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Legislation #: 130817 Introduction Date: 10/17/2013
Type: Ordinance Effective Date: none
Sponsor: COUNCILMEMBER JOHNSON
Title: 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.

Legislation History
DateMinutesDescription
10/17/2013 Filed by the Clerk's office
10/17/2013 Referred to Transportation & Infrastructure Committee
10/24/2013 Do Pass
10/24/2013 Assigned to Third Read Calendar
10/31/2013 Councilmember Johnson (Second by Taylor) Move to Amend
10/31/2013 Passed as Substituted and Amended

View Attachments
FileTypeSizeDescription
130817.pdf Authenticated 247K Authenticated
130817 Fiscal Note.pdf Fiscal Note 14K Fiscal Note
130817 Fact Sheet.pdf Fact Sheet 117K Fact Sheet

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ORDINANCE NO. 130817, AS AMENDED

 

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.

 

WHEREAS, after 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

 

WHEREAS, the 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

 

WHEREAS, the City of Cincinnati has assigned to City the options for four (4) Streetcar Vehicles and CAF has consented to such assignment; and

 

WHEREAS, the City expects to receive federal grants in the amount of $37,300,000 to cover certain Project costs; and

 

WHEREAS, the City expects to issue its special obligation bonds to finance the cost of construction of the Downtown Streetcar Project (the “Project”); and

 

WHEREAS, the 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:

 

AL-3428-120000-476365 CMAQ Streetcar $ 1,300,000.00

AL-3428-120000-478275 STP Streetcar 16,000,000.00

AL-3428-120000-476429 TIGER Streetcar 20,000,000.00

AL-3428-120000-590000 Proceeds from Sale of Bonds 32,000,000.00

TOTAL $69,300,000.00

 

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 following account:

 

AL-3428-898044-B-89022000 Downtown Streetcar

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.

 

 

___________________________________

Randall J. Landes

Director of Finance

 

Approved as to form and legality:

 

 

___________________________________

Nelson V. Munoz

Assistant City Attorney