COMMITTEE
SUBSTITUTE FOR ORDINANCE NO. 180058
Authorizing the City Manager to execute a Memorandum of
Understanding with Edgemoor Infrastructure and Real Estate LLC for a terminal
modernization project at the Kansas City International Airport; authorizing the
City Manager to execute a related Agreement for Reimbursement with Edgemoor
Infrastructure and Real Estate LLC; establishing Fund No. 8560, the 2018
Airport Terminal Bond Fund, in the records of the City of Kansas City,
Missouri; estimating revenues in the amount of $23,200,000.00 in Fund No. 8560,
2018 Airport Terminal Bond Fund; appropriating that amount to the 2018 Airport Terminal
Bond Fund account; declaring the City’s intent to reimburse itself for certain
expenditures; and recognizing this ordinance as having an accelerated effective
date pursuant to Sections 503(a)(3)(C) and (D) of the Charter.
WHEREAS, the City issued a request for qualifications and
proposals for the design, construction and financing of a new single terminal
at Kansas City International Airport (“KCI”) and its appurtenant facilities and
the City’s selection committee recommended that Edgemoor Infrastructure and
Real Estate LLC be selected as the proposer with whom the City would initially
enter into direct negotiations of a memorandum of understanding and the City
Council adopted the selection committee’s recommendation with its passage of
Committee Substitute for Ordinance No. 170663, As Amended; and
WHEREAS, at the November 7, 2017 special election, a
majority of the voters authorized the City “to construct a new passenger
terminal at Kansas City International Airport and demolish existing terminals
as necessary” by voting in favor of Question No. 1; and
WHEREAS, the City has undertaken negotiations with
Edgemoor, which led to the introduction of Ordinance No. 170941, seeking
Council authorization of a proposed Memorandum of Understanding and, by its
vote on Ordinance No. 170941, a majority of the Council found that proposed
Memorandum of Understanding not to be in the best interests of the City and the
regional flying public in response to a number of concerns; and
WHEREAS, the Council remains steadfast in its commitment
to goals for combined 35 percent participation by minority and women’s
business enterprise businesses in the design and construction in the terminal
modernization project pursuant to Chapter 3, Divisions 2 and 4 respectively,
Code of Ordinances, which reflect the substantial amount and array of
professional services, construction and construction-related work and materials
needed for the proposed terminal modernization project; and
WHEREAS, the Council remains steadfast in its commitment
to goals for combined 35 percent participation for minority and women
construction workforce pursuant to Chapter 3, Division 3, Code of Ordinances,
which reflect the substantial amount and array of construction and
construction-related work needed for the proposed terminal modernization
project; and
WHEREAS, the Council remains steadfast in its commitment to
goals for significant local workforce representation and the participation of
small business enterprises; and
WHEREAS, the Council remains steadfast in its commitment
to ensuring fair compensation for workforce in the terminal modernization
project, including prevailing wage payment; and
WHEREAS, the Council remains committed to ensure any
contractual obligations, including the proposed Out-of-Pocket Agreement
(formerly known as “Reimbursement Agreement”) and subsequent obligations
reflect the best value for the City and the regional flying public; and
WHEREAS, the Council recognizes the aforementioned
commitments are the cornerstone of the direction to the City Manager below; and
WHEREAS, the attached Memorandum of Understanding and
Reimbursement Agreement have been negotiated with Edgemoor Infrastructure and
Real Estate LLC; and
WHEREAS, the Council recognizes that the terms of the
attached Memorandum of Understanding provide that each of the “Transaction
Documents” needed to implement a terminal modernization project (e.g., the
funding agreement, the development agreement, the lease, the sublease, the
community benefit agreement and a new use agreement with the airlines) would be
brought to the Council for its consideration and approval; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That the City Manager is hereby authorized to
execute a Memorandum of Understanding with Edgemoor Infrastructure and Real
Estate LLC in substantial form and substance to that attached hereto as Exhibit
A.
Section 2. That the City Manager is hereby authorized to
execute an Agreement for Reimbursement of Out-of-Pocket Project Costs in the
Event of Termination with Edgemoor Infrastructure and Real Estate LLC in
substantial form and substance to that attached hereto as Exhibit B.
Section 3. That Fund No. 8560, 2018 Airport Terminal Bond
Fund, is hereby established in the records of the City of Kansas City,
Missouri.
Section 4. That the revenue in the following account of
Fund No. 8560, 2018 Airport Terminal Bond Fund, is hereby estimated in the
following amount:
AL-8560-120000-590000 Bond Proceeds $23,200,000.00
Section 5. That the sum of $23,200,000.00 is hereby
appropriated from the Unappropriated Fund Balance of the 2018 Airport Terminal
Bond Fund to the following account:
AL-8560-627270-B-62180497 Consolidated Terminal
Project $23,200,000.00
Section 6. That the Director of the Aviation Department is
authorized to expend an amount not to exceed $23,200,000.00 from the funds
appropriated above for the purpose of making reimbursements pursuant to the
Out-of-Pocket Cost Agreement.
Section 7. That the City hereby declares its official
intent to reimburse itself for certain expenditures made within sixty (60) days
prior to or on and after the date of this ordinance with respect to the
appropriation listed in Section 5 (the “Project”) with the proceeds of bonds
expected to be issued for the KCI Consolidated Terminal Project. The maximum
principal amount of bonds expected to be issued for the Project is not to
exceed $23,200,000.00. This constitutes a declaration of official intent under
Treasury Regulation Section 1.150-2.
Section 8. That the Director of Finance is hereby
authorized to close project accounts, open encumbrances and retainage and
return the unspent portion of the Fund Balance from which it came upon the
earliest of: (i) Project’s completion; (ii) final maturity of financing or
(iii) five years after issuance.
Section 9. That this ordinance, because it appropriates
money and it relates to a contract relating to the design and construction of a
public improvement, is hereby recognized as having an accelerated effective
date pursuant to Section 503(a)(3)(C) and (D) of the Charter.
_____________________________________________
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.
___________________________________
Randall J. Landes
Director of Finance
Approved as to form and
legality:
________________________________
Galen P. Beaufort
Senior Associate City Attorney