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HomeMy WebLinkAboutOrdinances Book 10, Page 1296, No Ordinance Number1296 AN ORDINANCE AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT FOR THE EMPIGYMENT OF STEIN BROS. & BOYCE OF LOUISVILLE, KENTUCKY, AND ASSOCIATED INVEST11 ENT BANKERS AS AGENTS OF THE CITY OF PADUCAH, KENTUCKY, TO INITIATE ANP PROSECUTE PRO« CEEDIIIGS FOR REFUNDING THE 3 MUNICIPAL HOSPITAL REVENUE BONDS IN THE AGGREGATE SUM,OF r�111,000.00 BY ISSUING NEW REVENUE BONDS IN THE AUOUNT OF ;98,000.00, BEARING INTEREST AT THE RATE OF 2%, IT BEING THE DESIRE AND INTENTION TO RETIRE AND CANCEL $13,000.00 OF PRESENT DEBT, AND PROVIDING THE TERMS UNDER VM ICH SAID INVESTEE. BANKERS SHALL BE EMPLOYED. WHEREAS, there are sufficient funds in the Hospital accounts to retire and cancel the presently outstanding $8,000.00 bonds maturing 1958 and the p5,000.00 bonds maturing 1959 and reduce the indebtedness in these amounts from ;,111,000.00 to ,,98,000.00; and, WHEREAS, the Paducah Ifunicipal Hospital Commission has recommended that the City of Paducah proceed vith the necessar arrangements for the calling of the E,:unicipal Hospital Revenue Bonds now outstanding in the aggregate sum of '"'111,000.00, and issue new bonds in the amount of ;;98,000.00 at rate of 2%, in accordance with the terms of a proposal submitted to said hospital commission by Stein Eros. & Boyce and other investment bankers with whom said company is associated; and, WHEREAS, it is deemed advisable to accept the recom- mendation of the Paducah Municipal Hospital Commission and to employ an investment banker as agent for the City of Paducah to initiate and prosecute the proceeding in which said bonds will be refunded; NODI, THEREFORE, BE IT ORDAINED BY THE BOARD OF COMI'.IS3IONERS OF THE CITY OF PADUCAH, KENTUCKY: SECTION 1. That the City :.tanager be and he is hereby authorized to enter into and execute a contract for the employment of Stein Eros. & Eoyce and associated investment bankers as agents of the City of Paducah to initiate and prosecute proceedings for the re- funding of the aforesaid 1,:unicipal Hospital Revenue Bonds by issui new bonds bearing an interest rate of 2; and to mature as follows: •1'8.000 October 1, 1946 10,000 " 1947 8,000 ;' 1948 10,000 1949 8,000 " 1950 10,000 " 1951 7,000 if 1952 10,000 " 1953 8,000 " 1954 9,000 " 1955 8,000 " 1956 2,000 " 1957 RT 1297 Said new bonds to be callable on any interest or principal maturity date at 103 during the first five (5) years, at 102 during the second five (5) years, and at 100 thereafter In inverse numerical order, and except as to the interest rate, denomination, maturity dates, and the callable provisions herein contained, the terms, conditions and provisions of the new revenue bonds to be identical with those contained in the revenue bonds now outstanding; And said contract of employment shall contain the following terms, stipulations and conditions; "The City (Meaning the City of Paducah) hereby employs the Agents (meaning the above named companies, to initiate and prosecut3 the aforesaid proceedings upon the terms and con- ditions hereinafter set forth. 1. The Agents shall prepare, by and through attorneys er:ployed by it, appropriate motions, resolutions and other instruments n-,cessar,y for the authorization of the aforesaid new revenue bonds. They shall prepare the call notice, the ordinan^e authorizin` tiie iesuance of said bonds, the printed forms of the bonds to be issued, as well as the notice required fo'r the sale thereof, 3.11 of Which is to be done without cost to the City, including the publishinc of said call notice, the ordinance and the publishin- of all notices as are required by law to be published when said bonds are issued, and shall pay all attorney fees, advertising expense and all other costs incurred incident to the issuinE of said bonds. 2. The Aggents obli-ate themselves and guarantee to submit a bid for the entire issue at a price of not less than 103.2136 plus the accrued interest i: -hen said new bonds are offered for sale to the highest and best bidder. 3. The Agents shall not incur any debt or liability of any kind on the credit o_' the City. A. _2n consideration of the services to bf, rendered by the Agents and the expenses incurred by them :in connection with the refunding of said bonds, the Cit;, hereby agrees to pay the Agents a sum in an amount equal to 3;' of the face amount of the new bonds, said sum to be paid out of the proceeds derived from the sale of said bonds when the same are delivered. Said payment . shall be made to the .;,;eats .if they do not become the purchasers of said bonds but in the event they are the successful bidders, the amount bo which they are entitled for their services as providec under this contract shall be allowed as a credit on the purchase price when payment is made for said bonds. 1298 5. The City agrees to furnish the Agents with a certificate of title prepared by an attorney satisfactory to the Agent's Counsel, showing that the City -ems the ;:Tunicipal TTospital free and clear of any lien with the e:cception of the lien securing the payment of the aforesaid bonds. 6. It is mutually covenanted and agreed between the parties hereto that the City shall not be obliLated to pay the Agents any amount for the services rendered by there or on account of any expense they may pay or incur in the event this contract, or the ordinances authorizinr- its e:xecution,ov the ordinance authorizing the issuance of said 'ponds is declared by the Court to be invalid for any reason, or if said new bonds or the interes payable thereon shall be made assessable for taxation by either the state or federal government prior to the date on ::hich said bonds are delivered to the purchaser. 7. It is further mutually covenanted and agreed that the Agents shall not be liable upon its guaranty agreement set forth in Paragraph 2 hereof if their attorneys (,,,;ho are to be selected and paid by the f.--ents) shall not approve the validit and legality of said bonds, but in that event the City shall not be obli aced to the Agents in any amount for their services or for the expenses they may have paid or incurred." SECT=O?T• 2. "his ordinance shall be introduced and remain on file at least one week for public inspection in the completed form in which it shall be put upon its final passage. SECTION 3. Under the provisions of the bonds now outstanding, the same are not callable on April 1st, 1946, unless written notic is given the holders thereof at least thirty (30) days prior to that date, and by reason of the limited time within which the City of Paducah is required to act in order to give said notice and call tl-e outstanding bonds on April 1st, 1946, an emergency is hereby declared to exist and the public health, safety and general welfare requires that this ordinance take immediate effect and this ordinance shall be in full force and effect from and after its adoption. Mayor Introduced by the Board of Commissioners on ieb. 23, 1946 Passed by the Board of Commissioners on ?'arch 5th3 1946 Recorded by Rudy Stewart, City Clerk, on :.'arch 5th, 1946.