HomeMy WebLinkAboutOrdinances Book 12, Page 1273, No Resolution NumberA RESDLUTION OF THE BOARD OF COMISSIONERS OF THE CITY OF PADUCAH,
ACCEPTING A PROPOSAL OF STEIN BROS. & BOYCE, INVESTMENT BANKERS, LOUISVILLE,
KENTUCKY, FOR THE HANDLING OF PROCEEDINGS IN CONNECTION WITH CALLING AN ELECTION
ON NOVEMBER 3, 1953, FOR THE ISSUANCE OF 8500,000 OF VOTED BONDS OF THE CITY
TO FINANCE PERMANENT IMPROVEMENTS TO MAIN.CITY STREETS, THE COST OF CONSTRUCTING
A NEW CITY HALL AND THE COST OF ACQUIRING A SITE FOR A NEW SEWAGE DISPOSAL PLANT
AND OF PLANS FOR SAID PLANT, AND FOR HANDLING THE PROCEEDINGS IN CONNECTION WITH
THE ISSUANCE OF SUCH BONDS IF APPROVED BY THE VOTERS AT SAID ELECTION
WHEREAS, it is deemed advisable and for the best interests of the City to
provide for the issuance of voted bonds to finance the cost of improving main
city streets, the cost of constructing a new city hall and the cost of acquiring
a site for a new set -rage disposal plant and of plans for said plant, and
WHEREAS, Stein Bros. & Boyce, an investment banking firm of Louisville,
Kentucky,.has presented a proposal which is deemed for the best interest of
the City,
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COMNIISSIONERS OF THE CITY OF
PADUCAH, KENTUCKY:
SECTION 1, That the proposal of Stein Bros. & Boyce, dated September 8, 1953,
which is set out herein, in connection with all legal proceedings necessary for
the approval, issuance and sale of $500,000 of voted bonds of the City shall be
and the same is hereby accepted by the Board of Commissioners of the City. Said
proposal reads as follows:
"Louisville Kentucky
September $, 1953
Honorable Mayor and Members of .---.
the Board of Commissioners of
the City of Paducah,
Paducah, Kentucky
Gentlemen:
We understand that you desire to submit to the
voters of the City of Paducah at the regular election
scheduled to be held'oh November 31953, the question of
the issuance of $500,000 of genera obligation bonds of
the City for thepurpose of financing improvements to the
city streets in the estimated amount of 225,000, the cost
of constructing a new city hall in the estimated amount of
$250,000, and the cost of acquiring a site for a new sewage
disposal plant and of plans for said plant in the amount of
$25,000, and to proceed with the issuance and sale of said
bonds if approved by the voters at said election.
If approved said bonds shall be issued to mature
seriallyat the rate of '$25,000 per year over a period of
twenty (20) years beginning in 1955 and ending in 1974, shall
bear interest at a rate or rates not exceeding four (1+%) per
cent, pet annum and shall be subject to prior redemption in
such manner as shall mutually be agreed upon at the time of
issuance of the bonds.
In order to assist you in the issuance of these bonds
we offer the following proposal, subject to your immediate
acceptance by resolution of the Board of Commissioners:
1274
(1) We will employ recognized municipal bond
counsel and will cause them to prepare for adoption
and execution by your Board of Commissioners all of
such ordinances, bond forms, notices of sale and other
documents and instruments as may be necessary to submit
the question of the issuance of such bonds to the voters
of the City at the election on November 31953 and and if
such election carries, to legally issue the bonds thereafter.
Such services will include the validation of the issuance
of such bonds in a declaratory judgment suit to be filed
in the McCradken County Circuit Court following the
election if approved by the voters, as provided by
KRS 66.210-220.
(2)" If approved by the voters, we will pay all
expenses incident to the proceedings calling the election
and the issuance and sale of the bonds, including the fees
of our attorneys, the cost of printing the bonds, and the
.cost of advertising the.bonds for sale, except that the
Board`of Commissioners is to furnish us at its own expense
the,services of the City Attorney or other local counsel
necessary to cooperate with our attorneys in the declaratory
judgment suit to be filed in the Circuit Court for the
validation of the bonds. It is understood that the bulk
of the pleadings in connection with such declaratory
judgment suit will be prepared by our municipal bond counsel
(3) We shall prepare a prospectus iri addition
to the notice.of sale, showing information required by
securities dealers to prepare bids, so that you and the City
will obtain the best possible price for the bonds.
(4) Upon your acceptance of the. -best bid for
the bonds, we will have lithographed bonds paepar"ed fob
signatures, we well as coupons bearing facsimile signa-
tures.
(5) ' We twill assist in the execution and delivery
of the bonds as soon as the final approving legal opinion
is available.
(6) We will assemble and deliver to the successful
bidder a complete transcript of all legal.proceedings
incident to the bond issue, including a certification
of the legality of the issue, which opinion is required
for acceptable delivery of the bonds.
(7) Should the election fail to carry by required margin
the City will pay the cost of publishing the bond ordinance
but will owe us nothing.
(8) We will pay all of the expenses incident to such work
except as hereinbefore provided.
The Board and all city officials are to cooperate with
us and out attorneys by furnishing all information which is
needed and which is requested and in connection with all other
pertinent matters including the.adoption and execution of all
necessary resolutions, ordinances, notices of sale, certificates,
bonds, and all other proceedings anfd papers in order that said
bonds, if approved by the voters,.,may be actually issued, sold
and delivered.
As compensation to us.for'ou, services and expenses and'£or
the fees of out counsel 'you are to pay us a sum equal to 2% Z
of the face amount of'tAe bonds -issued, regardless of whether or
not we are the successful bidder at the public sale or sales of
these bonds.
It is distinctly understood.thAt,by your acceptance of this
proposal you are incurring no liability unles's said bonds are
approved by the voter"s of the City at the election and unless a
public sale is held and the proceeds of the bonds are received
by you.
Please signify your acceptance of this proposal through
the adoption of a resolution by the Board of Commissioners, by
having same signed by the Mayor and City Clerk of the City,
showing the date of the adoption of the resolution of the Board
of Commissioners approving this proposal.
1275
Respectfully submit•�ed,
STEIN BROS & BOYCE
By Harold L. Sullivan
This proposal is accepted in its entirety for and on -behalf of the
Board of Commissioners of said City by resolution passed on the 8th day of
September, 1953, and is hereby acknowledged by the undersigned officials.
CITY OF PADUCAH
By
�Fayor
"City Clerk"
SECTION 2. That .the Mayor and City Clerk are hereby autxorized and
directed to execute such proposal,evidencing the acceptance thereof by the
Board of Commissioners of the City,of Paducah.
SECTION 3. This resolution shall be in full force..and effect from and
after its adoption.
Mayor
Passed by the Board of Commissioners'September $, 1953.`
Recorded by Sarah Thurman, City Clerk, September 8,1953,-