ORDINANCE NO. 070087
Authorizing the Director of
Finance to accept the proposal of Koch Financial Corporation for the
acquisition of prevention fleet vehicles under a Master Equipment
Lease/Purchase Agreement in an approximate principal amount not to exceed
$384,258.00; estimating and appropriating $384,258.00 in lease proceeds;
authorizing the execution of any and all documents and agreements necessary for
the financing; declaring the intent of the City to reimburse itself from the
lease purchase proceeds for certain expenditures; authorizing the Director of
Finance to close project accounts upon project completion; and designating
requisitioning authorities.
WHEREAS, the Fire Department requires
the acquisition of prevention fleet vehicles to conduct fire inspections and investigations
(the Project); and
WHEREAS, the cost of acquisition and
implementation of the Project is expected to be financed under the Lease with
Koch Financial Corporation (Koch), by one draw upon the Master Equipment
Lease/Purchase Agreement (the Lease); and
WHEREAS, the payment of scheduled
rental payments on the draw made under the Lease will be made by annual
appropriations from the Fund No. 2300, the Fire Sales Tax Fund, over a
successive four-year (4) period; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That the Director of
Finance is authorized to accept the proposal of Koch for financing the Project
through one (1) draw upon the Lease in an approximate principal amount not to
exceed $384,258.00.
Section 2. That the Director of
Finance is authorized to execute, deliver and file in the name of the City, the
Lease and any and all documents and agreements necessary to complete such
financing.
Section 3. That the revenue in the
following account of Fund No. 3230, the Equipment Lease Capital Acquisition
Fund, is hereby estimated in the following amount:
AL-3230-120000-583000 Reimbursement from
Bank or Lease Co. $384,258.00
Section 4. That the sum of
$384,258.00 is hereby appropriated from the Unappropriated Fund Balance of Fund
No. 3230, the Equipment Lease Capital Acquisition Fund, to the following
account:
AL-3230-239792-
E Fire Apparatus Equipment $384,258.00
Section 5. That the Director of the Fire Department is
hereby designated as requisitioning authority for Account No. AL-3230-239792.
Section 6. That the Director of
Finance is hereby authorized to close the project account upon project
completion and return the unspent portion of the appropriation to the Fund
Balance from which it came.
Section 7. That the City hereby
declares its official intent to reimburse itself for certain expenditures made
within 60 days prior to or on and after the date of this ordinance with respect
to the purchase of the Project with the proceeds of lease purchase expected to
be drawn from the Master/Lease Purchase Agreement. The maximum principal amount expected to be financed under
this lease purchase is $384,258.00. This
constitutes a declaration of official intent under Treasury Regulation 1.150-2.
____________________________________________
I hereby certify
that there is a balance, otherwise unencumbered, to the credit of the
appropriation to which the foregoing expenditure is to be charged, and a cash
balance, otherwise unencumbered, in the treasury, to the credit of the fund
from which payment is to be made, each sufficient to meet the obligation hereby
incurred.
___________________________________
Debra R. Hinsvark
Director of Finance/CFO
Approved as to form and legality:
___________________________________
Heather A. Brown
Assistant City Attorney