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HomeMy WebLinkAbout86-7-2890629 ORDINANCE NO. 86-7-2890 AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY, APPROVING A POOLED LEASE PROGRAM (THE "PROGRAM"); AUTHORIZING THE EXECUTION OF THE INTERLOCAL COOPERATION AGREEMENT UNDER WHICH THE PROGRAM WILL BE ORGANIZED AND REVENUE BONDS (THE "BONDS") FOR THE FINANCING THEREOF WILL BE ISSUED; AUTHORIZING THE EXECUTION OF A LEASE UNDER WHICH THE CITY WILL LEASE THE CITY'S PROJECT UNDER THE PROGRAM FOR RENTAL PAYMENTS SUFFICIENT TO PAY THE CITY'S PRO RATA SHARE OF DEBT SERVICE ON THE BONDS RECITALS A. Under the Interlocal Cooperation Act (the "Act"), Sections 65.210 to 65.300, inclusive, of the Kentucky Revised Statutes ("KRS"), any power or powers, privileges 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 (an "interlocal cooperation 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 inter- local cooperation agreement, any one of the public agencies (the "Issuer"), acting pursuant to such interlocal cooperation agreement, may issue, be behalf of all public agencies which are parties to such interlocal cooperation agreement, negotiable revenue bonds pursuant to an ordinance of the Issuer's legislative body; provided such bonds shall be payable solely from the revenue derived from the joint or cooperative action and shall not constitute an indebted- ness of the Commonwealth of Kentucky (the "Commonwealth") or any of the participating public agencies. B. The Act further authorizes the public agencies to create a "separate legal or administrative entity" (the "Corporation"), by which entity may, on behalf of the partici- pating public agencies, have certain powers delegated to it as provided in the interlocal cooperation agreement. C. Under KRS 58.010 et seq., a governmental agency (including a city) of the Commonwealth, acting separately or jointly with any one or more of such agency, is authorized to acquire, construct; maintain, add to and improve any "public project" (as defined in KRS 58.010), and for the purpose of defraying the cost thereof, to borrow money and issue nego- tiable revenue bonds, which bonds shall be payable solely from the revenues derived from the "public project" (as defined in KRS 58.010) and shall not constitute an indebtedness of the Commonwealth of any of the cities, and to rent or lease such "public project" (as defined in KRS 58.010) or any portion thereof to, or contract concerning the "public project" (as defined in KRS 58.010) with, any persons, partnerships, associations or corporations either public or private, profit or nonprofit. D. Certain cities of the Commonwealth (the "Cities"), including the City of Paducah (the "City"), have determined that it would be in the best interest and welfare of their respective residents and to their mutual advantage in performing their public and governmental functions to join together under the provisions of an interlocal cooperation agreement to establish a pooled financing program (the "Program") to provide financing or 1 refinancing for the acquisition, construction, maintenance and improvement of various public facilities and other property intended for use by such Cities (the "Projects") and the accomplishment thereby of the public purposes of the Cities through (a) the issuance by the City of Danville, as Issuer, on behalf of the Cities, of revenue bonds pursuant to the Act (the "Bonds"); (b) the delivery of the proceeds from the sale of the Bonds to a trustee (the "Trustee") under a trust indenture pursuant to which the Bonds will be issued; (c) the disbursement by the Trustee to the Corporation of such proceeds in order to finance or refinance the Projects for the Cities; and (d) 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. NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF PADUCAH, KENTUCKY, AS FOLLOWS: SECTION 1. Authorization of the Interlocal Cooperation Agreement. For the pur- poses set forth in the preamble hereto, the City of Paducah hereby approves the Program and the financing thereof by the issuance and sale of the Bonds, and hereby authorizes and directs the Mayor and City Clerk of the City to execute, acknowledge and deliver, on behalf and in the name of the City, an Interlocal Cooperation Agreement among the City and the other cities of the Commonwealth who become signatories thereof, substantially in the form attached hereto as Exhibit A. SECTION 2. Authorization of Lease. The City of Paducah hereby approves the Project of the City, as described in the Lease hereafter described, and hereby authorizes and directs the Mayor and City Clerk of the City to execute, acknowledge and deliver, on behalf and in the name of the City, a lease (the "Lease"), between the City, as lessee, and the Corporation, as lessor, under which the City will lease its Project for rental payments sufficient to pay the City's pro rata share of the principal of, premium, if any, and interest on the Bonds, substantially in the form attached hereto as Exhibit B, with such necessary and appropriate variation, omissions, and insertions as the Mayor in his discretion may determine, and the execution of the Lease shall constitute conclusive evidence of such determination. SECTION 3. 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. SECTION 4. Effective Date. This Ordinance shall be in full force and effect upon its passage and approval. JOE VITERISI Mayor Introduced by the Board of Commissioners July 11, 1986 Adopted by the Board of Commissioners July 22, 1986 Recorded by Lenita'Smith, City Clerk, July 22, 1986 Published by The Paducah Sun July 28, 1986. SEAL: ATTEST: LENITA SMITH City Clerk . _ URTIEICATION. . I, the undersigned, do hereby certify that I am the duly qualified and acting City Clerk of the City of Paducah, Kentucky, and as such City Clerk I further certify that the foregoing is a true, correct and complete copy of. an Ordinance duly adopted by the City Council of said City at:a duly convened meeting held on the 22 day of July, 1986, on the same occasion signed by the Mayor as evidence of his 'approval, and now in full force and effect, all as appears from the official records of said City in my possession and under my control. WITNESS my hand and Seal of said City as of the 22 day of July, 1986'. LENITA SMITH City Clerk SEAL: 631