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Legislation #: 150287 Introduction Date: 4/16/2015
Type: Ordinance Effective Date: none
Sponsor: MAYOR JAMES, JR.
Title: Authorizing the City Manager to execute a Strategic Collaboration Agreement with Cisco Systems, Inc. for the “Smart + Connected Communities” project; authorizing the City Manager and the Director of Finance to execute various agreements to effectuate the purposes of the program and complete the financing; appropriating $3,726,706.00; approving Kutak Rock LLP as Lease Counsel; and recognizing this ordinance as having an accelerated effective date.

Legislation History
DateMinutesDescription
4/16/2015 Filed by the Clerk's office
4/16/2015 Referred to Finance, Governance & Ethics Committee
4/22/2015 Advance and Do Pass as a Committee Substitute, Debate
4/23/2015 Passed as Substituted

View Attachments
FileTypeSizeDescription
150287.pdf Authenticated 260K Authenticated
Finance Committee Presentation_2015.04.22.pptx Other 3659K Finance Committee Presentation_2015.04.22
Program Overview.docx Other 4144K program overview
fact sheet.docx Fact Sheet 29K fact sheet

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COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 150287

 

Authorizing the City Manager to execute a Strategic Collaboration Agreement with Cisco Systems, Inc. for the “Smart + Connected Communities” project; authorizing the City Manager and the Director of Finance to execute various agreements to effectuate the purposes of the program and complete the financing; appropriating $3,726,706.00; approving Kutak Rock LLP as Lease Counsel; and recognizing this ordinance as having an accelerated effective date.

 

WHEREAS, the City is interested in exploring and developing a “Smart + Connected Communities” Project (“the Project”) as an integrated set of solutions for the intelligent and integrated management of the urban area and its related services; and

 

WHEREAS, Cisco and its affiliates are known for the design and architecture of information and communications technology (“ICT”) networks, and the manufacturing and provision of internetworking equipment and services; and

 

WHEREAS, the Project involves the use of its network as the next utility for integrated city management, a better quality of life for citizens, a better visitor experience and for economic development reasons. S+CC changes the way cities, towns, and villages are designed, built, managed, and renewed to help achieve economic, social and environmental sustainability; and

 

WHEREAS, the Project would make Kansas City, Missouri the largest smart city network in North America – once again putting the City at the forefront of innovation, technology and entrepreneurship; and

 

WHEREAS, the Project will be organized around the 2.2 mile streetcar starter line and the adjacent districts of the River Market, Power & Light and Crossroads, taking advantage of the construction already underway; and

 

WHEREAS, a ” Smart + Connected City” utilizes technology such as interactive digital kiosks, video as sensors that can be used for numerous purposes such as monitoring traffic and capturing data for future City use, smart lighting and numerous other applications; and

 

WHEREAS, the Project also involves creation of a Living Lab, in which qualified and highly targeted emerging Internet of Things (“ioT”) technologies that can benefit the City can be deployed, tested and validated in a full scale industrial user environment; and

 

WHEREAS, the payment of scheduled debt service payments on each annual draw made under the Master Lease Purchase Agreement will be made by annual appropriation of monies from General Municipal Revenues; and

 

WHEREAS, funding is necessary for the construction aspects of installing sensors, software licenses and the purchase of numerous components such as sensors and digital kiosks; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the City Manager is hereby authorized to execute a Strategic Collaboration Agreement with Cisco Systems, Inc. for the “Smart + Connected Communities” project. A copy of the agreement in substantial form is on file with the Mayor’s Office.

 

Section 2. That the City Manager is hereby authorized to execute various other agreements to effectuate the purposes of the program, such as agreements involving data, WiFi, access rights and permitting.

 

Section 3. That the Director of Finance is authorized to accept the proposal of Bank of America Public Capital Corporation (“BAPCC”) for financing the Smart Cities Project in two (2) or more draws upon the Master Lease Agreement in an approximate aggregate principal amount not to exceed $3,726,706.00.

 

Section 4. 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 5. 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. $3,726,706.00

 

Section 6. That the sum of $3,726,706.00 is hereby appropriated from the Unappropriated Fund Balance of Fund No. 3230, the Equipment Lease Capital Acquisition Fund, to the following accounts:

 

AL-3230-107001- B-10007011 Smart Cities Project-Tax-Exempt $2,726,706.00

AL-3230-107001-B-10007012 City Post-Taxable 990,000.00

AL-3230-129620-B Cost of Issuance 10,000.00

TOTAL $3,726,706.00

 

Section 7. That the amounts estimated and appropriated in Sections 5 and 6 shall become effective as of May 1, 2015 in Fiscal Year 2015-2016.

 

Section 8. That the City Manager is hereby designated as requisitioning authority for Account Number AL-3230-107001-B. That the Director of Finance is hereby designated as requisitioning authority for Account Numbers AL‑3230-129620-B.

 

Section 9. That the Director of Finance is hereby authorized to close project accounts upon project completion and return the unspent portion of the appropriation to the Fund Balance from which it came.

 

Section 10. That the City approves Kutak Rock LLP to serve as Lease Counsel for the City in connection with the financings of Project.

 

Section 11. 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 Smart Cities Project with the proceeds of lease expected to be drawn from the Master Lease Agreement. The maximum principal of lease proceeds amount for the Smart Cities Project expected to be financed under the Master Lease Agreement is $2,736,706.00. This constitutes a declaration of official intent under Treasury Regulation Section 1.150-2.

 

Section 12. That this ordinance appropriates money and is recognized as an ordinance with an accelerated effective date as provided by Section 503 (a)(3)(C) of the City Charter and shall take effect in accordance with Section 503 of the City Charter.

 

_____________________________________________

 

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:

 

 

___________________________________

Joseph Guarino

Assistant City Attorney