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HomeMy WebLinkAboutOrdinances Book 12, Page 974, No Ordinance NumberAA' OP.DINAMCE ORDERII✓G AiJ ELECTION BY TI, QU LIPIED VO=S OF TIIE CITY OP PADUCA.1 , ICEIJ7'UCZy, TO BE BLD ON MZ R1sGl/ZAR ELECTI07✓ DAY, ArovgNBER 3rd, 1953, 1N TI -S CITY OF P.ADUCAH, KENTUCKY, TO DETERi•IINE T11E QUESTI01✓ N TIi'ER Till. CITY OF PADUCAH SHALL PURCILISE FRU1: TTC Kis11TtICKY UTILITIES COI_PAI✓Y ITS ELECTRIC UTILIT xr, PL,IWT IN Tljl, CITY OF PADUCA11, =11TUC1ff, AT TF+ PRICE OP `I, 978.817, F ,'D Sli' LL CONSTRUCT NECESSARY ADDITIOI✓AL FACILIT.T S A-10 OPERATE A LNTICIPAL' ELECTRIC PLAIT AT AAT ADDITIO.'JAL, COST OF';�1, 404,183 AND ISSUE REVENUE BOArDS IN Tr.E iu4.YI1,i TOTAL AilOUNT OF ;R3, 383, 000 TO PAY T7yn PURCHASE PRICE, FOR SAID ELECTRIC PLANT AND TO COA'STRUCT SAID ADDITIO_M1 L FACILITIES AM TO OPERATE SAID ELECY RIC PLANT. 7✓HEREAS, the I:ayor and the Board of Commissioners of the City of Paducah, Ientue7cy; a City' of the second class, 'de'claie' that it is desirable that the city purchase; acquire, maintain and'opei�ate an electric utilities system and tine necessary appurtenances thereto for'the purpose of supplying said city and the inhabitants therdof with electric power purchased f in the Tennessee` Valley' Av.thoriry and other incidental facilities; and SM&REAS, u.nder'and pursuant to the provisions of section 7 of an ordinance 'entitled: "AN ORLJ NAMCE CRE—ATIAU'A FRANCEISE OR PRIVILEGE TO FURNISH ELECTRICITY FOR LIGMl POW R, HEAT AND ANY 0=MR PMrPOSES FOR WHICH ELECTRICITY IS USED IN TILL CITY ON PADUCAH, KENTUCKY, A11W' PROVIDII,C FOR TILE .SALE OP SAID FRANCHIS& OR PRIVILEGE", which was' ac bpied by the Board of Commissioners on August 20,1940, the City Of'Paducah gave to the Mentucky Utilities Company a"notice of the T exercise of its option to'cancel 'said franchise in the manner provided therein;an-, IIPEAS, as a conditibn precedent to'the cancellation of said electric franchise and the purchase of the electric utilities system of the Kentucky Utilities Company in Paducah, Kentucky, a Board of Appraisers was appointed, one member by the City of Paducah and the other member by the Kentucky Utilities Company, and it was the ditty of said board to make a survey of, appraise andisubmi't to the City in writing 'its valuation of said electric utilities system; and " WHEREAS, said Board of Appraisers, composed of L. R. Howson appointed by TIES City -of Paducah, 9,nd J. Samuel Hartt appointed by the Kentucky Utilities Company, have filed with the Board of Commissioners letters dated December 7,1948, and December 1.5, 1948, said letters constituting their Written report of.. appraisal of said electric utilities system;, and . WFEREA.S, said written report of appraisal -in the.amount•of ,.x2,064,109 includes the appraised value of certain of the company's facilities and properties in the .suburban areas outside the corporate limits of said city amounting to a minimum of :,:'86,292 or a maximum of •,101,223; and 975 :1Fhs2ZcaS, in establishing the valve of the properties and facilities subject to purchase by said city on the basis o.f said report of appraisal, the use of said minimum figure of -,�86, 292 would be more advantageous to the Kentucky Utilities Company than would the use of said maximum figure of ..,,91,223; and II !=IMEAS, in establishing said value the WWI of ia1, 000 should be allowed Ij in favor of said company as a margin for error, making the computation based on said report of appraisal: as follows: Appraisal, including certain properties and facilities outside the city ;'2,064,109 Less appraised value properties and facilities outside city 86,292 1-laximvm appraised valve of properties and facilities inside city fel, 977, 817 Plus allowance ,for error 1,000 Total appraised value of properties and facilities inside city for purposes of this ordinance x•111,978,817 hVMUMS, the Board of Commissioners of the City of Paducah and the 'lectric Plant .3oard of said City have accepted the aforesaid appraisers' valuation of ;;1, 978,817, the valuation as of the 1945-46 pricing period, as the price to be paid said company for all of its facilities and properties in the city that are used and vse,Nl in its electric tatility business therein, and :i�41,978,817 is the amount said company is obligated to accept as the purchase price thereof, not including the fair and reasonable value of additions and improvements in said electric utilities system Fess the value of property retirements which have been made since the completion of the inventory of the phtlsical properties on which the appraisers based their valuation as of the 1945-46 pricing period, and upon the payment of the purchase price said company is obligated to execute all necessary deeds and other instruments of transfer conveying to the City of Paducah good title and complete possession of all said properties free and clear of liens and encumbrances as provided under Section 7 of the aforesaid franchise ordinance; and WHEREAS, it will be necessary for the City of Paducah to construct addition facilities to obtain electric power nom the Tennessee Valley authroity and to connect to the present distribution system of the Kentucky Utilities Company, and in order to provide such construction costs, it was authorized under the provisions of ZRS 96,640 to employ an engineer to _prepare the necessary and proper plans and specifications therefor and to make the necessary estirsa.ie. of the cost of such construction work; and 7' 976 IMEREAS, Alvord, Burdick and Howson, engineers, have submitted to the City of Paducah a report, outline plans, and estimated cost o.f constructing the aforesaid additional facilities which will be required, and the City of Padzze ah has approved and adopted their report, together with their estimates which are in amo:znts as follows: "Tr�.:i: iaiiISSI01:' LIiT'S Single circuits of 3-3397,000 Clef ACSR conductors, 69 RV constrvction,on wood poles, and including all items of construction such as surveys, rights - of -wail, etc. complete. Line No. 1, from T.V.A. station to the present substation, approximatel7-j 8 miles 1 via the Island Creek Valley to the river and thence to the present sub-statton,and Line Mo.2 from T.V.A. station to the Reservoir, 4 miles 1 total of 12 miles W 412, 500 �Z 50, 000 SUB -STATIONS 2 - 10,000 AVA capacity 69 to 13 %VA, complete installations, - transformers, breakers (designed for 250,000 KY interrpution), accessory switches and equip- ment, ,foundations, housing, etc. - 0 060,000 each 320,000 TIE LTZES 69 KV & 13 IAV circuits between sub -stations, with and. taps from the 13 K7 circuit to connect to present 6. 9 I:V feeders, approx. 5 miles J,38, 000 40,000 Miscellaneous items of construction 15,000 Increased costs since date of Engineers' report 25 000 ,55-� 50 000„ ITTREAS, under MS 96.640 it is provided that the question whether revenue bonds shall be issued for payment of the cost of such additional construction work shall be submitted to the voters before such bonds are issized, and the City is authorized by said statute to include that question when an election is held; and !TIEREAS, under FMS 96, 650 the City of Paducah has the power to issue revenue bonds to pay the total cost of constructing the necessary additioncl facilities, as well as to pail the nvrehase price for the presently operated system; and i/RLAS, the City of Paducah has incurred and will incur expense in the SIM' of anproxir,?atel y , 25, 000.00 ,for surveys, appraisals, attorney fees and other expense in the aforesaid proceedings to acquire said electric utility system; and 977 IT-TERO,AS, it is provided under KMS 96. 7.30 that all expenses incurred for the making of surveys, estimates of costs and of revenues, employment of engineers, attorneys, or other employees, the giving of notices, the selling of bonds, and all other preliminary expenses shall be paid from the proceeds derived from the sale of revenue bonds; and .10Rr;AS, in addition, it is provided under . iS 96.800 that the proceeds from the sale of said bonds may be zzsed for payment of interest on said bonds ,for two years following the date of issuance of such bonds, and may also be used to create a cash working ,Band to place said electric system in operation;and 6l.I REAS, it is accordingly estimated that, in addition to the p•zrchase price of ;1,978,817 the City of Paducah will pay the Kentucky Utilities Company for its aforesaid electric utility system, the following capital outlay and expenses authorized, by the aforesaid statutes must be provided ,for and paid; (1) 3stimated valve o.i extensions and improvements less retirements (as of date of sale) x517,093 (2) Preliminar;i expense for anrveys, appraisals, attorneys ,lees, etc. 25,000 (3) Estimated cost of sub -stations and for completing connections to the present dis- tribution system 550,000 (4) Cash working Jand 75,280 (5) Accr<zed, interest on bond, issue for a period of two years 236.810 Total 404, 18.3 IT G?DriTIJ."D .-,y^F :3CuL7?D OF CG -9,11S310 IMS MS OF .F C_7 a - OP PAIDUCAH, KP MUC1<_Y: S%'C.TIGN 1. There is hereby called on election in the City of Paducah, Kentucky, ander and pursuant to the provisions of ARS 96.550 to 96.900, to be held on the 3rd day o.f November, 1953, between the hours and by the some election officers conducting the regular election .for state, county, or city officials in said year, .for the purpose of submitting to the qualified voters of .the City of Paducah the question whether or not said City shall issue and sell revenue bonds in an amount not exceeding ;'3,383,000 bearing interest at a rate of not exceeding three and one-half (3;) per cent per ann7m, payable serni-annnally, for the purpose of providing funds for the purchase of the electric utility system of the lient77cky Utilities Company in Paducah at the price of x1,978,817 plus the appraised value of additions and improvements in said electric zatil.it?! system Less the valn.e Of property retirements which have been made since the completion of the inventor?i of the physical _properties on which the aforesaid appraisers based their valuation as Of the 194..5-46" pricing period, for pa?/ment of all preliminary expenses which have been or ma?.! hereafter be inc,7rred in connection with or as a condition Precedent to the acquisition and improvement of said system, For constrn.etion or trans:niss n 97P and transformation facilities necessary to enable the Tennessee Valley Azithority to fb.rnish the Cite of Paducah with its entire electric energy regv.irements, to provide a cash working .fond, for placing the electric utilitzr nustem in operation, for paving interest on said revenue bonds during the first two years, and for any other purpose incidental to and necessary for the acquisition, construction, operation and maintenance of an electric n.tility system .for thenDe of said city. SECTION 2. The Electric Plant Board of the City o.f Paducah shall pay to the Kentucky Utilities Corrznany ,from the proceeds derived .from the sale o,f said bonds the surra o.f 11, 978, 817, plus the value of additions and improvements in said, electric utilities system less the value of property retirements whidl have been made since the completion of the inventory of the physical .properties on which the appraisers based their valuation as of the 194.5-46 pricing period. SECTIO01 S. The Electric Plant 3oard of the City of Paducah, Kentucky, shall pay to the City of Paducah ,from the proceeds derived from the sale of said bonds all of the preliminary expenses which said cit?, has incurred or will hereafter incur for the making of surveys, the employment of appraisers, attorneys and other employees, the giving of notice, the publication of ordinances, resolutions and notices, court and other litigation expenses in connection with acquisition of said electric utilit/ system, similar incidental expenses which have been or will hereafter be incurred, the expense of printt.nn and selling the aforesaid revenue bonds, and such other expenses as may be incurred in the financing herein authorized, the total of all of which expenses will amount to approximately ;25,000.00. Sc%CTIC;J 4. That .for the purpose o.f placing said elctric utility system in operation, a sufficient cash working fund will be required and said Electric Plant Board is hereby authorized to create ,from the proceeds derived from the sale of said bonds a cash working ,fund in the sum of '775,280.00. SEOTTW .5. The remainder a,f the proceeds derived from the sale of said 'bonds, or as mmch thereof as may be necessary, may be used by said Iectric Plant Board for making such alterations and improvements 'in. the electric utilities system o.f the Kentucky Utilities Company as niaz1 be necessary for the purpose of svnnlying the City of Paducah and its inhabitants with electricity, for the acquisition and construction of transmission and transforrna.tion facilities necessary to�make available .for resale the electric power ,n7rnished it by contract with the Tennessee Vallez! Authority, and ,for the pa,/nent o,f the interest on the aforesaid bonds during the ,first two years following the date of the issuance of said bonds. 079 SECTIGW B. It shall be the duty, of the City ilanager to certify this ordinance to the Clerk of the 1•IcCracken County Court who shall have printed on the official ballots for use in the regular election in the City of Paducah, Kentucky, on Aovernber 3, 19.53, the ,following question: "A.R:: YOU I11 FAVOR OF' T71s CITY OR PADUCAH PURCHASING FR01.1 TK; K9111TUCFY UTILITI2S COIPANY ITS ELL,CTRIC PLii1✓T III Tri, CITY OF PADUCAIi, A:OPIT-70KI, AT THE PRICE OF a1, 978,817 AND TFIE CITY COASTRUCTING NECESSARY `_4DDITI01✓4L FACILITIES ,VD' OPERATING A 11U1IICIPAL ELECTRIC PLAi✓T I;d ACCORDAI✓CE W.TTH TF- PI AUfS AAD SPsCIFICATIOiVS ADOPTED BY TIL- ELECT.RIC PLANT BOARD OF'TFfG CITY OF PADUCAF: ARD AT AIJ ADDITIC: _L COST OF ;'1, 404,183, AND T,` ISS ,uPG-!E Or 2aVE1✓fIL BONDS I1✓ _. _._.. TOTAL A;.!OU'dT' OF ,'3, 383; 000 'TO PAY TIE PURCFIASE PRICE FOR S,'i -%) j=CTRIC PLAIT AND TO CONSTRUCT SAID'ADDITIOAb L FACILITIES A11D TO OP.,�RATE SAID ELECTRIC PLAJIT? YES ' NO r! SXTICi. The City i•;anager shall advertise said election and the object thereof at least forty -.five (45) days before the date of said election by causing this ordinance to be published in the Sun -Democrat, the official newspaper of the Cita! of Paducah, by printed handbills containing a copy of this ordinance to be posted in not less than fovri (4) conspicuous places in l each voting precinct of the City of Paducah and'at the Court House door, and by such other means as he may consider desirable or necessary. All qualified voters of* the Citi/ of Paducah shall have the privilege of voting ai said election. ! SECTION 8. This ordinance shall be introduced and remain on ,file for at least one week for public inspection'in the completed form in which it shall oe ,put upon its final passage and shall become effective ten (10) days a,"ter its adoption. ,'_ayoorr Z Introduced by the Board of Commissioners November 18, 1952 Passed by the Board of Commissioners November 25,1952 Recorded by.Sarah Thurman, Ci to Clerk, •November 2.5, 1952.