COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 041404

Establishing Fund No. 3405 in the financial records of the City; authorizing a design professional services agreement with HOK Sport, Inc., d.b.a. HOK Sport + Venue + Event in the amount of $2,500,000.00 for architectural and engineering services for the new Kansas City Downtown Arena; authorizing the City Manager to amend the agreement and to increase the amount of the agreement in an amount not to exceed $250,000.00 without further City Council approval; estimating revenue in the amount of $22,000,000.00 in the Downtown Arena Project Fund; appropriating it to the Arena Improvements account of the Downtown Arena Project Fund; authorizing a $700,000.00 agreement with Bryan Cave LLC for legal services relating to the Kansas City Downtown Arena project; designating requisitioning authority; stating the official intent of the City to reimburse itself; and recognizing an emergency.

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. That the City hereby establishes in the financial records of the City the following Fund No. 3405, Downtown Arena Project Fund.

Section 2. That the City Manager is hereby authorized to execute a design professional services agreement with HOK Sport, Inc., d.b.a. HOK Sport + Venue + Event in the amount of $2,500,000.00 for architectural and engineering services for the new Kansas City Downtown Arena to be paid from funds previously appropriated to Account No. AL-3405-897770-B. The A agreement is approved in substantial form as that on file in the office of the City Manager and is incorporated herein by reference.

Section 3. That the City Manager is hereby authorized to amend the terms of this agreement without further City Council approval as long as the total amount of any additional compensation does not exceed $250,000.00.

Section 4. That the revenue in the following account of the Downtown Arena Project Fund is hereby estimated in the following additional amount:

AL-3405-120000-590000 Proceeds from Sale of Bonds $22,000,000.00

Section 5. That the sum of $22,000,000.00 is hereby appropriated from the Unappropriated Fund Balance of the Downtown Arena Project Fund to the following account in the Downtown Arena Project Fund:

AL-3405-897770-B Arena Improvements $22,000,000.00

Section 6. That the City Manager or his designee is authorized to enter into an agreement not to exceed $700,000.00 with Bryan Cave LLC for legal services relating to the arena project, to be paid from funds previously appropriated to Account No. AL-3405-897770-B. The agreement is approved in substantial form as that on file in the office of the City Manager, subject to compliance with all requirements of Chapter 38 of the Code of Ordinances, and is incorporated herein by reference.

Section 7. That the City Manager is hereby authorized to amend the terms of this agreement without further City Council approval as long as the total amount of any additional compensation does not exceed $70,000.00.

Section 8. That the City Manager is hereby designated as requisitioning authority for Account No. AL-3405-897770-B.

Section 9. (a) That the City declares its intent to reimburse itself for certain expenditures made within sixty (60) days prior to or on and after the date of this resolution with respect to the Project with the proceeds of bonds expected to be issued by the City. The maximum principal amount of bonds expected to be issued for the Project is not to exceed $200,000,000.00.

(b) That this resolution constitutes a declaration of official intent under Treasury Regulation Section 1-150-2.

(c) That the expenditures for which the City will reimburse itself pursuant to this ordinance are original expenditures, as defined in Treasury Regulation Section 1.150-2(c), which qualify under Treasury Regulation Section 1.150-2(d)(3).

Section 10. That this ordinance, making provision for the current expenses of the municipal government, is recognized as an emergency measure within the provisions of Section 15, Article II of the Charter of Kansas City, and shall take effect in accordance with that section.

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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.

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Wanda Gunter

Acting Director of Finance

Approved as to form and legality:

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Nelson V. Munoz

Assistant City Attorney