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Legislation #: 180078 Introduction Date: 2/1/2018
Type: Ordinance Effective Date: 2/9/2018
Sponsor: None
Title: Authorizing the Director of Finance to accept a proposal of Banc of America Public Capital Corp (“BAPCC”) to finance the acquisition of a Public Works Salt Dome (the “Project”); authorizing the execution of any and all documents and agreements necessary for the financing; estimating revenue and appropriating $1,510,000.00 in the 3230 Fund; designating requisitioning authorities; authorizing the Director of Finance to close project accounts; approving Lease Counsel in connection with the transaction; declaring the intent of the City to reimburse itself from the lease purchase proceeds for certain expenditures; and recognizing this ordinance as having an accelerated effective date.

Legislation History
DateMinutesDescription
1/31/2018 Filed by the Clerk's office
2/1/2018 Referred to Finance and Governance Committee
2/7/2018 Advance and Do Pass, Debate
2/8/2018 Passed

View Attachments
FileTypeSizeDescription
180078.pdf Authenticated 137K Authenticated
180078 Ordinance.pdf Other 72K Ordinance
180078 Apropiation.pdf Other 979K Appropiation
180078 Fact Sheet.pdf Fact Sheet 1014K Fact Sheet

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ORDINANCE NO. 180078

 

Authorizing the Director of Finance to accept a proposal of Banc of America Public Capital Corp (“BAPCC”) to finance the acquisition of a Public Works Salt Dome (the “Project”); authorizing the execution of any and all documents and agreements necessary for the financing; estimating revenue and appropriating $1,510,000.00 in the 3230 Fund; designating requisitioning authorities; authorizing the Director of Finance to close project accounts; approving Lease Counsel in connection with the transaction; declaring the intent of the City to reimburse itself from the lease purchase proceeds for certain expenditures; and recognizing this ordinance as having an accelerated effective date.

 

WHEREAS, the City recognizes the need to invest in the City’s infrastructure through periodic replacement of fixed assets necessary to maintain safe roads during wintery weather; and

 

WHEREAS, the Public Works Department’s salt dome at 5300 Municipal Avenue has become one-third functionally obsolete due to outdated design and ancillary equipment needs frequent repairs due to age and wear; and

 

WHEREAS, as a result of these inefficiencies, this unit has become costly and difficult to operate, impeding snow removal operations; and

 

WHEREAS, this same unit has been exhausted to the point where replacement is crucial to cost conscious and effective City operations; and

 

  WHEREAS, the cost of acquisition and implementation of the Project is expected to be financed under the Master Lease Purchase Agreement (“Lease”) with BAPCC by one (1) draw upon the Lease; and

 

WHEREAS, the payment of scheduled debt service payments on the draw made under the Lease will be made by annual appropriation of monies from the City’s General Municipal Revenues over a successive eight (8) year 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 BAPCC for the financing of the Project through one (1) draw upon the Lease in an approximate principal amount not to exceed $1,510,000.00.

 

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 the Equipment Lease Capital Acquisition Fund, is hereby estimated in the following amount:

 

AL-3230-120000-583000 Lease Proceeds $1,510,000.00

 

Section 4. That the sum of $1,510,000.00 is hereby appropriated from the Unappropriated Fund Balance of the Equipment Lease Capital Acquisition Fund to the following accounts:

 

AL-3230-898024-B-89022006 Public Works Salt Dome $1,505,000.00

AL-3230-129620-B Cost of Issuance $5,000.00

TOTAL $1,510,000.00

 

Section 5. That the Director of General Services is hereby designated as requisitioning authority for Account No. AL-3230-898024 and that the Director of Finance is hereby designated as requisitioning authority for Account No. AL-3230-129620.

 

Section 6. That the Director of Finance is hereby authorized to close project accounts, open encumbrances and retainage related to the accounts in Section 4, and return the unspent portion to 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 7. That the City approves Kutak Rock LLP to serve as Lease Counsel for the City in connection with the financing of the Project.

 

Section 8. 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 Project with the proceeds of the lease expected to be drawn from the Lease. The maximum principal of amount of lease proceeds for the Project expected to be financed under the Lease is $1,510,000.00. This constitutes a declaration of official intent under Treasury Regulation Section 1.150-2.

 

Section 9. That this ordinance is recognized as an ordinance with an accelerated effective date as provided by Section 503(a)(3)(C) of the City Charter in that it appropriates money, and shall take effect in accordance with that section.

 _________________________________________

 

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:

 

_______________________________

Katherine Chandler

Assistant City Attorney