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HomeMy WebLinkAboutOrdinances Book 14, Page 316, No Ordinance Number316 AN ORDINANCE DECLARING IT DESIRABLE THAT THE CITY OF PADUCAH, KENTUCKY, ACQUIRE BY PURCHASE AND OPERATE A MUNICIPAL ELECTRIC PLANT AND ORDERING AN ELECTION BY THE QUALIFIED VOTERS OF SAID CITY TO BE HELD ON THE REGULAR ELECTION DAY, NOVEMBER 8, 1960, IN THE CITY OF PADUCAH, KENTUCKY, TO DETERMINE THE QUESTION WHETHER OR NOT THE CITY OF PADUCAH, KENTUCKY, SHALL ACQUIRE THE ELECTRIC PLANT OF KENTUCKY UTILITIES COMPANY WITHIN THE CITY OF PADUCAH, KENTUCKY, AND ISSUE AND SELL REVENUE BONDS IN THE AMOUNT NECESSARY TO PAY 0 THE RELATED COSTS AND EXPENSES WHEREAS, by ordinance adopted February 24, 1959, the Board of Commissioners of the city of Paducah, Kentucky, after receipt and study of an engineering report dated February 16, 1959, prepared by Burns & McDonnell Engineering Company, Kansas City, Missouri, concluded that it would be to the best interest of the city and its citizens for the city to acquire and operate the electric plant of Kentucky Utilities Company within the city, expressed its desire and intention to own and operate a municipal electric plant and therein gave official public notice that no franchise would be granted or sold for providing electric service within the city upon the expiration on September 17, 1960, of the existing electric franchise granted to Kentucky Utilities Company as of September 17, 1940 (hereinafter referred to as "the franchise"); and WHEREAS, said ordinance of February 24, 1959, requested the Electric Plant Board of the City of Paducah, Kentucky, (herein- after referred to as "Electric Plant Board") to take appropriate steps to acquire the existing electric plant of Kentucky Utilities Company within the city under the provisions of the franchise and applicable law; and WHEREAS, on March 11, 1959, pursuant to the provisions of the franchise, the city and the Electric Plant Board gave notice to Kentucky Utilities Company of the city's desire to enter into an agreement as to the value of the company's electric plant within the city; and WHEREAS, Section 7 of the franchise provides that the city may purchase the electric facilities of Kentucky Utilities Company located within the city at a fair and reasonable price, to be determined by negotiations if possible, and otherwise by a board of appraisers, one member to be appointed by the city, one member to be appointed by Kentucky Utilities Company, and (if the two so appointed cannot agree on the fair and reasonable price) a third member and umpire to be selected by the first two or (if the two 9 317 first appointed cannot agree upon a third member and umpire) to be named by the presiding Judge of the United States District Court for the Western District of Kentucky; and WHEREAS, negotiations between the representatives of the City and the Kentucky Utilities Company proved unavailing, and the city on June 8, 1959 duly appointed Andrew E. Bodner of Kansas City, Missouri, as its member of a Board of Appraisers to be established and to function as provided by Section 7 of the franchise, and Kentucky Utilities Company on August 24, 1959, duly appointed J. Samuel Hartt of Chicago, Illinois, as its appraiser under the franchise; and WHEREAS the two appraisers so appointed were unable to agree either upon a reasonable value for the electric plant of Kentucky Utilities Company within the city or upon a third appraiser, and the City and its Electric Plant Board thereupon made application on November 19, 1959, to Roy M. Shelbourne, the presiding Judge of the United States District Court for the Western District of Kentucky, for the appointment of a third member and umpire, and the said Roy M. Shelbourne, on December 23, 1959, duly appointed H. Clyde Reeves of Louisville, Kentucky, as such third member and umpire of said Board of Appraisers; and WHEREAS, the Board of Appraisers on February 19, 1960, submitted a report (dated February 16, 1960) in which said Board determined that the valuation of the electric plant of Kentucky Utilities Company in the City of Paducah, Kentucky, as of October 1, 1959, ascertained in accordance with the provisions of the franchise, was $5,861,638.00, including tangible property, going concern value and severance damages, of which total $4,611,638.00 represents the value of the tangible property and $1,250,000.00 represents going concern value and severance damages, which said report was received and filed by the Board of Commissioners of the City of Paducah, Kentucky, on February 23, 1960, and was approved and accepted by said board on June 11, 1960, and was approved and accepted by the Electric Plant Board on June 8, 1960, said report being incorporated herein by reference; and WHEREAS, the City of Paducah has received a supplemental engineering report dated June 1, 1960, and a letter of recommendation dated July 8, 1960, from Burns & McDonnell Engineering Company, which report was received and filed by said Board of Commissioners on June 21, 1960, and which letter of recommendation was received and filed by said Board of Commissioners on July 12, 1960, based upon the 318 report of the Board of Appraisers as to the velue of the electric plant of Kentucky Utilities Company within the city, and after consideration of said supplemental engineering report and letter, both of which have been approved by the Electric Plant Board and are hereby incorporated by reference, the Board of Commissioners of the City of Paducah, Kentucky, has concluded it would be to the best interests of the city and its citizens to proceed forthwith to acquire the electric plant of Kentucky Utilities Company within said city; and WHEREAS, the said supplemental Burns & McDonnell Engineering Company report and letter of recommendation conclude that the necessary amount of funds required in order to pay the purchase price of said electric plant determined by the Board of Appraisers, and the inci- dental costs of acquisition and financing, and to provide a reasonable amount of working capital and the funds necessary for the transmission of electric energy and other facilities which may be required in order to put into operation said electric plant upon acquisition by the city, plus allowances for adjustments, miscellaneous overhead expenses and contingencies, all as reflected in said appraisal report, supplemental engineering report and letter of recommendation, will be the sum of $7,050,000.00, and the approval of the voters of the City of Paducah, Kentucky, will be required in order to issue bonds i for the purchase of said electric plant and for said related purposes; f and I WHEREAS, by resolution adopted by the Board of Commissioners on Jung 11, 1960, the aforesaid appraisal report of said Board of Appraisers dated February 19, 1960, was accepted and approved, and pursuant to such resolution the City Clerk of the City of Paducah, Kentucky, has so notified each member of said Board of Appraisers, Kentucky Utilities Company, and the Llectiic Plant Board, by certifying to each of them a copy of said resolution, and WHEREAS, the Electric Plant Board by resolution adopted June 8, 1960, requested the Board of Commissioners of the City to authorize and direct the Corporation Counsel to prepare an ordinance for adoption by the Board of Commissioners providing for the sub- mission to the voters of the city of the proposition whether to issue the necessary revenue bonds to pay for the electric plant of the Kentucky Utilities Company, together with incidental and related expenses, and the resolution of the Board of Commissioners adopted June 11, 1960, so authorized and directed the Corporation Counsel; 319 NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY: SECTION 1. The City of Paducah, Kentucky, acting by and through its Board of Commissioners, hereby declares it desirable, and, subject to the approval of the voters, hereby determines that the city shall acquire by purchase and operate a municipal electric plant situated within the city limits of Paducah, Kentucky, under and in accordance with the provisions of the franchise and applicable law. SECTION 2. The said electric plant to be acquired is described as follows: The complete electric distribution system of Kentucky Utilities Company within the present corporate limits of the City of Paducah consisting of poles, primary, secondary and street lighting conductors, transformers, capacitors, customer services, meters, insulators, guys, crossarms and other hardware and appurtenances; the Paducah No. 1 substation located at Second Street and Madison, the Kentucky Avenue substation located at Kentucky and 14th Street and that portion of the Illinois Central Railroad substation, used and useful for the distribution of power, together with regulators, oil circuit breakers, capacitors, air break switches, and other protective equipment and related hardware and facilities; all 69,000 volt transmission lines located within the city limits, including the transmission lines serving the Kentucky Avenue substation and the Paducah No. 1 substation, and the transmission line known as the Barlow transmission line, extending from the south City Limits near the south Paducah 154 KV substation, to the northwest city limits at or near Atkins Avenue, including poles, conductors, air break switches, insulators, guys, cross -arms, and other hardware and appurtenances; short-wave radio stations, microwave cable, telephone lines and other communication facilities and equipment of Kentucky Utilities Company within the City used in connection with the operation of the system above described; the street lighting system within the corporate limits of the City of Paducah, including mercury vapor amd incandescent luminairs, poles, standards, supports, transformers, regulators, oil switches, time switches and other hardware and appurtenances all rights-of-way and easements for distribution and transmission lines and related structures; parcels of land at the following locations: Parcel A - 1444 Broadway; parcel B - Northwest corner of 2nd & Jefferson; Parcel C - Southeast corner of 3rd and Madison Streets; Parcel D - Southeast corner of 2nd and Madison Streets; Parcel E - Southwest corner of 2nd and Madison Sts. Parcel F - Southeast corner of Nahm and Washington Streets; Parcel G - Sout side of Monroe Street 103.24 feet west of 2nd Street; Parcel H - Northeast 320 corner of 2nd and Harrison Streets (if extended); Parcel I - Southwest c of 2nd and Clay Streets (if extended); Parcel J - North side of Harrison 29 feet from northeast corner of 3rd and Marrison Streets; Parcek K - Ea side of 2nd Street 29.4 feet from the northeast corner of 2nd and Madiso! Streets; Parcel L - North side of Madison Street 174.3 feet east of 2nd Street; all buildings and improvements upon the said parcels of land, including the two-story office building and one-story warehouse and garal constructed upon Parcel A and the two-story warehouse building situated i upon Parcel C, all office furniture and equipment, transportation equipment; shop and garage equipment, laboratory equipment, tools and working equipment and miscellaneous equipment located on any of the premises of the company within the City of Paducah or constituting a part of or accessory to the transportation equipment; the line transformers, meters, and other inventory items stored or warehoused in Paducah; together with any changes, improvements or additions made to or in the electric plant described above and all miscellaneous items of electric distribution property of Kentucky Utilities Company within the City of Paducah. SECTION 3. An election shall be held respecting the purchase, ! acquisition and revenue financing by said City of Paducah, Kentucky, of the electric plant of Kentucky Utilities Company within the city limits of i Paducah; Kentucky, and in that regard the following question shall be submitted to the qualified voters of the City of Paducah, Kentucky, at the next regular election which will be held on November 8, 1960: "ARE YOU IN FAVOR OF THE CITY OF PADUCAH, KENTUCKY, PURCHASING FROM KENTUCKY UTILITIES COMPANY AN ELECTRIC PLANT AT THE PRICE OF X5,$61,63$.00 (SUBJECT TO LAWFUL ADJUSTMENT FOR CHANGES IN SAID ELECTRIC PLANT AFTER OCTOBER 1, 1959) AND THE ISSUANCE OF REVENUE BONDS IN THE AMOUNT OF $7,050,000.00 TO PAY THE PURCHASE PRICE AND THE RELATED COSTS AND EXPENSES?" Opposite the question shall be printed "Yes" and "No" with the proper space for placing the cross -mark to indicate preference. SECTION 4._ The Mayor and City Manager of the City of Paducah, Kentucky, shall advertise such election and the object thereof at least forty-five days next before the date of such election in each issue of the newspaper having the largest circulation in said city and also by printed hand bills posted in not less than four conspicuous places in each voting precinct in said city, and at the court house door. The Mayor and City Manager shall also advertise such election in accordance with the 321 requirenents of Chapter 424 of Kentucky Revised Statutes. SECTION 5. The Mayor and City Manager of the City of Paducah, Kentucky, shall certify this ordinance to the Clerk of the McCracken County Court in conformity with law. SECTION 6. That if any section, paragraph or provision of this ordinance shall be found to be inoperative, ineffective F or invalid for any cause, the deficiency or invalidity of such section, paragraph or provision shall not affect any other section, paragraph or provision hereof, it being the purpose and intent of this ordinance to make each and every section, paragraph and provision hereof separable from all other sections, paragraphs and provisions. SECTION 7. This ordinance shall be introduced and remain on file for at least one (1) week for public inspection in the completed form in which it shall be put upon its final passage, and if adopted shall be in full force and effect ten (10) days thereafter. ATTEST: , City Clerk Mayor Introduced by the Board of Commissioners July 12, 1960 Passed by the Board of Commissioners July 26, 1960 Iiecorded by Sarah Thurman, City Clerk, July 26, 1960.