FY2010-03 KHS Bond1 Introduced by: Manager Gifford
2 Requested by: School Board /Assembly
3 Drafted by: Finance Director /Bond Counsel
4 Introduced on: 07/16/2009
5 Public Hearing: 08/06/2009
6 Amended: 08/06/2009
7 Adopted: 08/06/2009
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9 KODIAK ISLAND BOROUGH
10 ORDINANCE NO. FY2010 -03
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12 AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ASSEMBLY
13 AUTHORIZING THE BOROUGH TO ISSUE GENERAL OBLIGATION BONDS
14 IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $76,310,000
15 TO FINANCE THE PLANNING, DESIGN AND CONSTRUCTION OF SCHOOL
16 AND RELATED CAPITAL IMPROVEMENTS IN THE BOROUGH INCLUDING WITHOUT
17 LIMITATION THE RECONSTRUCTION AND RENOVATION OF THE KODIAK HIGH
18 SCHOOL, AND TO SUBMIT THE QUESTION OF THE ISSUANCE OF SUCH BONDS TO
19 THE QUALIFIED VOTERS OF THE BOROUGH AT THE OCTOBER 6, 2009 REGULAR
20 BOROUGH ELECTION
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22 WHEREAS, under the provisions of AS 29.47.190, a municipality may incur general obligation
23 debt only after a bond authorization ordinance is approved by a majority of those voting on the
24 question at a regular or special election; and
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26 WHEREAS, educational requirements have changed since Kodiak High School was originally
27 constructed in 1966 as a regional education center; and
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29 WHEREAS, Kodiak High School's design shortfalls were recognized and multiple remodeling
30 projects have been completed to bring the facility into code compliance; and
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32 WHEREAS, the last addition of vocational or academic space to Kodiak High School occurred
33 in 1972; and
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35 WHEREAS, in the late 1980s enrollment at Kodiak High School grew beyond 500 students
36 and a four -phase reconstruction project began; and
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38 WHEREAS, the fourth phase of the above project, which would have addressed needed
39 additional academic instructional space, was never started; and
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41 WHEREAS, enrollment at Kodiak High School has soared from 550 students to as high as
42 850 over the past twenty years and is forecasted to remain at approximately 800 students into
43 the foreseeable future; and
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45 WHEREAS, enrollment projections demonstrate a continued enrollment of 200 or more
46 students above the capacity of the existing Kodiak High School educational facility; and
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48 WHEREAS, providing the space that currently is needed for Kodiak High School instruction
49 requires the use of community schools facilities, auditorium space and rented space, as well as
50 overcrowding of the existing high school facilities; and
Kodiak Island Borough Ordinance No. FY2010 -03
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52 WHEREAS, the instructional space available for Kodiak High School does not support the
53 instructional programs which are needed to prepare our high school students for success in the
54 world marketplace; and
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56 WHEREAS, the current state debt service reimbursement plan provides that the State of
57 Alaska will reimburse the Borough for not less than sixty percent (60 %) of debt service on the
58 eligible portion of bonds authorized by the qualified voters of the Borough on or after October 1,
59 2006 but before November 30, 2010, to pay costs of school construction, additions to schools,
60 and major rehabilitation projects; and;
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62 WHEREAS, the Board of Education and Borough Assembly have commissioned an architect
63 to fully evaluate reconstruction options that support the kind of programs necessary for Kodiak
64 High School to fully meet the educational expectations defined by our community; and
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66 WHEREAS, the conceptual process has undergone two years of refinement; and
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68 WHEREAS, the educational facilities and space survey identified that a substantial remodel
69 and new expansion of Kodiak High School will meet instructional space needs in grades K -
70 throughout our community; and
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72 WHEREAS, the Kodiak Island Borough School District's educational mission is severely
73 compromised by facility limitations at Kodiak High School; and
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75 WHEREAS, the Board of Education believes the District would be best served by all District -
76 wide services being congregated in renovated space in the existing Kodiak High School
77 building; and
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79 WHEREAS, public feedback since the first bond election in 2008 has yielded a more cost -
80 effective design for the renovation and expansion of Kodiak High School; and
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82 WHEREAS, funding for further architectural design work and cost estimation for the
83 renovation and expansion of Kodiak High School depends on voter approval of a bond
84 ordinance for the project; and
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86 WHEREAS, the School District has identified grants and industry-based tax incentive
87 programs which could fund millions of dollars towards the Borough's debt service for
88 construction of Kodiak High School, but for which an application can be submitted only after a
89 bond ordinance is approved; and
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91 WHEREAS, the Borough and School District will continue to seek and apply for additional
92 grants and reimbursement options to reduce the debt service cost of the renovation and
93 expansion of Kodiak High School; and
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95 WHEREAS, $4,490,000 in proceeds of Borough school bonds previously issued for school
96 repair and replacements projects is available for the renovation of Kodiak High School; and
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98 WHEREAS, the Borough views the school and related capital improvements authorized
99 herein as necessary and beneficial to the community;
100
Kodiak Island Borough Ordinance No. FY2010 -03
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101 NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND
102 BOROUGH THAT:
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104 Section 1: This ordinance is not of a general or permanent nature and shall not become a
105 part of the Kodiak Island Borough Code of Ordinances.
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107 Section 2: It is hereby determined to be for a public purpose and in the public interest of the
108 Borough to incur general obligation bonded indebtedness in an amount not to
109 exceed Seventy Six Million Three Hundred and Ten Thousand Dollars
110 ($76,310,000) for the purpose of paying the cost of planning, design,
111 construction, furnishing and equipping of school and related capital
112 improvements in the Borough, including without limitation additions to Kodiak
113 High School, renovation of Kodiak High School for instructional and School
114 District administrative space, and demolition of the Business
115 Department/Learning Center.
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117 Section 3: The Borough is authorized to borrow the sum of Seventy Six Million Three
118 Hundred and Ten Thousand Dollars ($76,310,000) to finance the capital
119 improvements described in Section 2, and the borrowing shall be evidenced by
120 the issuance of general obligation bonds of the Borough; provided that bonds
121 may not be issued for any project unless the project is eligible for debt service
122 reimbursement by the State of Alaska. The full faith and credit of the Borough
123 are pledged for payment of the principal of and interest on the bonds, and ad
124 valorem taxes upon all taxable property in the Borough shall be levied without
- -- 125 limitation as to rate or amount to pay the principal of and interest on the bonds
126 when due.
127
128 Section 4: The Borough shall submit the following proposition to the qualified voters of the
129 Borough at the October 6, 2009 regular Borough election. The proposition must
130 receive an affirmative vote from a majority of the qualified voters voting on the
131 question to be approved.
132
133 PROPOSITION NO. 1
134 GENERAL OBLIGATION BONDS - $76,310,000 - KODIAK HIGH SCHOOL
135
136 Shall the Kodiak Island Borough incur debt and issue general
137 obligation bonds in an amount not to exceed Seventy Six Million
138 Three Hundred and Ten Thousand Dollars ($76,310,000) for the
139 purpose of paying the cost of planning, design, construction,
140 furnishing and equipping of school and related capital
141 improvements in the Borough, including without limitation the
142 projects described below?
143
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170
Project Estimated Cost
Additions to Kodiak High School $ 44,270,000
Renovate existing Kodiak High School 35,210,000
Renovate part of Kodiak High School
for School District Administraion 1,100,000
Demolish Existing Business Department
and Learning Center 220,000
Total 80,800,000
Less available Funds in other projects
KHS Exterior Insulation and Window Replacement (590,000)
KHS Voc Ed Renovation & Pool Reclamation (3,900,000)
Total deductions (4,490,000)
Total amount of bond issue $ 76,310,000
144
145 The projects are expected to qualify for not less than 60% State
146 debt service reimbursement, funding for which is subject to annual
147 appropriation. The projects will be phased to limit disruption to the
148 education of students, and bonds will be sold only as needed to
149 pay project costs. If the State fully funds the debt service
150 reimbursement program, the average annual debt service payable
151 by the Borough after State reimbursement, is estimated to be
152 $2,108,152 $2,409,317. This amount of debt service may require
153 an additional annual property tax levy of $577 $660 per $250,000
154 of assessed value, or its equivalent. This example of a property
155 tax levy is provided for illustrative purposes only.
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157 If additional funding becomes available for the projects from
158 grants or other sources, only enough bonds to finish the projects
159 will be sold.
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161 The bonds shall be secured by a pledge of the full faith and credit
162 of the Borough. (Ordinance No. FY 2010 -03)
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164 Section 5: The proposition shall be printed on a ballot which may set forth other general
165 obligation bond propositions, and the following words shall be added as
166 appropriate next to an oval provided for marking the ballot for voting by hand or
167 machine:
168 PROPOSITION NO. 1
O YES
O NO
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171 Section 6:
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187 ATTEST:
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Sections 2 and 3 of this ordinance shall become effective only if the proposition
described in Section 4 is approved by a majority of the qualified voters voting on
the proposition at the October 6, 2009 regular Borough election. The remaining
sections of this ordinance shall become effective upon adoption by the Kodiak
Island Borough Assembly.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS SIXTH DAY OF AUGUST, 2009
192 Nova M. Javier, MMC, Borough Clerk
KODIAK ISLAND BOROUGH
ome M. Selby, Borough May
Jd
Kodiak Island Borough Ordinance No. FY2010 -03
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