ORDINANCE NO. 070931
Approving the receipt of a loan
from the Missouri Department of Natural Resources to finance a portion of the
costs of stormwater projects of the City of Kansas City, Missouri, and
authorizing certain other actions related thereto.
WHEREAS, the
City intends to undertake projects for the construction, improvement, repair,
or rehabilitation of the Citys stormwater sewers, including connected and
related appurtenances and facilities and extensions, improvements, additions
and enlargements made or acquired by the City (the Projects); and
WHEREAS, the
City applied for 2007 grant and loan funding from the Missouri Department of
Natural Resources (MDNR) to finance a portion of the costs of the Projects;
and
WHEREAS, on
March 2, 2007, MDNR awarded the City a grant in the amount of $373,573.00, and
on April 17, 2007, MDNR reserved loan funds in the amount of $517,337.00; and
WHEREAS, on
March 22, 2007, the City Council adopted Ordinance No. 070324 which established
the 2007 Stormwater Grant Fund, estimated and appropriated loan and grant
proceeds in the amount of $890,910.00, authorized the Director of Water
Services to enter into grant and loan agreements, designated requisitioning
authority, authorized the Director of Finance to close project accounts upon
completion, and recognized an emergency; and
WHEREAS, the
appropriation to the MDNR Stormwater Loan Fund pursuant to Ordinance No. 070324
lapsed at the end of the Citys fiscal year and, therefore, must be reinstated
as provided herein; and
WHEREAS, the
City wishes to obtain loan financing in the amount of $517,300.00 (the MDNR
Loan) to provide funds for the Projects; and
WHEREAS,
the Council supports the development of loan financing to provide funds for the
Projects; and
WHEREAS, the
City has selected the firms of Kutak Rock LLP, and the Hardwick Law Firm, LLC
to act as counsel in the connection with the Citys receipt of loans to finance
the Projects; and
WHEREAS, it is
the desire and intent of the Council to proceed with such selection and those
actions necessary to provide for such loan financing through the entering of a
Financing Agreement with MDNR; NOW, THEREFORE,
BE IT ORDAINED
BY THE COUNCIL OF KANSAS CITY:
Section 1. That
the Council does express its intention to seek loan financing from MDNR on
behalf of the State to provide funds for the construction of the Projects.
Section 2. That
the Council does hereby authorize and direct that the financing arrangements
referred to in this ordinance including the negotiation of the financial terms
and other provisions be developed by the Director of Finance.
Section 3. That
the revenue in the following account of Fund No. 8200, the Stormwater Fund, is
hereby estimated in the following amount:
08-8200-800000-590350 07
MDNR Stormwater Loan $517,300.00
Section 4. That the sum of $517,300.00 is hereby
appropriated from the Unappropriated Fund Balance of Fund No. 8200, the
Stormwater Fund, to the following accounts:
08-8200-807771-B 2007
Stormwater Loan $453,920.00
08-8200-129620-B Loan
Expense 11,650.00
08-8200-809611-B Debt
Service Reserve Fund 51,730.00
TOTAL $517,300.00
Section 5. That
the sum of $25,000.00 is hereby appropriated from the Unappropriated Fund
Balance of Fund No. 8200, the Stormwater Fund, to the following account:
08-8200-809600-G Debt
Service $ 25,000.00
Section 6. That the City declares its intent to
reimburse itself for certain expenditures made with respect to the Projects
with the proceeds of the MDNR Loan. The maximum principal amount of loan proceeds expected to be
obtained for these Projects is not to exceed $600,000.00. This constitutes a
declaration of official intent under Treasury Regulation 1-150-2.
Section
7. Ordinance No. 070324 is hereby amended by deleting Section 6 and enacting
in its place a new section to read as follows:
Section
6. That the Director of Water Services is hereby authorized to enter into grant
agreements relating to the Projects and to accept these funds and the Director
of Finance is hereby authorized to enter into the Financing Agreement, the
Escrow Trust Agreement and related documents with the Missouri Department of
Natural Resources and others in connection with the such loan.
Section 8. The
Director of Finance is authorized to execute the Financing Agreement and Escrow
Deposit Agreement, in substantially the form attached to this Ordinance, and
related documents to reflect the Stormwater Loan with interest at a rate established
as thirty percent (30%) of the weekly Bond Buyer 25 Revenue Bond Index at the
time of closing.
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 Director of Water Services Department is hereby designated as
requisitioning authority for Account Numbers 08-8200-807771, 08-8200-809611 and
08-8200-809600 and that the Director of Finance is hereby designated as requisitioning
authority for Account No. 08-8200-129620.
_______________________________________________
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
A. Brown
Assistant City Attorney