HomeMy WebLinkAboutOrdinances Book 16, Page 394, No Ordinance Number■
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BOND ORDINANCE
AN ORDINANCE OF THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH,
KENTUCKY, AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SALE OF ONE HUNDRED
THIRTY THOUSAND DOLLARS ($130,000) OF CITY OF PADUCAH PARKING FACILITIES
REVENUE BONDS, UNDER THE PROVISIONS OF SECTION 82.050 AND SECTIONS 58.010
THROUGH 58.140, INCLUSIVE (CHAPTER 58), OF THE KENTUCKY REVISED STATUTES,
FOR THE PURPOSE OF PAYING THE COST OF ACQUIRING AND CONSTRUCTING CERTAIN
AUTOMOBILE OFF-STREET PARKING FACILITIES FOR THE CITY; PROVIDING FOR THE
COMBINING AND CONSOLIDATING OF SAID OFF-STREET PARKING FACILITIES WITH THE
EXISTING ON -STREET (CURB -LINE) PARKING FACILITIES OF THE -CITY, AS A SINGLE,
REVENUE-PRODUCING PUBLIC PROJECT, UNDER THE AFORESAID STATUTES, FOR
THE CONTROL OF TRAFFIC AND RELIEF OF CONGESTION ON THE STREETS AND PUBLIC WAYS;
SETTING FORTH THE TERMS AND CONDITIONS UPON WHICH SAID $130,000 OF REVENUE
BONDS ARE TO BE AND MAY BE ISSUED AND OUTSTANDING; AND PROVIDING FOR THE
COLLECTION, SEGREGATION AND DISTRIBUTION OF THE REVENUES OF SAID COMBINED AND
CONSOLIDATED PUBLIC PROJECT
WHEREAS, the City of Paducah, in McCracken County, Kentucky, has
heretofore installed certain on -street parking facilities, consisting of
on -street (curb -line) parking meters, and has established regulations for
their use and operation in order properly to regulate and control traffic
upon the congested streets within said City, and in connection with such
establishment, use and operation, said City imposes a fee for parking by
motor vehicles on such congested streets and thereby derives revenues from
such on -street parking meters; and
WHEREAS, said City is in the process of acquiring and constructing
certain off-street parking facilities, consisting of a certain off-street
parking lot located at the southwest corner of the intersection of Kentucky
Avenue and South Third Street in said City, with space for approximately 130
automobiles, on which lot certain improvements are to be constructed and
parking meters are to be installed, and
WHEREAS, existing traffic conditions upon the commercial streets
of said City necessitate that the existing parking facilities of the City be
added to, extended and improved so as to further relieve:traffic and street
congestion, prevent abuse of parking privileges, increase parking privileges,
accelerate the free movement of traffic, and as a part of the municipal
traffic system promote the public safety, convenience and welfare; and
WHEREAS, itis the desire and intent of this Board of Commissioners
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at this time to adopt this Ordinance authorizing and providing for the issuanc(
of its Revenue Bonds in the amount of $130,000 for the purpose aforesaid, and
to express special covenants with respect to the operation of said project
and providing for the rights of the holders of said Bonds and the coupons
appertaining thereto and for the enforcement thereof,
NOW, THEREFORE, THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH,
KENTUCKY, DOES ORDAIN AS FOLLOWS:
SECTION 1. DEFINITIONS.
As used in this Ordinance, unless the context requires otherwise:
A. The terms "public parking facilities construction project,"
or "Parking construction project," or "construction project," shall be used
synonymously and shall be deemed to refer specifically to the acquisition
and construction of new off-street parking facilities, consisting of the
acquisition and improvement of an off-street parking site located at the
southwest corner of the intersection of Kentucky Avenue and South Third
Street in said City, as described herein.
B. The terms "public porject", or "public parking facilities
project," or "project," shall be used synonymously in this Ordinance and
shall be deemed to refer to the existing on -street (curb -line) parking
facilities and the new off-street parking facilities of the City (now being
acquired and constructed), which facilities are all herein ordered to be com-
bined and consolidated and operated as a single, combined and consolidated
revenue-producing public parking facilities project.
C. The "Bonds" or the "Bonds of 1968" mean any of the Bonds of
the original authorized issue of $130,000 of Bonds , specifically authorized
by this Ordinance.
SECTION 2. COMBINING AND CONSOLIDATING THE OFF-STREET PARKING
FACILITIES AND THE ON -STREET PARKING FACILITIES OF THE
CITY INTO A SINGLE, PUBLIC PROJECT; AUTHORITY; PURPOSE.
That the existing on -street parking facilities of the City, as the
same presently exist, and the proposed new off-street parking facilities of
the City, now being acquired and constructed, all as defined above as the
"public parking facilities project," are hereby combined and consolidated
into a single public parking facilities project, which is hereby declared
to constitute a single, combined and consolidated revenue-producing public
project within the meaning and application of Section 82.050 and Sections
58.010 to 58.140, inclusive, of the Kentucky Revised Statutes, as interpreted
by the Court of Appeals of Kentucky in the case of Skidmore v. City of
Elizabethtown, Ky., 291 S.W. 2d 3. The Bonds herein authorized shall be
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issued for the purpose of defraying the cost of acquiring and constructing
said construction project; and so long as any of said Bonds of 1968 remain
outstanding, said combined and consolidated public project shall be owned,
controlled, operated and maintained on a combined and consolidated basis
for the security and source of payment of said Bonds of 1968.
SECTION 3. ACQUISITION CONTRACT AND CONSTRUCTION
WORK APPROVED; WORK AUTHORIZED.
The Board of Commissioners hereby authorizes, approves, ratifies
and confirms its previous action in negotiating a contract for the purchase
of said proposed off-street parking property for a price of $90,000, approves
the action of the City officials in entering into a formal contract providing
for the leasing by the City of said property from the Urban Renewal Agency
until such time as said purchase is consummated at said price of $90,000,
and further authorizes, approves, ratifies and confirms the previous arrange-
ments made by the City for the construction of a portion of the improvements
to said off-street parking facilities through employees of the City by
"force account."
SECTION 4. AUTHORIZATION OF BONDS.
For the purpose of defraying the costs (not otherwise provided) of
the acquisition and construction of said parking construction project, includi
preliminary expenses, the cost of said land acquisition, the cost of parking
meters to be installed thereon, limestone base, concrete sidewalks, curbs,
gutters and driveways, asphalt surfacing, legal and administrative costs,
fee of Fiscal Agent, publication costs and all incidental expenses, there
are he authorized to be presently issued and sold One Hundred Thirty
Thousand Dollars ($130,000) of City of Paducah Parking Facilities Revenue
Bonds, dated January 1, 1968, in the denomination of $1,000 each, numbered
from 1 to 130, inclusive.
Said Bonds shall bear interest from January 1, 1968, payable
semi-annually on the first days of January and July in each year and shall
bear interest at a rate or rates to be determined by resolution to be adopted
by the Board of Commissioners of the City at the time or times of the public
sale of said Bonds, not to exceed a net maximum interest cost of six percent
(6%) per annum, as hereinafter more specifically provided.
The numbering, maturities and principal and interest requirements
on said $130,000 of bonds, based upon a tentatively estimated interest rate
of five and one-fourth percent (5-1/4%) per annum, are as follows:
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Tentatively
Estimated
Interest
Requirements
(5-1/4%)
$ 6,825.00
6,615.00
6,405.00
6,195.00
5,985.00
5,722.50
5,460.00
5,197.50
4,935.00
4,620.00
Total
Principal
and Interest
Requirements
$ 10,825.00
10,615.00
10,405.00
10,195.00
10,985.00
10,722.50
10,460.00
10,197.50
10,935.00
10,620.00
1979
'Maturity
49-54
4;305.00
10,305.00-
January 1,
Principal
Numberinq
3,990.00
1969
$ 4,000
1-4
62-68
1970
4,000
5-8
7,000
1971
4,000
9-12
1983
1972
4,000
13-16
10,887.50
1973
5,000
17-21
2,467.50
1974
5,000.
22-26
92-100
1975
5,000
27-31
9,000
1976
5,000
32-36
1987
1977
6,000
37.42
11,102.50
1978
6,000
_ 43-48
Tentatively
Estimated
Interest
Requirements
(5-1/4%)
$ 6,825.00
6,615.00
6,405.00
6,195.00
5,985.00
5,722.50
5,460.00
5,197.50
4,935.00
4,620.00
Total
Principal
and Interest
Requirements
$ 10,825.00
10,615.00
10,405.00
10,195.00
10,985.00
10,722.50
10,460.00
10,197.50
10,935.00
10,620.00
1979
6,000
49-54
4;305.00
10,305.00-
1980
7,000
55-61
3,990.00
10,990.00
1981
7,000
62-68
3;622.50
10,622.50
1982
7,000
69-75
3,255.00
10,255.00
1983
8,000
76783 -
2,887.50
10,887.50
1984
8;000
84-91
2,467.50
10,467.50
1985
9,000
92-100
2,047.50
11,047.50
1986
9,000
101-109
1;575.00
10,575.00
1987
10,000
110-119
1,102.50
11,102.50
1988
11,000
120-130
577.50
11;577.50
SECTION 5.
PROVISIONS AS TO PLACE
OF PAYMENT,
PRIOR
REDEMPTION AND EXECUTION.
Both principal and interest on said Bonds shall be payable at the
main office of Citizens Bank & Trust Company, Paducah, Kentucky, in lawful
money of the United States of America.
Bonds of said authorized issue maturing on or after January 1, 1974,
numbered 22 to 130, inclusive, shall be subject to redemption by said City
prior to maturity, on any interest payment date falling on or after January 1,
1973, in accordance with the terms and provisions contained in the bond form
set out in Section 6 below.
Said Bonds, and the interest coupons appertaining thereto, shall
be executed on behalf of said City pursuant to the facsimile signature law
of Kentucky, KRS 61.390, with the duly authorized reproduced facsimile sig-
nature of the Mayor of said City; the reproduced facsimile of the Corporate
Seal of said City shall be imprinted thereon, attested by the manual signa-
ture of the City Clerk; and the interest coupons attached to said Bonds
shall be executed with the reproduced facsimile signatures of said Mayor
and of said City Clerk, which officials, by the execution of appropriate
certifications, shall adopt as and for their own proper signatures their
respective facsimile signatures on said Bonds and coupons.
SECTION 6. BOND FORM.
That said Bohds and coupons shall be in substantially the following
form:
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UNITED STATES OF AMERICA
COMMONWEALTH OF KENTUCKY
COUNTY OF McCRACKEN
CITY OF PADUCAH
PARKING FACILITIES REVENUE BOND
No.
$1,000
KNOW ALL MEN BY THESE PRESENTS:
That the City of Paducah, in the County of McCracken, in the
Commonwealth of Kentucky, acknowledges itself to owe, and for value received,
hereby promises to pay to the bearer hereof, solely from the special fund
hereinafter identified, the sum of
ONE THOUSAND DOLLARS
On the first day of January, 19
and to pay interest on said sum from the date hereof at the rate of
percent ( /) per annum, payable
semi-annually, on the first days of January and July in each year until
paid, except as the provisions hereinafter set forth with respect to prior
redemption may be and become applicable hereto, such interest as may accrue
on and prior to the maturity of this Bond to be paid upon presentation and
surrender of the annexed interest coupons as the same severally mature,
both principal and interest being payable, wityout deduction for exchange
or collection charges, in lawful money of the United States of America, at
the main office of Citizens Bank & Trust Company, Paducah, Kentucky.
This Bond is one of a duly authorized Series of Bonds in the amount
of One Hundred Thirty Thousand Dollars ($130,000), numbered consecutively,
from 1 to 130, inclusive (this Bond and said authorized issue and the apper-
taining coupons being hereinafter sometimes referred to collectively as "the
Bonds" or "these Bonds"), issued by said City for the purpose of defraying
the costs of the acquisition and construction of new off-street parking facil-
ities, consisting of the acquisition and improvement of an off-street parking
site in'said City. These Bonds are issued pursuant to the provisions of
Section 82.050 and Chapter 58 (Sections 58.010-140) of the Kentucky Revised
Statutes and pursuant to an Ordinance of the City authorizing said Bonds,
which Ordinance ordered that said new off-street parking facilities be
combined and consolidated with the existing on -street (curbline) parking
facilities of the City into a single public project and further provided
that so long as these Bonds are outstanding, said on -street and off-street
parking facilities shall be operated as a single, combined and consolidated
revenue=producing public project.
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These Bonds are and will continue to be payable from and secured
by an exclusive pledge of a fixed portion of the gross income and revenues
to be derived from the operation of said combined and consolidated public
parking facilities project, which fixed portion of said income and revenues
shall be sufficient to pay the principal of and interest on these Bonds as
and when the same become due and payable, and which shall be set aside as
a special fund for that purpose and identified as the "City of Paducah Public
Parking Facilities Project Bond and Interest Redemption Fund of 1968."
These Bonds do not constitute an indebtedness of the City of Paducah within
the meaning of any constitutional or statutory provisions or limitations.
Said City covenants that so long as these Bonds remain outstanding, said
combined and consolidated public parking facilities project will be contin-
uously operated as a revenue-producing undertaking, and that the City will
fix and charge such rates for the services and facilities of said project
so that the income and revenues therefrom will be sufficient to pay all of
said Bonds and the interest thereon as the same become due and pay the
cost of operation and maintenance of said project and to provide for the
depreciation of said project.
Bonds numbered 22 to 130, inclusive, maturing on or after January 1,
1974, of these Bonds as may be outstanding from time to time, are subject to
redemption by said City prior to maturity, in whole or from time to time in
part, in the inverse order of their maturities (less than all of a single
maturity to be selected by lot), on any interest payment date falling on or
after January 1, 1973, upon payment of face amount plus all accrued interest
evidenced by interest coupons maturing on and prior to the redemption date,
plus a redemption premium expressed in terms of the amount of premium per
$1,000 Bond, as follows:
$30.00 if redeemed on or after January 1, 1973, and
on or before January 1, 1978;
$20.00 if redeemed thereafter and on or before January 1, 1983; and
$10.00 if redeemed thereafter and prior to final maturity.
In the event that any of these Bonds are called for redemption as
aforesaid, notice thereof identifying the Bonds to be redeemed shall be given
by publication at'least once not less than thirty days prior to the redemption
date, in a newspaper of general circulation throughout Kentucky.
All of said Bonds as to which said City reserves and exercises the
right of redemption and as to which notice as aforesaid shall have been given,
and for the retirement of which, upon the terms aforesaid, funds are duly
1
400
provided, will cease to bear interest on the redemption date. Notice of
such redemption may be waived with the written consent of the holder(s) of
the Bond(s) so called for redemption.
This Bond is fully negotiable and shall pass merely by delivery.
This Bond is exempt from taxation in the Commonwealth of Kentucky.
It is hereby certified, recited and declared that all acts,
conditions and things required to exist, happen and be performed precedent
to and in the issuance of these Bonds, have existed, have happened and have
been performed in due time, form and manner as required by law, that the
amount of these Bonds, together with all other obligations of said City,
does not exceed any limit prescribed by the Constitution or statutes of the
Commonwealth of Kentucky, and that a sufficient portion of the gross income
and revenues of said combined and consolidated public parking facilities
project has been pledged to and will be set aside into the aforesaid special
fund by said City for the prompt payment of the principal of and interest on
this Bond and the issue of which it forms a part.
IN WITNESS WHEREOF, said City of Paducah, in the Commonwealth of
Kentucky, has caused this Bond to be executed on its behalf with the duly
authorized, reproduced facsimile signature of its Mayor and the reproduced
facsimile of its corporate seal to be imprinted hereof, attested by the manual
signature of its City Clerk, and the coupons hereto attached to be executed
with the duly authorized reproduced facsimile signatures of said Mayor and
said City Clerk, and this Bond to be dated the first day of January, 1968.
Attest:
City Clerk
CITY OF PADUCAH, Kentucky
By _ (Facsimile Signature)
Mayor
(Facsimile City Seal)
(FORM OF COUPON)
BOND NO.
COUPON NO. $
Unless the Bond to which this coupon appertains is redeemable and
accordingly shall have been theretofore called for prior redemption and
payment of the redemption price duly made or provided for,
On the first day of 19
The City of Paducah, Kentucky, will pay to the bearer the amount
401
shown hereof, without deduction for exchange or collection charges, out of
its "City of Paducah Public Parking Facilities Project Bond and Interest
Redemption Fund of 1968," at the main office of Citizens Bank & Trust Company,
Paducah, Kentucky, as provided in and being interest then due on its $1,000
City of Paducah Parking Facilities Revenue Bond, dated Januaru 1, 1968,
numbered
CITY OF.PADUCAH, Kentucky
By (Facsimile Signature.)
Mayor
Attest:
(Facsimile Signature)
City Clerk
SECTION 7. SALE OF BONDS.
The entire $130,000 of Bonds authorized by this Ordinance shall be
offered for sale, which shall be publicly advertised, upon the basis of sealed
competitive bids, which shall be publicly opened and acted upon by the Board
of Commissioners; to the end, the Mayor and the City Clerk are authorized to
sign an appropriate form of Notice soliciting purchase bids and to cause the
same to be published in conformity with Chapter 424 of the Kentucky Revised
Statutes, at least one time, not less than 7 days nor more than 21 days, prior
to the designated sale date, (a) in THE PADUCAH SUN -DEMOCRAT, which is the
newspaper having the largest bona fide circulation which is published in the
City of Paducah, Kentucky, and is the newspaper meeting the requirements of
KRS 424.110-120 for publication in which official publications of the City of
Paducah are required to be published, (b) in THE COURIER -JOURNAL, a daily
newspaper published in Louisville, Kentucky, and having general circulation
throughout the Commonwealth of Kentucky, and (c) in THE BOND BUYER, a financial
publication in the City and State of New York and of general circulation amongi
bond issue purchasers.
The published Notice shall be in the customary form or forms, shall
identify the Bonds offered for sale, shall designate a day and hour for the
receiving and public opening and consideration of purchase bids, which time
will be the time of a regular, adjourned regular, or called, Special meeting
of the Board of Commissioners, as may be determined by the Board or by the
Mayor; shall require that bids be for all of said Bonds and he upon terms of
cash at a price not less than $127,400.00 (98% of par) for said $130,000 of
bonds plus accrued interest; shall permit bidders to stipulate one or more
402
interest coupon rates in multiples of 1/8% or 1/10%, not exceeding four
different rates, repetition of a rate not to be considered a different rate,
with no more than 2% differential between the highest and the lowest interest
rates bid. All Bonds of the same maturity shall bear the same and a single
interest coupon rate from the date •thereof to maturity, and interest becoming
due on any interest payment date may not be represented by more than one
coupon on any Bond; provided that no bids may exceed the legal maximum interest
rate or net interest cost of six percent (6%) per annum.
Bidders shall be required to deposit a good faith check by cashier's
check or certified check, in the minimum amount of two percent (2/) of the
face amount of the Bonds offered for sale. The City shall reserve the right,
in its discretion, to determine the best bid or bids, to waive any informality
and to reject any or all bids.
The Mayor and the City Clerk are additionally authorized, in
connection with such sale, to sign, cause to be reproduced in mimeographed,
printed, or other multiple copy form, and to supply any interested party
upon request, the Official Terms and Conditions of Sale of Bonds, giving a
more detailed description of the Bonds and setting forth terms and conditions
calculated to bring about uniformity in bidding. Standard Bid Forms shall
be required.
Suggested forms of a "Notice of Bond Sale," the "Official Terms
and Conditions of Sale of Bonds," and the "Bid Form," having been prepared
and submitted by bond counsel, and the same having been examined by the Board
of Commissioners and found to be in order, the same are hereby approved and
may be used for the purpose of this Section.
SECTION 8. DISPOSITION OF BOND PROCEEDS.
That upon the sale,delivery of and payment for said $130,000 of
Revenue Bonds by the successful purchaser, the proceeds of said Bonds shall
forthwith and simultaneously be applied as follows:
A. There shall be taken out of the proceeds of said sale and
deposited in the Sinking Fund hereinafter created, an amount equal to all
accrued interest collected from the successful purchaser of said Bonds,
representing accrued interest from January 1, 1968, to the date of delivery
of the Bonds.
B. There shall be paid out of such proceeds the fee to which
Stein Bros. & Boyce, Inc., Starks Building, Louisville, Kentucky 40202, is
entitled under its fiscal agency agreement with the City, for its services
403
as Fiscal AgenL in connection with the issuance of said Bonds.
C. The entire remaining proceeds of the sale of said Bonds shall
be devoted exclusively toward defraying the costs of said parking facilities
construction project hereinbefore defined. To the extent that the City shall
have found it necessary and possible to expend funds for various items of
construction costs relating to such construction project, as defined herein,
prior to the issuance, sale and delivery of said Bonds, through force account
or otherwise, the aggregate of all of such expenditures (but not to exceed
an amount to permit the sum of at least $90,000.00 of such bond issue proceeds
to be earmarked for the cost of acquiring off-street parking site as set out
herein) shall be reimbursed to said City from the proceeds of the sale of the
Bonds hereby authorized, upon orders of the Board of Commissioners of the City.
Pending expenditure of the remaining proceeds for the purchase
price ($90,000.00) of the aforesaid off-street parking site and of the bal-
ance of the proceeds for the remaining costs of said construction project,
as defined herein, such remaining proceeds shall be deposited in a special
Acquisition and Construction Account at Citizens Bank & Trust Company, Paducah,
Kentucky, said Account at said Bank to be called "City of Paducah Public Parkin
Facilities Project Acquisition and Construction Account of 1968."
Said Bank shall invest for the benefit of said Account such portion
of said Account, as is designated by the Mayor or the Board of Commissioners
of the City, in United States Government obligations or in Certificates of
Time Deposit of said Bank, maturing in from six to nine months from date of
investment (as designated by the Mayor or the Board of Commissioners of the
City), and any of such funds on deposit in said Bank or invested in such Cer-
tificates of Time Deposit, to the extent that same are in excess of the amount
insured by the FDIC, shall be earmarked and secured by a pledge of an equiv-
alent amount in current fair market value (exclusive of accrued interest) of
United States Government obligations until expended. Interest earned on any
such investments shall be credited to said Acquisition and Construction Accoun
and applied to the purposes thereof.
Payment from said Acquisition and Construction Account for the cost
of acquiring said off-street parking site, pursuant to a contract between the
Urban Renewal and Community Development Agency of Paducah, Kentucky, and the
City of Paducah, Kentucky, heretofore entered into and dated October 6, 1967
(and which is hereby ratified and confirmed), shall be made at a time and in
such manner, as determined by the Mayor, the Corporation Counsel, and/or other
404
appropriate city officials, as to enable said City to obtain recorded good
marketable fee simple title to said off-street parking site simultaneously
with the payment of said sum. Said off-street parking site referred to is
located in the City of Paducah, Kentucky, and is more particularly described
as follows:
Beginning at the southwest corner of the intersection of
Kentucky Avenue and South 3rd Street; thence in a southerly
direction along the west property line of South 3rd Street,
173.25 feet; thence at right angles and in a westerly direc-
tion 346.5 feet to a point in the east property line of
South 4th Street; thence in a Northerly direction and along
the west property line of South 4th Street 173.25 feet to
the southeast intersection of South 4th Street and Kentucky
Avenue; thence at right angles and along the South property
line of Kentucky Avenue in an Easterly direction 346.5 feet
to the point of beginning.
Apart from the purchase of said off-street parking facilities site,
as aforesaid, which purchase has been agreed upon as set out in the aforesaid
Contract between the City and the Urban Renewal and Community Development
Agency of Paducah, Kentucky, all other costs pertinent to said construction
project as defined herein shall be paid out of the aforesaid Acquisition and
Construction Account only upon vouchers signed by the City Engineer, provided
all checks drawn against said Account shall be signed by the Senior Treasurer
and countersigned by the City Manager, and accompanied by such voucher before
being honored by the aforesaid Bank. The aforementioned officials are hereby
authorized to execute such checks from time to time, in the necessary amounts,
upon the aforesaid certification being executed by the City Engineer and
presented to the aforesaid officials, without the necessity of any further
meetings, authorizations, ordinances or motions by the Board of Commissioners.
Such checks shall be fully negotiable, and the aforesaid Bank shall
be authorized to honor and pay the same, if said certification of the City
Engineer is attached thereto, provided said Bank assumes the responsibility
for the validity of all signatures and the validity of propriety of all
endorsements, or if all signatures and endorsements to it are guaranteed by
another FDIC bank.
Pending disbursement for the authorized purposes, the proceeds
of the Bonds issued pursuant to this Ordinance and of said Acquisition
and Construction Account shall be subject to a first and paramount lien
and charge in favor of the holder(s) of the Bonds, and for their further
security.
405
After the Board of Commissioners certifies that the acquisition
and construction of said construction project has been completed and paid for
(including the cost of acquisition of said off-street site), any surplus then
remaining shall either be transferred to the Reserve Fund of the Sinking Fund
hereinafter provided, or shall be transferred to the Depreciation Fund herein-
after provided and used for the construction of further extensions, additions
or improvements to said combined and consolidated public project, in accordant
with the orders of the governing body of the City, without the necessity of
any further certification by anyone.
SECTION 9. CREATION OF SPECIAL FUNDS.
From and after the first day of the month following the delivery
of the Bonds authorized herein, said combined and consolidated public parking
facilities project shall be operated on a calendar year basis commencing on
January first of each year and ending on December 31st of the same year, and
on that basis the gross income and revenues of said project shall be set
aside monthly into a separate and special fund to be designated as the "City
of Paducah Public Parking Facilities Project Revenue Fund of 1968," herein-
after sometimes called the "Revenue Fund," which shall be maintained at
Citizens Bank & Trust Company, Paducah, Kentucky, and the revenues of said
combined and consolidated public parking facilities project so set aside
shall then be used and apportioned monthly as follows:
A. SINKING FUND.
There is hereby created a special account or fund to be known as
the "City of Paducah Public Parking Facilities Project Bond and Interest
Redemption Fund of 1968" (hereinafter sometimes called the "Sinking Fund"),
into which there shall be set aside out of the.proceeds of the sale of .the
Bonds an amount equal to the collection accrued interest received from the
purchaser of the Bonds, representing accrued interest from January 1, 1968,
to the date of delivery and payment of said Bonds, as provided in Section 8
above, and there shall also be set aside into said Sinking Fund, from the
gross income and revenues in the Revenue Fund, beginning in the month followin
the month in which this Ordinance is enacted, sums in each month not less than
(1) an amount equal to one-fifth (1/5) of the interest
becoming due on the next succeeding interest due date; plus
(2) an amount equal to one-tenth (1/10) of the principal
of all Bonds maturing on the next succeeding January 1.
Provided, however, that all surplus sums deposited in said Sinking
406
Fund in excess of the requirements of semi-annual interest payments and annual
principal payments falling due in any ensuing period of twelve months, shall
constitute and accumulate within said Sinking Fund as a "City of Paducah Publi
Parking Facilities Project Reserve Fund," hereinafter sometimes called the
"Reserve Fund," or the "Sinking Fund Reserve", hereby created, until such tin
as the balance in said Sinking Fund Reserve is equal to not less than TWICE
the maximum amount required in any year for principal and interest requirement
on the outstanding Bonds; and thereafter, the aforesaid monthly deposits
referred to in (1) and (2) above may be reduced to:
(a) an amount equal to one-sixth (1/6) of the interest
begining due on the next succeeding interest due date; and
(b) an amount equal to one-twenfth (1/12) of the principal
of all Bonds maturing on the next succeeding January 1,
but subject to resumption of the aforesaid monthly deposits equal to 1/5 of
the maturing (6 months) interest and 1/10 of the maturing (twelve months)
principal set out in (1) and (2) of this Section, whenever authorized dis-
bursements from the Sinking Fund Reserve shall reduce the balance therein
below the stipulated level, the same to be continued for such period of time
as may be required to restore the balance therein to such stipulated level.
It is hereby determined that for the purpose of the foregoing
calculations, the amount required for principal and interest on said Bonds
are the amounts set out in the statement of (estimated) principal and interest
requirements in the table contained in Section 4 of this Ordinance, if said
One Hundred Thirty Thousand Dollars ($130,000) of Bonds are sold to bear
interest at the rate of five and one-fourth percent (5-1/41 per annum. If
the interest rate or rates actually established at the sale are greater or
less than the tentatively anticipated interest rate of five and one-fourth
percent (5-1/4%.) per annum, said requirements (as set out in the aforementione
schedule) on which said calculations are based, shall be automatically increat
or reduced accordingly.
Said Sinking Fund and said Reserve Fund shall be used solely and
only for, and are hereby pledged for, the payment of the interest on and
principal of the Bonds hereby authorized.
The amount by which any funds on deposit in said Sinking Fund
Reserve are in excess of said prescribed minimum reserve to be accumulated
and maintained, may be held in said Fund as additional reserve for the same
purpose, and unless all Bonds payable from said Sinking Fund at the time out-
407
standing are to be then retired, only such part of said Sinking Fund Reserve
shall be used to purchase or redeem Bonds in advance of maturity, as may be
in excess of the prescribed minimum Reserve plus the interest and the prin-
cipal scheduled to mature within the succeeding twelve months on all Bonds
which by their terms are payable from said Sinking Fund
No further payment need be made into said Sinking Fund and Reserve
Fund whenever and so long as such amount of the Bonds shall have been retired
that the amounts then held in such funds are equal to the entire amount of
the interest and principal (and redemption premium, if any) that will be pay-
able to and at the time of the retirement or maturity of all of the Bonds
then remaining outstanding.
Such payments into said Sinking Fund and said Reserve Fund shall
be made in equal monthly installments on the first day of each month, except
that when the first day of any month shall be on a Sunday or a legal holiday,
then such payments shall be made on the next succeeding secular day.
In the event that the income and revenues during any month are
inadequate to make the required payments into said Sinking Fund and Reserve
Fund, the deficiency shall be made up and paid as aforesaid from the first
available income and revenues thereafter received, and same shall be in addit
to payments otherwise provided to be made in such succeeding month or months.
All moneys in said Sinking Fund and in said Reserve Fund shall be
deposited in Citizens Bank & Trust Company, Paducah, Kentucky. Said Bank shall
invest for the benefit of said Sinking Fund (and Reserve Fund) s uch portion
thereof as is designated by the governing body of the City, in United States
Government obligations or in Certificates of Time Deposit of said Bank maturing
as same will be needed for meeting interest and/or principal payments, and any
of such funds on deposit in said Bank or invested in such Certificates of Time
Deposit (in excess of the amount insured by the FDIC) shall be earmarked and
secured by a pledge of an equivalent amount (exclusive of accrued interest) of
United States Government obligations until expended. Interest earned on any
such investments shall be credired to the Sinking Fund (or the Reserve Fund
portion thereof, as the case may be) and applied to the purposes thereof.
Withdrawals shall be made from said Reserve Fund and transferred
to the Sinking Fund if and to any extent required at any time to prevent a
default in the payment of principal of or interest on any bonds which by their
terms are payable from the Sinking Fund; and, if necessary, securities held
as investments in said Reserve Fund shall be converted into cash for such
purpose, but no withdrawals shall be made for any other purpose, and the City
hereby irrevocably pledges all moneys and securities in the Reserve Fund for
such specified purposes only. In the event any such permitted withdrawals
are made, the deficiency in such fund shall be restored as soon as revenues
are availavle.
The balance of the income and revenues then remaining shall be set
aside for operation and maintenance and for depreciation as hereinafter provi
B. OPERATION AND MAINTENANCE FUND.
There shall be and there is hereby created a fund known as the
"City of Paducah Public Parking Facilities Project Operation and Maintenance
Fund of 1968," into which there shall be deposited in each month an amount
equal to ninety percent (90°x) of the balance of the income and revenues of
said public project in the Revenue Fund after the aforementioned provisions
have been complied with. From this Operation and Maintenance Fund, all costs
of operating, maintaining and insuring said project shall be paid.
If there shall be accumulated in said Operation and Maintenance
Fund, after payment in full of all current costs of operation, maintenance
and insurance, a sum in cash equal to all anticipated and estimated costs
of operating and maintaining said combined and consolidated public parking
facilities project for the ensuing period of three months commencing upon
the first day of the calendar month following the month in which such estimate
is made (which amount shall not be less than the actual costs of operating
and maintaining said project for the three months period ending on the last
day of the calendar month preceding the month in which such estimate is made),
no further payments shall thereafter be required to be made into said Operation
and Maintenance Fund except to the extent sufficient to pay the current costs
of operation, maintenance and insurance in each month, so that said accumulatioi
may be preserved and maintained as an Emergency Fund.
All funds in the Operation and Maintenance Fund shall be kept apart
from all other municipal funds and shall be deposited, secured and/or invested
in the same manner as herein provided for the deposit and security of the
Sinking Fund.
Whenever such excess payments are no longer required to be made
into said Operation and Maintenance Fund, the portion of the revenues in
excess of the amount required for current costs of operation, maintenance and
insurance which would otherwise be so payable may, by order of the Board of
Commissioners, be discontinued or same may be transferred to the Sinking Fund
409
Reserve, and shall be so transferred so long as the minimum prescribed Reserve
has not been accumulated and is not being maintained or has not been restored;
or, when not so ordered or required to be transferred to such Sinking Fund
Reserve, may be deposited in the Depreciation Fund, and shall be deposited in
said Depreciation Fund whenever and so long as the minimum required Depreciation
Reserve has not been accumulated and/or is not being maintained.
C. DEPRECIATION FUND.
There shall be and there is hereby created a fund known as the
"City of Paducah Public Parking Facilities Project Depreciation Fund of 1968,"
hereinafter sometimes called "Depreciation Fund," into which there shall be
set apart and paid out of said "Revenue Fund" in each month the remaining ten
percent (10%) of the balance of the annual income and revenues remaining in
the Revenue Fund after the aforementioned provisions have been complied with.
There shall also be deposited in this Depreciation Fund the proceeds from the
sale of any equipment no longer usable or needed and the proceeds of any
property damage insurance not immediately used to replace demaged or destroyed
property.
Whenever there shall have been accumulated in said Depreciation
Fund the amount of $5,000 as a Depreciation Reserve, the subsequent monthly
payments into said Fund may be discontinued and/or may by order of the Board
of Commissioners be diverted into the Sinking Fund to be held as a part of the
Reserve Fund therein, which funds may then be used to redeem Bonds only after
the aforementioned Reserve Fund shall have accumulated beyond the minimum
amount hereinabove prescribed; provided, however, that said monthly payments
into the Depreciation Fund shall be resumed whenever and so long as necessary
to restore and maintain said Depreciation Reserve in the sum of $5,000.00.
All funds in the Depreciation Fund shall be kept apart from all
other municipal funds and shall be deposited, secured and/or invested in
the same manner as herein provided for the deposit and security of the
Sinking Fund.
All funds in the Depreciation Fund shall, except as provided herein,
be expended in balancing any depreciation in said combined and consolidated
public parking facilities project and in making new construction, extensions
or additions to said project.
410
Withdrawals and disbursements may be made from said Depreciation
Fund and transferred to the Sinking Fund if and to the extent required in
order to prevent default in the payment of the principal of or interest on
any Bonds outstanding pursuant to this Ordinance and to restore any sums
withdrawn from the Sinking Fund Reserve at any time, and to the extent of
such requirements, said Depreciation Fund is hereby pledged for that purpose;
provided, however, if any moneys in said Depreciation Fund are so used, the
same shall be restored as soon as possible, through the resumption of monthly
payments from said "Revenue Fund" into said Depreciation Fund.
The Board of Commissioners hereby finds and determines that the
proportion of the aforesaid cash revenues of said public project required
herein to be set aside into the Operation and Maintenance Fund is proper and
sufficient for the operation and maintenance of said public project, and that
the remaining proportion of such balance as provided herein is sufficient for
the purposes of said Depreciation Fund.
D. SURPLUS REVENUES.
Whenever all specified and required transfers and payments into the
special funds hereinbefore provided have been made, all prescribed reserves
have been accumulated and are being maintained, and there is a balance in the
Revenue Fund in excess of the estimated amount required to be so transferred
and paid into such special fund during the succeeding three months, such
excess shall be deemed and considered surplus revenues, and all or any part
of such excess may be paid into the Sinking Fund or into the Sinking Fund
Reserve, or may be used, by order of the Board of Commissioners , to pay or
finance the cost of extensions and improvements to said project, or for any
lawful purposes related to traffic control and regulation.
SECTION 10. PRIORITY AS TO DEPOSITS INTO VARIOUS FUNDS.
The money in the Revenue Fund set out above shall be allotted and
paid into the various funds herein created in the manner and on the basis
of the priorities set out above. In the event that the income and revenues
available in the Revenue Fund during any month are inadequate to make the
required payments into any of the funds herein created, the deficiency shall
be made up and paid from the first available income and revenues thereafter
received, and same shall be in addition to payments otherwise provided to be
made in the next succeeding month or months.
411
SECTION 11. INSURANCE.
It is hereby covenanted and agreed that so long as any of the Bonds
hereby authorized are outstanding, the City will carry for the benefit of the
holders of the Bonds adequate fire and windstorn insurance (with extended
coverage) on any and all buildings and structures, if any, of said combined
and consolidated public parking facilities project which are subject to loss
through fire or windstorm, will carry adequate public liability insurance,
and will carry, for the benefit of the holders of the Bonds, insurance of
the kinds and in the amounts normally carried by other municipalities or by
private companies in the operation of similar properties in Kentucky. All
moneys received for losses under any of such insurance policies, except
public liability, shall be paid into the Depreciation Fund, and such payments
shall not reduce the amounts otherwise required to be paid into said Fund.
Disbursements of such proceeds shall be made in the same manner and for the
same purposes as are other disbursements made from the Depreciation Fund;
provided further that if, following any such insured loss, any principal or
interest payment is due and there are no other funds available for such pay-
ment, such insurance proceeds must be first applied to the defaulted payment
or payments.
SECTION 12. RATES AND CHARGES FOR SERVICES OF THE PROJECT.
While the Bonds authorized hereunder, or any of them, remain
outstanding and unpaid, the rates for all services and facilities rendered
by said project to said City and to its citizens, corporations, or others
requiring the same, shall be reasonable and just, taking into account and
consideration the cost of maintaining and operating the same and the proper
and necessary allowances for depreciation thereof, the amounts necessary for
the retirement of all Bonds and the accruing interest on all such Bonds as
may be outstanding under the provisions of this Ordinance, and there shall
be charged such rates and amounts as shall be adequate to meet the requirements
of the provisions of this Ordinance.
SECTION 13. COVENANT TO MAINTAIN AND OPERATE THE PROJECT.
That said City hereby covenants that so long as any of said Bonds
or parity bonds remain outstanding, it will faithfully and punctually perform
all duties with reference to said project required by the Constitution and
laws of the Commonwealth of Kentucky, including the making and collecting of
reasonable and sufficient rates for services rendered and facilities afforded
412
that it will maintain said project in good condition and continuously operate
same, and that it will segregate the revenues of the project and make appli-
cation thereof into the respective funds as provided by this Ordinance; and
the City hereby irrevocably covenants, binds and obligates itself not to sell,
lease, mortgage, or in any manner dispose of the ownership of the properties
comprising said project, including any and all extensions and additions that
may be made thereto, except as provided in Section 9C hereof, until all of
the Bonds herein authorized shall have been paid in full, both principal
and interest.
SECTION 14. ANY FUTURE BONDS ARE INFERIOR.
The City shall not, so long as any of the Bonds herein authorized
are outstanding, issue any additional bonds payable from the revenues of
said project, unless the lien or pledge of the revenues or other security
to secure such additional bonds is made inferior and subordinate in all
respects to the security of the Bonds herein authorized.
SECTION 15. GENERAL COVENANTS
The City covenants, so long as any of the bonds herein authorized
are outstanding, as follows:
A. It will at all times operate said public parking facilities
project on a revenue-producing basis.
B. It will make renewals and replacements to said project as the
same may be required through application of revenues accumulated and set
aside into the Depreciation Fund.
C. It will maintain all on -street or curb -line parking meters
existing at the time of the issuance of the Bonds authorized herein and will
not reduce the service rates prevailing at such time; subject, however, to
the City's rights and duties under its police power to change the location
of such on -street parking meters when made necessary by street relocations
or by adjustments or readjustments of traffic regulations and controls.
SECTION 16. RECORDS, AUDITS AND REPORTS.
Insofar as consistent with the laws of Kentucky, said City agrees
that so long as any of the Bondsherebyauthorized remain outstanding, it
will keep proper books of records and accounts separate from all other municipal
records and accounts, showing complete and correct entries of all transactions
relating to said public project, and that the holders of any of said Bonds
shall have the right at all reasonable times to inspect the public project
and all records, accounts and data of the City relating thereto.
413
As soon as may be feasible after the close of each fiscal year, and
in any event not later than sixty (60) days thereafter, the City covenants
that it will cause an audit of the financial affairs of the public project to
be made by a Certified Public Accountant. Copies of the audit report shall
be furnished to the original purchaser of said Bonds, upon request, and a
copy of same shall be kept on file in the office of the City Clerk, where it
will be subject to inspection at any reasonable time by or on behalf of any
holder of outstanding Bonds or coupons. A condensation of the important facts
shown by such report will be mailed to any such bondholder or couponholder
upon request. The City also shall prepare and furnish to said original pur-
chaser and to any bondholder requesting same, monthly earnings statements of
the project, if mimeographed forms are furnished to the City for that purpose.
SECTION 17. SIGNATURES OF OFFICERS.
If any of the officers whose signatures or facsimile signatures
appear on the Bonds or coupons cease to be such officers before delivery of
the Bonds, such signatures shall nevertheless be valid for all purposes the
same as if such officers had remained in office until delivery, as provided
in KRS 58.040 and in KRS 61.390.
SECTION 18. ALL BONDS OF THIS ISSUE ARE EQUAL.
The Bonds authorized and permitted to be issued hereunder, and from
time to time outstanding, shall not be entitled to priority one over the other
in the application of the income and revenues regardless of the time, or times,
of their issuance.
SECTION 19. CONTRACTUAL NATURE OF ORDINANCE
The provisions of this Ordinance shall constitute a contract between
the City and the holders of the Bonds herein authorized to be issued, and afte
il
the issuance of any of the Bonds, no change, variation, or alteration of any
kind, in the provisions of this Ordinance, shall be made in any manner, except
as herein provided, until such time as all of said Bonds issued hereunder and
the interest thereon have been paid in full; provided, however, that the holde
of eighty percent (80%) in principal amount of the Bonds at any time outstand
shall have the right to consent to and approve the adoption of resolutions,
ordinances or other proceedings modifying or amending any of the terms or
provisions contained in this Bond Ordinance, subject to the provisions that
this Ordinance shall not be so modified or amended in any manner that may
adversely affect the rights of holders of less than all of the Bonds then
outstanding or to reduce the percentage of the number of holders whose con-
414
sent is required to effect a further modification; provided further that the
governing body of the City may adopt an Ordinance for any purpose not incon-
sistent with the terms of this Ordinance and which shall not impair the
security of the same or of the bondholders, for the purpose of curing any
ambiguity, or of curing, correcting, or supplementing any defective or
inconsistent provisions contained herein or in any Ordinance or other
proceedings pertaining hereto.
SECTION 20. BONDHOLDERS' REMEDIES.
That any holder of said Bonds, or of any of the coupons, may, either
at law or in equity, by su!t, action, mandamus, or other proceedings, enforce
and compel performance by said City and its officers and agents of all duties
imposed or required by law or by this Ordinance in connection with the
operation of said public project, including the making and collecting of
sufficient rates, the segregation of the income and revenues and the
application thereof in accordance with the provisions of this Ordinance.
If there be any default in the payment of the principal of or
interest on any of said Bonds, then, upon the filing of suit by any holder
of said Bonds or coupons, any court having.jurisdiction of the action may
appoint a Receiver to administer said public project on behalf of said City,
with power to charge and.collect rates and charges for the services and
facilities provided by said public project sufficient to provide for the
payment of any bonds or obligations outstanding, the interest thereon, and
the expenses of operation and maintenance, and to apply the income and rev-
enues in accordance with the provisions of this Ordinance, and of the applicab
statutes of Kentucky and to take such other action as may be appropriated for
the protection of any such holder.within the applicable legal provisions.
SECTION 21. PROVISIONS IN CONFLICT REPEALED.
That all ordinances, resolutions and orders, or parts thereof, in
conflict herewith, are to the extent of such conflict, hereby repealed, and
it is hereby specifically ordered and provided that any proceedings hereto-
fore taken for the issuance of other bonds payable or secured in any manner
by all or any part of the income and revenues of said public project, or any
part thereof, and which have not heretofore been issued and delivered, are
hereby revoked and rescinded, and none of such other bonds shall be issued
and delivered.
SECTION 22. SEVERABILITY CLAUSE
If any section, paragraph, clause, or provision of this Ordinance
shall be held invalid, the invalidity of such section, paragraph, clause or
415
provision shall not affect any of the remaining provisions of this Ordinance.
SECTION 23. EFFECTIVE DATE OF ORDINANCE
This ordinance shall be introduced at a meeting of the Board of
Commissioners and remain on file for at least one week for public inspection
in the completed form in which it shall be put upon its final passage and if
adopted shall be in full force and effect ten days thereafter.
Mayor
Introduced by the Board of Commissioners November 28, 1967
Passed by the Board of Commissioners December 12, 1967
Recorded by Sarah Thurman, City Clerk, December 12, 1967
i
CERTIFICATE OF CITY CLERK
I, Sarah Thurman, hereby certify that I am the duly qualified
and acting City Clerk of the City of Paducah, Kentucky, that the foregoing
Ordinance is a true and correct copy of an Ordinance authorizing the issu-
ance of $130,000 of City of Paducah Parking Facilities Revenue Bonds, dated
January 1, 1968, that said Ordinance was introduced and given its first
reading by the Board of Commissioners of said City of November 28, 1967,
that it was placed and remained on file in my office for public inspection
in that identical, completed form until December 12, 1967, on which
date it was given its second reading and final passage and adoption
by said Board, that it was published in THE PADUCAH SUM -DEMOCRAT on
1961 that no petition protesting its passage
in accordance with KRS 89.600, was filed with said Board or with me as of
196 , and that said Ordinance has.now been recorded
and appears as a matter of public record in Ordinance Book 16, page 394 of
said City.
IN TESTIMONY WHEREOF,.witness my signature as City Clerk and the.
Official Seal of said City this _--day-of 196
(Seal of City)
Sarah Thurman, City Clerk