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HomeMy WebLinkAboutOrdinances Book 10, Page 810, No Resolution NumberA RESOLUTION REQUESTING TIIE ADVICES AND COOPERATION OF THE TENNESSEE VALLEY AUTHORITY IN PROCEEDINGS TO BE INITIA`IED BY THE CITY OF PADUCAH, KENTUCKY FOR TIIE ACQUISITION OF THE ELECTRIC UTILITY SYSTEI:i AND PROPERTIES OF TIIE KENTUCKY UTILITIES COMPANY IN THE C17K OF PADUCAH; WHEREAS, on the 13th day of February, 1942 the City of Paducah notified the Kentucky Utilities Company of its desire to purchase the Company's electric system and properties in the City of Paducah at a price to be agreed upon between the parties, which notice was given pursuant to sub -section (a) of Section 7 of an o,dinance entitled: - "Aid ORDII_TANCE CREATING A FRANCHISE OR PRIVILEGE TO FUR'dISH ELECTRICITY FOR LIG_IM, POSTER, HEAT AND ANY OTHER PURPOSE FOR '.`.7;ICH ELECTRICITY IS USED IN THE CITI OF PADUCAH, IENTUCKY, AND PROVIDING FOR THE SALE OF SAID FRANCHISE OR PRIVIL sE." AND 1.'1 -REAS, after agreements were entered into from time to time extending the period dor continuin`. negotiations, a b � conference vras arranged between the officials of the City of Paducah, R. M. i1'att, President of the Kentucky Utilities Company and Joseph C. Swidler, General Counsel of the Tennessee Valley Authority, at which conference the said R. T.T. ''.1att agreed to furnish the Tennessee Valley Authority whatever data was necessary in order to enable the Authority to make an appraisal of the company's electric Utility system and properties in the Coty; and, 1.11HEREAS, upon the recommendation of the said Joseph C. Swidler, General Counsel of the Tennessee Valley Authority, i the City of Paducah agreed to accept the proposal of the Kentucky Utilities Company that said city abandon the proceedings initiated �I by it on February 13th, 1942 for the acquisition of the i company's electric utility system. and said proceedings were abandoned on July 7th, 1942 in order to give the Tennessee i �I I '•:alley Authority sufficient time to make an appraisal of the company's properties and to continue negotiations with the view of purchasing said properties by agreement and without I 'I'I the necessity of proceeding step by step as provided under the franchise; and, MIEREAS, under an agreement entered into between i the City of Paducah and the Kentucky Utilities Company on I July 7th, 1942, it was provided: - "In consideration of the abandonment by the City of the proceedings initiated on February 13th, 1942, the Company hereby waives the provision of subsection (b) of Section 7 with respect to the proceedings initiated on said date and agrees that the City shall not be prejudiced thereby". AND WHEREAS, a period of seven (7) months have elapsed since the abandonment of said proceedings and the City of Paducah has not received definite advices from the Tennessee Valley Authority as to the progress which has been made to acquire the company's properties in the manner suggested by Mr. Swidler; and, STIIEREAS, by reason of the limited time within which the City of Paducah must proceed as required under the franchise in order to submit to a vote of the people at the next regular election the question as to whether revenue bonds will be issued for the purchase of the company's electric system and properties, it is imperative that immediate action be taken and a new proceeding initiated intime for the placing of the question on the ballot at the next election; IIOVJ, THEREFORE, BE IT RESOLVED LY TIIE BOARD OF CO1,111ISSIONERS 0 THE CITY OF PADUCAH, I{ENTUCPY: SECTIOII 1. That the I;iayor be requested to notify P.Ir. Joseph I C. Si -idler, General Counsel of the Tennessee Valley Authority, i that the City of Paducah is desirous of obtaining from the Authority a definite report shwoing its valuation of the electric utilities system and properties of the Kentucky Utilities Company in Paducah, that it is imperative that the City of padudah immediately initiate a new proceeding to acquire said properties if the question as to the issuing of revenue bonds is to appear on the ballot at the November 1943 general election, and that I;ir. Swidler be requested to adiTise the City of Paducah if thecooperation of the I Authority can be expected if a new proceeding is initiated at this time, li 0� Mayor Passed by h e Board of Commissioners, February, 9th, 1943 Recorded by Rudy Stewart, City Clerk, February 10th, 1943.