HomeMy WebLinkAboutOrdinances Book 10, Page 354, No Ordinance NumberPale 354,
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AN ORDINANCE AU7i0hIZING THE E,,:L•CUTION OF A CONTRACT 7Y
PIPE VERT,:S OF WHICH THE CI PY Ob' PADUCAH, K N'E'UCi.f, OBLIGATES ITSELF!
TO PAY TO STEIN BROS . , r 3oYCL OF LOUISVILLE, 11!,iTIICICY, ;;rr:CT TO
THE TEHDS AND CONDITIONS HI;FiEIN CON'CAIIVED, A SUi. A!OT
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SEVENTY-FIVE; HUNDRED (';;7500.00) DOLLARS P(R S ;kVICFS L_. L?Y
A=ID INCIDENT TO THE IF.SUAIICE A:ID SAL[, 01' FEOyPITAt E3L'VI BONDS Ih
THE ACCREGATE A:.�OUNT OF AFPHOX C::° _LLY 0:11E FUNDRED
__' TFEGE"SAi'D
(':150,000.00) DOLLARS, A!!D ALSO IGT CO::SID}SriATIOI? OF THE C.(';i;;,_L;i..-'i;P
OF THE SAID S`PEIN BROS., & BOYCE TO BID FOR SAID IOI:1:^. ;JLI; SOD
AN ALiOUNT '.,IOP LESS THAN PAR PLUS ACCs,!'ED INTLhEST
THAT '.;"HEI(EAS, said City now has outstandinL the sum of
P100,000-00 of 'Tospital .eveni:e Bonds bearing• interest at the
rate of 4y, per annum, all of which bonds are held by the Disaster
Loan Corporation; and,
WHEREAS, said City proposes to construct and furnish at a
cost of approximately !'90,330.00 a three-story brick addition to
the Rive;s'de Fiosnital adjoinin; the east side of the new win., of
said hospital; and, j
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WHiLREAS, under a commitment of the ;dor': Projects �
Administration, the "ederal Government to contr°.bute to said City
the sum of ?f40,000.00, or T_ s equivalent, for use in the
construction of said addition, leavi.n;; to be financed by said
City the sum of $50,030.00; and,
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WHMEAS, it is deemed advisable by the Board of
Commissioners of the City of Paducah to issue new revenue bonds ink
the sum of ',150,000.00 for the retirement of the aforesaid bonds j
held by the Disaster Loan Corporation a:d also for the purpose cf
providing funds for the construction of' the aforesaid new hospital:
unit and the purchase of all necessary furnishin;s and equipment
therein; and
dILhE-S, pursnant to the provisions of House Bill N0.343 of
the General Assembly of Kentucky, 1938 Regular Session, the City of
Paducah is authorized to issue revenue bonds for the purpose of
defrayin_ the cost of establishinT, erecting and acq,,irin` a
municipal hospital and the necessary appurtenances thereto; and, i
+%riiAS, said "•ond Company inconsideration of its
employment by said City for the -)1rposes hereinafter set out, has
a -,-reed to submit for the purchase of Said bonds when sold a bid i
in an amount of not less than par, subject to the terms a.d
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conditions hereinafter set forth.
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P^,;e 355
NO'tdi , THEREFORE, BE IT O iDA -N U T'( T11E MARD OF CO;.: IS'SI M2RS
OF THE C1 r1rf OI" PF'. L.'CIi13 , 1 CL;C :Y:
SECT.'Oil 1.
That the City :..ana_er be and he is hereby authorized and
empowered to execute for and on behalf of the City of Paducah,
and to enter into with Stein Bros 'c Boyce a contract containin;
the followin5 terms, conditions and specifications:
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"Said City, (meanini; the City of Paducah) has this day employed
the Bond Company (meaning Stein �,ros, sc Boyce) to prepare, by and
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to rou,,h the attorneys retained and paid by it, appropriate
motions, resolitti.ons, ordinances and other instruments necessary
for the authorization of 6150,000.00 of Hospital aevenue Bonds;
to prosecute or defend if necessary and without expense to the
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City for either attorney fees or court costs, any suit or suits
I which may be filed or regi:ired to be filed for the purpose of
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contestin- or approving the validity of the ordinance antaorizinS
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the i.ssi ince of sa_ii bends; to prepare in printed form the bonds
purposes to be issued, as wellas the norices reei.ired for the
sale thereof, all. of which is to be done withoixt expense to the
City, i.ncludinT; the publication of such ordinances and notices i
as are required by law to be published; and said Bond Company
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will pay all costs, chanes and expenses incident to the
compliance lith all of the 'terms and conditions of the ordinance
under which said bonds are authorized to be isszed, including the
cost of obtaining a final a,>provin:; opinion of Grafton=-';rafton
attorneys of Louisville, Ky., which opinion shall accompany
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said bonds upon delivery to the purchaser, and in consideration
of the services of said bond compzny and to reimburse said
company for the expenses so incurred by it, the City agrees to pay
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said Bond Company a fee in an amount equal be 5,'of the par value
of the bonds which are sn1d, said payment to be made when the
City has received in cash the proceeds from the sale of said
bonds, and to be made to the Bond Company whether i.t is the
hi -hest and best bidder or not. It is expressly understood and
agreed that the City shall furnish to the Bond Company and its
attorneys evidence satisfactory to the Bond Company's counsel,
saovrin,; that a fee simple title to all real property involved
in the bond issue, is vested in the City free of all liens and
encumbrances, except the statutory mortZa�Le lien secur1n, the
bonds not: outstandin;.
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As a £urhher consideration for this Contract of _hmployment, said
Bond Company agrees that '.i t will appear at said sale and bid for a;11
of said bonds an Lmount of not less than psr ,)lus all accrt;ed
interest on said bonds which shall bear counon rate of 3 3/4,,. I
Pa;e 356
It is further mutually covenanted and a, -reed between the
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parties hereto as follows:
Said Bonds in the a„,Ire, ate amount of `'Ltiv,O O.0) or in
whatever amount the le;islaLive body of said C.7 Ly may d etermine
is necessary for the retirement of, the aforesaid indebtedness and
for construction of said neer hospital unit, shall be in the
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denomination of -':'1,000 each, all bearing the date of October 1,
1940, and said bonds shall bear interest at the rate of 3 3/4% payable
semi-annually. The bond issue period shall run for a period of
twenty (20) years and shall be payable serially. �S,OJO and ',7,)00
in alternate years beginn!nZ October 1, 1941 and ending- October
1, 1960.
The City sl-�all reserve the ri;ht to redeem and pay off all',
or any number of said bonds in 'their inverse numerical order
by nayin^; therefor their oar ,.value and the interest accrued thereon
at any time after three (3) y -ears from date of said bonds.
The parties hereto agree, and this contract sha11 not be j
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bindin,; n.pon either if said bonds are not issued or sold prior to
January 1, 1941, or if the •corks Protress l:dministration should
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fail to grant or should withdraw its offer to furnish the sum of
x40,000.00, or its equivalent in labor and/or materials, for use
in the construction of the aforesaid hospital a it, or .in the event
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the City of Paducah cannot obtain the voluntary surrender of the
presently outstanding bonds at not exceeding par and accrued
interest for retirement from the proceeds of this issue, or in thei
event that prior to delivery of the new bonds t ere shall be any
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chap,,a in either Federal or State Law which mi;ht affect the
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taxabilit;; of said bonds or of the interest thereon; or in the
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event that prior to the date of the competitive sale of the bonds
economic conditions should chan-e to such a degree that, in the
opinion of the Bond Company, the salability of the new bonds is
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adversely affected, and if for any of these reasons, the Contract+
is voided by the Bond Company, the City shall not owe the Bond
Company any sum whatever for services or expenses and work
theretofore completed shall be turned over to the City without
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compensation.
The p,esent Mayor arra the members of the Board of
Commissioners of the City of ?aducah, ar=.ree that they will use
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all r eas enable efforts at their command to have the City of
Paducah appropriate annually for use in the retirement of the bonI s
to be sold as provided herein, plus olm ratin,I expenses the sum of j
not less tha.. `;18,000.00.
Said City a�]rees to adopt immediatel - i. ion the recommend -l -
tion and approval of and at the time specified , t'ie '.ond oe ^:•.-
i,a...c 657
A,torne-n, any motion, resolution, or ordinance for the purpose of
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IIissuinZ and sellin said bonds, and the aforesaid bid of the Bond
Company shall remain effective and a binding offer unless said
Board should ne:Tlect or refuse to comply with the instructions of
its attorneys.
Should said Bond Company fall to appear at said sale and
submit for said bonds the aforesaid offer of purchase as .uarantee
by it, or if after becomin_- the purchaser of said bonds, said Bond
Company should fail or refuse to pay in cash the purchase price
II'therefor within ten days after said sale, the City shall not be
indebted to it in any amount for their services or for re -Im-
bursement of any expense incurred incident to the issuance of said
bonds.
IN TSTIPCOTi I;;TE:-,EOF, the ;parties hereto have hereunto
subscribed their names to duplicate copies .hereof, and their
corporate seals are hereto attached, this the day and date first
above vrritten.
ATTEST:
CITY OF PNUCAH
By
City f:-.anager
City Clerk, City of Paducah, Kentucky
STEIN BROTHERS & BOYCE
Partner
SECTION 2.
This ordinance shall be introduced at a re7.ular meetin_• of
the Board of Commissioners and remain on f'le for riot less than
one (1) week in its completed form in which it shall be put upon
its final passage, and if adopted to be in full force and effect
ten (10) days thereafter.
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:1ayo
Introduced October 3, 1940
Passed by the Board of Commissioners, October 15, 1940
Recorded by Rudy Stewart, City Clerk, October 16, 1940