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Last Published: 7/18/2017 4:55:16 PM
KANSAS CITY COUNCIL RECORD
 
Upon Roll Call the following members were present:
Present:7 - JOLIE JUSTUS, SCOTT WAGNER, DAN FOWLER, TERESA LOAR, QUINTON LUCAS, LEE BARNES JR., KEVIN MCMANUS
 

170439
Calling an election to be held on November 7, 2017, to submit to the qualified voters of the City the questions of whether to authorize the construction of a new passenger terminal at the Kansas City International Airport and to authorize the issuance and sale of airport revenue bonds in an amount not to exceed $990,000,000.00 for these aviation and aviation related purposes; directing the City Clerk to notify the responsible election authorities of the election no later than August 29, 2017; mandating and establishing a competitive bidding process for any construction; and recognizing this ordinance as having an accelerated effective date.


AIRPORT & FINANCE AND GOVERNANCE JOINT recommends "HOLD ON AGENDA (7/19/2017)"
Councilwoman Shields opened the meeting by explaining that the ordinance before the Council is to create discussion to determine what is most effective and economical for the citizens of Kanas City with regard to financing a new terminal at KCI. She stated that there is no clear framework for moving forward with public or private financing and that is what this ordinance is meant to do. Councilwoman Shields noted that it is very important that citizens know and understand that whether financing is public or private, the financing source is the same, which is the revenue generated from the airport, no General Funds will be used on this project. Either way, the citizens of Kansas City are protected. She advised that the airport has a separate rating for Moody S&P Credit Rating than the City of Kansas City as a governmental entity. Public bonds are normally at a lower percentage rate than private bonds. Randy Landes, Finance Department, discussed ballot language that could be used if this ordinance is passed on to the voters. He also stated a cheaper public bond rate is 1 factor in this project, but time, equity and cost of capital are major components that need to be considered. Once bids come in they will be fairly compared the private and public options to determine which is best. There are some charter requirements that the city must follow if public funding is chosen that private funding is not restricted too. John Green, Aviation, advised that Bond Counsel has been asked to keep the City of Kansas City in a position as not to change ownership and not jeopardize tax exempt status of the bonds. There will be a residual agreement in place that protects the city if the lease payments cannot be made; the airlines will ensure that payments is made. Public testimony was given by: Mary McMara, Joseph Mabin, John Murphy, Jim Fitzpatrick, Andy Zellers, Alicia Stephens, Pat Dujakovich, Alise Martiny, Carlos Gomez and Shelia Tracy. Speaker cards are on file in the City Clerk’s Office.
 
 Airport Committee

170463
Authorizing amendments to the legal services agreements with Husch Blackwell LLP and Wilmer Cutler Pickering Hale and Dorr LLP for the provision of legal services related to the proposed terminal modernization project; reappropriating $475,000.00 from Aviation Account No. 8300-621000-610240 into Law Department Account No. 18-1000-131506; authorizing the City Attorney to expend this sum for this purpose; and recognizing this ordinance as having an accelerated effective date pursuant to Section 503(a)(3)(C) of the Charter.


AIRPORT COMMITTEE recommends "ADVANCE AND DO PASS, DEBATE"
Cecilia Abbott, City Attorney, presented the staff report on this ordinance. Husch Blackwell was retained as legal counsel for the airport terminal modernization project. Since the time of retention the solicitation process has changed; therefore, the scope of legal services has also changed. This ordinance amends the contract by expanding the scope of services of the outside counsel and increases the city obligation. For this phase Husch Blackwell will provide the front end legal work and bring in Wilmer Hale LLP as needed in recognition of their national expertise. The moneys for this contract are coming from the aviation account and no general funds are being used. Councilman Wagner expressed some concern that the retained legal counsel was selected without going through an RFP process and that there will not be a bid put out for legal services for this project. Councilman Fowler expressed some of the same concerns as Councilman Lucas noted that the amount in the contract is an up to amount and not an amount that has to be spent. Also that process by which this legal counsel has been selected is not different from other contracts that have been bought before the council.
Ayes: 4 - Justus, Fowler, Loar, Lucas
Nays: 0
 
 1. There may be a general discussion regarding current Airport & Finance and Governance Committee issues.
 
 2. Pursuant to the following subsections of Section 610.021 of the Revised Statutes of Missouri, there may be a closed session to discuss: (1) legal matters, litigation, or privileged communications with attorneys, pursuant to subsection 1; (2) real estate, pursuant to subsection 2; (3) personnel, pursuant to subsection 3 and 13; and/or (4) sealed bids or proposals, pursuant to subsection 12. (5) confidential or privileged communications with auditors, pursuant to subsection 17. (6) preparation, including discussions, for negotiations with employee groups, pursuant to subsection 9.
 
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