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Legislation #: 090881 Introduction Date: 10/15/2009
Type: Ordinance Effective Date: 11/15/2009
Sponsor: None
Title: Authorizing the Director of Finance to accept the proposal of Banc of America Public Capital Corp. to provide funds for the acquisition, installation and construction of various real property, capital equipment and other personal property and to execute any and all documents and agreements necessary for the transactions under one or more master lease purchase agreements, ground lease agreements and lease purchase agreements.

Legislation History
DateMinutesDescription
10/12/2009 Filed by the Clerk's office
10/15/2009 Referred to Finance and Audit Committee
10/28/2009 Do Pass
10/29/2009 Add to Consent Docket
11/5/2009 Passed

View Attachments
FileTypeSizeDescription
090881.pdf Authenticated 148K AUTHENTICATED
Indexing Formula.doc Other 53K Indexing Formula
fiscal_notes-MLA_lease_agreements.xls Fiscal Note 55K Fiscal Note
fact_sheet_master_lease_selection_2009 - ver2.xls Fact Sheet 55K Fact Sheet

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ORDINANCE NO. 090881

 

Authorizing the Director of Finance to accept the proposal of Banc of America Public Capital Corp. to provide funds for the acquisition, installation and construction of various real property, capital equipment and other personal property and to execute any and all documents and agreements necessary for the transactions under one or more master lease purchase agreements, ground lease agreements and lease purchase agreements.

 

WHEREAS, the City requires the use of real property, capital equipment and other personal property, including without limitation software (collectively, Leased Property), for the efficient execution of the responsibilities of various departments; and

WHEREAS, it is essential that the City have the ability to acquire, install and construct the Leased Property in a timely manner in order to improve the efficiency, effectiveness and control of the City; and

WHEREAS, funds to pay for the acquisition, installation and construction of the Leased Property can be provided by one or more master lease purchase agreements or ground lease agreements and lease purchase agreements, the payment of which will be made by appropriations in the various departmental budgets over two to ten year periods; and

WHEREAS, the master lease purchase agreement will allow the City to finance the capital property needs of various departments in a timely manner; 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 Banc of America Public Capital Corp. (BAPCC), providing for the financing by BAPCC, Bank of America, N.A., or a designee (collectively, BOA) under a Master Lease/Purchase Agreement structure for the purpose of paying the costs of the acquisition, installation and construction of various Leased Property, pursuant to one or more Master Lease/Purchase Agreements in substantially the form of the Master Equipment Lease/Purchase Agreement on file with the Director of Finance, with such changes therein as shall be approved by the Director of Finance, modified as applicable upon approval by the Director of Finance for each of the following:

(a)                Master Equipment Lease/Purchase Agreement (General Fund Lease), the proceeds of which will be used to purchase Leased Property consisting of personal property for general City uses, other than for use by the water system or sanitary sewer system.

(b)               Master Equipment Lease/Purchase Agreement (Water Fund Lease), the proceeds of which will be used to purchase Leased Property consisting of personal property for use by the water department, and will be payable only from net revenues of the City's water system.

(c)                Master Equipment Lease/Purchase Agreement (Sanitary Sewer Fund Lease), the proceeds of which will be used to purchase Leased Property consisting of personal property for use by the sewer department, and will be payable only from net revenues of the City's sanitary sewer system.

Section 2. That the City also approves the execution and delivery of a Ground Lease Agreement pursuant to which the City will lease certain real property to BOA and a Lease Purchase Agreement pursuant to which BOA will lease the real property together with improvements thereon paid for with the proceeds of the lease purchase agreement to the City with an option to purchase, in such forms as may be approved by the Director of Finance. These documents may be used to provide funds for (a) general City real property improvements, (b) water system real property improvements, with rental payable only from net revenues of the City's water system, and (c) sanitary sewer system real property improvements, with rental payable only from net revenues of the City's sanitary sewer system.

Section 3. That the term for BOA to be engaged to provide financing to the City under any master lease purchase agreement, any schedule thereunder and any ground lease agreement and lease purchase agreement with BOA for the financing of specified Leased Property, shall have an initial term beginning November 15, 2009 to April 30, 2010 and the City shall have an option to renew such term for four (4) additional one-year terms.

Section 4. That the Director of Finance is authorized to execute, deliver and file in the name of the City, the master lease purchase agreements, ground lease agreements, lease purchase agreements and any and all documents and agreements necessary to complete such transactions, including, without limitation and when appropriate, escrow trust agreements, schedules of property and certificates related to the master lease purchase agreements.

Section 5. That the City will, and the officials and agents of the City are hereby authorized and directed to, take such actions, expend such funds and execute such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this ordinance and to carry out, comply with and perform the duties of the City with respect to the master lease purchase agreements, ground lease agreements, lease purchase agreements and the other documents authorized or approved hereby and the Leased Property.

________________________________________________

Approved as to form and legality:

 

 

______________________________

Heather A. Brown

Assistant City Attorney