ORDINANCE NO. 060034
Authorizing the Director of
Finance to accept the proposal of Koch Financial Corporation to finance the
acquisition of Fleet Equipment to be used by the City Manager, in an
approximate principal amount not to exceed $10,000,000.00; executing any and
all documents and agreements necessary for the financing under a Master Lease
Purchase Agreement; estimating and appropriating lease proceeds in accounts as specifically
set forth in the ordinance; 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;
designating requisitioning authorities; and recognizing an emergency.
WHEREAS, the City Fleet Administrator has determined that
the replacement and acquisition of new Fleet Equipment (Equipment) is
necessary to support the ongoing operations of the Parks and Recreation
Department; and
WHEREAS, Ordinance No. 051192 authorized the Director of
Finance to accept the Master Lease Purchase Agreement proposal of Koch
Financial Corporation (Koch); and
WHEREAS, it was determined that the principal amount be
financed by a tax-exempt lease purchase agreement; and
WHEREAS, the purchase of such Equipment can be financed by a Master
Lease Purchase Agreement; the payment of which will be made by appropriations
in the Parks and Recreation Departments operating budget over a period of
three (3) to nine (9) years; 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 acquisition of Equipment through
a draw upon the Master Lease Purchase Agreement in an approximate principal
amount not to exceed $10,000,000.00.
Section 2. That the Director of Finance is authorized to
execute, deliver and file in the name of the City, the Master Lease Purchase
Agreement 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. $10,000,000.00
Section 4. That the sum of $10,000,000.00 is hereby
appropriated from the Unappropriated Fund Balance of Fund No. 3230, the
Equipment Lease Capital Acquisition Fund, to the following account:
AL-3230-101900-E Fleet
Administration $10,000,000.00
Section
5. That the City Manager is hereby designated as requisitioning authority for
Account No. AL-3230-101900.
Section 6. That the Director of Finance is hereby
authorized to close project accounts upon project completion and return the
unspent portion of the appropriation to the Fund Balance from which it came.
Section 7. That the ordinance is recognized as an
emergency measure within the provisions of Section 15, Article III of the
Charter of Kansas City, and shall take effect in accordance with that section.
Section 8. That
the City Council hereby delegates its authority to the Director of Finance to
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 Equipment with the proceeds of lease expected to be issued
by the City such declaration to constitute the Citys 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
Approved as to
form and legality:
____________________________
Heather
A. Brown
Assistant City Attorney