ORDINANCE NO. 061029
Authorizing the
Director of Finance to accept the proposal of Koch Financial Corporation to
finance the acquisition of two Water Department CO2 storage tanks to be used by
the Water Services Department, in an approximate principal amount not to exceed
$385,000.00; executing any and all documents and agreements necessary for the
financing under a Master Lease Purchase Agreement; estimating and appropriating
lease proceeds in the amount of $385,000.00 and reappropriating transferred
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; and designating requisitioning
authorities.
WHEREAS,
the Water Services Department requires the acquisition of two Water Department
CO2 storage tanks (the Project) for the efficient execution of its
responsibilities;
WHEREAS,
the cost of purchase of the Project is expected to be reimbursed by a draw
upon a Master Lease Purchase Agreement with Koch Financial Corporation
(Koch), the payment of which will be made by annual appropriations of the
Surplus Account of the Water Fund subordinate to senior lien revenue bonds over
a 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 a draw upon the Master Lease Purchase Agreement
in an approximate principal amount not to exceed $385,000.00.
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. $385,000.00
Section
4. That the sum of $385,000.00 is hereby appropriated from the Unappropriated
Fund Balance of Fund No. 3230, the Equipment Lease Capital Acquisition Fund, to
the following account:
AL-3230-129998-X Transfer
to Fund No. 8010 $385,000.00
Section 5. That the revenue in the
following account of Fund No. 8010, the Water Fund, is hereby estimated in the
following amount:
07-8010-120000-503230 Transfer
from Fund No. 3230 $385,000.00
Section
6. That the sum of $385,000.00 is hereby appropriated from the
Unappropriated Fund Balance of Fund Number 8010, the Water Fund, to the
following account:
07-8010- 802110-E
Plant Equipment $385,000.00
Section
7. That the Director of Water Services Department is hereby designated as
requisitioning authority for Account No. 07-8010-802110-E and the Director of
Finance is hereby designated requisitioning authority for Account No.
AL-3230-129998-X.
Section
8. That the Director of Finance is hereby authorized to close the Project
accounts upon project completion and return the unspent portion of the
appropriation to the Fund Balance from which it came.
Section 9. 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 $385,000.00. This constitutes a declaration of 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 Brown
Assistant City Attorney