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Legislation #: 061029 Introduction Date: 9/21/2006
Type: Ordinance Effective Date: none
Sponsor: None
Title: Authorizing the Director of Finance to accept the proposal of Koch Financial Corporation to finance the acquisition of two Water Department CO2 storage tanks to be used by the Water Services Department, in an approximate principal amount not to exceed $385,000.00; executing any and all documents and agreements necessary for the financing under a Master Lease Purchase Agreement; estimating and appropriating lease proceeds in the amount of $385,000.00 and reappropriating transferred lease proceeds in accounts as specifically set forth in the ordinance; 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.

Legislation History
DateMinutesDescription
9/20/2006 Filed by the Clerk's office
9/21/2006 Referred to Finance and Audit Committee
9/27/2006 Hold On Agenda (10/11/2006)
10/11/2006 Advance and Do Pass, Debate
10/12/2006 Passed

View Attachments
FileTypeSizeDescription
0601029.pdf Authenticated 114K ordinance
Approp _ Admin CO2 storage tanks v1.xls Other 334K Approp & Admin
fiscal notes for fact sheet-CO2 storage tanks ver1.xls Fiscal Note 42K Fiscal Note
CO2 Storage tank Fact Sheet.xls Fact Sheet 41K Fact Sheet

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ORDINANCE NO. 061029

Authorizing the Director of Finance to accept the proposal of Koch Financial Corporation to finance the acquisition of two Water Department CO2 storage tanks to be used by the Water Services Department, in an approximate principal amount not to exceed $385,000.00; executing any and all documents and agreements necessary for the financing under a Master Lease Purchase Agreement; estimating and appropriating lease proceeds in the amount of $385,000.00 and reappropriating transferred lease proceeds in accounts as specifically set forth in the ordinance; 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 Water Services Department requires the acquisition of two Water Department CO2 storage tanks (the Project) for the efficient execution of its responsibilities;

WHEREAS, the cost of purchase of the Project is expected to be reimbursed by a draw upon a Master Lease Purchase Agreement with Koch Financial Corporation (Koch), the payment of which will be made by annual appropriations of the Surplus Account of the Water Fund subordinate to senior lien revenue bonds over a five-year (5) period; 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 Koch for financing the Project through a draw upon the Master Lease Purchase Agreement in an approximate principal amount not to exceed $385,000.00.

Section 2. That the Director of Finance is authorized to execute, deliver and file in the name of the City, the Master Lease Purchase Agreement 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. $385,000.00

Section 4. That the sum of $385,000.00 is hereby appropriated from the Unappropriated Fund Balance of Fund No. 3230, the Equipment Lease Capital Acquisition Fund, to the following account:

AL-3230-129998-X Transfer to Fund No. 8010 $385,000.00


Section 5. That the revenue in the following account of Fund No. 8010, the Water Fund, is hereby estimated in the following amount: 

07-8010-120000-503230 Transfer from Fund No. 3230 $385,000.00

Section 6. That the sum of $385,000.00 is hereby appropriated from the Unappropriated Fund Balance of Fund Number 8010, the Water Fund, to the following account:

 

07-8010- 802110-E Plant Equipment $385,000.00

Section 7. That the Director of Water Services Department is hereby designated as requisitioning authority for Account No. 07-8010-802110-E and the Director of Finance is hereby designated requisitioning authority for Account No. AL-3230-129998-X.

Section 8. That the Director of Finance is hereby authorized to close the Project accounts upon project completion and return the unspent portion of the appropriation to the Fund Balance from which it came.

Section 9. That the City hereby declares its official intent to reimburse itself for certain expenditures made within 60 days prior to or on and after the date of this ordinance with respect to the purchase of the Project with the proceeds of lease purchase expected to be drawn from the master lease purchase agreement. The maximum principal amount expected to be financed under this lease purchase is $385,000.00. 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.

 

 

___________________________________

Debra R. Hinsvark

Director of Finance

 

Approved as to form and legality:

 

 

___________________________________

Heather Brown

Assistant City Attorney