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HomeMy WebLinkAboutOrdinances Book 11, Page 914, No Ordinance Number914 AN ORDINANCE ORDERING AN ELECTION BY THE QUALIFIED VOTERS OF THE CITY OF PADUCAH, KENTUCKY, TO BE HELD ON THE REGULAR ELECTION DAY, NOVEMBER 7, 1950, IN THE CITY OF PADUCAH, KENTUCKY, TO DETERMINE THE QUESTION WHETHER OR NOT THE CITY OF PADUCAH SHALL ISSUE AND 1 4 SELL REVENUE BONDS IN THE SUM OF NOT EXCEEDING TWO MILLION FIVE HUNDRED THOUSAND DOLLARS ($2,500,000), BEARING INTEREST AT THE RATE NOT EXCEEDING THREE AND ONE-HALF PERCENT (32p) PER ANNUM, PAYABLE SEMI- ANNUALLY, UNDER THE PROVISIONS OF KRS 96.550 to 96.900, FOR THE PURPOSES OF PROVIDING FUNDS FOR THE PURCHASE OF THE ELECTRIC UTILITIES SYSTEM OF THE KENTUCKY UTILITIES COMPANY AT THE PRICE OF TVIO MILLION SIXTY-FOUR W-OUSAND ONE HUNDRED NINE DOLLARS ($2,064,109) PLUS THE APPRAISED VALUE OF ADDITIONS AND IMPROVEMENTS IN SUCH ELECTRIC UTILITIES SYSTEM LESS THE VALUE OF PROPERTY RETIREMENTS WHICH HAVE BEEN MADE SINCE THE COMPLETION OF THE INVENTORY OF THE PHYSICAL PROPERTIES ON WHICH THE APPRAISERS BASED THEIR VALUATION AS OF THE 1945-46 PRICING PERIOD, FOR PAYMENT OF ALL PRELIMINARY EXPENSES WHICH HAVE BEEN OR WHICH MAY HEREAFTER BE INCURRED IN CONNECTION WITH OR PRECEDENT TO THE ACQUISITION OF SAID SYSTEM, FO NECESSARY ALTERATIONS AND IMPROVEMENTS IPI SAID SYSTEM, FOR CONSTRUCT- ING SUCH TRANSMISSION OR TRANSPORTATION FACILITIES AS 14AY BE NECESSARY FOR THE DISTRIBUTION OF ELECTRICITY PURCHASED FROM THE TENNESSEE VALLEY AUTHORITY, TO PROVIDE A CASH WORKING FUND FOR THE MAINTENANCE AND OPERATION OF SAID ELECTRIC UTILITIES SYSTEM, FOR PAYMENT OF INTEREST AND PRINCIPAL ON SAID BONDS, AND FOR OTHER PURPOSES INCIDENTAL TO AND NECESSARY FOR ACQUISITION, ESTABLISHMENT, OPERATION AND IAINTENANCE OF SAID ELECTRIC UTILITIES SYSTEM; AND DIRECTING THE CITY MANAGER TO CERTIFY THE QUESTION TO THE COUNTY COURT CLERK FOR SAID ELECTION AND TO ADVERTISE SAID QUESTION IN THE PADUCAH SUN -DEMOCRAT, BY HANDBILLS, 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 desirable that the city purchase, acquire, maintain and operate a electric utilities system and the necessary appurtenances thereto for the purpose of supplying said city and the inhabitants thereof with electric power from the Tennessee Valley Authority and other incident facilities; and WHEREAS, under and pursuant to the provisions of Section 7 of an ordinance entitled: "AN ORDINANCE CREATING A FRANCHISE OR PRIVILEGE TO FURNISH ELECTRICITY FOR LIGHP, PORER, HEAT AND ANY OTHER PURPOSES FOR WHICH ELECTRICITY IS USED IN THE CITY OF PADUCAH, KENTUCKY, AND PROVIDING FOR THE SALE OF SAID FRANCHISE OR PRIVILEGE which was adopted by the Board of Commissioners on August 20, 1940,1 the City of Paducah gave to the Kentucky Utilities Company a not19e of the exercise of its option to cancel said franchise in the manner provided therein; and 915 WHEREAS, as a condition or precedent to the cancellation of said electric franchise and the purchase of the electric utilities system of the Kentucky Utilities Company in Paducah, Kentucky, a Board of Appraisers was appointed, one member by the City of Paducah and the other member 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 PJHEREAS, said Board of Appraisers, composed of L.R.Howson, appointed by the City of Paducah, and J. Samuel Hartt, appointed by 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 Tno Aiillion Sixty-four Thousand One Hundred Nine Dollars ($2,064,109) upon said 1, properties as of the 1945-46 pricing period, which is the amount thl Kentucky Utilities Company is obligated to accept as the purchase price thereof, not including the fair and reasonable value of addi- tions and improvements in said electric utilities system less the value of property retirements which have been made since the comple- tion of the inventory 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 obligated to execute all necessary deeds and other instruments of transfer 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 franchise 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 ordinance 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 with the Kentucky Utilities Company as provided under Sub -section 4 of KRS 96.640; NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COM ISSIONERS 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 96.550 to 96.900, to be held on the 7th day of November, 1950, between the hours and by the same election officers conducting the regular i:election for state, county or city officials in said year, for the 916 j purpose of submitting to the qualified voters of the City of Paduca the question whether or not said city shall issue and sell revenue bonds in an amount of not exceeding Two Million Five Hundred Thousa d Dollars ($2,500,000) bearing interest at a rate of not exceeding three and one-half percent (32f) per annum, payable semi-annually, for the purpose of providing funds for the purchase of the electric utilities system of the Kentucky Utilities Company in Paducah at the price of Two Million Sixty-four Thousand One Hundred Nine Dollams ($2,064,109a plus the appraised value of additions and improvement in the electric utilities system less the value of property retirements which have been made since the completion of the inventory of the physical properties on which the appraisers based their valuation as of the 1945-46 pricing period, for payment of all preliminary expenses which have been or which may hereafter be incurred in conn- ection with or precedent to the acquisition and improvement of sai system, to provide a cash working fund for the maintenance and operation of said system, for making necessary alterations and improvements in the electric system of the Kentucky Utilities Company, for the construction of transmission and transformation facilities necessary to enable the Tennessee Valley Authority to furnish the City of Paducah with its entire electricity requirepents, for paying interest on said revenue bonds during the first two year+s or for retiring the principal of said bonds, and for any other Purpose incidental to and necessary for the acquisition, establish ment, operation and maintenance of an electric utilities system fo t -he use and benefit of the City of Paducah and the inhabitants of said city. SECTION 2. The Electric Plant Board of the City of Paducah shall pay to the Kentucky Utilities Company from the proceeds derived from the sale of said bonds the sum of Two Million Sixty- four Thousand One Hundred Nine Dollars ($2,064,109), plus the aper+ value of additions and improvements in said electric utilities system less the value of property retirements which have been made since the completion of the inventory of the physical properties of which the appraisers based their valuation as of the 1945-46 pricii period, and the value of such additions, improvements and retire- ments shall be determined by appraisal as provided in Section 7 of the aforesaid franchise ordinance. ised SECTION 3. The Electric Plant Board of the City of Paducah, Kentucky, shall pay to the City of Paducah from the proceeds der iv d from the sale of said bonds all of the preliminary expenses which said city has incurred or will hereafter incur for the making of j surveys, the employment of appraisers, attorneys and other employees, j 917 the giving of notices, the publication of ordinances, resolutions a notices, court and other litigation expenses in connection with acquisition of said electric utilities system, similar incidental expenses which have been or will hereafter be incurred, the expense of printing and selling the aforesaid revenue bonds, and such other expenses as may be 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 ($75,000). SECTION 5. The remainder of the proceeds derived from the sal< of said bonds, or as much thereof as may be necessary, may be used Iby said Electric Plant Board for making such alterations and improve ments in the electric Utilities system of the Kentucky Utilities Company as may be necessary for the purpose of supplying the City o1 Paducah and its inhabitants with an adequate supply of electricity, for the acquisition and construction of transmission and transfor- mation facilities necessary to make available for resale the electri I power furnished it by contract with the Tennessee Valley Authority and for the payment of the interest on the aforesaid bonds during tI� first two years following the date of the issuance thereof or for t' 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 regular electio in the City of Paducah, Kentucky, on November 7, 1950, the following question: ARE YOU IN FAVOR OF THE CITY OF PADUCAH PURCHASING FROM THE KENTUCKY UTILITIES COMPANY ITS ELECTRIC UTILITIES SYSTEM IN PADUCAH, KENTUCKY, AT A PRICE OF -02,064,109.00, PLUS THE APPRAISED VALUE OF ADDITIONS AND IMPROVEMENTS IN SAID ELECTRIC UTILITIES SYSTEM LESS THE VALUE OF PROPERTY- RETIREMENTS ROPERTYRETIREMENTS WHICH HAVE BEEN MADE SINCE THE COMPLETION C' THE INVENTORY OF TFE 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 32% PER ANNUM, PAYABLE SEMI-ANNUALLY, TO PRO- VIDE FUNDS FOR PAYMENT OF THE PURCHASE PRICE, FOR PAYMENT OF ALL PRELIMINARY EXPENSES IIHICH HAVE BEEN OR WHICH MAY HEREAFTER BE INCURRED IN CONNECTION WITH THE ACQUISITION OF SAID ELECTRIC UTILITIES SYSTEM, TO PROVIDE A CASH WORKING 918 FUND FOR THE OPERATION OF SAID SYSTEIM, FOR 14AKING NECESSARY ALTERATIONS AND IMPROVEMENTS IN SAID SYSTEM, FOR ACQUIRING OR CONSTRUCTING SUCH TRANS- MISSION OR TRANSFORMATION FACILITIES AS MAY BE NECESSARY FOR THE DISPRIBUTION OF ELECTRICITY PUR- CHASED FROM THE TENNESSEE VALLE! AUTHORITY, AND FOR OTHER PURPOSES INCIDENTAL TO ACQUISITION AND OPERATION OF SAID SYSTEV? Yes No SECTION 7. The City Manager shall advertise said election an the object thereof at least forty-five (45) days next before the da 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 precinc of the City of Paducah and at the Court 'Mouse door, and by such other means as he may consider desirable or necessary. All qualifi voters of the City of Paducah shall have the privilege of voting at said election. SECTION 8. This ordinance shall be introduced and remain on file for at least one week for public inspection in the completed form in which it shall be put upon its final passage and shall become effective ten (10) days after its adoption. MayorGBro Tem stoner lueo A. Hannin, Introduced by the Board of Commissioners, Sept. 20, 1949 Passed by the Board of Commissioners, Sept. 27, 1949 Recorded by Sarah Thurman, City Clerk, Sept. 27, 1949. r)