HomeMy WebLinkAboutOrdinances Book 10, Page 950, No Ordinance Number• v5o
AN ORDINANCE AUTHORIZING TIIE CITY MANAGER `.CO CI•ITUR
INTO A CONTRACT FOR THE 0.1PLO YI.IENT OF STEIN BROS & BOYCE OF
LOUISVILLE, I{ENTUCKY, A14D ASSOCIATED INVEST14ENT BANKERS AS AGENTS
hOF THE CITY OF PADUCAH, KENTUCKY, TO INITIATE AND PROSECUTE PRO-
CEEDINGS FOR REI`'UNDING TIME 3-3/4;, IBUNICIPAL HOSPITAL REVENUE PONDS
IN THE AGGREGATE SUM OF $127,000.00 BY ISSUING NEW REVENUE BONDS
III THE SAME AMOUNT BEARING INTEREST AT THE RATE OF 3%, AND PROVIDING
THE TERLIS UNDER WHICH SAID INVESTMENT BANKERS SHALL BE MAPLOYED
WHEREAS, the Paducah Municipal Hospital Commission
has recommended that the City of Paducah proceed with the necessary
arrangements for tie refunding of the Municipal IIospital Revenue
Bonds now outstanding in the aggregate sum of 0127,000.00 at an
interest rate of 3% in accordance with the terms of a proposal sub-
mitted to said hospital commission by Stein Eros & Boyce and
other investment bankers with when said company is associated; and,,
WHEREAS, it is deemed advisable to accept the recommendation
of the Paducah Fdunicipal Hospital Commission and to employ an in-
vestment banker as agent for the City of Paducah to initiate and
prosecute the proceeding in which said bonds will be refunded;
NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF
COHIVISSIONERS of THE CITY OF PADUCAH, KENTUCKY:
SECTION 1.
That the City Manager be and he is hereby authorized
to enter into and execute a 6ontract for the employment of Stein
Bros. & Boyce and associated investment bankers as agents of the
City of Paducah to initiate and prosecute proceedings for the re-
funding of the aforesaid Y.unicipal IIospital Revenue Bonds by issuin4
new bonds bearing an interest rate of 3% and to mature as follows:-!
(� $7,000 October 1, 1944
119,000 1945
8,000 it 1946
9,000 it 1947
7,000 If 1948
9,000 It 1949
8,000 it 1950
9,000 It 1951
7,000 " 1952
9,000 " 1953
8,000 " 1954
8,000 " 1955
8,000 " 1956
8,000 " 1957
8,000 " 1958
5,000 " 1959
Said new bonds to be callable on any interest or I
Iprincipal maturity date at 103£ durin,7 the first five (5) years,
' at 1021;j 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,condit:ions and provisions of the new revenue
,bonds to Le identical with those contained in the revenue bonds now !
'd
outstanding;
=:s M
951
And said contract of employment shall contain the
following terms, stipulations and conditions;
"The City (meaning the City of Paducah) hereby
employs the Agents (meaningthe above
named companies) to initiate I
and prosecute the aforesaid Proceedings tPon the terms and con- +
ditions hereinafter set forth.
1. The Agent shall prepare, by and through
attorneys employed by it, appropriate motions, resolutions and I
other instruments necessary for the authorization of the aforesaid
new revenue bonds. They shall prepare the call notice, the I
ordinance authorizing the issuance of said bonds, the printed
forms of the bonds to be issued, as well as the notice required
-or the sale thereof, all of which is to be done without cost
ii to the City, including the publishing of said call notice,
Jthe ordinance, and the publishing of all notices as are required
ivy law to be published when said bonds are issued, and shall
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pay all attorney fees, advertising expense and all other costs
,incurred incident to the issuing of said bonds.
�I (2) The Agents oblig
I g ate themselves and guarantee to
Iisubmit a bid for the entire issue at a price of not less than
11103 plus the accrued interest when said new bonds are offered
Ii
ifor sale to the highest and best bidder.
(3) The Agents shall not inc&r any debt or liability
,f;of any kind on the credit of the City.
i
(4) In consideration of the services to be rendered by
I�lthe agents and the expenses incurred by them in connection with
the refunding of said bonds, the City hereby agrees to pay the
Agents a sum in an amount equal to 35 of the face amount of the
�new bonds, said sum to be paid out of the proceeds derived from
I the sale of said bonds when the same are delivered. Said payment
shall be made to the Agents if they do not become the purchasers
of said bonds but in the event they are the succe::sful bidders,
the amount to which they are entitled for their services as provided
under this contract shall be allowed as a credit on the purchase
price when payment is made for said bonds.
The City agrees to furnish the Agents with a
certificate of title prepared by an attorney satisfactory to
the Agents' Counsel, showing that the City owns the municipal I
hospital free and clear of any liens with the exception of the
lien securing the payment of the aforesaid bonds.
I
(5) It is mutually covenanted and agreed between the
parties hereto that the City shall not tie obligated to pair the
A,]cnL-s any amount for the services rendered by them or on account
952 --
of any expense they may pay or Incur in the event this contract, —_
or the ordinance authorizing its execution,
authorising tor the ordinance
he Issuance of said bonds is declared by the Court i
to be invalid for any reason, or if said nein bonds or the interest
��IlPayable thereon shall be made assessable for tarkation by either
I
ithe state or federal government prior to the date on which said I
'bonds are delivered to the purchaser.
Ij
11 (7) It is further mutually covenanted and agreed that
I the Agents shall not be liable upon its guaranty agreement set
I
+forth in Paragraph 2 hereof if their attorneys I Y (uho are to '
be selected and Paid by the Agents) shall not anProve the validity
and legality of said bonds, but in that event the City shall not
bo obliCated to the Agents in any amount for their services
ilfor the ex or
themay or
d J leave Paid or incurred.
SECTION 2.
This ordinance shall be intorduced 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, 1944 unless written notice
I
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 dive said notice
and call the outstanding bonds on April 1st, 1944, an emergency
is hereby declared to exist and the public health, safety and
general welfare require that this ordinance take immediate effect,
and this ordinance shall be in full force and effect from and
after its adoption.
_.-�.�.�� Lia. - �
_ntroduced by the Board of Commissioners on February 19th, 1944
assed by the Board of Colmgissioners on February 26th, 1944. I`
ecorded by Rudy Stewart, City Clerk, on February 26th, 1944,