ORDINANCE NO. 230804
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Sponsor: Director of the Finance Department
Authorizing the Director of Finance to accept a proposal of Banc of America Public Capital Corp. ("BAPCC") to finance the acquisition of thirteen ambulances and equipment for the Fire Department (Project); estimating revenue and appropriating $4,999,002.68 in Fund No. 3230, the Equipment Lease Capital Acquisition Fund; authorizing the execution of any and all documents and agreements necessary for the financing; designating requisitioning authorities; authorizing the Director of Finance to close project accounts upon completion; approving lease counsel; and declaring the intent of the City to reimburse itself from the lease purchase proceeds for certain expenditures.
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WHEREAS, on June 2, 2020, the voters approved a one-quarter cent (1/4 cent) increase in the Fire Sales Tax, raising the tax from one-quarter cent (1/4 cent) to one-half cent (1/2 cent) for the purpose of meeting the capital needs of the Fire Department. The Fire Department has determined that the replacement of the current fleet of Ambulances is of high priority; and
WHEREAS, the Fire Department plans on replacing twelve ambulances in its current fleet on an annual basis, thus establishing a fleet lifecycle of sixty ambulances over five years. The first twelve ambulances replaced were those with the highest mileage and that contained the most outdated equipment; and
WHEREAS, the City financed the purchase of twelve ambulances pursuant to Ordinance No. 200499 passed by City Council on July 9, 2020 and twelve ambulances pursuant to Ordinance No. 210534 passed by City Council on June 24, 2021 and twelve ambulances pursuant to Ordinance No. 220727 passed by City Council on August 25, 2022; and
WHEREAS, the City desires to finance the fourth purchase cycle of thirteen ambulances through Conrad to replace the current twelve ambulance fleet plus one ambulance replacement from Ordinance No. 200499; and
WHEREAS, the Fire Department will make the purchases through the Mid America Council of Public Purchasing (MACPP) cooperative purchasing contracts, vehicle bid system; and
WHEREAS, the cost of acquisition and implementation of the Project is expected to be financed under the Master Lease Purchase Agreement ("Lease") with BAPCC by up to one (1) draw upon the Lease; and
WHEREAS, the payment of scheduled debt service payments on the draws made under the Lease will be made by annual appropriation of monies from the City's General Municipal Revenues over a successive five (5) year period with the Fire Sales Tax - Capital being the primary source of repayment; 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 BAPCC for the financing of the Project through up to one draw upon the Lease in an approximate principal amount not to exceed $4,999,002.68.
Section 2. That the Director of Finance is authorized to execute, deliver and file in the name of the City, the Lease 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 Lease Proceeds $4,999,002.68
Section 4. That the sum of $4,999,002.68 is hereby appropriated from the Unappropriated Fund Balance of Fund No. 3230, the Equipment Lease Capital Acquisition Fund. to the following accounts:
AL-3230-237701-E-23FAMB23 Ambulances $4,991,002.68
AL-3230-129620-G Cost of Issuance 8,000.00
TOTAL $4,999,002.68
Section 5. That the Chief of the Fire Department is hereby designated as requisitioning authority for Account No. AL-3230-237701 and that the Director of Finance is hereby designated as requisitioning authority for Account No. AL-3230-129620.
Section 6. That the Director of Finance is hereby authorized to close project accounts, encumbrances and retainage related to the accounts in Section 4, and return the unspent portion to the Fund Balance from which it came upon the earliest of: (i) Project's completion; (ii) final maturity of financing; or (iii) five years after issuance.
Section 7. That the City approves Kutak Rock LLP to serve as Lease Counsel for the City in connection with the financing of the Project.
Section 8. That the City hereby declares its official 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 Project with the proceeds of the lease expected to be drawn from the Lease. The maximum principal of amount of lease proceeds for the Project expected to be financed under the Lease is $4,999,002.68. This constitutes a declaration of official intent under Treasury Regulation Section 1.150-2.
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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.
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Tammy L. Queen
Director of Finance
Approved as to form:
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Samuel Miller
Assistant City Attorney