineers will also include in t heir report a schedule for financin3 the purchase of the electric distribution system used and useful in said company's electric utility business in the City of Paducah, said schedule aottin., forth their reconunendati ns as to the number and denominations of the bonds to be issued for financing the cost of purchasing the distribution system only, 1024 the dates of maturities, the interest rate, and the amount each year during; the bond i::sue period which the Electric Utility Connnission would be required to set aside in its sinking fund for payment of the principal and interest maturities, the amount to be set aside in a depreciation account- during each ,year of the bond issue period, and the approximate amount in tax equivalents which would be paid the city and count;, each year out of the earnings of the electric system; alao the annro:,imate at nual expense of 6ittributin.- its o:rn pov!er, incluciinz: t!ze cost of o:rei purchased by contract :rith either ti.e Tennessee Valley 1-.u�hority or the Kentuc.cy Utilities Company if such power is or can be made available and the approximate cost thereof can be ascertained and based upon those approximate fi_ures the-�nCineers will state in their re_r._ort their opinion as to the schedule of rates i:,hich could be made itrnnediately effective, and upon e,hich fiLures and rates it could be determined by r.he board of commissioners whether the City of Paducah, by os;nin.; the dist7-iLution system and purchasing; po:.er at wholesale, coi:ld charCe cheapen rate. for electric service than by?encratin,-, and disL-ributinr its own power. Then preparin7 the data pertain.nC to the purchase and operation of the electric z3 -!,-ter,,, either b, purchasing; the entire system and C.encvatinf its o,. -.7n ;:ower or by purchasing the distribution system and purchasinU power by contract, the inEineers shall follow the provisions of the m.11.p,Enabl1ng Act under which bond interest and retirement and sin.cin; Rand . payments are provided for and the method of determining tax equivalents is established. It is the object and purpose of the City to obtain from the ing;ineers such information and opinions as will enable its board of commissioners to determine whether it is feasible, economical and proper at this tune to initiate pro- ceedin,*s, to acquire the electric distribution system of the Kentucky Utilities Company as it is authorized to do pursuant to the provisions of the franchise under which said company now operates, and to this end the LnLinaers gree to prepare a prospectus containinC all of the information and data set forth above, to -ether with their recommendation as to which operating; procedure should be followed if they find that a reduction in electric rates could or should be made effective by follo:iing; either of said procedures. 10'ti 5 In the event the City shall elect to initiate pro- ceedings to acquire the electric utility system of the Kentucky Utilities Company after receiving the written report and recommendations of the EnKineers and shall rive the company written notice of its action, the Lnrineers agree that they will continue to consult with the officials of the city during; said period and, if called upon to do so, will act as agents for the ci y in carrying on neotiations writh the oficials of said company. The engineers also agree to ma',e a survey and appraisal of the gss properties owjned by the "entueky Utilities Company in the ity of Paducah, a',iich appraisal shall no require a "bolt and : ut inspe tion", but shall be suff icie­_tly accurate to Corm a basis for negotiation in the evens; said company should offer to sell its las facilities. The written reports and recommendations of the Engineers shall to filed within a period of sixty (u0) days from the date of the execution of thin contract. Por all of the vork above outlined, the Cit:, a, -reel to pay and the Engineers a ree to accept the sum of Twenty-five hundred (x:2500.00) Lollars which shall be due and payable within thirty (v)) days after the filin- of said report. Ti:c tn:,ineers are to include in the above remuneration one trip to Paducah for discussion of their report if such trip is requested ty the city. Lut it i, understool and agreed that if they are called upon for additional consultations a, to participate in the negotiations with the Kentuci:y Utilities Company after the a,.praisal reports have been filed, they arc to be ro..iuneratod n a per diem ;;osis for such services, the amount of :ihich is to be agreed upon when their services ai-o requested, to,ether :;i ,h their expenses at cost for such consultations and ne.-otiations subsequent to the trip above mentioned." 3ECT1011 ^c. This ordinance shall be introduced at a re3ular meeting of the Board of Commissioners and remain on file in its completed form for public inspection at least one week before being put.tupon its final passage, and if adopted t-) be in full force and effect ten days thereafter. introduced, June 20th, 194 Passed by the ward of Commissioners, June 27th 1944 Recorded by Pudy ,;tewrart, City clerk, June 27th 1944.