12-10669 HVAC Lease Purchase Agreement7
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Summary published in the Salina Journal on December21O, 2012.
Published on the City of Salina's website from December 12, 2012 to January 4, 2013
ORDINANCE NO. 12-10669
AN ORDINANCE AUTHORIZING
ENTER INTO A MASTER TAX-EXEMPT
PROCEEDS OF WHICH WILL BE USED
CONSTRUCTING AND INSTALLING IM
THE CITY OF SALINA, KANSAS, TO
LEASE PURCHASE AGREEMENT, THE
TO PAY THE COSTS OF ACQUIRING,
'ROVEMENTS FOR THECITY/COUNTY
BUILDING; AND TO APPROVE THE EXECUTION OF CERTAIN DOCUMENTS IN
CONNECTION THEREWITH.
WHEREAS, under the constitution and statutes of the State of Kansas, particularly Article
12, §5 of the Kansas Constitution and K.S.A. 12-101, the City of Salina, Kansas (the "City") is
empowered to enter into certain leases, lease purchase agreements and installment purchase
agreements for the lease and/or acquisition of property; and
WHEREAS, K.S.A. 10-1116b provides in pertinent part that nothing in the provisions of
K.S.A. 10-1101 et seg. (Kansas Cash Basis Law) shall prohibit a municipality from entering into a
lease agreement, with or without an option to buy, or an installment -purchase agreement, if any of
such agreements specifically state that the municipality is obligated only to pay periodic payments or
monthly installments under the agreement as may lawfully be made from (a) funds budgeted and
appropriated for that purpose during such municipality's current budget year or (b) funds made
available from any lawfully operated revenue producing source; and
WHEREAS, the City and the Saline County, Kansas (the "County") have immediate need
for an HVAC system for the City/County Building (the "Improvements") to further their
governmental and public purposes as contemplated by law, but do not have sufficient moneys on
hand legally available to purchase the Project (as defined herein) for their use; and
WHEREAS, the governing body of the City has determined it is in the best interests of the
City for the City and County to jointly enter into a Master Tax -Exempt Lease Purchase Agreement
with U.S. Bancorp Government Leasing and Finance, Inc. to finance the Improvements; and
WHEREAS, in order to facilitate the foregoing and to pay the cost thereof, it is necessary
and desirable for the City to take the following actions:
1. Enter into an annually renewable Master Tax -Exempt Lease Purchase Agreement
(the "Lease") with U.S. Bancorp Government Leasing and Finance, Inc. ("USBGLF"), as lessor,
and the City and County, as lessee, pursuant to which the City and County will jointly lease the
Improvements on a year-to-year basis from USBGLF with an option to purchase the USBGLF 's
interest in the Improvements, a form of which has been submitted to the governing body for
review;
2. Enter
into an Escrow Agreement
(the "Escrow Agreement") with
U.S. Bank
National Association,
as Escrow Agent, under
which funds will be escrowed
to pending
disbursement.
The Lease and the Escrow Agreement are referred to together herein as the "City Documents."
THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY
OF SALINA, KANSAS, AS FOLLOWS:
Section 1. Authorization and Approval of City Documents.
(a) The City Documents are hereby approved in substantially the forms submitted to and
reviewed by the governing body on the date hereof, with such changes therein as shall be
approved by the Mayor, the Mayor's execution of the City Documents to be conclusive evidence
of such approval.
(b) The obligation of the City to pay Lease Payments (as defined in the Lease) under the
Lease is subject to annual appropriation and shall constitute a current expense of the City and shall
not in any way be construed to be an indebtedness or liability of the City in contravention of any
applicable constitutional or statutory limitation or requirement concerning the creation of
indebtedness or liability by the City, nor shall anything contained in the Lease constitute a pledge
of the general tax revenues, funds or moneys of the City, and all provisions of the Lease shall be
construed so as to give effect to such intent.
(c) The Mayor is hereby authorized and directed to execute and deliver the City
Documents on behalf of and as the act and deed of the City. The Clerk and the Deputy Clerk, and
each of them, are hereby authorized to affix the City's seal to the City Documents and attest said
seal.
Section 2. Further Authority. The City shall, 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 City Documents, the other documents authorized or approved hereby and the
Project.
Section 3. Publication of Summary of Ordinance. The officials and agents of the City
are directed to publish a summary of this Ordinance in the Salina Journal in the following format:
Ordinance No. 12-10669 Summary
On December 19, 2012, the City of Salina, Kansas, passed Ordinance No. 12-10669. The
ordinance authorized the City of Salina, Kansas to enter into a Master Tax -Exempt Lease Purchase
Agreement, the proceeds of which will be used to pay the costs of acquiring, constructing and
installing improvements for the City/County Building. A complete copy of the ordinance is
available at www.salina-ks.sov or in the office of the city clerk, 300 W. Ash Street, free of charge.
This summary is certified by the city attorney.
Section 4. Effective Date. This Ordinance shall take effect and be in full force from and
after its passage by the governing body and publication of the Ordinance or a summary thereof in
the official newspaper of the City.
PASSED by the governing body and approved by the City Commission of the City of
Salina, Kansas, this 19'h day of December, 2012. /J
(SEAL)
ATTEST:
Shandi Wicks, CMC, Deputy City Clerk
Jennings, Mayor