ORDINANCE NO. 260730
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Sponsor: Director of Finance Department
Authorizing the Director of Finance to execute Master Equipment Lease/Purchase Agreements with Banc of America Public Capital Corp (“BAPCC”) to provide funds for the acquisition, installation and construction of various real property, capital equipment and other personal property and to execute any and all documents and agreements necessary for the transactions under one or more master lease purchase agreements; authorizing the Director of Finance to amend and extend the Agreements; authorizing the City Attorney to contract with Kutak Rock LLP to serve as Lease Counsel; and waiving the contract solicitation and Article IV, Chapter 3, requirements otherwise set out in the Code of Ordinances.
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WHEREAS, the City requires the use of real property, capital equipment and other personal property, including without limitation software (collectively, “Leased Property”), for the efficient execution of the responsibilities of various departments; and
WHEREAS, it is essential that the City have the ability to acquire, install and construct the Leased Property in a timely manner in order to improve the efficiency, effectiveness and control of the City; and
WHEREAS, the City previously issued a Request for Proposal No. EV2752 soliciting proposals to provide master lease purchase agreements, and the City selected BAPCC as the best proposal; and
WHEREAS, the City needs to ensure continuity with the City’s existing lease-purchase financing program; and
WHEREAS, the master lease structure involves specialized financing terms and established legal provisions that will involve increased time for a competitive solicitation process; and
WHEREAS, conducting a full solicitation may increase costs and delay essential services or capital projects; and
WHEREAS, utilizing the current framework provides administrative efficiency, maintains consistency with prior financings, and allows the City to meet time-sensitive capital funding needs under favorable, previously negotiated credit terms; and
WHEREAS, pursuant to Section 3-35(b)(5), the City Council finds it is in the best interest of the City to waive the solicitation requirements and to award the master lease purchase agreements contract to BAPCC and to have Kutak Rock LLP to serve as Lease Counsel; and;
WHEREAS, funds to pay for the acquisition, installation and construction of the Leased Property can be provided by one or more master lease purchase agreements, with lease schedules thereunder the payment of which lease schedules will be made by appropriations in the various departmental budgets over two-to-ten-year periods; and
WHEREAS, the master lease purchase agreements will allow the City to finance the capital property needs of various departments in a timely manner; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That the Director of Finance is authorized to execute Master Equipment Lease/Purchase Agreements with Banc of America Public Capital Corp (“BAPCC”) that BAPCC or a designee thereof provide financing under a Master Lease/Purchase Agreement structure for the purpose of paying the costs of the acquisition, installation and construction of various Leased Property, pursuant to one or more Master Lease/Purchase Agreements in substantially the form of the Master Equipment Lease/Purchase Agreement referenced under (a) below made available for inspection by the Council at the time this ordinance is passed, with such changes therein as shall be approved by the Director of Finance, including but not limited to such changes approved by the Director of Finance as may be appropriate to modify the form of Master Equipment Lease/Purchase Agreement referenced under (a) below to provide for use by the general municipal revenue departments for real property or personal property; under (b) through (e) to provide for use of the water system, sewer system; stormwater system or aviation system and to purchase Leased Property consisting of real property or personal property:
(a) Master Equipment Lease/Purchase Agreement (General Municipal Revenues Lease (which includes repayment from general municipal revenues or any other legally available source)), the proceeds of which will be used to purchase Leased Property consisting of personal property, and if applicable real property, for general City uses, other than for use by the water system, sanitary sewer system or aviation system.
(b) Master Equipment Lease/Purchase Agreement (Water Fund Lease), the proceeds of which will be used to purchase Leased Property consisting of personal property, and if applicable real property, for use by the water services department, and will be payable only from net revenues of the City's water system.
(c) Master Equipment Lease/Purchase Agreement ( Sewer Fund Lease), the proceeds of which will be used to purchase Leased Property consisting of personal property, and if applicable real property, for use by the water services department, and will be payable only from net revenues of the City's y sewer system.
(d) Master Equipment Lease/Purchase Agreement (Stormwater Fund Lease), the proceeds of which will be used to purchase Leased Property consisting of personal property, and if applicable real property, for use by the water services department, and will be payable only from net revenues of the City's stormwater system.
(e) Master Equipment Lease/Purchase Agreement (Aviation Fund Lease), the proceeds of which will be used to purchase Leased Property consisting of personal property, and if applicable real property, for use by the aviation department, and will be payable only from net revenues of the City's aviation system.
Section 2. That the Director of Finance is authorized to amend Master Equipment Lease/Purchase Agreements with BAPCC and to exercise the City’s five (5) one (1) year renewal options without additional Council authorization. Any lease schedule of property financed under a master lease purchase agreement during any such term shall remain in force and effect in accordance with its terms.
Section 3. That the Director of Finance is authorized to execute, deliver and file in the name of the City, the master lease purchase agreements and any and all documents and agreements necessary to complete such transactions, including, without limitation and when appropriate, escrow trust agreements, lease schedules of property and certificates related to the master lease purchase agreements.
Section 4. That the City will, and the officials and agents of the City are hereby authorized and directed to, take such actions, expend such funds and execute such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this ordinance and to carry out, comply with and perform the duties of the City with respect to the master lease purchase agreements and the other documents authorized or approved hereby and the Leased Property.
Section 5. That the City Attorney is authorized to contract with Kutak Rock LLP to serve as Lease Counsel for the City in connection with the master lease purchase agreements and financings of Leased Property thereunder.
Section 6. That pursuant to Section 3-35(b)(5) and Section 3-437(b), Code of Ordinances, the Council hereby determines that it is in the best interests of the City to waive the contract solicitation and Article IV, Chapter 3 requirements otherwise set out in the Code of Ordinances as to the agreements authorized herein.
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Approved as to form:
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James M. Brady
Assistant City Attorney