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HomeMy WebLinkAboutOrdinances Book 12, Page 282, No Ordinance Number2 l AN ORDINANCE PROVIDING FOR THE ACCEPTANCE OF THE OFFER OF STEIN BROS. & BOYCE OF LOUISVILLE, KENTUCKY, TO ACT AS FISCAL AGENTS OF THE CITY OF PADUCAH IN CONNECTION WITH THE ISSUANCE OF REVENUE BONDS TO FINANCE THE COST OF CONSTRUCTING AN ADDITION TO THE CITY OF PADUCAH MUNICIPAL HOSPITAL; AUTHORIZING STUART JOHNSTON THE MAYOR OF THE CITY OF PADUCAH TO SIGN FOR AND ON BEHALF OF THE CITY OF PADUCAH THE LETTER WRITTEN BY STEIN BROS. & BOYCE TO THE CITY OF PADUCAH AND THE CITY OF PADUCAH MUNICIPAL HOSPITAL COMMISSION DATED FEBRUARY 13, 1951s AND APPROVING THE TERMS AND CONDITIONS SET FORTH IN SAID LETTER AS CONSTITUTING SAID CONTRACT OF EMPLOYMENT; WHEREAS, the United States of America, acting by and through the Housing and Home Finance Administrator, has offered to make an advancement to the City of Paducah in the sum of :36,620 to cover the cost of preparing plans for the construction of an addition to the City of Paducah Municipal Hospital, known as the Riverside Hospital, which offer has been accepted subject to the terms and conditions upon which said offer was submitted; and WHEREAS, it will be necessary for the City of Paducah to employ a fiscal agent to assume the responsibility for the issuance of revenue bonds for the financing of that part of the cost of said project which said city shall be required to incur; NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY: SECTION 1. That the City of Paducah employ Stein Bros. & Boyce of Louis- ville, Kentucky, to act as its fiscal agent in all matters pertaining to the issuance of revenue bonds to finance that part of the cost of constructing the aforesaid hospital addition which the City of Paducah will be required to incur, and Stuart Johnston, the Mayor of said city, whose signature shall be attested by Sarah Thurman, the City Clerk, is hereby authorized and empowered for and on behalf of the City of Paducah to subscribe his name as such mayor to a certain letter written by Stein Bros. & Boyce to the City of Paducah Municipal Hospital Commission and the City of Paducah on February 13, 1951, which letter constitutes the agreement between the parties thereto and is in words and figures as follows, to -wit: STEIN BROS. & BOYCE Starks Building Arcade Louisville 2, Ky. February 13, 1951 CHAIRMAN AND MEMBERS, CITY OF PADUCAH HOSPITAL BOARD HONORABLE MAYOR AND CITY COMMISSIONERS, PADUCAH, KENTUCKY PADUCAH, KENTUCKY Gentlemen: We understand that you are going to employ an architect to make up plans for the proposed addition to the Riverside Hospital. You will receive a grant for part of the cost from the U.S.Government through the U.S.Public Health Service, and it will be necessary to finance the balance through the issuance of Hospital Revenue Bonds and also refund your 1)54,000 outstanding bonds as they represent a closed mortgage on the Hospital. 283 You will need financial and legal aid in carrying out this program and as we have had years of experience in handling similar types of issues, having in fact worked on setting up Riverside Hospital Bond issues in the past, it is proposed that you employ us as your Fiscal Agent again, and as such we will provide a nationally recognized firm of Municipal bond attorneys to aid in the legal details and also provide services of an outstanding Hospital Consultant as set forth below. The amount of the bond issue is to be mutually agreed upon after constru- ction bids are taken and the bonds are to be secured by a closed statutory mort- gage lien on the buildings and property of the City of Paducah Hospital and the City of Paducah is to pledge a sufficient amount of Revenues from the Hospital to pay interest and principal requirements and to set up a reserve. The bonds to mature serially from one to not to exceed 25 years. The bonds shall be call- able in inverse numerical order as follows: Non -callable for 3 years and at 103 and accrued int4rest for the next 5 year.period; at 102 and accrued interest for the next five year period, at 101 and accrued interest for the next 5 year period, and at 100 and accrued interest thereafter. We and our attorneys are to do all the work incident to the preparation of all Ordinances, Resolutions, Contracts, and Notices of sale when the issue is ready for public sale, and thr papers necessary to confirm said sale. We will pay all the expenses incident to this work, including the cost of printing the bonds, cost of publicity advertising same for public sale and all other expenses that may be incurred in the issuance and sale of this bond issue, except that the Paducah Hospital is to furnish at its own expense Abstracts of Title to the properties involved which are to be satisfactory to our attorneys. We shall pay the fees of our attorneys and the cost of the approving legal opinion issued in connection with these bonds. It is understood that the Paducah Hospital Board will employ a Hospital consultant to be mutually agreed upon to make a study of the present net earnings of the Hospital plus the estimated earnings of the addition to the Hospital. If the bonds are issued and sold, we will reimburse the Paducah Hospital Board $500 or 50% of the cost of the survey whichever is lower. When the issue is ready for public sale, the bonds shall be advertised and wide publicity shall be iven to the sale. At the public sale, the bidders shall bid at least $1,000 per 1,000 bond and will have the right to name interest rate or rates in multiples of 1/4 of 1%, and we are to be paid a sum equal to 2`0 of the par value of the bonds sold for our services and expenses. The above fee is to be paid to us upon delivery of the bonds to the successful bidder, and pay- ment received; however, if for any reason the bonds are not issued and sold, you are to owe us nothing. It is understood that we are not to be prevented from bidding at the competitive sale of the proposed Bond issue and whether or not we are the successful bidders, the above fee is to be paid to us. At the time you are ready to take construction bids on this project, you may desire to have some assurance that the bonds can be sold. At that time we will be willing to submit a guaranteed bid for the bonds in line with then going interest rates for a fee to be mutually agreed upon. This part of our proposal can be accepted or rejected at your discretion. This proposal is submitted subject to the bonds being approved as to by a recognized firm of bond attorneys and also subject to the bonds being of all Federal and State taxes on the date of delivery. If the above proposal is accepted, please pass a resolution of each bo accepting it and showing the aye and nay votes. APPROVED BY RESOLUTION PADUCAH HOSPITAL BOARD L. P. Long Vice Chairman CITY OF PADUCAH, KENTUCKY yor ARIrEST SEAL City Clerk RESPECTFULLY SUBMITTED, STEIN BROS. & BOYCE By /s/ Lester A. Guess 284 SECTION 2. This ordinance shall be introduced at a regular meeting of the Board of Commissioners and remain on file one week for public inspection in the completed form in which it shall be put upon its final passage. Because of the great increase in the population of the City of Paducah following the announcement of the construction of an atomic bomb plant on the site of the Kentucky Ordnance Works near said city, the present facilities are not sufficient to provide adequate hospitalization. The. public heaIlth and safety requires that such facilities be immediately furnished, an emergency is hereby declared, and this ordinance shall be in full force and effect from and after its adoption. Introduced by the Board of Commissioners February 20, 1951 Passed by the Board of Commmssioners February 27, 1951 Recorded by Sarah Thurman, City Clerk,'February 27, 1951•