ORDINANCE NO. 081181

Stating the intent of the City Council to procure a new fuel management system for the Citys vehicle fleet; and declaring the Citys intent to reimburse itself for certain expenditures related to these projects.

WHEREAS, an estimated $1 million is needed to upgrade the Citys fuel management system that will reduce risk of fuel theft and significantly enhance the Citys ability to manage the consumption of motor vehicle fuel and reduce the overall cost of operating the City fleet; and

WHEREAS, the fuel system upgrade is expected to be financed under the Citys Master Equipment Lease/Purchase Agreement; and

 WHEREAS, the payment of scheduled rental payments on the draw for the fuel system made under the Lease will be made by an estimated $168,500.00 in annual appropriations from the Citys General Fund and enterprise funds over a successive seven-year (7) period beginning in FY 2009-10; NOW, THEREFORE,

 BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. That the City Council states its intent to use its current Master Equipment Lease/Purchase Agreement to pursue funding for the fuel management system ($1,000,000.00) with debt service to be paid from the General Fund in FY 2009-10 and subsequent budgets for this project.

Section 2. 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 equipment with the proceeds of lease expected to be issued by the City. The maximum principal amount expected to be financed under this lease is $1,000,000.00. This constitutes a declaration of official intent under Treasury Regulation 1.150-2.

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Approved as to form and legality:

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Heather A. Brown

Assistant City Attorney