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Legislation #: 061389 Introduction Date: 12/14/2006
Type: Ordinance Effective Date: none
Sponsor: None
Title: Authorizing the Director of Finance to accept the proposal of Koch Financial Corporation for the acquisition of equipment and implementation services for an Automated Meter Reading System to be used by the Water Services Department under a Master Equipment Lease/Purchase Agreement in an approximate principal amount not to exceed $35,653,896.00; authorizing the Director of the Water Services Department to enter into a contract with VSI Meter Services, Inc. for the equipment and implementation services for the Automated Meter Reading System; authorizing the execution of any and all documents and agreements necessary for the financing; estimating and appropriating $35,653,896.00 in lease proceeds; 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.

Legislation History
DateMinutesDescription
12/13/2006 Filed by the Clerk's office
12/14/2006 Referred to Finance and Audit Committee
1/3/2007 Advance and Do Pass, Debate
1/4/2007 Councilmember Riley Move To Hold On Docket
1/4/2007 Held on Docket (1/11/2007)
1/11/2007 Passed

View Attachments
FileTypeSizeDescription
061389.pdf Authenticated 182K Authenticated
061389DM.doc Docket Memo 31K Docket Memo
fiscal notes for fact sheet-AMR ver 6.xls Fiscal Note 43K Fiscal Note
Approp _ Admin AMR e_a v2.xls Other 648K Approp & Admin AMR
AMR Fact Sheet #6.xls Fact Sheet 49K Fact Sheet

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ORDINANCE NO. 061389

 

Authorizing the Director of Finance to accept the proposal of Koch Financial Corporation for the acquisition of equipment and implementation services for an Automated Meter Reading System to be used by the Water Services Department under a Master Equipment Lease/Purchase Agreement in an approximate principal amount not to exceed $35,653,896.00; authorizing the Director of the Water Services Department to enter into a contract with VSI Meter Services, Inc. for the equipment and implementation services for the Automated Meter Reading System; authorizing the execution of any and all documents and agreements necessary for the financing; estimating and appropriating $35,653,896.00 in lease proceeds; 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 and implementation of the Automated Meter Reading System (the Project) for the efficient execution of its responsibilities; 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 approximately three (3) successive annual draws upon the Master Equipment Lease/Purchase Agreement (the Lease); and

 

WHEREAS, rental payments under the Lease are payable solely from net revenues of the Citys water system that have been credited to the Surplus Account maintained by the City under the provisions of the bond ordinance under which the City has issued its waterworks revenue bonds; and

 

WHEREAS, the payment of scheduled rental payments on each annual draw made under the Lease will be made by annual appropriations of monies from the Surplus Account of the water system over successive ten-year (10) 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 for financing the Project through one or more draws upon the Lease in an approximate principal amount not to exceed $35,653,896.00.

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 Fund No. 8068, AMR Lease Fund, is hereby established in the records of the City of Kansas City, Missouri.

 

Section 4. That the revenue in the following account of Fund No. 8068, the AMR Lease Fund, is hereby estimated in the following amount: 

 

AL-8068-800000-583000 Reimbursement from Bank or $35,653,896.00

Lease Co.

 

Section 5. That the sum of $35,653,896.00 is hereby appropriated from the Unappropriated Fund Balance of Fund No. 8068, the AMR Lease Fund, to the following account:

AL-8068-808087-E Water and Sewer City-Wide $35,623,896.00

AL-8068-129660-B Loan Issue Expense $ 30,000.00

TOTAL $35,653,896.00

 

Section 6. That the Director of Water Services Department is hereby designated as requisitioning authority for Account Number AL-8068-808087 and the Director of Finance is hereby designated as requisitioning authority for Account Number AL-8068-129660.

 

Section 7. That the Director of Water Services Department is hereby authorized to enter into a contract for the Project with VSI Meter Services, Inc. in the amount of $35,623,896.00, including contingencies, for provision of equipment and implementation services for the Project with funds appropriated to the following account:

 

Al-8068-808087-E Water & Sewer City-Wide $35,623,896.00

 

Section 8. 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 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 $35,653,896.00. 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 A. Brown

Assistant City Attorney