HomeMy WebLinkAboutOrdinances Book 10, Page 27, No Ordinance NumberMao 27
IIMUM 1,
That the purchaser of Vic franchise his or its legal
rePrWOVAUVea, successors ann.slins, be Ana is, sutject to the
cauditIons hevainaftar coutninel, hereby autnorized and empowera3 to
ncqilro, guyanci, cOnctrtct, nqf-iW- and onspate in and Wrouji
the City of 2aincoh, MAACK!, n systen of norks for the mration,
"tributAn on! n 01 IlectrA c,3rgy from goints either
withia or wiTiout the coryorate limits of sn,, city, to 7all city,
and the inhabitants t areof, an frov WA KIr0PZh laid nunic'yality
to persons, cqrporat7n.s nAMmIlMs bo7ond the limits thereof,
and for Ric sal s of car, for KIM, h -at and power and othcr aur puass,
and to Meet a. -_d mUntain poles, .._res nnd OL�er agnarabu7 necessary
!and coaveMant for the oporatiou of snfd system, :ncludln, ,,d,its
placed uWer the surface, if and when acquired by sail City, in,
upon, across and alonj each and all of the stroets, avenues, sileys
and public places in said city; to have and to hold as by law
authorized, and any and all real estate, easements, wntar and other
rights necessary or convenient for said purposes; to use wMAIn the i
?resent an! future limits Of Mid city n.W and oil streets, avenuej
alleys and public places as the saTe are now or may hereafter be
laid out, while co'nstructin; or operating said clactvic 1111it
system or works, and the right to erose any strenn in said
city for -the Purlose of conntructInj, "aint9j,j"I or eatand-
NO; such Poles, Wrcs and ot':nr a)paratus as way b: acn,
or con""I' uMn Of electrical
and throuj the cjtj, 1, any a,40,17,, of the
tion uisten, aSdItIonn! miso v�ull be 910M uAlor the nuotp.
vision of the Mara of GO�Qssloncps of tis city Of 2,d,cah, and
said Ward shall have the r!Zht
to require any eQj,,,, 1,location
and type of construction as may be reannnable necessary for
Page 2S
City purposes. in connection with all construction, and mnintennnco
of property, the purchaser shall restore the s._ ;=ts and other
public places W as food condi't'on as Vioy luta been prior t, rre-
to, and shall pay the full cost: of .,nr', restoration, c!nr_; _,,
V capital or operating account Rreor,Anj to the anon7cter of
the work.
SECTIOA 2.
Tha purchaser of this franchise shall indemnify and
save harmless the City from any and all dannaes, judgments, decree,
costs and expenses, including reasonaLle attorney fees and costs
which said Cit; maj legally suffer or incur or which may be legally
obtained against said City for or by reason of the use and occupa-
tion of any street, avenue, alley or other public place in said
cit; by the purchaser, pursuant to the terms of this franchise or
legally resultinS from the exercise Q no!! purchaser of any of
the privilaZes herein granted; and, if any claim ;:hall be 'rade
or suit brought against W! City for Aava;en alleged to have
been sustaimed by reason of the occ-.. �st'on c_' any street, avenue,
alley or other public place by sal: p^.rc':_ser, the ,it;; ,,._r_11
immediately notify the purchaser in writinj thereof, and the
purchaser is hereby given the r!Jt anq prW lege to defend or
assist in defending each suit in the nano of the City.
SnCTIOW 3.
The City shall have the ri;ht, free of any charge
by the purchaser, but at the sole ex0ense of the nity, to in-
stall and maintain upon the poles of the purchaser, and within
its conduits, wires of the City u ed for traffic, lire -alarm
police signals, and any other purpose that :may be desired by
the City, except for distribution of electric energy for sale,
provided, ho -ever, (1) that the Citi* shall inatall and maintain
its wires in accordance with e_;isting stanaards of co:atruction
and maintenance under similar conditions, and (2) that the
Cit;; shall and does indemnify the purchaser r gainst any claims
for Wages, or to persons or property that may be asserted
against the purchaser., resulting from the presence of the wires
of the City upon the poles of the purchaser.
SECTION 4.
The purchaser shall furnish electricity for light,
heat, power and any other lawful purpose to any person or persons
residing alon, or near the rfor•esaid streets, all_ys, avenues
and public places within the City. Th: rates to be charged for
such electric service, includin; residential service, commercial
service, .nnd any other classification of electric service, with
'. jc 29
the eveept.ion of stroot lig hting, shall be the came rates as are
now in effect in said City, but subject t) such chanje in said
rates as may occur prior to the revision date of ceAber 31st,
1939, and also subject tc the revision of SQQ rates as may be
made after DJcember 31, 1933, as provided in Section 5 of this
II franch_se.
In consideration of a Monthly payment of PII•'TE '_: FUMED
_. ENTY-i'C iii MUMS MD 7110-707A (1l `2 ) by the
city to the purchaser, the purchaser agrees to 111un;nato, opera.te,
clean and maintain the street li3hts of the system •..ithin the
ICi'ty consisting; of not lees than -
531 250 Cyn ale _'ower Street Lights
235 400 " ',"mite :7ayMEhts
29 100 " " alley Lights
21 60 n n Viaduct L Zhts
2 60 " " Li `?ts in Kolb Parik
and the purchaser further a,Zrt,n to furnish and install at its expel.s
ninety-six, 400 canAl Power Ornamental street lights on such streets
or street as nay be _esi -rated by the hoard of Commissioners, and t
WAY without allit:onQ nrje the energy to illuminate, operate
clean and maintain said ornamental street lights.
The ,ity reserves the __ght to order the installation
of street lights in addition to those herein provilel for anq
the
purc'naser agrees to in_tall, operate, maintain an', illuminate such
._ dItional street 11jAts at rates not in eNcess of the folie in
schedules of rates:
OVIRiI E M.TT LIGHTS
60 Candle power overhead street lijhts, all night burning,
at 4r per ni -ht
100 Can_Lle power overhead street lights, all night burning,
at 5r per night
250 Candle power overhead street li ;hts, all ni�ht burning,
at 81 ger nQht
400 Candle ;ower overhead street li-hts, all night burninZ,
at 10Y = er night
600 Candle power overhead street lights, all night burninZ,
at 121 per ni Zht
OIi.:•;..c..,1'_ ! IT -a-,, - -•.•TTS
103 candle power ornamental street li;hts, all night, at S/
per n' •pit
250 candle power ornamental street lights, all night, at 10 ''1
per night
400 ca_rile poorer ornamental street lights, all niLht, at 1Q,
per Mint
600 candle poser ornamental stroet lights, all night, at 1Q,
per night.
SECTION 5.
The schedules hereinabove set forth small be ',uly
Med by the purchaser with the zublic Service Commi sLon of
Centucky as required b.f lar:, and they shall be subject to
3evi:ion after Ve@ember 31, 1939, and annually thereafter, in
accordance with the following terms:
a o TO
r;rst. niter the close of each calnw: " year, there
shall be p-:ompt 3stav: tnation of the net return realized by the
nircnaser from operation and service furnished within the City
Krin° that year. the net return shall consist of all Gross
revenues obt^ ned from .furnishin_; service and from all incidental
aperations ani activities within the city, loss all o?eratinG
ampoises, taxes, and the actual and nacesca.ry cnarjes ,incurred
in furn° s'' such service and deriving such ,;i°os:: revenues.
09srat_n, expenses shall include all actual and
reasonable expenditures fir labor, _,,._._ i s ._other items
of cost incurred in f
?aZo 31
Taxes shall include all taxes paid on properties and
operation.^ wlt'in the city for state, county and local 3overnnental
purpose, anal En allowance for all federal taxes in proportion of
So tctal kilowatt hours delivered to consumer's in the city to
the total kilowatt hours lAtri:;uted to all customorn of the pur-
chaser in its e_,t rc corvice territory.
in addition to the foregoing provisions for the
determihation ci not _ct,in, .h.., rc-, _. Yoll 1, ,_..-_ also
to the follo ins -:.atter: t-o.acta.___,,h accurntely aA r"e......,,...,,l
the gross revenues and to deductionc therefrom for operation
and s crvibe within t ci tl:
(a) Cross ravenue within the City shall be credited
�7ith a proport°orate a::.ount to cover .:<,..^i_ tenance, dc-r_�eciat;on
and return for plant facilities Tithin the city used jointly
to convey power for .._stribution outside. The propDrtion s nii
�be the ratio of pilo att hours ..:.livered t s7rh ccac,.. -rs
'outside the cl7y to a_. total ._lc7att ;lour:: nzid to nil con=
�sumers served b; weans of cy& jointly use., pro arty,
Is.al'_ include pol.. li--.. , 2onq _ s, cable, wire,d1str1hu-
ion sub stat .o .,. .Anhcc qaA logreVation 4all o_sist
of actual chaijes to ern e mes et r 3 chall he son-
uted ct On 16) Der cont in tiv- value of the _..tl; used
plant, _. _crfnc? as k_yv:nnftcr opo.101 for.
(b) if holes ant otl,wr facilit_ s of another
PtilitY Me used h r t-_.; purer.. ser, cni if the uPeMner's 'Jole3
and _ac_.l'_tiec arn used by another utility, the payruents :rwe
or such use shall be charged to operating expenses u_&er an
appropriate accouat, and the rece'_pts shall be credited to a
Isuitable account under gross revenues, provided that all such
,racnents for joint utility use shall be reasonable and shall t;,
subject to approval by the City.
(c) if fDr ,work on c Onsu-mors _ re'-,ites or for Other
�uroosec, custoncrs ore billed we:._.=n:lj 'or such oarviee, the'
ece'pts ..;gall to credited to an a pr:,_:r_..ate account under gross
'evenues, __. cost Of 7... C'rh :1 -_--tll"ind in ogQYa4nj on-
I')Pn9eS.
(d) Tire intention heroin 1P to es•ts.II:n'-' tae not
(cost Of service within the cit;;, ond for t'.._., our:>csc_.11
proper debits and credits s'oll �c mnde to too sever"al�oopat-
in, ncenu-:ts to reflect properly all el&r:6nts of joint ._:,c. and
11 factors of cost rensogably payable tj 00--......:r4 :.i tau n the
ity.
Pale 32
Become. 7rom such net return as d-e,,flned u-tdor the
ollb-section, t'10 --c ss'inil be deducted -)er c,,,',:
on tl-: vr!"Ij of ".11C urod in
in %ihe ity III r 111. ; t'. i C.,.,'ea_ 1hander c o n s d o r a t c n an,7,, t.,:e 1 .1 a n c e
shall constT.tirte return. The value 1 be doterl"Inad
-qccordL-,� to provisions so',- forth un(�cr _ctlon 9 ;Iercll'aftc.r
and the average
:,h,111 consist of the amcuat of the at the
be._In,Iin_-- of the year, -plus the amount at the close of the year,
divided by t,, -.-o (2), provided tliat the svera�c for the calendar
year 1939 shall be based upon the initial val-�e as deter .-Ined
under Section 9 and the value -c of _'
ce7!ber 311, 1039. There
shall be added also to such aver -ale value the avers workln�,
capital octually an(-, reasonably used in c"tY O_);,ration, consist-
in-,- of all current assets less all c,_irrr)t !_Ia._,Itics applicable
to city .,-rvice.
.!Pd- or an. year t':c EI -Ir -11 as- its
own the entire not return as realized an -7
I -led, but for tike
succeedir3 yt-,az-- an arnount aqi.al to 2-1-ftY (5D,,) -De-- cent of the
excess return as fc,,,__,_! t'lic :DreceI',n_- sub-sectlo-n, s'-,11 be
a�:)Iied to i.^te and s,iall- Ie a-)portio_ied to tll,_ several
rate 1-c-ic,'iiles as nilly be a;;recd upon '--tweei, the City and the
our -
provided t',Iat in case of 1"ca.
_:roc1%_ent the City -hall have
the ri3ht to f_L- t. -e revision that shall ;o into effect. =n
the event, however, t1iat tl,erle is a deficiency ImAead of an
excess return, rates shall be increased sufficiently to provide
six (6;,) per cent ori the avera
�e value for the eiisulnl year.
Fourth. The nel7 rate schedules as thus revised at
the close of each year shall be filed promptly by the purchaser
,aith the Public Service Commission of .Pntucky, as reqalrcf. by
law, ann. they shall be applicable for the full ensuin_; year to
.all customers in the city, until revised the following Ye,'r.
The purpose of t.l- sliding arran,]e: ent i, s thus establish
ed, is, first, to furnish inducement to the purchaser
for active
and contlnuous economy and efficiency, and for promotion of
electric utilization for all econo%m.'Ical purposes, and, second,
to provide a uefinite basis for conveyin.� tile financial bene-
fits for such _)rorescive mana,emoiit to consumers, ui.der regular
and susterIaLlic ad-ri,3inistration ':3y the city.
For the PurPoce of systematic administration
Of "lual r',tc. "OvIslorm, the purchaser _._all rc)Ort to the
^itly quart(,rl,, "lie -rocs revenue accrued vilthin the city
accordin„ to the cl:-ssIfication prescribed by the lublic _,ervice
Comm!,,lslon of Kentucky, and, at t'jo eti,. of the year as )I,,-
.,Tn:)tly
'a�o 33
I -Is .)oss.*-ble, it si:all rePOrt the operatin • expenses for the
.car in confor::ity with the 01n s_.ficat'on of acc.u:ts aros-
cribed by sa.'C, Commission. Tile City may also reo,.ir•e t_•ie
purchaser t- furnish suc'n o!,._:r.data and rcnort�: s iL m2,;' nccd
for its s, perv_s_en of rates a:rd service. It s;' a;_l have access
to all records and properties of the purchaser, anid shall have
the ri_-ht to L11 sallow all unreacc>nable and excessive costs not
reauired for e£f9clent service in the deterui'nation of net rets:rn.
Sixth. The purpose Of this franchise _s to )rovide
service to e.11 consv.r: rs c;ith:in the ciu", at minimum ava°lable
cost, and to assure t!)e p,.±rc'iiacer Full a.nd reasonable return on
its property. T':±e-uidin_; policy in the successive rev;.s'on of
rates shall be tc st-raulate and pror'ote utilization of electricit;,
for all res -s.,__... -.al, co ::rercial, industrial ._,.1 municipal purposes
for which electr_c_.ty mo.y .e econo 'r,.' '. :0±,s+ste t with
acti;.al and reaacn_Lle cost service, in-
cludir_ a falr ret,_:r__ on t'ie value of %;_e pr^_> rt employed -n
furn'sh_n_� serv'cc, as prescr'i:ed in this sect5.on.
Seventh. In t a event t_lat the _n:_,c'_�azer 2..all 's-
a;ree v. t e C'ty as to the rea'onaLleae s and need of any
J
l0perat'n„ expenses or other costs enterin„ into the determination
of e:_cess return, it may by_ Petition refer ttic matter to the
I_'ublic Service Commission for hoar•in� and decision, and in such
rroceedin.s shall hear the burden of proof as against the dis-
I'allowance of such e.±penditures by the City.
i;hth. It is understood and areed that uoon
Jany inquiry by the ?ublic Sorvi ce Comr.:ission into ti -ie reason-
ableness of t:?e rates fixed vT_thin the terr.±s of tiffs franchise
and filed accord'n� to+law %-ith said Commission, the purchaser
-ill ac'_sno•,.led e theme, rc_,_iet of such rates, .;ill naive any
defense it ml �;ht ot'._err.' se '-:ave against them, a,.i' yr -ll tiuider ta'_:e
to defend them as _._ _ ;ect fa'r,-ea.sonable, nondiscrimin-
tory and just to the consu,crs served by the purchaser.
SECTIO-; 6.
The purchaser s'±all supply electric :_nerdy up to
1 C,'100 1--lov;att hours per year to t'cle mu_licipal tt.il,ir_ s and
'ses, 'Vithout cost to the City. For all such electric e_:erV y
::cess of 100,)00 kilowatt hours a year, the City si_all
c purchaser at a rate equal to the lowest stein cr ';'1cr:aFt hour
_,eneral commercial rate schedule as fixes:
_ons of tali s
i
!�I
?age „4
SLCT10h 1.
All metered service furnislicd wider thic franchise
shall be measured by meters of the purchaser, who AIM! a%e
no rentel charge therefor to the consumers.
The City shall have the rQht to have thn neter•s
inspected from time to time by any duly authorized rcprese_ita-
tive.
SECTIOi: G.
The purchaser shall have the r_ ht to make and en-
force reasonable rules and regulations necessary to the proper
conduct of its lusiness or protection of its property, subject
i
to the right of appeal by the City or consumers to the Public
S rvice Corrrission or the Courts against unreasonable rules
I
and regulations or a3ai:nst o>pressive ,_"orco-ent thereof.
SECT107 9.
11 t4e r__its anj _rivilelcs _.rontel and all the
duties ani Klia tons _naosea by thi_. _ranchis•_ snail becone
e£fect've on the late t:^t the City c nll, Ly action of Its
legislative body, accept :Kc Wd of the purchaser at the sale of
this franchise and s' -call ra t sail franchise to the purchaser,
and. s M remain in force and effect for a period of twenty (20)
gears from and after sail date subject, however, in all resiects
to applicable provisions of the decal and Ftate laws, except
that the Cit;; may, at its option revoke and anul this franchise
at an; tl= on or after January ist, 1944, upon compliance with
the following conditions:
That the City shall purchase and acquire the distri-
bution plant located within the municipal bcundar`es, and may
purcnzc .and acquire also such generating plant, substations and
transyiLsion connections as it may require, sr.'jost to prior notice
of Qm !c) mont o, but tne City _.._ 11 haee tc:.lve months _iter the
approval by Mc voters, as may be required :;;; la;, of the proposed
purchase, to pay M purchase price as herein prescr'i': ed.
That the price to be paid by the City shall consist of
the initial fair value of such electric oro?,rties used and useful
at the date of this fra"chise, to be determined as hereinafter
_>rovided, Plus the actual and reasonable cost of all extensions,
additions ,and i�n•ovements needed and made subsequa tly to the
valuation, less retirements and less further accrued depreciation
for which due _provisions have bee:_ made throuL _ reZ41ar chnr;es i
to operatit.�ppa_ once n2 ietcrn.in& under rej lar acccuAUnj pro-
cedure; all ouch evidnWonc, ' 1 t'on; _ ovc . ore :,cL
al
:requiremcnK nAl a;Droval Vy t�u City. 7, C ?V!C-
11 include also a mcOnable ailo. ixc for lone
to the nurchasCr, to he _._.cod an MpnIAaftsy nov:!K.
MQ after the close of each coloadnr year, ns soon
Am 3oveItIcahle, kho nTount of re--i,rhis c•.,ienpcadlturer
for notenslona, adlations and 1 Pvw_n_,ts, and the amount of
retirements and furt`:er accrued mxeclation, shall be deter-
mined in accordance with th: accau,Ainj facts, vith proper and
reasonable re3ard for nctrul and necessary cost. kfter the
initial fair value ham been determined, I> net increase of
capital expenditure, after allowance for retlre:Ewts and
depreciation 17rin; tno ar, sinil !w aMed to the initial
fair value, nna Oc ouz Yyll constitute the fn�r valus at the
close df the first enloWar loan. -:te OterninaVon YhOl ';;c
made at the close of ca,h nrlwi7oa"t year, an! t nat increase
shall to died to 11. _q'r value at t4z LeJnnln, of tis joar,
in such mynner the fnIr volu: s.qil bo estnLlAsej tnronjhout
the periol of to fra&hlze unt71 the City =ay exarcise its r1jht
to purchase and acq7irc t::e proyartAes.
- That the prico to be nald My shol1 consist
of the fair value as provided for horOnabove up to tte late
of purclase ark aco-SsItIon, as! there sAall to added on amount
for workin, capital coins to thz sin of n1l materials and sup-
plies, accounts receivable an:_ oMr cowrent nssets, less all --
current liabilities, taken over by to WIty in a,cement pith
the purchaser.
Mat the amount of fair value sha-1 .apt se :crate
throujhout the period of this frnachicMatribution
system, generatAna Aant, sub -stations an; tronovicsi-n connect-
ions, ani general pr,pertlen used for rd-Anistrative purposes.
The purchase PK icquis:tion by the City may be limited to the
distrIbution.system and to such other Dro,rt:es as it may
select in its prior notice to the purchaser.
That the methal of Erivinj toe initial fair value
of the proyartles subject to purchase and qcqWsitio, by the
City, shall be an follows:
First. An Q)yraisal Ward shall be -Dpointed to
fix such initial fair value. The zoard shAl consist of Opoe
(3) menbers. One shall to a-mointed by the My, ny 1: the
purchaser of this Vranchise, aid the tV on 1: th. t"o nbers
appointed respectively L the City nn! t. e puvenno,r,
third n-ilcr Yinli be n reco,IzeO iot,wity on plalic utility
valuation of at least On (ID) = Owlr:.zce, shAll he thoyoujnlyj
Page 36
Q011Vursn:7t Lh hwhnical Panic. w 'cqn0-:c 7illm1plas, in!
the Or 7M reopact t ,� Mc I-ntzvoit v,vt-1 in utility gnap en' z,
rn: snul be �mown to _v f7ir to voth Drl.nte and nuMc rl�ht,;
W t'n deterrunation of fair value. 1P .,! W- —..Y. nit
wallo to aarae udon the 02M A11.0r, On _ T� ctfon r`:911 be
made jujLo 3f the United 'Tates 7021ct ourt, YnKn_�
jt rR%ct13n in and over YaCrac' en 0ouaty, 7-�tncny.
M-1. Tho 1 rchrj:r 02 thlo franchise wAnli furnish
to the noard w invontory of cali pnopar3l7s -c of tAe
late of the LZMv! Wuation, nil Veneugon one lunwZ shall
determine to That eatant the units of mvn�rty contained WI,
SUCH inww"Ovy Oro unea aAd useful on fvinl.lnj oKetric
service KWA tnE city, nd Oi-11 lanluda in the initial :all
only 'eti'll; useful g- 910tics. 74- :0701tory snail
conforx with tho cinns7ficaZon 02 _in-j,rt: 91,Mcd for b! the
accountin; ay0w prescribed .y tho NhWa Fcrilcc CoazicKon
of Koatuchy. :t ;VAII include an!: yvDp.r1;y nutoally D-na,-
I; the nuo-hpoer, an3 an 11 nv Wass, sarvice connoct-
ions, W otior facilMoz n2q .00 1, Pw.=.n no.
All leased go wrt;cs 1 and nVOW !A cit; w,twice
shall be segaratsly invuntorilii QT _:on be include'. M
the MOM fair value, but -11 req i.slic rentals paid therefor
shall be i"cludcd in tho nnu�0 oy,y_:7,; e77cases u2ler h
noprogriate awount. Ldon qvrol-n. Ana naquisitOn 1; M City,
it Alay asswe Vie r:jhts nal o':!!Zatlons for all such izases,
and it ,I also ta2c over tAe ajr n, -t3 :Do joint use by of .ars
of the gropertien Included in LA, o price, ut no n1lowanc',
shall be made in t_a OnZ tial M -7--r- val%no an,,. -.)rice of a -Ty
snch lennes or a:reewnts.
Third, UpQw Mi: let2voinablon of t4c invant"ry of used
and useful 3wncrtics, fie 'oar A sgll M th: unit orluas wo-i—I
aW reasonably npplicablp Q the 111700ent M2=3 Of jr0p:rty.
The unit pricas s`:all cover raaconable re.lace neat cost of all
materials and labor, inclulinj foremen and direct ouperv:sIon, vitli
due re;ard for available methods of econonical construction. ien
such unit prices have been determined they shall he a?plied to Me.
inventory, ani the total amount t�us found shall constitute the
direct r2noluction cost of Vic Aroqnrtles at the Q a of M.
va&nt'on. in thil anount shall be include! niso tho Mir and
reanowbie aryet value of land include! !A t"a invanGry.
2ourth. 70 t4c direct rojw1rction cost as Ywa non:;r
tne yer 11& wrnjraph ..aro c.ail _ Mau! P,o7iv Z w-- L71101
?ado 37
-no,--cc for conot--- ct7oji
le,_n7 and colis"I'lict
of an,l
-rcms..r 1 c ') 3 t 0,11
are co-i-m;,zonly lnciii*red in conotrii.ct.7on of rt:)]
slot include, 1:1 t'i(, Unit rices 'Dr t�.-e
-fifth. a,:oiz -t- of total re-)ro,Iuctlon cost of t'�e
of Lac sum of t•:;o =ou-itz a,-- found
two
ei,,C'0 1 an E.:rlo�-I:It of all -t7n-� at! on,
"i :Cal. 7--_I
o
all- t of 11':,2 ,al.
-,I t,-,. ._natio. o= t -,.-I. ft. c-'I.'n--,.l e c� 1 a t -I on = t'
r e ar- -7-,-e-i to '-'i- of the u'il I's
0" oro-ltrt-,
have 'Leon ::*-,ice 'tl_:,
or-onertles -,;era cor-C41r',Ctad L -stalled, a -,ii t-.) the cost of
C -,:!SIG -11 wlt'
-u.1 Stic-I
ava.1lable ne,:; u-1-*-ts.
event=-. 7i.o 1 0_� nthe
c:)LI---7zt of the t" -a -L r-3 cost deDreclat.7e,.-I
-.L: foun` izva= t'ic
th. -s or' t`v� oar,-, s%a'l aal
1-.*---. c, v
inn C--)nstl-
0- r!-. I c " 1 Se 1
ao t' -ii -,s .all lil-ve trio S a;.I s force as
it Included lons
fiat t1le ^ost of 1:1, val-Luttlo,l
t 7i C ,._''• -:I r. 1 t s �la 0. L, e r., I - C
all -OCS Pala to :1. Z:I .
clerical all e,,.�)e'nscs incurred on -011alf of
t'ie aril the 'JM-CI'Lft2.P. s'vil.l be 7g7d by tllo and
. blie ,Dunt s -,,all be Prorata,i ai,.I char,ed to oO,,rat'il-: 0:t-
ro a period of fIL v e i5) ears. I th t' _s amount s',all
be includo-I nI:,,o the actual and rCa<:nLlablo cos': .!-j-jC!!['rCjj by t'le
pv,rcl-iassev In oluta-'nin, t: --f,
uco.
C-7 t may also nurclaso a:1.1 lr'_, r 7- � S `u1
a:1.'I a',Iacont r;ect.*ons cuL o c,I -0:1-t--
t., onal
't
PaSe 39
of to DrDnrt'j .within the cit;. Vin...' cost of Nrt4oy vo-
ceclin;z snail be paid by z ,hrchaser and included in `no
purchase prico paid hy cho City.
That t':.e Apra.'.. sal - oard ' all .also deter kne and
fix anj adiit'.oka' gllo'r:ance to be Anil by Ehe City upon such
revocation and purchase for severance loss that may be zustol"ed
cy the purchaser. Euch nllor;ance ..' all be made a reoznns.tle
er•centa;;e of t''_: purchase _;mice on here'-nhefore prescribed.
in fixing t`__ p..rcontoje, ,._e Loard ZAII _,ave ro3arl Wily for
reasonable ac al loss that W r snoc'mcor nay 'n:,, the
revocation purchase, not .u';.- _: ::r:. by tic ,,;_ W__c
icc nn horw7nabova_..__::1.
the _: er_... ,la of NZAt to revoke WAs Crane
and to acquire the properties wile_" t' w terms hereinabove pres-
cribed, the purcb.r..s3_ ..ill actin ::leu_;e A'.,,,1._. ..__-_.cc aad
necessity Of si.ch _e ;catloa and acquisition by the City u__:l ..ill
waive any lefcnse it might have to any pl` ;tion .tiled by the
Cite ..._ th the Public _ orvice ;,c:....__..io:. for ._ certificate of nates- i
sitj and convanicnce.
SECT=10.
.lathing in this franchise .,._.:_l in-aywise prevent the
City from offor'_n; for sale oti -_ fun : ._.-..e„ for the jener. -ion
or distribution of electric onarjj in thn City for all _
1 oui3oses
ur_nZ tine term of this franchise; _.or sh '1 t' sale of this
fro >c_, -se npovoQ the City from est_.o1S s::_n at any _._e,
:Dunk:pal li;;,t and power plant as unt'>or_zad by the lana of
the ^,ate of ._-ntucky, or from providing for cnoration
sale and distribution of electric energy by any other lawful
r.eans or procedure.
S CT107 11.
it shall be the .arty of the City :::.,_.ager, as soon as
practicable after this ordinance shad become effective, to sell
at public auction to the hijhost and best binder, the ,above franch-
ise at the Commissioners' Chnmber in the City 7n 1 in the City
Of ..^.duca", Kentucky, after advertising such fra__o'.!i e nul the
sale t%errof at Uast once a Creek for two(_,) � co,. :tui=' e _-v..,
next pone W., M ,nte of sale (t'_. First ndv•crt'..i_'jo t bo:n
.J i
rt l ast tea (10) Mys prior to t'.c late o;, . ic), _%
i
Inger n_ _. : .... ._ rcl,.lation >n l...he3 in _'ajrcaa, ._nnt-e: -`9
.f
Page 9
the cost o.' 'cut not 1'-cs 711-
Taousand (; l^.rs, and }Ie .'., rG?ort his action
hereun er to a meet'.:: of the 3oa.rd of Conm1issloners of the City
of Paduca.i subsequent to said sale.
T' -c City reserve:; t'.: - , ,t to
'�" reject any and all 'oils
offered for t`iis frau`ii- se.
S{ 10'1 12.
copy of this ordina"ce a"'i fran,'hise s'_iall be filed
with t'. -Ie Public Service ,orLniss.'_on o" Gcntuc J, an' tie nrovisions
herein shall be carried out -,u_-ject to t%,e jur`sIi'_ct;on of said
Co=rmi ssion.
Should Section 0 or=ection 9 of t'1is ordinance,
or any part of ei ;_Zer of ,aid. Sectio_:o, be r.':ocla:o i b theJ
Court-- fOr an:* r ca3on to be '.nvalid, or in conflict lith
t'Ic State lay!, such docision shall affect the validity
of this ordinance as a r:aole, and the entire ordinance,
incl1,::,_n,; all of its sections and )revisions shall be invalid
c_ 1 neit'_er the cite nor the purchaser s',all be bound by the
franchise created tllel-euuder, or _ _ of the terns, provisions
or conditions contained in said f.�a_:___se, it beln, the intention
Of the legislative bo:i;r of t1ge :it; that t"ais ordinance and the
franchise croated t'ereuzder is to have no effect unless
the purchaser s_!all c.e bound by all of t`ie teras and conditions
cG'lt�.ineil in t'., � aforesa.id Section 5 and ". '.coon 9.
0_; i
1t is further a part of the cos: i_ieration fo:r L`Ie ra;itin- G
this franchise, that in tae event cae cit s' 1 r
,, _:.e_ _. its o�t:_Gri
to acnllire t' v -ac113_ ties andpro_ = t es of tae ourc,'::ser asprGvi h _i
u-ider Section 9 hereof, safel purchaser ajre'.e and obl-"ates itself tIo
transfer, sell and convey all of said properties and facilities £rzel
and clear of all : ort�s-des, lie„s L -s -es and encumbrances of any
and said purchaser further covenants slid a;rees r:ith the cit;; that i:t
::i11 r.arra_,
tee: cra'tly the title to all of said pr•oporL'_.es and
facilities.
This ordinance ,'I ll "e il:Lrolhced at "a -1 lar r:Ieetin^
_ the of Corrrir:sioners, an_', rerlain on file for not 1e^s
Page 40
than one (1) West for 94111c Ansvection in its copleteq form in
which it shall be put ujon its final and upon its
adoption it skall be in full force ana effect twn. (10) days Mra-
after.
�-nyor Pro Teri
Commissioner
ConA-00nor
IOWA
Assed by the ]card of CoOnIscion ,ps, 20brAary 27th, MW
necorded by luay Stewart, TitY :ler', 20bruary 20t, lozo.