ORDINANCE NO. 051192
Authorizing the Director of
Finance to accept the proposal of Koch Financial Corporation to provide funds
for the acquisition, installation and construction of various real property,
capital equipment and other personal property and to execute any and all documents
and agreements necessary for the transactions under one or more master lease
purchase agreements, ground lease agreements and lease purchase agreements.
WHEREAS, the City requires the use of real
property, capital equipment and other personal property, including without
limitation software (collectively, "Leased Property"), for the
efficient execution of the responsibilities of various departments; and
WHEREAS, it is
essential that the City have the ability to acquire, install and construct the
Leased Property in a timely manner in order to improve the efficiency,
effectiveness and productivity of the City; and
WHEREAS, funds
to pay for the acquisition, installation and construction of the Leased
Property can be provided by one or more master lease purchase agreements or
ground lease agreements and/or discrete lease purchase agreements, the payment
of which will be made by appropriations in the various departmental budgets
over two to ten year periods; 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 Financial
Corporation ("Koch") for paying the costs of the acquisition,
installation and construction of various Leased Property using the City documents
in substantially the forms made available for inspection by the Council at the
time this ordinance is passed, with such changes therein as shall be approved
by the Director of Finance:
(a) Master
Lease Purchase Agreement (General Fund Lease), the proceeds of which will be
used to purchase Leased Property consisting of personal property for general
City uses, other than for use by the water system or sanitary sewer system.
(b) Master
Lease Purchase Agreement (Water Fund Lease), the proceeds of which will be
used to purchase Leased Property consisting of personal property for use by the
water department, and will be payable only from net revenues of the City's
water system that have been credited to the surplus account of the water
system.
(c) Master
Lease Purchase Agreement (Sanitary Sewer Fund Lease), the proceeds of which
will be used to purchase Leased Property consisting of personal property for
use by the sewer department, and will be payable only from net revenues of the
City's sanitary sewer system that have been credited to the surplus account of
the sanitary sewer system.
(d) Ground
Lease Agreement pursuant to which the City will lease certain real property to
Koch and Lease Purchase Agreement pursuant to which Koch will lease the real
property together with improvements thereon paid for with the proceeds of the
lease purchase agreement to the City with an option to purchase. These
documents may be used to provide funds for (i) general City real property
improvements, (ii) water system real property improvements, with rental payable
only from net revenues of the City's water system that have been credited to
the surplus account of the water system, and (iii) sanitary sewer system real
property improvements, with rental payable only from net revenues of the City's
sanitary sewer system that have been credited to the surplus account of the
sanitary sewer system. Appropriate changes will be made to these documents
depending on the purpose and source of payment.
Section 2. That
the master lease purchase agreement and lease agreement shall have an initial
term beginning October 15, 2005 to April 30, 2006 with options to renew for
four (4) additional one-year terms.
Section 3. That the
Director of Finance is authorized to execute, deliver and file in the name of
the City, the master lease purchase agreements, ground lease agreements, lease
purchase agreements and any and all documents and agreements necessary to complete
such transactions, including, without limitation and when appropriate, escrow
trust agreements, schedules of property and certificates related to the master
lease purchase agreements.
Section 4.
That the City will, and the officials and agents of the City are hereby
authorized and directed to, take such actions, expend such funds and execute
such other documents, certificates and instruments as may be necessary or
desirable to carry out and comply with the intent of this ordinance and to
carry out, comply with and perform the duties of the City with respect to the
master lease purchase agreements, ground lease agreements, lease purchase
agreements and the other documents authorized or approved hereby and the Leased
Property.
___________________________________________
Approved
as to form and legality:
____________________________
Heather
A. Brown
Assistant City Attorney