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Home My WebLink About91-6-4616199 ORDINANCE NO. 91-6-4616 AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY AUTHORIZING [i] THE PARTICIPATION OF THE CITY IN THE KENTUCKY MUNICIPAL LEAGUE POOLED LEASE FINANCING PROGRAM, [ii] THE FINANCING BY THE CITY THROUGH THE \ PROGRAM OF CERTAIN PROJECTS AND [iii] THE EXECUTION l� AND DELIVERY OF A LEASE PURCHASE AGREEMENT BETWEEN THE KENTUCKY MUNICIPAL FINANCE CORPORATION, AS LESSOR, AND THE CITY, AS LESSEE, UNDER WHICH THE CITY, HAVING CONVEYED ITS INTEREST IN CERTAIN PROPERTY TO THE CORPORATION, WILL LEASE FROM THE CORPORATION THE PROPERTY THEREIN DESCRIBED, AND TAKING OTHER RELATED ACTION. RECITALS A. Under the Kentucky Interlocal Cooperation Act, as amended, KRS 65.210 to 65.300 (the "Act"), any power or powers, priveledges or authority exercised or capable of exercise by a public agency (including a city) may be exercised jointly with another public agency under an agreement with one another for joint or cooperative action and such public agencies may acquire, construct, maintain, add to and improve the necessary property, real and personal, which is required in order to accomplish the public purposes set forth in such interlocal cooperation agreement. In order to provide funds to accomplish the purposes of such interlocal cooperation agreement, any one of the public agencies, acting pursuant to such interlocal cooperation agreement, may issue, on behalf of all public agencies which are parties to such interlocal cooperation ( agreement, negotiable revenue bonds, provided that the bonds shall be payable solely from the revenues derived from the joint or cooperative action undertaken pursuant to the interlocal cooperation agreement and shall not constitute an indebtedness of the Commonwealth of Kentucky (the "Commonwealth") or any of the participating public agencies. B. The Act further authorizes the parties to enter into an interlocal cooperation agreement to create a "separate legal or administrative entity," which entity may, on behalf of the participating public agencies, have certain powers delegated to it under the interlocal cooperation agreement in furtherance of the joint and cooperative undertaking of the participating public agencies. C. Pursuant to the Act, certain cities of the Commonwealth (the "Cities"), including the City of Paducah, Kentucky have entered into an amended and restated Interlocal Cooperation Agreement dated as of January 1, 1987 and a copy of which is on file with the Secretary of State of the Commonwealth (the "Interlocal Cooperation Agreement") for the purpose of jointly and cooperatively establishing a pooled lease financing program known as the Kentucky Municipal League Pooled Lease Financing Program (the "Program") to provide financing or refinancing for the acquisition, construction and installation of various public projects intended for use by the respective cities. The Program authorized under the Interlocal Cooperation Agreement consists of [i] the issuance by the City of Danville, Kentucky, as issuer (the "Issuer") on behalf of all the Cities, of negotiable revenue bonds pnrsuant to the Act and KRS 58.010 to 58.140 (the "Bonds"); [ii] the creation of 1F I... r. :11:.n' the Kentucky Municipal Finance Corporation (the "Corporation") as the agency and instrumentality of the Issuer to act as a "separate administrative or legal entity" under the Act, on behalf of the Issuer and the Cities, for the implementation of the Program; [iii] the delivery of the proceeds from the sale of the Bonds to a trustee under a trust indenture pursuant to which the Bonds were issued; [iv] the disbursement of such proceeds by the trustee to or for the account of the Corporation in order to finance or refinance the projects for the Cities; and [v] the lease of each respective project by the Corporation to the City for which such project is being financed under leases which in the aggregate provide for total rental payments sufficient to pay the principal of, premium, if any, and interest on the Bonds, as the same become due and payable, and all other costs and expenses of the Program. D. In furtherance of the purposes of the Interlocal Cooperation Agreement, the Act and public benefit to the residents and inhabitants of the Lessee, the Lessee proposes to enter into a lease purchase agreement between the Corporation, as lessor, and the Lessee, substantially in the form attached hereto as Exhibit A (the "Lease"), pursuant to which the Lessee, having conveyed to the Corporation the interest in the project that is described in Exhibit A to the Lease (the "Project") will lease the Project from the Corporation, and the Lessee will undertake and agree to pay rentals in the amounts and at the times set forth in the Lease as the same become due and payable. NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF PADUCAH, KENTUCKY, AS FOLLOWS: SECTION 1. Affirmation of Lessee's Participation in Program. It is hereby found, determined and declared that [i] the recitals set forth in the preamble to this Ordinance, which are incorporated in this Section by reference, are true and correct and the Lessee confirms its approval of the Interlocal Cooperation Agreement and its participation in the Program; [ii] the aggregate principal component of the Base Rentals as defined in the Lease shall be in an amount not to exceed $5,100,000, and [iii] the Lessee shall construct the portions of the Project to be constructed, in accordance with plans and specifications provided or to be provided to the Lessee by its engineers. SECTION 2. Authorization of Lease. In order to accomplish the financing contemplated hereby, the Lessee shall convey the interest in the Project described in the Lease to the Corporation, and the Lessee shall lease the Project from the Corporation in accordance with the terms and conditions of the Program, pursuant to the Lease, which Lease shall be substantially in the form attached hereto as Exhibit A, with such necessary and appropriate variations, omissions and insertions as the Mayor of the lessee, in his sole discretion may determine, and which Lease is hereby approved and authorized for use in connection with the financing of the Project. The Mayor and the City Clerk are hereby authorized and directed to execute and delivery on behalf of the lessee the Lease, pursuant to which the Corporation will lease the Project to the Lessee in consideration of rentals payable to the Corporation in the amounts and at the times set forth in the Lease. SECTION 3. Consent to Assignment. It is hereby found, determined and declared that, in order to assure the acquisition and installation of the Project in the corporate - 2 - ,: q -a m7�11R1177r. GST.',Fl 71 ---M.. 201 limits of the Lessee with the resultant public benefits that will flow therefrom, it is necessary and advisable that the Lessee consent to and ratify and confirm the assignment heretofore made by the Issuer and the Corporation of all of their respective rights, title and interests under the Lease to the trustee for the bondholders, to secure the payment of the principal of, premium, if any, and interest on the bonds and to performance by the Issuer and the Corporation of all of their other obligations related thereto. SECTION 4. Further Acts and Deeds. The Mayor, the City Clerk and other appropriate officers of the Lessee are hereby authorized and directed to proceed with the Corporation in structuring the Lessee's participation in the Program, and the Mayor, City Clerk and other appropriate officers of the Lessee are hereby authorized to execute, acknowledge and deliver on behalf of the Lessee any and all contracts, agreements, instruments, certificates, affidavits and other documents and to do and cause to be done any and all other acts and things necessary or proper for implementing and effectuating the actions and transactions authorized by this Ordinance; provided that neither the Lessee nor any of its elected officials, officers, employees or agents shall incur any general liability thereby. SECTION 5. Miscellaneous. The provisions of this Ordinance are severable, and if any section, paragraph, clause or provision hereof shall for any reason be declared invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect the validity of the remainder of this Ordinance. All resolutions, orders or parts thereof in conflict with the provisions of this Ordinance are, to the extent of such conflict, hereby repealed and the provisions of this Ordinance shall prevail and be given effect. J SECTION 6. Effective Date. This Ordinance shall be in full force and effect from and after its enactment and publication as provided by law. INTRODUCED, SECONDED AND GIVEN FIRST READING APPROVAL, at a duly convened meeting of the City Commission held on the 3rd day of June, 1991. GIVEN SECOND READING AND ENACTED, at a duly convened meeting of the City Commission held on the 11th day of June, 1991, on the same occasion signed in open session by the Mayor of the City, attested under seal of the City Clerk, and order to be published in the certified T ry form, filed and indexed as provided by law. Y M01MOHERY Mayor [SEAL] ATTEST: Lenita Smith City Clerk Published by The Paducah Sun June 27, 1991. - 3 - r— 7- -.1rnr...-:n