Loading...
HomeMy WebLinkAboutOrdinances Book 12, Page 832, No Ordinance Number832 / REPEALED AN ORDINANCE ORDERING AN ELECTION BY THE QUALIFIED VOTERS OF THE CITY OF PADUCAH, IMITUCKY, TO BE HELD ON THE REGULAR ELECTION DAY, NOVITIBER 4TH, 1952, IN THE CIT`f OF PADUCAH, IMTUCISY, TO DETERMINE THE QUES^1ION li1HETHER THE CITY OF PADUCAH SHALL PURCHASE F1204M THE IMTUC19 UTILITIES COMPANY ITS ELECTRIC UTILITY PLANT IN THE CITY OF PADUCAH, KETUCKY, AT THE PRICE OF $1,978,817, AND SHALL CONSTRUCT NECESSARY ADDITIONAL FACILITIES AND OPERATE A MUNICIPAL ELECTRIC PLANT AT AN ADDITIONAL COST OF $1,404,183, AND ISSURE REVENUE BONDS IN THE ILLM 1TI TOTAL APIOUNT OF $3,383,000 TO PAY THE PURCHASE PRICE FOR SAID ELECTRIC PLANT AND TO CONSTRUCT SAID ADDITIONAL FACILITIES AND TO OPERATE SAID ELECTRIC PLANT. IMREAS, the Mayor and the Board of Commissioners of the City of Paducah, Kentucky, a city df the second class, declare that it is desirable that the city purchase, acquire, maintain and operate an electric utilities system and the necessary appurtenances thereto for the purpose of supplying said city and the inhabitants thereof with electric power purchased from the Tennessee Valley Authority and other incidental facilities; and MiEREAS, under and pursuant to the provisions of section 7 of an ordinance entitled: "AN ORDINANCE CREATING A FRANCHISE OR PRIVILEGE TO FURNISH ELECTRICITY FOR LIGHT, POM, HEAT AND ANY OTHER PURPOSES FOR WICH ELECTRICITY IS USED IN THE CITY OF PADUCAH, KENTUCIfY, AND PROVIDING FOR THE SALE OF SAID FRANCHISE OR PRIVILEGE," which was adopted by the Board of Commissioners on August 20, 1940, the City of Paducah gave to the Kentucky Utilities Company a notice of the exercise of its option to cancel said franchise in the manner provided therein; and M-MREAS, as a condition 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 made a survey of; appraise and submit to the City in writing its valuation of said electric utilities system; and 11HE.REAS, 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 Commissioners letters dated December 7, 1948, and Dedember 15, 1948, said letters constituting their written report of appraisal of said electric utilities system; and IIHIsREAS, said written report of appraisal in the amount of $2,064,109 includes the appraised value of certain of the company4s facilities and properties in the suburdan areas outside the corporate limits of said c ity amounting to a minimums of $86,292 or a maximum of $91,223; and S7HEMAS, in establishing the value of the properties and facilities subject to purchase by said city on basis of said report of appraisal, the use of said minimums figure of $86,292 would be more advantageous to the KentuclW Utilities Company than would the use of said maximum figure of $91,223; and 833 LIH:RfAS, in establishing said value the sim of $1,000 sho�ild be allot;red in favor of said company as a margin for error, caking the computation based on said report of appraisal as f ollows: Appraisal, including certain properties and facilities outside the cite $2,064,109 Less Minimum appraised value properties and facilities outside the city 86.292 i•aa:tinLmi appraised value of properties and facilities inside the city $1,977,817 Plus allowance for error 1,000 Total appraised value of properties and facilities inside city for purposes of this ordinance $1,978,817 t91 011S, the Board of Commissioners of the City of Paducah and the Electric Plant Board of said City have accepted the aforesaid appraisers? valutation of $1,978,817, the valuation as of the 1945-46 pricing period, as the price to be paid said company for all of its facilities and properties in the city that are used and useful in its electric utility business therein, and $1,978,817 is the amount said company is obligated to accept as the purchase price therof, not including the fair and reasonable value of additions and improvements in said electric utilities system less the value of property retirements 141ich have been made since the completion of the inventory of the physical properties on which the appraisers based their valuation as of the 1945-4G pricing period, and upon the payment of the purchase price said company is obligated to e:.ecute all necessary deeds and other instrurients 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 Linder Section 7 of the afore- said franchise ordinance; and i]I�i IS , it Trill be necessary for the City of Paducah to construct additional facilities to obtain electric power from the Tennessee Valley Authority and to connect to the present distribution system of the Kentucky Utilities Company, and in order to provide such construction costs, it was authorized sunder the provisions of IMS 96,640, to employ an engineer to prepare the necessary and proper plans and specifications therefor and to make the necessary estimates of the cost of such construction work; and I]MEAS, Alvord, Burdick and Howson, engineers, have submitted to the City of Paducah a report, outline plans, and estimated cost of said constructing the aforesaid additional facilities uilich grill be required, and the City of Paducah has approved and adopted their report, together with their estimates which are in amounts as follows: "TRANSMISSION LINES Single circuits of 3-397,000 CM ACSR conductors, 69 IN construction, on wood poles, and including all items of construction such as surveys, rights-of-way, etc, complete. Line No. 1, from T.V.A. station to the present sub -station, approximately 8 miles z via the Island Creek Valley to the river and thence to the present substation and Line No. 2 from T.V.A. station to the Reservoir, 4 miles L. total of 12 miles C, $12,500 $150,00 , 834 SUB -STATIONS 2 - 1,000 MIA capacity, 69 GO 13 MIA, complete installations, - transformers, breakers (designed for 250,000 KW interruption), accessory switches and equipment, foundations, housing, etc.- 160,000 each 320,000 TIG -LISTS 69 IN & 13 PV circuits between sub -stations, urith taps from the 13 IV circuit to connect to present 6.9 Kir feeders, approx. 5 miles C $8,000 40,000 Miscellaneous items of construction 15,000 Increased costs since date of Engineers? report 25,000 Total construction $550,0001' and 11-MRE&S, under IM 96.640 it is provided that the question whether revenue bonds shall be issued for payment of the cost of such additional construction work shall be submitted to the voters before such bonds are issued, and the City is authorized by said stature to include that question when an election is held; and IlIMZIS, under MRS 96,650 the City of Paducah has the power to issue revenue bonds to pay the total cost of constructing the necessary additional facilities, as well as to pay the purchase price for the presently operated system; and I.IIILPMS, the City of Paducah has incurred and will incur expense in the sum of approxim- ately $25,000.00 for surveys, appraisals, attorney fees and other expense in the aforesaid proceedings to acquire said electric utility system;sand IMRU- S, it is provided under KRS 96.730 -,.that all expense incurred for the making of surveys, estimates of costs and of revenues, employment of engineers, attorneys, or other employees, the giving of notices, the selling of bonds, and all other preliminary expenses shall be paid from the proceeds derived from the sale of revenue bonds; and IJMZkS, in addition, it is provided under KRS 96.800 that the proceeds from the sale of said bonds may be used for payment of interest on said bonds for two years following the date of issuance of such bonds, and may also be used to create a cash working fund to place said electric system in operation; and lffUMAS, it is accordingly estimated that, in addition to the purchase price of $1,978,817 the City of Paducah will pay the Kentucky Utilities Company for its aforesaid electric utility system, the follouring capital outlay and expenses authorized by the aforesaid statutes must be provided for and paid: 835 (1) Estimated value of extensions and improvements less retirements (as of date of sale) $517,093 (2) Preliminary expense for surveys, appraisals, attorneys fees, etc. 25,000 (3) Estimated cost of sub -stations and for completing connections to the present dis- tribution system 550,000 (4) Cash working fund 75,280 (5) Accrued interest on bond issue for a period of two years 236.810 Total $1,4043183 NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF COMMISSIONERS 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 KMS 96.550 to 96.900, to be held on the 4th day of Novemeber, 1952, between the hours and by the same election officers conducting the regular election for the state, county, or city officials in said year, for the purpose of submitting to the qualified voters of the City of Paducah the question whether or not said City shall issue and sell revenue bonds in an amount not exceeding $3,383,000 bearing interest at a rate of not exceeding three and one-half (320) percent per annnn, payable sem-annually, for the purpose of providing funds for the purchase of the electric utility system of the Kentucky Utilities Company in Paducah at the price of $1,978,817`plus the appraised value of additions and improvements in said electric utility system less the value of property retirements irhich have been made since the completion of the inventory of the physical properties on which the afore- said appraisers based their valuation as of the 1945-46 pricing period, for payment of all preliminary expenses :•thich have been or inay hereafter be incurred in connection with or as a ondition precedent to the acquisition and improvement of said system, for construction of transmission and transformation facilities necessary to enable the Tennessee Valley Authority to furnish the City of Paducah with its entire electric energy requirements, to provide a cash working fund for placing the electric utility system in operation, for paying interest on said revenue bonds diring the first two years, and for any other purpose incidental to and necessary for the acquisition, construction, operation and maintenance of an electric utility system for the use and benefit for 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 $1,978,817, plus the value of additions and improvements in said electric utilities system less the value of property retirements urhich had been made since the completion of the inventory of the physical properties on which the appraisers based there valuation as of the 1945-46 pricing period. 836 SECTION 3 The Electric Plant Board of the City of Paducah, Kentucky, shall pay to the City of Paducah from the proceeds de>;ivdd from the sale of said bonds all of the preliminary expenses which said city has incurred or will hereafter incur for the making of surveys, the employment of appraisers, attorneys and other employees, the giving of otice, the publication of ordinances, resolutions mid notices, court and other litigation expenses in connection with acquisition of said electric utility system, similar incidental expenses i•Anich have been or w911 hereafter be incurrdd, the expense of printing and selling the aforesaid revenue bonds, and such other e;,penses as may be incurred in the financing herein authorized, the total of all of n•finich expenses will amount to approximately $25,000.00. SECTION 4 That for the purpose of placing said electric utility system in roperation, a sufficient cash working fiord Trill 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 sunt. of $75,280.00 SECTION 5 The remainder of the proceeds derived from the sale of said bonds, or as much thereof as may be necessary, may be used by said Electric Plant Board for making such alterations and improvements in the electric utilities system of the Kentucky Utilities Company as may be necessary for the purpose of supplying the City of Paducah and its inhabitants with electricity, for the acquisition and construction of transmission and transformation facilities necessary to made available for resale the electric power furnished i; by contract with the Tennessee Valley Authority, for the payment of the interest on the aforesaid bonds during the first tn•7o ,years folloiring the date of the issuance of said bonds. SECTION 6 It shall be the duty of the City ,Tanager to certify this ordinance to the Clerk of the McCracken County Court uho shall have printed on the official ballots for use in the regular election in the City of Paducah, Kentucky, on November 4, 1952, the following question: "ARE YOU IN FAVOR OF THE CITY OF PADUCAH PURCHASING FROM THE IMNITUCE11 U^1ILITES COMPAwi ITS ELECTRIC PLANT P.' TEE CITY OF PADUCAH, ISENTUCICY AT THE PRICE OF $1,978,817 AND TETE CITY CONSTRUCTING NECESSARY ADDITIONAL FACILITIES AND OPERATING A AEUNICIPAL ELECTRIC PLANT IN ACCORDANCE L'ITH THE PLANS AND SPECIFICATIONS ADOPTED BY THE ELECTRIC PLANT BOARD OF THE CITY OF PADUC.AH AND AT AN ADDITIONAL COST OF $1,404,183, AND THE ISSUANCE OF REVENUE BONDS IN THE i•LLlD UAI TOTAL AMOUNT OF $3,383,000 TO PAY THE PURCHASE PRICE FOR SAID ELECTRIC PLANT AND TO CONSTRUCT SAID ADDITIONAL FACILITIES AND TO OPERATE SAID ELECTRIC PIJViT? Y8S NO er 837 SECTION 7 The City Manager shall advertise said election and the object thereof at least forty-five (45) days before the date of said election by causing the ordinance to be published in the Sun -Democrat, the official newspaper of the City of Paducah, by printed andbills containing a copy of this ordinance to be posted in not less than four (4) conspicuous places in each voting precinct of the City of Paducah and at• the Court Nouse door, and by such other means as he may consider desirable or necessary. All giuzalified 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. �u Mayor Introduced by the Board of commissioners June 10, 1952 -Passed by the Board of Commissioners June ", 1952 Recorded by Sarah Thurman, City Clerk, June �, 1952.