ORDINANCE NO. 130817,
Authorizing an agreement with CAF
USA, Inc. for approximately $17,980,000.00 to furnish the City with four (4)
CAF Urbos 3 Low Floor Streetcar vehicles for the Kansas City Downtown Streetcar
Project; expressing the intention of the Council to approve the issuance of
bonds for the Kansas City Downtown Streetcar Project and providing for the
payment of debt service and operations; estimating revenue in the amount of
$69,300,000.00 in the 2013A Special Obligation Bond Fund; appropriating that
amount to the Downtown Streetcar Transit System account; declaring official
intent to get reimbursed from bond proceeds; and recognizing an emergency.
competitive procurement action consistent with the requirements of the Federal
Transit Administration (FTA), the City of Cincinnati, Ohio entered into a
contract with CAF USA, Inc. for the engineering, manufacturing, production,
assembly, delivery, inspection and testing of the CAF Urbos 3 Low Floor
Streetcar Vehicles in a base contract amount and assignable options; and
Cincinnati contract provided for the exercise of options for the manufacture
and delivery of additional Streetcars and the assignment of the options to
another jurisdiction; and
City of Cincinnati has assigned to City the options for four (4) Streetcar
Vehicles and CAF has consented to such assignment; and
City expects to receive federal grants in the amount of $37,300,000 to cover
certain Project costs; and
City expects to issue its special obligation bonds to finance the cost of
construction of the Downtown Streetcar Project (the “Project”); and
Project is a priority of the Council and, as such, the Council desires to
proceed with the issuance of bonds as soon as practicable; NOW, THEREFORE,
BE IT ORDAINED
BY THE COUNCIL OF KANSAS CITY:
Section 1. That
the Director of Public Works is hereby authorized to execute a $17,982,000.00
agreement with CAF USA, Inc. to furnish the City with four (4) CAF Urbos 3 Low
Floor Streetcar vehicles, special tools, and spare parts for Project No.
89022000 – Downtown Streetcar Transit from funds appropriated to Account No.
AL-3428-898044-B-89022000. A copy of the agreement is on file in the
Public Works Department.
Section 2. That
the Director of Public Works is hereby authorized to amend the agreement and
expend up to an additional $950,000.00 without additional Council approval.
Section 3. That
the Council does hereby express its intention to provide for the financing of
the Downtown Streetcar Project, and directs that funding therefore be affected
through the issuance of the City’s special obligation bonds, in an approximate
principal amount not to exceed $75,000,000.00 to provide funds to pay the cost
of the Project.
Section 4. That
the Council hereby directs the City Manager to proceed with the issuance of the
bonds prior to the end of Fiscal Year 2013-14 to finance the Project
understanding that if revenues from the Downtown Streetcar Transportation
Development District are unavailable to pay principal and interest on the
bonds, the Council agrees to commit a portion of its Capital Improvements Sales
Tax in an approximate amount of $7,000,000 per year to cover debt service for
the life of the bonds and, together with amounts already committed from the
Public Mass Transportation sales tax, to cover operating expenses of the
Project. In the event the Capital Improvement Sales Tax is not renewed during
the life of the bonds, the City Council will commit to provide funding from
other general municipal resources.
Section 5. That
the revenue in the following accounts of Fund 3428, Series 2013A Special
Obligation Fund, is hereby estimated in the following amounts:
Streetcar $ 1,300,000.00
from Sale of Bonds 32,000,000.00
Section 6. That
the sum of $69,300,000.00 is hereby appropriated from the Unappropriated Fund
Balance of Fund No. 3428, Series 2013A Special Obligation Fund, to the
Transit System $69,300,000.00
Section 7. That
the Council does hereby authorize and direct that the financing arrangements
referred to in this ordinance and the negotiation of the financial terms and
other provisions of such arrangements be developed by the Director of Finance
and City Attorney for presentation to and approval by the Council.
Section 8. 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 ordinance with
respect to the Projects with the proceeds of bonds expected to be issued by the
City. The maximum principal amount of bonds expected to be issued for the
Projects is not to exceed $75,000,000.00. This constitutes a declaration of
official intent under Treasury Regulation 1.150-2.
Section 9. That
this ordinance, relating to the design, repair, maintenance or construction of
a public improvement, is recognized as an emergency measure within the
provisions of Section 503(a)(3)(D) of the City Charter and shall take effect in
accordance with that section.
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.
as to form and legality: