HomeMy WebLinkAboutOrdinances Book 14, Page 18, No Ordinance NumberAN ORDINANCE AUTHORIZING TILE MAYOR OF THE CITY OF PADUCAH,
KENTUCKY TO NOTIFY THE KENTUCKY UTILITIES COMPANY IN TMI'MIG THAT
TIM CITY DESIRES TO ACQUIRE, OVN AND OPERATE A MUNICIPAL ELECTRIC
PLANT WITHIN THE CITY; AND TO NOTIFY SAID COMPANY IN WRITING OF THE
DESIRE OF TILE CITY TO ENTER INTO AN AGREEMENT AS TO THE VALUE OF THE
ELECTRIC SYSTEI-1 01IRTED BY SAID COI'IPANY l'TITHIN SAID CITY; PROVIDING
FOR TIE INITIATION OF PROCEEDINGS TO ACQUIRE THE EXISTING ELECTRIC
SYSTEM O:TNED BY SAID CO!.-IPANY IJITHIN SAID CITY; AND AUTHORIZING SUCH
OTHER STEPS AS 14AY BE APPROPRIATE OR REQUIRED UNDER EXISTING LA1,11S
WHEREAS, Kentucky Utilities Company now provides electric
service in the City of Paducah under a franchise which became effective
September 17, 1940 and which expires on September 17, 1960, and
F -.=REAS, said franchise contains provisions pursuant to which
the City has the right to purchase and the Company is required to
sell the electric system owned by the Company vrithin the City of
Paducah at a price determined by agreement or by a Board of Appraisers
appointed in the manner specified in said franchise, and
1,1HEREAS, the City attempted to exercise its right of purchase
under said franchise and the Board of Commissioners of the City of
Paducah on November 28, 191,1;., gave notice to said Company of the
desire of the City to purchase said system under the provisions of
the franchise, and
WHEREAS, said Board of Commissioners by ordinance adopted
January 30, 1945, authorized the Iiayor to appoint a board of public
utilities to be known as the Electric Plant Board of the City of
Paducah, and said ordinance prescribed the functions and responsibilities
of said Electric Plant Board under and pursuant to the franchise of
September 17, 1940 and Chapter 18 of the 1942 Acts of the General
Assembly of the Commonwealth of Kentucky, being Sections 96.550 to
96.900 of the Kentucky Revised Statutes, and known as the T. V. A.
Act, and
WHEREAS, the acquisition efforts of the City and the Electric
Plant Board became involved in litigation with said Company and
others extending over a period of many years, culminating in a
decision of the Court of Appeals of Kentucky on December 11, 1953
(264 S.W. 2d 848) in an action styled City of Paducah, Kentucky,
et al v. Kentucky Utilities Company, a Corporation (And Consolidated
Action of L. P. Hite, et al. v. Rudy Pierce, et al.), which de-
termined in effect that while the City's franchise right of
acquisition was valid and enforcible, the appraisals and other
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proceedings under the franchise had not established a price at
which the City was entitled to buy or the Company obligated to sell,
and that another appraisal would be required before the Board of
Appraisers could establish such a price, and
WHEREAS, the Court of Appeals thereupon remanded the case
to the IdcCracken Circuit Court for further proceedings, and
WHEREAS, no action has been taken in the I•IcCracken Circuit
Court except that the Board of Commissioners of the City by Resolution
adopted February 16, 1959, and the Electric Plant Board by Resolution
dated February 17, 1959 authorized the dismissal of said litigation
and said litigation was dismissed on February 20, 1959, and
WHEREAS, by an ordinance adopted on January 20, 1959 the Board
of Commissioners authorized Burns erMcDonnell Engineering Company of
Kansas City, Missouri, to make a survey of and report on the present
desirability and feasibility of the acquisition by the City of Paducah
of the electric system of the Kentucky Utilities Company within the
City, and
WHEREAS, said report has been submitted and the Board of
Commissioners has concluded after a study thereof that it would be
to 'the interest of the City to acquire the electric system of the
Kentucky Utilities Company within the City of Paducah, and
WHEREAS, under the provisions of IRD 96.010, at least eighteen
months before the expiration of any franchise the legislative body
of each city is required to provide for the sale of a new franchise,
subject to certain exceptions, including among such exceptions the
case of cities other than those of the first class which desire to
own and operate a municipal plant to render the required service,
and
WHEREAS, it is the desire of the City of Paducah to acquire,
own and operate its own municipal electric system and not to grant
a franchise for electric service to the present holder thereof or
to any other person or corporation, and
WHEREAS, sub -section (a) of Section 7 of the said franchise
provides that in order for the City to acquire the electric system
of Kentucky Utilities Company under said franchise, the City shall
notify the Company in writing of its desire to enter into an agree-
ment with the Company as to the value of such electric system within
the City.
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I,10W THEREFORE, BE IT ORDAINED BY THE BOARD OF COj4.,USSIO1,IIRS
OF THE CITY OF PADUCAH, KENTUCKY:
SWTION 1. That it is the desire of the City of Paducah to
own and operate a municipal electric plant, and that no franchise
shall be granted or sold for providing electric service within the
City of Paducah upon the expiration of the existing franchise to
Kentucky Utilities Company on September 17, 1960.
SECTION 2. That it is the desire of the City of Paducah to
enter into an agreement with Kentucky Utilities Company as to the
value of the electric system owned by it within the City.
SECTION 3. That the 14ayor of the City of Paducah be, and he
is hereby, authorized and directed to give notice in waiting to
Kentucky Utilities Company of the desire of the City as expressed
in Sections 1 and 2 hereof.
SECTTION 4. That the Electric Plant Board of the City of
Paducah is hereby requested to take appropriate steps to acquire
the existing electric system of Kentucky Utilities Company within
the City under the provisions of the franchise of September 17, 1940
and applicable law, carrying out its activities under and pursuant
to the ordinance of January 30, 1945, and discharging the functions
prescribed therein.
SECTION L. That if no fair and reasonable price shall be
agreed upon within sixty (60) days after the aforesaid notice has
been given to Kentucky Utilities Company, a Board of Appraisers
consisting of two members shall be appointed, one by the i+layor with
the approval of the Board of Commissioners, and the other by the
Kentucky Utilities Company, and the I,Iayor is hereby authorized to
appoint an appraiser for the City in accordance with the provisions
of said franchise of September 17, 1940, subject to the approval of
such appointment by the Board of Commissioners, and to take such
further action as may be necessary and appropriate to carry out
the purposes of this ordinance, subject to the provisions of law.
SECTION 6. All ordinances or parts of ordinances in conflict
herewith are, to the extent of such conflict, hereby repealed.
SECTION 7. That if any section, paragraph or provision of this
ordinance shall be found to be inoperative, ineffective or invalid
for any cause, the deficiency or invalidity of such section, paragraph
or provision shall not affect any other section, paragraph or provision
hereof, it being the purpose and intent of this ordinance to make
each and every section, paragraph and provision hereof separable
from all other sections, paragraphs and provisions.
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SECTION 8. This ordinance shall be in full force and effect from
and after its adoption.
Di a!y/ r
Passed by the Board of Commissioners February 24, 1959
Recorded by Sarah Thurman, City Cleric, February 24, 1959