HomeMy WebLinkAboutOrdinances Book 10, Page 810, No Resolution NumberA RESOLUTION REQUESTING TIIE ADVICES AND COOPERATION
OF THE TENNESSEE VALLEY AUTHORITY IN PROCEEDINGS TO BE INITIA`IED
BY THE CITY OF PADUCAH, KENTUCKY FOR TIIE ACQUISITION OF THE
ELECTRIC UTILITY SYSTEI:i AND PROPERTIES OF TIIE KENTUCKY UTILITIES
COMPANY IN THE C17K OF PADUCAH;
WHEREAS, on the 13th day of February, 1942 the City
of Paducah notified the Kentucky Utilities Company of its
desire to purchase the Company's electric system and properties
in the City of Paducah at a price to be agreed upon between
the parties, which notice was given pursuant to sub -section
(a) of Section 7 of an o,dinance entitled: -
"Aid ORDII_TANCE CREATING A FRANCHISE OR PRIVILEGE
TO FUR'dISH ELECTRICITY FOR LIG_IM, POSTER, HEAT
AND ANY OTHER PURPOSE FOR '.`.7;ICH ELECTRICITY
IS USED IN THE CITI OF PADUCAH, IENTUCKY, AND
PROVIDING FOR THE SALE OF SAID FRANCHISE OR
PRIVIL sE."
AND 1.'1 -REAS, after agreements were entered into from time
to time extending the period dor continuin`. negotiations, a
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conference vras arranged between the officials of the City of
Paducah, R. M. i1'att, President of the Kentucky Utilities Company
and Joseph C. Swidler, General Counsel of the Tennessee Valley
Authority, at which conference the said R. T.T. ''.1att agreed to
furnish the Tennessee Valley Authority whatever data was necessary
in order to enable the Authority to make an appraisal of the
company's electric Utility system and properties in the Coty; and,
1.11HEREAS, upon the recommendation of the said Joseph
C. Swidler, General Counsel of the Tennessee Valley Authority,
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the City of Paducah agreed to accept the proposal of the Kentucky
Utilities Company that said city abandon the proceedings initiated
�I by it on February 13th, 1942 for the acquisition of the
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company's electric utility system. and said proceedings were
abandoned on July 7th, 1942 in order to give the Tennessee
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'•:alley Authority sufficient time to make an appraisal of the
company's properties and to continue negotiations with the
view of purchasing said properties by agreement and without
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'I'I the necessity of proceeding step by step as provided under
the franchise; and,
MIEREAS, under an agreement entered into between
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the City of Paducah and the Kentucky Utilities Company on
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July 7th, 1942, it was provided: -
"In consideration of the abandonment by the
City of the proceedings initiated on February
13th, 1942, the Company hereby waives the
provision of subsection (b) of Section 7 with
respect to the proceedings initiated on said
date and agrees that the City shall not be
prejudiced thereby".
AND WHEREAS, a period of seven (7) months have
elapsed since the abandonment of said proceedings and the
City of Paducah has not received definite advices from the
Tennessee Valley Authority as to the progress which has been
made to acquire the company's properties in the manner
suggested by Mr. Swidler; and,
STIIEREAS, by reason of the limited time within
which the City of Paducah must proceed as required under
the franchise in order to submit to a vote of the people
at the next regular election the question as to whether revenue
bonds will be issued for the purchase of the company's
electric system and properties, it is imperative that
immediate action be taken and a new proceeding initiated
intime for the placing of the question on the ballot at the
next election;
IIOVJ, THEREFORE, BE IT RESOLVED LY TIIE BOARD OF
CO1,111ISSIONERS 0 THE CITY OF PADUCAH, I{ENTUCPY:
SECTIOII 1.
That the I;iayor be requested to notify P.Ir. Joseph
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C. Si -idler, General Counsel of the Tennessee Valley Authority, i
that the City of Paducah is desirous of obtaining from the
Authority a definite report shwoing its valuation of the
electric utilities system and properties of the Kentucky
Utilities Company in Paducah, that it is imperative
that the City of padudah immediately initiate a new proceeding
to acquire said properties if the question as to the issuing
of revenue bonds is to appear on the ballot at the November
1943 general election, and that I;ir. Swidler be requested
to adiTise the City of Paducah if thecooperation of the
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Authority can be expected if a new proceeding is initiated
at this time, li
0�
Mayor
Passed by h e Board of Commissioners, February, 9th, 1943
Recorded by Rudy Stewart, City Clerk, February 10th, 1943.