HomeMy WebLinkAbout79-3-169386
ORDINANCE NO. 79-3-1693
AN ORDINANCE OF =THE CITY OF -PADUCAH , KENTUCKY, AUTHORIZING THE
ISSUANCE OF ;,"CITY OF --PADUCAH'. SCHOOL BUILDING REVENUE BONDS, SERIES OF
FEBRUARY -A, 1979,1' -IN --ACCORDANCE WITH , A REQUEST OF THE BOARD ` OF EDUCATIOZ
OF. PADUCAH, KENTUCKY (AS AMENDED);' "AND IN ACCORDANCE WITH A RESOLUTION
PREVIOUSLY ADOPTED BY THE CITY'S BOARD OF COMMISSIONERS IN CONNECTION
THEREWITH (AS AMENDED); DETERMINING THE PRINCIPAL AMOUNT OF SAID BOND
ISSUE, THE SCHEDULE, OF PRINCIPAL MATURITIES, AND THE SCHEDULE OF RENTALS
TO
BE PAID TO
THE CITY BY
THE BOARD OF
EDUCATION OF
PADUCAH; KENTUCKY,
IN
CONNECTION
THEREWITH;
INCORPORATING
BY REFERENCE
ALL OF THE TERMS
AND ° PROVISIONS OF SAID RESOLUTION HERETOFORE ADOPTED BY THE BOARD OF
COMMISSIONERS IN CONNECTION THEREWITH, AS AMENDED; AND 'PROVIDING FOR THE
SALE OF SAID BONDS AT AN ADVERTISED.: PUBLIC COMPETITIVE . SALE .
WHEREAS, the Board of Education of -Paducah ,. 'Kentucky (the "Board of
Education") , according to a Resolution shown = to have been adopted at a meeting held
on January 8-,'-1979, has heretofore requested that the City' of -Paducah cooperate with
' in -the authorization and issuance of certain "City of Paducah School Building Revenue
Bonds, Series sof February 1, --1979," -to-be' dated February 1, 1979 (hereinafter re-
ferred to as the "February L 1979 Revenue Bonds") according to authority of KRS
162.120 to 162.290, inclusive; and at that time it was caused to appear that it was the
intent of the Board- of Education- that the purposes to be accomplished by the aforesaid
February 1, 1979 Revenue Bonds should encompass and include the 'financing of a
school building program for the construction of new school buildings, and for the re-
construction of and additions to existing school buildings upon the sites of (a) Paducah
Tilghman Senior High School, (b) Clark Elementary School, and (c) Morgan
School; but at that time it was caused to appear that it was not possible to ascertain
and determine the amount of the requested bond issue, by reason of the fact that
although advertisements had been duly published soliciting the submission of bids for
the proposed program for the construction and reconstruction of school buildings,
nevertheless construction bids had not at that time been received and considered; and
WHEREAS, in that connection the City's Board of Commissioners at a
regular meeting held on January 9, 1979, officially adopted and caused to be recorded
in the office of the City Clerk a certain Resolution which is identified by its title or
caption, as follows:
87
A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE CITY OF
PADUCAH, KENTUCKY, ADKNOWLEDGING AS A MATTER OF OFFICIAL
RECORD AN AGREEMENT OF THE CITY OF PADUCAH AND THIS BOARD
OF COMMISSIONERS TO COOPERATE WITH THE BOARD OF EDUCATION OF
PADUCAH, KENTUCKY, IN THE ISSUANCE OF "CITY OF PADUCAH SCHOOL
BUILDING REVENUE BONDS, SERIES OF FEBRUARY 1, 1979, "IN AN
AGGREGATE PRINCIPAL AMOUNT WHICH CANNOT BE DETERMINED UNTIL
CONSTRUCTION BIDS HAVE BEEN PUBLICLY RECEIVED'AND COMPARED;
IDENTIFYING AND DESCRIBING THE SITES TO BE CONVEYED BY THE BOARD
OF EDUCATION TO THE CITY PURSUANT TO KRS 162.120 AND AGREEING
TO ACCEPT ONE OR MORE DEEDS OF CONVEYANCE THEREOF WHEN
TENDERED; AGREEING TO EXECUTE WITH SAID BOARD OF EDUCATION
A "CONSTRACT OF LEASE AND RENT" CONFORMING TO THE REQUIREMENTS
OF KRS 162.130 IN ORDER TO PRODUCE TO THE CITY RENTAL REVENUES
FROM WHICH THE PRINCIPAL OF AND INTEREST ON THE BONDS WILL BE
PAID; DESCRIBING IN GENERAL TERMS THE SCHOOL BUILDING PROJECTS
TO BE CONSTRUCTED AND RECONSTRUCTED UPON THE RESPECTIVE
SITES AND FINANCED THROUGH THE ISSUANCE OF SUCH BONDS; PRE-
SCRIBING THE FORMS OF THE BONDS AND INTEREST COUPONS; NAMING
THE BANK WHERE PRINICIPAL AND INTEREST WILL BE PAYABLE;
PROVIDING FOR THE RECEIPT OF RENTALS PURSUANT TO THE "CONTRACT
OF LEASE AND RENT" AND THE CUSTODY AND DISPOSITION THEREOF;
PRESCRIBING THE COVENANTS TO BE MADE WITH THE HOLDERS OF THE
BONDS AND COUPONS, AND ARBITRAGE COVENANTS TO COMPLY WITH
REGULATIONS OF THE INTERNAL REVENUE SERVICE; PROVIDING FOR THE
CUSTODY, SAFEKEEPING AND -DISBURSEMENT OF,THE.PROCEEDS °OF THE
BONDS; AUTHORIZING ADVERTISEMENT OF THE BONDS, WHEN AUTHORIZED
BY ORDINANCE , - AT -AN ADVERTISED PUBLIC COMPETITIVE SALE IN
ACCORDANCE WITH THE REQUIREMENTS OF KRS CHAPTER 424; ALL TO
THE: END THAT THE SUBSTANCE AND DETAILS OF -THIS RESOLUTION MAY
BE INCORPORATED- BY REFERENCE IN THE ORDINANCE, TO BE ADOPTED
LATER, AUTHORIZING THE ISSUANCE -OF SAID -BONDS.,' IN ORDER TO ENABLE
THE CITY TO SELL AND DELIVER SUCH BONDS WITHIN THE VERY LIMITED
PERIOD OF 'TIME WHICH WILL -BE AVAILABLE; AND RECITING -THE LEGAL
AUTHORITY FOR PROCEEDING IN THE ANNOUNCED AND INTENDED MANNER;
AND
WHEREAS , ; .upon subsequent :-receipt of competitive construction bids, -it
has been caused to appear that the aggregate amount of -.,the costs of constructing and
reconstructing the school buildings -originally -contemplated has turned out to be in excess
of the amount: the Board of Education considers that it can afford, at this time, by
reason of its commitments to improve rother school properties of the,, educational system
of said Board of Education; and
WHEREAS, upon -daze-, consideration-,: and as: ,evidence:d .by a .Resolution adopted
by the Board of Education at: a meeting - held' on February.: 1.9:. 1979 (ah,'authenticated
copy of which has been delivered to 'the City),,- -said 'Board .of Educati6ii-has- determined
that it must leave out' -of its request -for -the issuance -by i the. City of: the:'afor'esaid
February 1; 1979 Revenue Bonds, all -consideration of the originally- proposed school
building construction and reconstruction; program insofar as the same concerned buildings
and improvements= upon the -site-,,of , Paducah Tilghman - Senior High School; and has ..
determined that, the Architects should- be instructed to --reviser the plans :arid speci-
fications previously -approved for such-: school building, coristructiom rand- reconstruction
program upon the site.- of Paducah Tilghman Senior- High School, . to the: end --that the
aggregate costs -thereof -be -reduced,- and- with~the�.intention that the undertaking of 'such
school. building -construction and reconstruction. program on such site be'. deferred: 'and
RR
made the subject of a separate request to the City for the issuance of School Building
evenue Bonds at a later date; and
WHEREAS-, by reason of certain specific request made " by the Board of
Education and" transmitted "to the City, "it has been made apparent that the aforesaid
Resolution which was' adopted by the Board of Commissioners on January 9 ,1979,
heretofore 1deritified -b � the' '
y quotation of its title or 'caption, should be amended prior
to the adoption by the Board of Commisssioners of an Ordinance authorizing the
issuance- of said' proposed February 1,' ' 1979 Revenue Bonds, and accordingly, the
Board -'of Commissioners, by proper proceedings duly had and adopted by the Board of
Commissioners prior to'the adoption of this 'Ordinance, has duly adopted a Resolution,
amending the aforesaid -Resolution which -was adopted on January 9, 1979, the same being
identified by -its -title or -caption as follows:
A RESOLUTIONOF THE BOARD OF COMMISSIQKERS OF THE CITY
OF PADUCAH, KENTUCKY, AMENDING AS TO 'CERTAIN'PARTICULARS,
AS REQUESTED BY' THE BOARD _OF`EDVCATION OF PADUCAH, A CER-
TAIN ' IDENTIFIED RESOLUTION"WHICH"WA.S ADOPTED BY THE `BOARD
OF COMMISSIONERS AT' A"" EETING-.HELD ON JANUARY 9, -1919, SETT-
ING 'FORTH. CERTAIN --TEXT AND DETAILS CONCERNING'`THE � CONTEM-
PLATED ISSUANCE BY THE CITY OF PADUCAH, ONBEHALF OF 'SAID
"
BOARD -OF ' EDUCATION, OF PROPOSED "CITY OF PADUCAH SCHOOL
BUILDING 'REVENUE BONDS, SERIES OF7 FEBRUARY 1, 197911; and'
WHEREAS, all of the foregoing proceedings and actions being duly considered,
it is appropriate that this Ordinance now be adopted, in order to comply with the
present intentions and request of the 'Board of Education, and that action 'be taken '
(a) determining "the amount -of the presently requested"" -City of Paducah School' Building
Revenue Bonds, Series of February 1, 197911, (b) setting forth the schedule of principal
maturities thereof, and (c) setting forth the schedule of rentals to bepaid to the City
by said Board of Education, under the terms and conditions of the previously approved
form o "Contract of Lease and Rent," in connection therewith,
NOWt- THEREFORE, THE BOARD OF COMMISSIONERS OF THE CITY OF
PADUCAH; KENTUCKY;' -DOES HEREBY ORDAIN, AS FOLLOWS:
SECTION 1. -There shall be -issued, and there' are --hereby authorized' to be
issued by the CityofPaducah, Kentucky, its "City of -Paducah -School Building"Revetiue
Bonds, Series of February 1, 197911, to be dated February 1, 1979, in the principal
amount of Two Million Five Hundred Eighty -Five Thousand Dollars ($2;585,'000).'
SECTION 2: There is .hereby incorporated into this Ordinance by reference,
and :hereby made`a part-, of: Ordinance,` the entire text of the Resolution which was
adopted by the Board of. Commissioners on January ' 9 , -1979, and which is identified
by quotation -of its title or captions in the, preamble' hereof-, as amended by the afore-
said Amendatory, Resolution adopted by -the:. Board of Commissioners at this -meeting as
such Amendatory Resolution is identified by its title or caption in the preamble hereof;
89
and in accordance therewith the herein authorized $2,585,000 "City of Paducah School
Building Revenue Bonds, Series of February 1, 197911, shall comprise bonds in the
denomination of Five Thousand Dollars ($5,000), shall be numbered consecutively from
1 to 517, inclusive, in order of maturity, and such bonds shall mature as to principal
as shown in the following schedule:
BONDS NUMBERED
PRINCIPAL AMOUNT
DATE OF
MATURITY
(Inclusive)
1-16
$ 80,000
February
1,
1980
17-33
85,000
February
1,
1981
34-51
90,000
February
1,
1982
52-71
100,000
February
1,
1983
-72-92
105,000
February
1,
1984
93-114
110,000
February
1,
1985
115-137-
115,000
February
1,
1986
138-162
125,000
February
1,
1987
163-189
135,000
February
1,
1988
190-217
140,000
February
1,
1989
218-247
150,000
February
l,'-
1990
248-279
160,000
February
1,
1991
280-313
170,000
February
1,
1992
314-349
180,000
February
1,
1993
350=387
190,000-
February
1;
1994
388-428
205,000
February
1,
1995
429-471
215,000
February
1,
1996
472-517
230,000
February
1,
1997
SECTION 3. The rentals to be paid by the Board of Education to the City under
the terms and conditions of the "Contract of Lease and Rent", the form of which has
heretofore been approved, shall be as set forth in the following schedule:
SCHEDULE OF ANNUAL RENTALS
For the initial period ending the last day of January, 1980 (partly from accrued interest
received from- the purchaser, the 'balance from 'rentals) .......:......I.... $241:562.50
For the fiscal . year ending the last day of January, 1981 .................. 241, 562.50
For the fiscal year; ending- the last day of January, 1982 ................... 241, 250.00
For the fiscal year ending the last day of January, 1983 .................. 245,625.00
For the fiscal year ; ending' -the last day of January, 1984 ..° :.. 244 075.00
375.00
For the fiscal year ending the last day of January, 1985 .................. 242,812.50
For the fiscal year ending thelast day of January 1986 .......! 240,937.50
For the fiscal year ending the last day of January, 1987 .................. 243,750.00
For the fiscal. -.year ending the last day of'. January, 1988 ..................... 245, 937.50
For the fiscal year ending the last day of January, 1989 .................. 242,500.00
For the fiscal -year ending the last day,, of January, -1990 ...::.... ...... 243, 750.00
For the fiscal year ending the last day of January, 1991 .................. 244,375.00
For the fiscal year ending the last day of January, 1992 .................. • '244, 375.00
For the fiscal year ending the last day of January, 1993 .................. 243,750.00
For the fiscal year ending the last day of January, 1994 ............. ..... 242,500.00
For the fiscal year ending the last day of January, 1995 .................. 245, 625.00
For the fiscal year ending the last day of January, 1996 242,812.50
For the fiscal year ending the last day of January, 1997 .................. 244,375.00
provided, however, as set forth in the aforesaid Resolution of January 9, 1979, as
amended February 19, 1979, said annual rentals are based upon the assumption that
when the aforesaid "City of Paducah School Building Revenue Bonds, Series of
February 1, 197911, are awarded at public sale a single uniform coupon rate of 6.25%
will be established as made applicable thereto; but such annual rentals shall automati-
cally be adjusted, without further action on ..the part of the Board of Commissioners, to
such amounts as may actually be required to meet the annual principal and interest
requirements of said bonds, based upon the interest coupon rates which may be actually
established and made applicable thereto when the same are awarded at public sale.
01
SECTION 4. As requested by the Board of Education, and as contemplated
in the text of Section 17 of the aforesaid Resolution which was adopted by the Board of
Commissioners on January 9, 1979, as amended, the proceeds of the sale of the bonds
shall be deposited in The Peoples First National Bank & Trust Company, in Paducah,
Ketucky (the "Depository Bank"), in a separate account designated "City of Paducah
School Building Revenue Bonds, Series of February 1, 1979, Construction Fund", and
disbursements therefrom shall be made as provided in said Resolution;, . as amended.
As contemplated in the text'df, Section 17 of said Resolution, the Board of
Commi ssioner a, �ofthe City of Paducah "herbby determines that the. -amount of the bond
proceeds,- will,, .% -from time to time, exceed ,llfe amount required to,,be" disbursed in pay
ment'W the. -costs: -of the school building construction, reconstruction-"andadditions
for' which the --,boftdg are authorized and' .i=ssued; and accordingly'- thd = Depository Bank
is 'Ifereby directed' -to invest all balanideg ins said Construction Fuh`d,'f-r'6m time to time in
short-term - Bills!. -of the U.S. Treasury; "'ot-otherwise as provided: irf'.the Resolution, as
amended,' in order-: that said funds shAlLh6t lie idle and unprod'ddtbie of interest
income. 'Whenever,_ and to whatever dktent-may be necessary, th,4,D60ository Bank
is authorized and directed to convert such investments into cash; and if there be any
expenses or losses resulting therefrom, the same shall be charged to the Construction
Fund; and if there be any gain resulting therefrom, the same shall be credited to the
Construction Fund.
SECTION 5. The Board of Education and its Fiscal Agent having submitted
--suggested forms. of, the. "'Notice-- of Sale, -of- Bonds" Terms -and Conditions
of Bond $,ale" and "Official, Bid. -Form-ll and the same,.- having - b=een examined, the said
forms are. hereby approved �aild. may : be used- in connection; `with the public offering of
the. bonds, as otherwise. provided -in-the aforesaid :Rbsolutiori'.__
SECTION .6,. This Ordinance shall. -Vie in- full. force:and effect from and
after'. its adoption,, approval, publication and -the:passage --of-'time-as--provided in KRS
89.590.
INTRODUCED AND GIVEN FIRST READING APPROVAL at :a regular. meeting
4
of the Board of Commissioners- of -the -City -of Paducah,, Ken-tucky -,,I , held -_ on"February 27,
1979, and ordered held over in the office of the City Clerk for public inspection.
GIVEN SECOND READING AND FINALLY ADOPTED by the Board of Commissioners
of the City of Paducah, Kentucky, at a regular meeting held on March 13, 1979, on the
same occasion signed in open session by the Mayor, and ordered to be recorded and
published.
ATTEST:
Louise McKinney, -City Clerk
SIGNED:
/s/ William S. Murphy, Mayor
City of Paducah, Kentucky