ORDINANCE NO. 100257
Authorizing the Director of
Finance to accept the proposal of Banc of America Public Capital Corporation
for the acquisition of computer hardware and software equipment to be used by
the Information Technology Department under a Master Equipment Lease/Purchase
Agreement in an approximate principal amount not to exceed $2,451,756.00;
estimating and appropriating $2,451,756.00 in lease proceeds; authorizing the
execution of any and all documents and agreements necessary for the financing;
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 Information Technology
Department requires the acquisition of the computer hardware and software (“Project”)
to migrate from IBM Lotus Notes Applications to Microsoft; and
WHEREAS, the cost of
acquisition and implementation of the Project is expected to be financed under the
Lease with Banc of America Public Capital Corporation (“BAPCC”) by one draw
upon the Master Equipment Lease/Purchase Agreement (the “Lease”); and
WHEREAS, the payment of
scheduled debt service payments on the draw made under the Lease will be made
by annual appropriations from the City’s General Fund over a successive
five-year (5) period with debt service payments not to exceed $560,000.00
annually; 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 BAPCC for financing the
Project through one (1) draw upon the Lease in an approximate principal amount
not to exceed $2,451,756.00.
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 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. $2,451,756.00
Section 4. That the sum of
$2,451,756.00 is hereby appropriated from the Unappropriated Fund Balance of
Fund No. 3230, the Equipment Lease Capital Acquisition Fund, to the following
account:
AL-3230-181210-E System and
Application Management $2,451,756.00
Section
5. That the Chief Information Officer/Director of Information Technology is
hereby designated as requisitioning authority for Account Number AL-3230-181210.
Section 6. 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 7. That the City
hereby declares its official intent to reimburse itself for certain
expenditures made within sixty (60) days prior to or on and after the date of
this ordinance with respect to the purchase of Project with the proceeds of
lease expected to be drawn from the Lease. The maximum principal amount
expected to be financed under this lease is $2,451,756.00. 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.
___________________________________
Randall J. Landes
Director of Finance
Approved as to form and legality:
___________________________________
Heather A. Brown
Assistant City Attorney