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Home My WebLink About01/12/82 CalledProceedings of Board of Commissioners No. 3 City of Paducah January 12, 1982 CALLED 10: 30 A.M. At a Called Meeting of the Board of Commissioners held in the Commission Chamber, City Hall, Paducah, Kentucky, at 10: 30 a.m. on January 12, 1982, Mayor Penrod presided and upon call of the Roll the following answered to their names: Commissioners Coleman, Flynn, Ford, Viterisi and Mayor Penrod (5) . Commissioner Viterisi offered motion, seconded by Commissioner Ford, that the executed copies of the Notice of Called Meeting to be held at 10:30 A.M. on Tuesday, January 12, 1982, be received and filed. Adopted on call of the Roll, Yeas, Commissioners Coleman, Flynn, Ford, Viterisi and Mayor Penrod (5) . Commissioner Coleman offered motion, seconded by Commissioner Flynn, that the Board of Commissioners adopt an ordinance entitled: BOND AND NOTE ORDINANCE "AN ORDINANCE -OF THE CITY OF PADUCAH, KENTUCKY, AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SALE OF FOURTEEN MILLION FIVE HUNDRED THIRTY THOUSAND DOLLARS ($14,530, 000) PRINCIPAL AMOUNT OF CITY OF PADUCAH WATER WORKS REVENUE BONDS, SERIES 1982, DATED DECEMBER 15, 1982, UNDER. THE PRO- VISIONS OF SECTIONS 58.010 THROUGH 58.140 OF THE KENTUCKY REVISED STATUTES, FOR THE PURPOSE OF DEFRAYING THE COST OF THE CONSTRUCTION OF EXTENSIONS, ADDITIONS, AND IMPROVEMENTS TO THE EXISTING MUNICIPAL WATER -WORKS SYSTEM; PROVIDING FOR SAID BONDS TO RANK ON A PARITY WITH THE OUTSTANDING $1,280,000 OF CITY OF PADUCAH WATER WORKS REFUNDING REVENUE BONDS, SERIES OF 1978; SETTING FORTH THE TERMS AND CONDITIONS UPON WHICH SAID $14,,530,000 OF BONDS (SERIES 1982) ARE TO BE AND MAY BE ISSUED AND OUTSTANDING: PRO- VIDING FOR THE COLLECTION, SEGREGATION, AND .DISTRIBUTION OF THE REVENUES OF SAID WATER WORKS SYSTEM: AND PROVIDING FOR AN ADVERTISED PUBLIC. - COMPETITIVE SALE OF SAID SERIES 1982 BONDS; AND PROVIDING FOR THE IMMEDIATE ADVERTISING, PUBLIC SALE, AND ISSUANCE OF FIFTEEN MILLION EIGHT HUNDRED SIXTY THOUSAND DOLLARS -($15,860..000) PRINCIPAL AMOUNT- OF CITY OF PADUCAH WATER WORKS REVENUE BOND ANTICIPATION NOTES, .SERIES_ 1982, DATED JANUARY 25, 1982,.TO PROVIDE INTERIM FINANCING". This ordinance is summarized as follows: A. Authorizes (1) the issuance of $14,530,000 of City of Paducah Water Works Revenue Bonds, Series 1982, dated December 15,. 1982 (the "Current Bonds" or the "Bonds"), pursuant to Sections 58.010 through 58.150 of the Kentucky Revised Statutes, for the purpose of financing (or refunding Notes issued for interim financing) the cost (not otherwise provided) of the- construction of extensions, additions, and improve-. ments (the "Construction Project" or the "Project") to the existing water works , system (the "System") of said City, the proceeds of which Bonds will be supplemented by an EDA grant in the amount. of approximately $1,000,000, plus the sum of $500,000 pro - vided directly by the City, to provide the total cost of the Project; and (2) the File notice of called meeting Note & Bond Ordinance for Paducah Wt.ter Works In No. Proceedings of Board of Commissioners City of Paducah January 12, 1982 -- Called Meeting issuance and immediate sale of_ $15,860,000 of City_ of Paducah Water Works Revenue Bond Anticipation Notes, Series 1982, dated January 25, 1982 (the "Notes") , to provide interim financing toward the cost of the Project, pending the issuance of the Current Bonds; B.. Provides that (1) the Current Bonds shall be secured by and payable from the revenues of the System, on a parity with the outstanding City of Paducah Water Works Refunding Revenue Bonds, Series of 1978, dated April 1, 1978 (the "Prior Bonds"), authorized by the Bond Ordinance enacted on April 5, 1978, (the "Prior Bond Ordi- nance"); (2) the Current Bonds shall bear interest from December 15, 1982, at a coupon rate or rates to be fixed at the public sale, payable semi-annually on January 1 and July 1, shall mature on July 1 in each of the respective years, 1984 through 2007, in ascending amounts, ranging from $90,000 in 1984 to $1,580,000 in 2007, and $1,160,000 on July 1, 2008, and shall be subject to redemption prior to maturity on any interest payment date falling on or after January 1, 1993, upon the payment of face amount plus accrued interest plus a redemption premium of 3% if redeemed on or prior to January 1, 1998; 2% if redeemed thereafter and on or prior to January 1, 2003; and 1% if redeemed thereafter and prior to final maturity; (3) the Notes are secured by and payable from a pledge of (a) all interest income which may be realized from the investment of the proceeds of the Notes pending disbursement of such proceeds, (b) to any extent which may be necessary, a lien on the first proceeds of the Current Bonds and/or Renewal Notes, (c) to any extent which may be necessary, the revenues of the System, such pledge of revenues being subordinate to the pledge of revenues securing the Prior Bonds, and (d) if and to any extent which may be necessary, the Debt Service Reserve for Notes created in the Bond and Note Ordinance; (4) the Notes shall bear interest from January 25, 1982, at a single coupon rate to be fixed at the public sale, payable semi-annually on January 25 and July 25, shall mature on July 25, 1984, and shall be subject to prior redemption on January 25, 1983, and on any date thereafter (not necessarily an interest payment date) , upon payment of face amount plus accrued interest plus a redemption premium of 1/2%; C. Reaffirms the creation and maintenance of (1) the Sinking Fund and the Sinking Fund Reserve (for the benefit of the Prior Bonds, the Current Bonds, and any future parity bonds) , (2) the Depreciation Fund, and (3) the Operation and Maintenance Fund, all created in the Prior Bond Ordinance, and which will be continued pursuant to this Ordinance in connection with the operation of the System, and (4) certain covenants of the Prior Bond Ordinance as to (a) maintenance of water rates adequate to maintain, repair, and operate the System and to pay principal and interest require- ments on all outstanding Prior Bonds and Current Bonds; and (b) supervision of the Proceedings of Board of Commissioners System being vested in the Commissioners of Water Works of the City; No. 5 -- City of Paducah January 12, 1982 D. Establishes and creates (1) a Construction Account, for the deposit of the proceeds of the Current Bonds (or the Notes); (2) a Current Bond Payment Account; (3) a Note and Coupon Redemption Fund; and (4) a Debt Service Reserve for Notes; E. Designates (1) G. Reynolds Watkins Consulting Engineers, Inc . , 3389 Tates Creek Road, Lexington, Kentucky 40502, as the Engineers for the Project; (2) J .J .B . Hilliard, W. L. Lyons, Inc . , 545 South Third Street, Louisville, Kentucky 40202, as the City's Fiscal Agent in connection with the issuance of the Bonds and the Notes; (3) The Paducah Bank & Trust Co . , Paducah, Kentucky, as the Payee Bank of the Notes; and (4) The Peoples First National Bank & Trust Co., Paducah, Kentucky, as the Depository of the Construction Account; F. Prescribes (1) the form of the Current Bonds and appurtenant coupons; (2) the form of the Notes and appurtenant coupons; and (3) the method of withdrawal of funds from the Construction Account for payment of the costs of the Construction Proj ect; G. Permits (1) the revision of the date, amount, and other terms of the Current Bonds, consistent with market conditions, (2) the defeasance of the Current Bonds or the Notes, and (3) the issuance of parity bonds to complete the Project or to finance future extensions, additions, and/or improvements to the System upon appropriate certification of coverage of net income of at least 1.30 times the maximum annual debt service requirements on all of the outstanding Prior Bond and Current Bonds; H. Covenants that the City will take no action or permit any action or con- dition that will cause the Current Bonds or the Notes to become arbitrage bonds; and I. Declares the intention of the City to sell the Current Bonds prior to the maturity of the Notes". Mayor Penrod announced the time for accepting bids for the bonds had now expired and he asked the City Clerk to open all bids. Only one bid was received and it is as follows: J.J.B. Hilliard, Lyons, Inc. & Associates; they bid $15,574,520 for the Notes, at an interest rate of Eleven point forty percent (11.40%) per annum; making a Net Interest Cost in Dollars of $4,805,580. Adopted on call of the Roll, Yeas, Commissioners Coleman, Flynn, Ford, Viterisi and Mayor Penrod (5) . Commissioner Flynn offered motion, seconded by Commissioner Coleman, that a resolution entitled, "RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY, ACCEPTING THE SUCCESSFUL BID FOR THE PURCHASE OF $15,860,000 PRINCIPAL AMOUNT OF CITY OF PADUCAH WATER WORKS REVENUE BOND ANTICIPATION NOTES., SERIES 1982, DATED JANUARY 25, 1982", be adopted. Adopted on call of the Roll, Yeas, Commissioners Coleman, Flynn and Mayor Penrod (3) . Commissioners Open bids - Water Works bonds/ Notes Accept bids for bonds No. 6 Proceedings of Board of Commissioners City of Paducah January 12, 1982 - Called Meeting Ford and Viterisi voted "NAY" (2) . Upon motion the meeting adjourned. ADOPTED: I City/Clerk Mayor