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HomeMy WebLinkAboutOrdinances Book 10, Page 327, No Ordinance NumberPage 327 AN ORDINANCE CREATING A FRANCHISE OR PRIVILEGE TO FURNISH I� • I ELECTRICITY FOR LIGHT, POWER, HEAT, AND ANY OTHER PURPOSES FOR WHICH;ELECTRICITY IS USED IN THE CITY CF PADUCAH, KENTUCKY, AND i IIPROVIDING FOR THE SALE OF SAID FRANCHISE OR PRIVILEGE BE IT ORDAINED BY THE BOARD OF COMIISSIONERS OF THE CITY OF PADUCAH, KENTUCKY: SECTION 1. A franchise is hereby created authorizing the pur- chaser hereof, its successors and assigns to construct and main- tain along the streets and public places of the City within the present and future limits thereof, poles, lines, conduits, and ap- pliances for the purpose of conducting in said City the business of supplying and distributing electricity for light, heat, power, and other purposes, and for the purpose of transmitting electricity by the use of said poles, lines and appliances in and through said City to points beyond the limits thereof. The right hereby granted shall include the right to cut and trim trees and shrubbery where i necessary to insure safe and efficient conduct of the business of the purchaser. In any extension of the present distribution system) i additional poles shall be placed under the supervision of the Board of Commissioners of the City, and said Board shall have the right to require changes in the location of poles and wires when such i changes are made necessary by changes or improvements in the streets, avenues, alleys, and other public places within the City. In Con- nection with all construction and maintenance of property, the pur- chaser shall restore the streets and other public places to as good condition as they had been prior thereto, and shall pay the full cost of such restoration. SECTION 2. All work in connection witi erecting or replacing poles and other physical structures upon or along the streets and public places shall be done pursuant to a permit granted by the City, which permit shall not be unnecessarily withheld, and the surface of all streets, alleys and public places which shall be displaced by reason of any work done by the purchaser, shall be replaced and relaid to the extent practical in as good condition as before such surfaces were displaced. SECTION 3. The purchaser of this franchise shall indemnify and save harmless the city from any and all damages, judgments, decrees, costs and expaases, including reasonable attorney fees and costs which said City may legally suffer or incur, j or which may be legally obtained against said City for or by w Page 328 reason of the uae-and occupation of any street, avenue, a11Ey or other public place in said City by the purchaser, pursuant to the terms of this franchise or legally resulting from the exercise by said purchaser of any of the privileges herein granted; and, if any claim shall be made or suit brought against said City for damages alleged to have been sustained by reason of the occupation of any street, avenue, alley or other public place by said purchaser, the City shall immediately notify the purchaser in writing thereof, and the purchaser is hereby given the right and privilege to defend or assist in defending each suit in t1me name of the City, SECTION 4. The City shall have the right, free of any charge by the purchaser, but at the sole e�;pense of the City, to install and maintain upon the poles of the purchaser, and within its conduits, wires of the City used for traffic, fire - alarm, police signals, and any other purpose that may be desires by the City, except for the distribution of electric energy for sale by the City, provided, however, (1) that the City shall install and maintain its said wires in accordance with existing standards of construction and maimztenance of such wires under similar conditions, and (2) that the City shall and does indemnify the purchaser against any claim for damages 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 5. In the event that the Public Service Commission of the Stgte of Kentucky shall be abolished durint the term of this Franchise, and no other regulatory Body shall be created by law to perform the functions now performed by said Public Service Commission, the rates in effect at the time when said Commission ceased to function shall continue ine ffect; pro- vided, however, that the rates to be charged by the purchaser ,after the abolition of said Public Service Commission, and in the absence of the exercise of any similar authority, shall at all times be fair and reasonable to the purchaser and the City, and the users of said electric service in said City. SECTION 6. The purchaser shall prbvide for use of the City, its Hospitals and other buildings and non-profit institutions operated by the City, 100,000 Kilowatt Hours per annum, free of cost. Any and all excess use by the City, Hospitals and the public schools Page 329 shall be billed at a charge of Two Cents per Kilowatt Hour. The purchaser agrees to erect, maintain, and operate :837 street lights in lieu of the present 638 street lights now in use, said street lights to include: (@) The present white way street li3hts. (b) The restoration to service of 164 white way lights. (c) An additional 20,white way lights. All of said street lights shall be installed and maintained at the expense of the purchaser. The energy necessary to illuminate said street lights shall be supplied at no increase I above the total monthly cost to the City for current now used for street lighting purposes. Additional street lights will be provided by the purchaser as directed by the City, the energy for illumination of such additional lights to be paid for by the city at the standard schedules of the purchaser. SECTION 7. The rights granted by this franchise shall continue for a period of twenty (20) years from the date on which the City shall, by action of its legislative body, accept the bid of the purl chaser, except that there is expressly reserved to the City the right to revoke, annul, and cancel this franchise as of a date i eighteen (18) months after the City gives to the purchaser writtne notice of such action and upon Compliance with the following j conditions: (8) By notifying the purchaser in writing of its desire to enter into an agreement as to the value of the electric system owned by it in Paducah, Ky., and thereafter complying with all laws regulating the acquisition by purchase of electric light heat, power plants and distribution facilities, the City may purchase, in the event a fair and reasonable price is agreed upon, all of the facili- ties of the purchaser located within the City and which are used i and useful in the purchasers electric utility business in said City. (b) If the City shall initiate or attempt pro- ceedings to acquire the electric utility system and properties of purchaser in said City but the sale should not be sonsummated by the City, then a new attempt by the City to acquire said prop- erties and system as herein provided at any time and as often as said City may desire may be made, except no attempt to acquire said system and properties as herein contemplated shall be at- tempted or initiated within three years of the beginning of the last preceding initiation or attempt to acquire same. (c) If no fair and reasonable price shall be agreed upon within sixty (60) days after the aforesaid notice Page 330 i shall be given the purchaser, a Board of Appraisers consisting of two members shall be appointed, one by the Mayor with the ap- proval of the Board of Commissioners and the other by the purchaser. Such appointments shall be made within thirty (30) days after the expiration of the time given the parties to agree upon the value of said properties. (d) Should the two members of said Board of Ap- praisers, so appointed by the City and the purchaser respectively, be unable to agree upon a fair and reasonable price of said elec- tric utilities system in said City as herein provided, a third l member of said Board, to act as umpire, shall be selected by them., In the event said two appraisers cannot agree upon the third member of said Board, then upon application by either the City jj or the purchaser, the then presiding Judge of the United States District Court for the Western District of Kentucky shall name I said third appraiser. (8) It shall be the duty of said Board of Ap- praisers to make a survey of, appraice, and submit to the City r { in writing its valuation of said electric utilities system. The board appointed for the purpose of making said appraisal shall file their written report within six (6) months next after their appointment. The value fixed by two of the three members of 1 said Board of Appraisers shall be the finding of the Board; pro vided however, that in the event that two of the three members I cannot agree within six (6) months after the appointment of the first two members, then and in such event the entire first board shall be discharged and cease to function, and in such event a second board may be appointed immediately as herein provided. It shall be the duty of the City to pay all compensation to the I member appointed by it, and the duty of the purchaser to pay ail compensation to the member appointed by it, and the City and the purchaser shall each pay oneghalf of the compensation which may be due the third member and one-half of all other costs incurred in connection with the work of the Board of ApprAisers. i (f) In arriving at a fair and reasonable price of the electric utilities system of the purchaser in said City, going) concern values and severance damages shall be taken into considera= tion; provided, however, that going concern values and severance damages shall not exceed, in the aggregate, thirty-three and one- third (33-1/3) per cent of the appraised value of the purchaser's physical properties in said City, which appraisal shall be replacement cost less depreciation and obsolescence. e l I'' A j Page 331 (g) The value of the purchaser's properties shall be the amount as determined by the Board of Appraisers and upon li the filing of their report of appraisal, the City may proceed to o purchase the same as provided under Section 3480d-3 of the Kentucky) jI ! Statutes, or under such other Acts of the Legislature then regulat- ing the acquisition by purchase of electric light, heat, and power i I plants by cities of the second class, and in which event this I l franchise shall be null and void and the purchaser agrees to terminate all of its operations in the City of Paducah eighteen (18) months after receiving the notice provided in sub -section A of Section 7, Provided, however, that in the event of delay resulting from the compliance with the statutes regulating the purchase by municipalities of electric utilities systems, the City shall be unable to consummate the sale within said period, this franchise shall re- main effeftive and shall continue in full force and effect until the purchase price of said electric utilities system is paid in full. In any such event the purchaser shall, for the remainder I j' of the term specified in this franchise have the right to maintain I transmission lines and other necessary facilities 'then existing along the streets of the City for the sole purpose of tramsmitting ! through the city and of distributing and selling electric energy ! to persons residing beyond the corporate limits of the City, provided j the maintenance of its transmission lines and necessary facilities �do not in any way interfere with the City's use of the streets and electric distribution system. (h) On or before the effective date of the can- cellation of this franchise, the purchaser will execute the neces- sary deeds and other instruments of transfer, conveying to the City good title and complete possession to the electric utilities ! i System of the purchaser within the City of Paducah, free of liens I and other incumbrances; upon the failure of said purchaser to so I Ij convey said properties, this franchise shall 'then and thereafter bel I mull and void, and said purchaser shall then be indebted to said City in the sum of $100,000.00 as liquidated damages for its breach of contract. i, (i) The holder of this franchise, upon compliance with the foregoing provisions and conditions by the City shall not oppose any application made by the City to the Public Service Commission of Kentucky, for the issue by said Commission to the City, of a Certificate of Convenience and Necessity for the ac - r quisition and operation by the City of an electric utilities system'. SECTION 8 It shall be the duty of the City Manager, as soon as practicable after this Ordinance shall become effective, to sell Page 332 at public auction to the highest and best bidder, the above franchise at the Commissioner's Chamber in the City hall in the City of Paducah, Kentucky, after advertising such franchise and the sale thereof at least once a week for two (2) consecutive weeks next preceding the date of sale ('the first advertisement be- ing at least ten (10) days prior to the date of sale), in a news- paper of general circulation published in Paducah, Kentucky, and in making said sale, he shall receive no b id for d less amount than the total expenses incurred in making said sale, including the cost of advertising but not less in any e vent than ;71,000°00, and he shall report his action hereunder to a meeting of the Board of Commissioners of the City subsequent to said sale. SECTION 9. Should any Section or part of any Section or any provision of th'ss ordinance be declared by the courts for any reason to be invalid, such decision shall affect the validity df this ordinance as a whole, and all sections of this ordinance and the franchise created hereunder shall be null and void. SECTION 10. This ordinance shall be introduced at a regular meeting of the Board of Commissioners and remain on file for not less than one (1) week for public inspection in its completed form in w hick it shall be put upon its final passage, and upon its adop- tion it shall be in full force and effect ten (10) days thereafter. Signed Introduced August 7th, 1940 Passed by the Board of Commissioners, August 20, 1940 Recorded by Rudy Stewart, City Clerk, August 2-D, 1940.