HomeMy WebLinkAboutOrdinances Book 10, Page 1103, No Ordinance Number1103",
AN ORDINANCE AUTHORIZING AND PROVIDING FOR THE PURrRASE
ACQUISITION OF THE ELECTRIC UTILITY SYSTEM OWNED BY T:IE KEIITUCKY
UTILITIES COMPANY IN THE CITY OF PADUCAH, KENTUCKY, UNDER AND
PURSUANT TO ALL APPLICABLE PROVISIONS OF CHAPTER 18 OF THE ACTS
OF THE GENERAL ASSEMBLY OF KENTUCKY, ENACTED AT ITS 190 REGULAR
SESSION, BEING.SECTIONS 96.550 to 96.900 OF THE ItENTUCKY REVISED
STATUTES OF 1942, AND KNOWN AS THE T. V. A. ACT; DECLARING THE
DESIRE AND INTENTION OF THE CITY OF PADUCAH TO ACCEPT' THE PROVIS,
OF SAID ACT AS FAR AS THE SAME MAY BE APPLICABL:? TO PROCEEDINGS
INITIATED BY THE CITY OF PADUCAH TO ACQUIRE SA'ID ELECTRIC SYSTEM
BY PURCHASE, AND TO ACCEPT A14D AGREE TO ALL PROVISIONS THEREOF
RELATING TO THE OPERATION AND MAINTENANCE OF AN ELECTRIC SYSTEM;
AND PROVIDING FOR THE APPOINTI:'ENT OF A BOARD OF PUBLIC UTILITIES
TO OPERATE, MANAGE AND CONTROL SAID ELECTRIC UTILITY 3YSTEIr1 AND
TO FUNCTION FOR ALL PURPOSES SET FORTH IN SAID ACT; AND FIRING THE
QUALIFICATIONS 'OF THE M-ETIBERS OF SAID BOARD, THEIR TERMS OY W ICE,
COMPENSATION, POWERS AND DUTIES;
1,11IlEREAS, under a Resolution adopted by the Board of
Commissioners on November 28th, 1944 the City of Paducah, b,/ and
through its Mayor, :'Jayne C. .jeaton, gave notice of its desire to
purchase said company's electric system and properties in the City
of Paducah at a price to be agreed upon between the parties, and
if a price should not be agreed upon within sixty (60) days after
the receipt of said notice, that a board of appraisers consisting
of two (2) members shall be appointed, one by the Mayor with the
approval of the Board of Commissioners and the other by the Kentuc
Utilities Company, such appointments to be made within thirty
(30) days after the expiration of said sixty (60) day period given
the parties to agree upon the value of said properties; that shoul
the two members of said board of appraisers, so a -.pointed by the
city and the company, respectively, be unable to agree upon a fair
and reasonable price for said electric utility system, a third mem
of said board, be act as umpire, shall be selected by therA, and in
the event said two appraisers cannot agree upon a third member of
said board, then upon the application by either the city or the
company, the then presiding Judge of the United States District
Court for the %',Jestern District of Kentucky shall name the third
appraiser, and that the city shall expect full compliance with
provisions of the franchise under which said board of appraisers
shall make a survey of, appraise and submit to the city in writin
its valuation of said electric utility system, and also full
c-mpliance with all applicable provisions of the statute relating
to the acquisition of such properties by cities of the second
1104
class; and,
II'MEAS, said notice was given the Kentucky Utilities Como ny
in visiting pursuant to Section 7 of the franchise created by an
ordinance entitled: "AN ORDINANCE CREATING A FRANCHISE OR IRIVIBEG
TO FURNISH ELECTRICITY FOR LIGHT, POlYER, HEAT AND ANY OTIIER PURPOSE
FOR WHICII ELECTRICITY IS USED IN THE CITY OF PADUCAH, KENTUCKY,
AND PROVIDING FOR THE SALE OF SAID FRANCHISE OR PRIVILEGE", which
ordinance was adopted by the board of Commissioners on August 20th,
1940, and the franchise created thereunder was sold to the Kentucky
Utilities Company and the sale thereof was confirmed on September
17th, 1940; and,
101HEREAS, the aforesaid notice was received by the Kentucky.
Utilities Company on December 1st, 1944; and,
91HEREAS, the City of Paducah has initiated proceedings to
acquire the electric utility system of the Kentucky Utilities Compa y
as it was authorized to do under the contractual provisions of said
ordinance, by the terms of which and the procedure provided therein
the City of Paducah and the Kentucky Utilities Company are bound,
said ordinance having been adopted and the aforesaid franchise
havinU, been sold thereunder prior to the passage of the T.V.A.Act,
being Chapter 18 of the xcts of the Ueneral ,assembly of Kentucky,
1942 Regular Session, relating to the purchase, acquisition, owner-
ship, operation and maintenance of electric utility systems in
cities of every class in the Commonwealth of Kentucky, but in order
to comply with the provisions of said Act, as well as with the
provisions of said ordinance, it is deemed advisable to declare the
desire, intent and purpose of the City of Paducah with reference
to the purchase, operation and maintenance of an electric utility
system and to appoint a board of public utilities to function for
all purposes set forth in said Act;
NOI"l THEREF-RE, BE IT ORDAINED BY THE BOARD OF COIJIMISSIONER
OF THE CITY OF PADUCAH, KEE,NTUCKY:
SECTION 1.
That the City of Paducah, Kentucky, by the giving of the
aforesaid notice to the Kentucky Utilities Company, has declared
and does hereby declare its desire and intention to acquire by
purchase and to operate the electric utility system of the Kentucky
Utilities Company in the City of Paducah under and pursuant to all
applicable provisions of Chapter 18 of the acts of the General
Assembly of Kentucky enacted at its 1942 Regular Session being
Sections 96.550 to 96.900 of the Kentucky Revised Statutes of 1942,
llknown as the T.V.A Act, to accept and operate under all of the
Ilprovisions of said Act as far as the same may be applicable to the
1105
proceedings initiated by the City of Faducah to acquire said electric
system by purchase, 'and to accept and agree to all provisions contained
therein relating to the financing, operation, maintenance and contr 1
of said system, including all provisions as they may be from time t
time amended by the Acts of the General Assembly of Kentucky.
SECTION 2.
y There is hereby created a board of public utilities to be
f�'�`�,�✓ �� domposed of four (4) members, together with the City Manager who
l� r shall serve as the fifth member, and said board shall be known as t e
n IN
<y2 "Electric Plant Board of the City of Paducah". Said board shall be a
body corporate, with perpetual succession, and with power to contract
and be contracted with and to sue and be sued in its corporate name,
and shall have and use a corporate seal.
SECTION 3.
The four (4) members of the Electric Plant Board of the
City of Paducah shsll be appointed by the 1Jayor with the approval
of the Board of Commissioners. They shall be residents of the City
of Paducah who have resided therein for not less than one (1) year
preceding the date of their appointment.
No person shall be appointed a member of said board, who jas,
within two years next before his appointment, held any public office,
or who is related within the third degree to the b'ayor or any mem be
of the Board of Commissioners.
The members of said board shall be citizens, taxpayers,
and legal voters of the City of Paducah and shall not at the time o
their a-pointment be indebted to the city either directly or indirectly
or be surety on the official bond of any officer of said city, and
shall otherwise have all of the qualifications prescribed under the
provisions of KRS 96.740.
Each member of said board shall, immediately upon his
appointment, execute bond to the City of Paducah in the penal sum o
Five Thousand (:;;5000.00) Dollars conditioned upon the faithful
performance of his official duties, and he shall also qualify by
taking tl-e oath required by Section 228 of the Constitution.
SECTION 4.
The City of Paducah shall not be liable for the payment oany
salary or compensation of any of the members of said board, or for he
payment of the salary or compensation or expenses of any person em-
ployed by said board, and that such salaries, compensation and expe ses
and any and all liabilities, of whatever kind or character incurred by
said board or any officer or employee thereof, shall be payable solEly
and only out of the revenues obtained by said board under the pro-
visions of KRS 96.550 to 96.900, and said liabilities shall then be
�o limited.
1106
SECTION 5.
The original appointees of said board shall serve for one (1)
two (2), three (3) and four (4) years respectively, from the date o
appointment as the Mayor shall designate, except that the City 'Mans er
shall serve during the term of his employment. Successors to each f
the four (4) members thus appointed shall be appointed for a term o
four (4) years in the same manner, prior to the expiration of the
term of office of the retiring members. Appointments to complete
unexpired terms of office shall be made in the same manner as oriZ.i al
appointments.
SECTION 6.
Subject to applicable bonds or contracts and the provisions o
the aforesaid ordinance relating to the procedure be be followed by
the City of Paducah in the acquisition of the electric utility syst
of the Kentucky Utilities Company, the Electric Plant Board of the
City of Paducah shall determine programs and make all plans for the
acquisition of the electric plant, shall make all determinations as
to improvements, rates and financial practices, may establish such
rules and regulations as it deems necessary or appropriate to gover
the furnishing of electric service, may disburse all moneys availab
in the electric plant fund hereinafter established for the acquisit
improvement, operation and maintenance of the electric plant and th
furnishing of electric service, and said board of public utilities
shall have all of the powers and shall be charged with the faithful
performance of all of the duties imposed upon them under the
provisions of KPS 96.550 jo 96.900 provided the powers therein
delegated and the duties therein imposed are not inconsistent with
the contractual rights acquired by the City of Paducah under the
provisions of Section 7 of the aforesaid Ordinance, or are not
inconsistent with any other right which the city of Paducah acquir
by contract prior to the effective date of the aforesaid Act.
SECTION 7.
This ordinance shall be in full force and effect from and
after its adoption.
��yer
Passed by the Board of Commissioners, January 30th, 1945
Recorded by Rudy Stewart, City Clerk, January 30th, 1945.