COMMITTEE SUBSTITUTE
FOR ORDINANCE NO. 070075
Authorizing the Director of
Finance to accept the proposal of Koch Financial Corporation for the
acquisition of golf course maintenance equipment in an approximate principal
amount not to exceed $140,000.00; estimating and appropriating $140,000.00 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 Parks and Recreation
Department requires golf course maintenance equipment for the preservation and
maintenance of the Heart of America Golf Course (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, rental payments under the
Lease are payable from an appropriation of golf course revenues from Fund No.
2050, the Golf Course Operations Fund, and supported by other Parks and
Recreation appropriations; and
WHEREAS, the payment of scheduled
rental payments on the draw made under the Lease will be made by annual
appropriations from the Golf Course Operations Fund over a successive five-year
(5) 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 $140,000.00.
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 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. $140,000.00
Section 4. That the sum of
$140,000.00 is hereby appropriated from the Unappropriated Fund Balance of Fund
No. 3230, the Equipment Lease Capital Acquisition Fund, to the following
account:
AL-3230-709740-E Blue River Golf Equipment $140,000.00
Section 5.
That the Director of Parks and Recreation Department is hereby designated as
requisitioning authority for Account Number AL-3230-709740.
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 $140,000.00. This
constitutes a declaration of official intent under Treasury Regulation 1.150-2.
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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