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HomeMy WebLinkAboutOrdinances Book 11, Page 691, No Ordinance Number691 AN ORDINANCE ORDERING AN ELECTION B'C THE QUALIFIED VOTERS OF i THE CITY OF PADUCAH, KENTUCKY, TO BE HELD ON THE REGULAR ELECTIONJ� DAY, NOVEMBER 8, 1949, IN THE CITY OF PADUCAH, KENTUCKY, TO DETERMIN y�L THE QUESTION WHETHER OR NOT THE CITY OF PADUCAH SHALL ISSUE AND SELL REVENUE BONDS IN THE SUIT OF NOT EXCEEDING 7.'10 MILLION FIVE HUNDRED THOUSAND DOLLARS ($2,500,000), BEARING INTEREST AT A RATE NOT EXCEED- ING THREE AND ONE-HALF PERCENT (3-21%) PFR ANNUM, PAYABLE SEMI-ANNUALL P ER THE PROVISIONS OF KRS 96,550 TO 96.900, FOR THE PURPOSE OF PROVIDING FUNDS FOR THE PURCHASE OF THE ELECTRIC UTILITIES SYSTEM OF iPHE KENTUCKY UTILITIES COMPANY AT THE PRICE OF 71'10 MILLION SIXTY-FOUR I iTHOUSAND ONE HUNDRED NINE DOLLARS (.12,064,109) PLUS T:iE APPRAISED VALUE OF ADDITIONS AND IMPROVEMENTS IN SUCH ELECTRIC UTILITIES SYSTEM CESS THE VALUE CF PROPERTY RETIREMENTS WHICH HAVE BEEN P6ADE SINCE THE COMPLETION OF THE INVENTORY OF THE PHYSICAL PROPERTIES ON WHICH THE i APPRAISERS EASED THEIR VALUATION AS OF THE 1945=46 PRICING PERIOD, OR PAYMENT OF ALL PRELIMINARY EXPENSES WHICH HAVE BEEN OR WHICH MAY [[HEREAFTER BE INCURRED IN CONNECTION ;'dITH OR PRECEDENT TO THE ACQUISI ION IOF SAID SYSTEM, FOR NECESSARY ALTERATIONS AND IMPROVEP2ENTS IN SAID SYSTEIeT, FOR CONSTRUCTING SUCH TRANSMISSION OR TRANSFORMATION FACILITIES S MAY BE NECESSARY FOR THE DISTRIBUTION OF ELECTRICITY PURCHASED FRSIM HE TEiTNESSEE VALLEY AUTHORITY, TO PROVIDE A CASH WORKING FUND FOR THE TAINTENANCE AND OPERATION OF SAID ELECTRIC UTILITIES SYSTEM, FOR AYMENT OF INTEREST AND PRINCIPAL ON SAID BONDS, AND FOR OTHER PUR- I IOSES INCIDENTAL TO AND NECESSARY FOR ACQUISITION, ESTABLISHMENT, PERATION AND MAINTENANCE OF SAID ELECTRIC UTILITIES SYSTED: AND DIRECTING THE CITY MANAGER TO CERTIFY 7dE QUESTION TO THE COUNTY OURT CLERK FOR SAID ELECTION AND TO ADVERTISE SAID QUESTION IN THE PADUCAH SUPT-DEPIOCRAT, BY HANDBILI3 , AND BY OTHER MEANS. WHEREAS, the Mayor and Board of Commissioners of the City of Paducah , Kentucky, a city of the second class, declare that it is esirable that the city purchase, acquire, maintain and operate an :Lectrac utilities system and the necessary appurtenances thereto fox the purpose of supplying said city and the inhabitants thereof with 3lectric power from the Tennessee Valley AutAority and other inciden 7acilities; and WHEREAS, under and pursuant to the provisions of Section 7 of .n ordinance entitled: "AN ORDINANCE CREATING A FRANCHISE OR PRIVILEGE `0 FURNISH ELECTRICITY FOR LIGHT, POWER, HEAT AND ANY OTHER PURPOSES ,OR WHICH ELECTRICITY IS USED IN THE CITY OF PADUCAH, KENTUCKY, AND ,ROVIDING FOR THE SALE OF SAID FRANCHISE OR PRIVILEGE", which was dopted by the Board of Commitssioners on August 20, 1940, the City of aducah gave to the Kentucky Utilities Company a notice of the exercise f its 'option to cancel said franchise in the manner provided therein; nd, 692 WHEREAS, as a condition or precedent to the cancellation of sejid electric franchise and the purchase of the electric utilities syst'm 14 of the Kentucky Utilities Company in Paducah, Kentucky, a Board of Appraisers was appointed, one member by the City of Paducah and th� other by the Kentucky Utilities Company, and it was the duty of said board to make a survey= of, appraise and submit to the City in writing its valuation of said electric utilities system; and WHEREAS, said Board of Appraisers, composed of L. R. Howson, appointed by the City of Paducah, and T. Samuel Hartt, appointed the Kentucky Utilities Company, have filed with the Board of Comm- issioners letters dated December 7, 1948 and December 15, 1948, together constituting their written report of appraisal of said electric utilities system; and WHEREAS, said appraisers have placed a valuation of Two Millin Sixty-four Thousand One Hundred Nine Dollars (;,2,064,109) upon sail properties as of the 1945-46 pricing period, which is the amount Kentucky Utilities Company is obligated to accept as the purchase price thereof, not including the fair and reasonable value of add- itions and improvements in said electric utilities system less the value of property retirements which have been made since the comp- letion of the intentory of the physical properties on which the appraisers based their valuation as of the 1945-46 pricing period, and upon the payment of said purchase price said Company is obli- gated to execute all necessary deeds and other instruments of trans- fer conveying to the City of Paducah good title and complete possession of all of said properties free and clear of liens and encumbrances as provided under Section 7 of the aforesaid franchis ordinance; and WHEREAS, the Electric Plant Board of the City of Paducah, Kentucky, has accepted and approved said appraisal report and has recommended to the Board of Commissioners the adoption of an ordi- nance ordering an election by the qualified voters of the city for the purpose of determining whether or not said city should purchase said electric utilities system by contract vi th the Kentucky U tics Company as provided under Sub -section 4 of KRS 96.640; NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF C0131I3SIONERS OF THE CITY OF PADUCAH, KENTUCKY: SECTION 1. There is hereby* called an election in the City of Paducah, Kentucky, under and pursuant to the provisions of KRS 96.1 to 96.900, to be held on the Sth day of November, 1949, between the hours and by the same election officers conducting the regular election for state, county and city officials in said year, for the purpose of submitting to the qualified voters of the City of Paducah 693 the question whether or not said city shall issue and sell revenue ends in an amount of not exceeding Two Million Five Hundred Thousan Dollars (y- ,500,000) bearing interest at a rate of not exceeding 0three and one-half percent (32%) per annum, payable semi-annually, or the purpose of providing funds for the purchase of the electric tilities system of the Kentucky Utilities Company in Paducah at he price of Two Million Sixty-four Thousand One Hundred Nine Dollar „;2,964,109) plus the appraised value of additions and improvements Ln he electric utilities system less the value of property retirements hich have been made since the completion of the inventory of the sical properties on which the appraisers based their valuation as the 1945-46 pricing period, for payment of all preliminary ex- nses which. have been or which may hereafter be incurred in connec- ion with or precedent to the acquisition and improvement of said sys- en, to provide a cash working fund for the maintenance and operatio f said system, for making necessary alterations and improvements in he electric system of the Kentucky Utilities Company, for the con- truction of transmission and transformation facilities necessary to nable the Tennessee Valley Authority to furnish the City of Paducah ith its entire electricity requirements, for payinZ interest on aid revenue bonds during the first two years or for retiring the rincipal of said bonds, and for any other purpose incidental to and ecessary for the acquisition, establishment, operation and mainten- nee of an electric utilities system for the use and benefit of the ity of Paducah and the inhabitants of said city. SECTION 2. The Electric Plant Board of the City of Paducah sha ay to the Kentucky Utilities from the proceeds derived from the sal said bonds the sum of Two Million Sixty-four Thousand One Hundred e Dollars (:;2,064,109), plus the appraised value of additions and rovements in said electric utilities system less the value of roperty retirements which have been made since the completion of nventory of the physical properties on which the appraisers based heir valuation as of the 1945-46 prising period, and the value of uch additions, improvements and retirements shall be determined s provided in Section 7 of the aforesaid franchise ordinance. SECTION 3. The Electric Plant Board of the City of Paducah, entucky, shall pay to the City of Paducah from the proceeds derived rom the sale of said bonds all of the preliminary expenses which aid city has incurred or will hereafter incur for the making of urveys, the employment of appraisers, attorneys and other employees he giving of notices, the publication of ordinances, resolutions an otices, court and other litigation expenses in connection with L1 quisition of said electric utilities system, similar incidental I 694 expenses which have been or will hereafter be incurred, the expense Iof printing and selling the aforesaid revenue bonds, and such other expenses as may :,e incurred in the financing herein authorized, the total of all of which expenses will amount to approximately Twenty- five Thousand Dollars (:;25,000). SECTION 4. That for the purpose of placing said electric utilities system in operation, a sufficient cash working fund will be required and said Electric Plant Board is hereby authorized to create from the proceeds derived from the sale of said bonds a cash working fund in the sum of Seventy-five Thousand Dollars (r75,Od0). SECTION 5. The remainder of the proceeds derived from the sae of said bonds, or as much thereof as may be necessary, may be used I y said Electric Plant Board for malting such alterations and improve- ments in the electric utilities system of the Kentucky Utilities Com- pany o - pany as may be necessary for the puz-pose of supplying the City of Paducah and its inhabitants with an adequate supply of electricity, for the acquisition and construction of transmission and transforma- tion facilities necessary to make available for resale the electric power furnished it by contract with the Tennessee Valley Authority, and for the payment of the interest on the aforesaid bonds during the first two years following the date of the issuance thereof or for the retirement of the principal of said bonds. SECTION 6. It shall be the duty of the City Manager to certify this ordinance to the Clerk of the McCracken County Court who shall have printed on the official ballots for use in the general election -in the City of Paducah, Kentucky, on November 8, 1949, the following question: ARE YOU IDI FAVOR OF THE CITY OF PADUCAH PURCHASING FROM THE KENTUCKY UTILITIES COMPANY ITS ELECTRIC UTILITIES SYSTEM IN PADUCAH, KENTUCKY, AT A PRICE OF $2,064,109.00 PLUS THE APPRAISED VALUE OF ADDITIONS AND IMPROVEMENTS IDI SAID ELECTRIC UTILITIES SYSTEM LESS THE VALUE OF PROPERTY RETIREPdENTS WHICH HAVE BEEN MADE SINCE THE COI,iPLETION OF THE INVENTORY OF THE PHYSICAL PROPERTIES ON WHICH THE APPRAISERS BASED THEIR VALUATION AS OF THE 1945-46 PRICING PERIOD, AND THE ISSUANCE OF REVENUE BONDS IN AN AMOUNT NOT EXCEEDING $2,500,000.00, WHICH BONDS SHALL BEAR INTEREST NOT TO EXCEED 3z% PER ANNUM, PAYABLE SEMI-ANNUALLY, TO PRO- VIDE FUNDS FOR PAYMENT OF THE PURCHASE PRICE, FOR PAYMENT OF ALL PRELIMINARY EXPENSES WHICH HAVE BEEN OR WHICH MAY HEREAFTER BE INCURRED IN CONNECTION YVITH THE ACQUISITION OF SAID ELECTRIC UTILITIES SYSTEM, TO PROVIDE A CASH :DORKING 695 FOR THE OPERRATION OF SAID SYSTEM, FOR MAKING NECESSARY ALTERAT-101I3 AND IMPROVEMENTS IN SAID SYSTEM, FOR ACQUIRING OR CONSTRUCTING SUCH TRANS- MISSION OR TRANSPORMATION FACILITIES AS 14AY BE NECESSARY FOR THE DISTRIBUTION OF ELECTRICITY PUR- CHASED FROM TILE TENNESSEE VALLEY AUTHORITY, AND FOR OTHER PURPOSES INCIDENTAL TO ACQUISITION AND OPERATION OF SAID SYSTEM? Yes No SECTION 7. The City Wanager shall advertise said election and the object thereof at least forty-five (45) days next before the date of said election by causing this ordinance to be published in the Sun -Democrat, the official newspaper of the City of Paducah, by printed handbills containing a copy of this ordinance to be posted in not less than four (4) conspicuous places in each voting precinct if the City of Paducah and at the Court House door, and by such )ther means as he may consider desirable or necessary. All qualifies ✓oters of the City of Paducah shall have the privilege of voting at iaid election. SECTION 8. This ordinance shall be introduced and remain on ile for at least one week for public inspection in the completed n which it shall be put upon its final passage and shall become ffective ten (10) days after its adoption. Mayoo Tem C __74 4 . — "� _ � Comm ssioner Ceo E. A len Introduced by the Board of Commissioners, Ibay 3, 1949 Passed by the Board of Commissioners, May 10, 1949 Recorded by Sarah Thurman, City Clerk, May 10, 1949.