2004-12 General Obligation School BondsIntroduced by: Manager Carlson
Requested by: Assembly
Drafted by: Bond Counsel
Introduced: 05/20/2004
Public Hearing: 06/03/2004
Adopted: 06/03/2004
KODIAK ISLAND BOROUGH
ORDINANCE NO. 2004 -12
AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ASSEMBLY AUTHORIZING
THE BOROUGH TO ISSUE GENERAL OBLIGATION SCHOOL BONDS, 2004
SERIES A IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $9,950,000 TO
PROVIDE FUNDS FOR SCHOOL AND RELATED CAPITAL IMPROVEMENTS IN THE
BOROUGH AND TO PAY COSTS OF ISSUING THE BONDS, FIXING CERTAIN
DETAILS OF SUCH BONDS, AUTHORIZING THEIR SALE,
AND PROVIDING FOR RELATED MATTERS
WHEREAS, pursuant to Ordinance No. 2004 -03 of the Kodiak Island Borough, Alaska (the "Borough"),
adopted March 18, 2004, a question whether the Borough should issue not to exceed $2,765,000 in
general obligation bonds for the purpose of financing the planning, design and construction of school
and related capital improvements in the Borough, referred to at the special Borough election held on
April 20, 2004 as Proposition No. 1 ( "Proposition 1 "), was passed and approved; and
WHEREAS, pursuant to Ordinance No. 2004 -04 of the Kodiak Island Borough, Alaska (the "Borough"),
adopted March 18, 2004, a question whether the Borough should issue not to exceed $7,185,000 in
general obligation bonds for the purpose of financing the planning, design and const
ruction of school and related capital improvements in the Borough, referred to at the special Borough
election held on April 20, 2004 as Proposition No. 2 ( "Proposition 2 "), was passed and approved; and
WHEREAS, said election has been duly canvassed and the results thereof certified and confirmed in
accordance with law, and $2,765,000 principal amount of general obligation bonds remains unissued
under Proposition 1 and $7,185,000 principal amount of general obligation bonds remains unissued
under Proposition 2; and
WHEREAS, the Assembly finds that it is in the best interest of the Borough to plan, design and
construct the school capital improvements described in Proposition 1 as the Kodiak Middle School
Concrete Repair; Larsen Bay School Floor Repair; Kodiak High School Asbestos Removal, Floor
Covering and Pool Space Reclamation; District Wide Floor Covering Replacement; and Evacuation
Center Earthquake Evaluation, and the school capital improvements described in Proposition 2 as the
Kodiak High School Heating and Ventilation Upgrades; East School Heating and Ventilation Upgrades;
Kodiak High School Exterior Insulation and Window Replacement; Kodiak High School and Middle
School Roof Repairs; Old Harbor GymNoc -Ed Renovation; Ouzinkie Gym Renovation; and Learning
Center Renovation, (collectively, the "Project "), and to issue not to exceed $2,765,000 principal amount
of general obligation bonds referred to in Proposition 1 and $7,185,000 principal amount of general
obligation bonds referred to in Proposition 2, to pay costs of the Project and costs of issuing the bonds;
and
riate to delegate
WHERE n _ Assembly finds it i narcacani anti apppgate to each of the Borough
AS, the /'1JJGIUViY u, wo .nu. it w n •� anti - -- -- �
Manager and Borough Finance Director authority to determine the maturity amounts, interest rates and
other details of the bonds, and to determine other matters that are not provided for in this ordinance;
and
WHEREAS, there has been presented to the Borough the form of a Loan Agreement between the
Alaska Municipal Bond Bank and the Borough, which provides for the Alaska Municipal Bond Bank to
purchase the bonds on the terms and conditions set forth therein and in this ordinance, and it is in the
Kodiak Island Borough, Alaska Ordinance No. 2004 -12
Page 1 of 11
best interest of the Borough that the Borough sell the bonds to the Alaska Municipal Bond Bank under
such terms and conditions.
NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THAT:
Section 1: This ordinance is not of a general and permanent nature and shall not become a part of
the Kodiak Island Borough Code of Ordinances.
Section 2: Definitions. In addition to terms which are defined in the recitals above, the following
terms shall have the following meanings in this ordinance:
(a) "Assembly" means the Assembly of the Kodiak Island Borough, as the general
legislative authority of the Kodiak Island Borough, as the same shall be duly and
regularly constituted from time to time.
(b) "Bond" or "Bonds" means any of the "General Obligation School Bonds, 2004
Series A" of the Kodiak Island Borough, the issuance and sale of which are authorized
herein.
(c) "Bond Bank" means the Alaska Municipal Bond Bank, a public corporation of the
State of Alaska.
(d) "Bond Bank Bonds" means the General Obligation Bonds, 2004 Series C of the
Bond Bank.
(e) "Bond Register" means the registration books maintained by the Registrar, which
include the names and addresses of the Registered Owners of the Bonds or their
nominees.
(f) "Borough" means the Kodiak Island Borough, a municipal corporation of the
State of Alaska, organized as a second class Borough under Title 29 of the Alaska
Statutes.
(g) "Code" means the Internal Revenue Code of 1986, as amended from time to
time, together with all regulations applicable thereto.
(h) "Cost" or "Costs" means the cost of planning, designing, acquiring property for,
acquiring, constructing, installing and equipping the Project, including interest on the
Bonds during the period of planning, designing, acquiring property for, acquiring,
constructing, installing and equipping the Project, the cost whether incurred by the
Borough or by another of field surveys and advance planning undertaken in connection
with the Project properly allocable to the Project, the cost of acquisition of any land or
interest therein required as the site or sites of the Project or for use in connection
therewith, the cost of any indemnity and surety bonds and premiums on insurance
incurred in connection with the Project prior to or during construction thereof, all related
direct administrative and inspection expenses whether incurred by the Borough or by
another in connection with the Project prior to or during construction thereof and
allocable portions of direct costs of the Borough, legal fees, costs of issuance of the
Bonds by the Borough, including financing charges and fees and expenses of bond
counsel, financial advisors and consultants in connection therewith, the cost of any bond
insurance premium and bond ratings, the cost of audits, the cost of all machinery,
Kodiak Island Borough, Alaska Ordinance No. 2004 -12
Page 2 of 11
apparatus and equipment, cost of engineering, architectural services, designs, plans,
specifications and surveys, estimates of cost, the reimbursement of all moneys
advanced from whatever source for the payment of any item or items of cost of the
Project, and all other expenses necessary or incidental to the acquisition and
development of the Project, the financing thereof and the putting of the same in use and
operation.
(i) "Government Obligations" means obligations that are either (i) direct obligations
of the United States of America or (ii) obligations of an agency or instrumentality of the
United States of America the timely payment of the principal of and interest on which are
unconditionally guaranteed by the United States of America
(i) "Loan Agreement" means the Loan Agreement between the Borough and the
Bond Bank concerning the Bonds.
(k) "Ordinance" means this Ordinance No. 2004 -_ of the Borough.
(1) 'Registered Owner" means the person named as the registered owner of a Bond
in the Bond Register.
(m) 'Registrar" means the Borough Treasurer.
Section 3: Authorization of Bonds and Purpose of Issuance. For the purpose of providing part of
the funds required to pay the Costs of the Project, to provide for original issue discount,
if any, and to pay all costs incidental thereto and to the issuance of the Bonds, the
Borough hereby authorizes and determines to issue and sell the Bonds in the aggregate
principal amount of not to exceed $9,950,000.
Section 4: Obligation of Bonds. The Bonds shall be direct and general obligations of the Borough
and the full faith and credit of the Borough are hereby pledged to the payment of the
principal of and interest on the Bonds. The Borough hereby irrevocably pledges and
covenants that it will levy and collect taxes upon all taxable property within the Borough
without limitation as to rate or amount, in amounts sufficient, together with other funds
legally available therefor, to pay the principal of and interest on the Bonds as the same
become due and payable.
Section 5: Designation, Maturities, Interest Rates, and Other Details of Bonds. The Bonds shall be
designated "Kodiak Island Borough, Alaska, General Obligation School Bonds, 2004
Series A." The Bonds shall be in the denomination of $5,000 or any integral multiple
thereof, shall be numbered separately in the manner and with such additional
designation as the Registrar deems necessary for purposes of identification, and may
have endorsed thereon such legends or text as may be necessary or appropriate to
conform to the rules and regulations of any governmental authority or any usage or
requirement of law with respect thereto.
The Bonds shall mature in one or more years commencing no earlier than 2005 and
ending no later than 2025, with the principal amount of each maturity not exceeding
$1,000,000. The Bonds shall bear interest from their date, payable commencing on a
date on or after July 1, 2004, and semi - annually thereafter in each year. Interest will be
computed on the basis of a 360 -day year consisting of twelve 30 -day months.
Subject to Section 3 and the remainder of this section, the dated date, the principal and
Kodiak Island Borough, Alaska
Ordinance No. 2004 -12
Page 3 ofll
Section 6:
interest payment dates, the record dates for interest payments, the aggregate principal
amount, the principal amount of each maturity, and the interest rates on the Bonds shall
be determined at the time of execution of the Loan Agreement under Section 18.
Optional Redemption. The Bonds, if any, subject to optional redemption by the Borough,
the time or times when such Bonds are subject to optional redemption, the terms upon
which such Bonds may be redeemed, and the redemption price or redemption prices for
such Bonds, shall be determined at the time of execution of the Loan Agreement under
Section 18.
Section 7: Selection of Bonds for Redemption; Notice of Redemption.
(a) Selection of Bonds for Redemption. When the Bond Bank is the Registered
Owner of the Bonds, the selection of Bonds to be redeemed shall be made as provided
in the Loan Agreement. When the Bond Bank is not the Registered Owner of the Bonds,
the selection of Bonds to be redeemed shall be made as provided in this subsection (a).
If the Borough redeems at any one time fewer than all of the Bonds having the same
maturity date, the particular Bonds or portions of Bonds of such maturity to be redeemed
shall be selected by lot (or in such other manner determined by the Registrar) in
increments of $5,000. In the case of a Bond of a denomination greater than $5,000, the
Borough shall treat such Bond as representing such number of separate Bonds each of
the denomination of $5,000 as is obtained by dividing the actual principal amount of
such Bond by $5,000. In the event that only a portion of the principal amount of a Bond
is redeemed, upon surrender of such Bond at the office of the Registrar there shall be
issued to the Registered Owner, without charge therefor, for the then unredeemed
balance of the principal sum thereof, at the option of the Registered Owner, a Bond or
Bonds of like maturity and interest rate in any of the denominations authorized herein.
(b) Notice of Redemption. When the Bond Bank is the Registered Owner of the
Bonds, notice of any intended redemption of Bonds shall be given as provided in the
Loan Agreement. When the Bond Bank is not the Registered Owner of the Bonds,
notice of any intended redemption of Bonds shall be made as provided in this subsection
(b). Notice of redemption shall be mailed not less than 30 nor more than 45 days prior to
the date fixed for redemption by first class mail to Registered Owners of the Bonds to be
redeemed at their addresses as they appear on the Bond Register on the day the notice
is mailed. Notice of redemption shall be deemed to have been given when the notice is
mailed as herein provided, whether or not it is actually received by the Registered
Owners. All notices of redemption shall be dated and shall state: (1) the redemption
date; (2) the redemption price; (3) if fewer than all outstanding Bonds are to be
redeemed, the identification (and, in the case of partial redemption, the respective
principal amounts) of the Bonds to be redeemed; (4) that on the redemption date the
redemption price will become due and payable upon each such Bond or portion thereof
called for redemption, and that interest thereon shall cease to accrue from and after said
date; and (5) the place where such Bonds are to be surrendered for payment of the
redemption price, which piace of payment shall be the office of the Registrar.
Official notice of redemption having been given as aforesaid, Bonds or portions of Bonds
to be redeemed shall, on the redemption date, become due and payable at the
redemption price therein specified, and from and after such date, such Bonds or portions
of Bonds shall cease to bear interest. Upon surrender of such Bonds for redemption in
accordance with said notice, such Bonds shall be paid at the redemption price.
Installments of interest due on or prior to the redemption date shall be payable as herein
Kodiak Island Borough, Alaska Ordinance No. 2004 -12
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provided for payment of interest. Upon surrender of any Bond for partial redemption,
there shall be prepared for the Registered Owner a new Bond or Bonds of the same
maturity in the amount of the unpaid principal. All Bonds which have been redeemed
shall be canceled and destroyed by the Registrar and shall not be reissued.
Each check or other transfer of funds issued to pay the redemption price of Bonds shall
bear the CUSIP number, if any, identifying, by maturity, the Bonds being redeemed with
the proceeds of such check or other transfer.
Section 8: Form of Bond. Each Bond shall be in substantially the following form, with such
variations, omissions and insertions as may be required or permitted by this Ordinance:
UNITED STATES OF AMERICA
STATE OF ALASKA
KODIAK ISLAND BOROUGH
(A Municipal Corporation of the State of Alaska)
NO. $
GENERAL OBLIGATION SCHOOL BOND, 2004 SERIES A
REGISTERED OWNER:
PRINCIPAL AMOUNT:
The Kodiak Island Borough (the "Borough"), a municipal corporation of the state
of Alaska, hereby acknowledges itself to owe and for value received promises to pay to
the Registered Owner identified above, or its registered assigns, the principal amount
shown above in the following installments on of each of the following
years, and to pay interest on such installments from the date hereof, payable on
, 200_ and semiannually thereafter on the days of and
of each year, at the rates per annum as follows:
Principal Interest
Year Amount Rate
When this Bond is owned by the Alaska Municipal Bond Bank (the "Bond Bank "),
payment of principal and interest shall be made as provided in the Loan Agreement
between the Bond Bank and the Borough (the "Loan Agreement "). When this Bond is
not owners by the Bond Banc sa of principal and
Intll
ow no of N r iiliipol and interest on this Bond shall be
paid by check or draft mailed by first class mail to the Registered Owner as of the close
of business on the day of the month each installment payment
date; provided that the final installment of principal and interest on this Bond shall be
payable upon presentation and surrender of this Bond by the Registered Owner at the
office of the Registrar. Interest will be computed on the basis of a 360 -day year
consisting of twelve 30 -day months. Both principal of and interest on this Bond are
Kodiak Island Borough, Alaska Ordinance No. 2004 -12
Page 5 of 11
payable in lawful money of the United States of America which, on the respective dates
of payment thereof, shall be legal tender for the payment of public and private debts.
This Bond is one of the General Obligation School Bonds, 2004 Series A of the
Kodiak Island Borough, Alaska, of like tenor and effect except as to interest rate, serial
number and maturity, aggregating $ in principal amount, and
constituting Bonds authorized for the purpose of paying the cost of school and related
capital improvements in the Borough, and is issued under Ordinance No. 2004 -_ of the
Borough entitled:
AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ASSEMBLY
AUTHORIZING THE BOROUGH TO ISSUE GENERAL OBLIGATION SCHOOL
BONDS, 2004 SERIES A IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED
$9,950,000 TO PROVIDE FUNDS FOR SCHOOL AND RELATED CAPITAL
IMPROVEMENTS IN THE BOROUGH AND TO PAY COSTS OF ISSUING THE
BONDS, FIXING CERTAIN DETAILS OF SUCH BONDS, AUTHORIZING THEIR
SALE, AND PROVIDING FOR RELATED MATTERS
(the "Ordinance ").
Installments of principal of this Bond due on and after , 20_, shall be
subject to prepayment on and after , 20_, at the option of the Borough
(subject to any applicable provisions of the Loan Agreement), in such principal amounts
and from such maturities as the Borough may determine, and by lot within a maturity, at
a redemption price equal to the principal amount to be prepaid, plus accrued interest to
the date of prepayment.
This Bond is transferable as provided in the Ordinance, (i) only upon the bond
register of the Borough, and (ii) upon surrender of this Bond together with a written
instrument of transfer duly executed by the registered owner or the duly authorized
attorney of the registered owner, and thereupon a new fully registered Bond or Bonds in
the same aggregate principal amount and maturity shall be issued to the transferee in
exchange therefor as provided in the Ordinance and upon the payment of charges, if
any, as therein prescribed. The Borough may treat and consider the person in whose
name this Bond is registered as the absolute owner hereof for the purpose of receiving
payment of, or on account of, the principal or redemption price, if any, hereof and
interest due hereon and for all other purposes whatsoever.
This Bond is a general obligation of the Kodiak Island Borough, and the full faith
and credit of the Borough are pledged for the payment of the principal of and interest on
the Bond as the same shall become due.
IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts or things
required by the constitution or statutes of the State of Alaska to exist, to have happened
have been performed precedent to or in the issuance of this nd exict hv
Vi to �iavc been pcnvu uc� prccc..c,,. ,,, the ,.+.... B ae
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happened and have been performed, and that the series of Bonds of which this is one,
together with all other indebtedness of the Borough, is within every debt and other limit
prescribed by said constitution or statutes.
IN WITNESS WHEREOF, THE KODIAK ISLAND BOROUGH, ALASKA, has
caused this Bond to be signed in its name and on its behalf by the manual or facsimile
signature of its Mayor and its corporate seal (or a facsimile thereof) to be impressed or
Kodiak Island Borough, Alaska Ordinance No. 2004 -12
Page 6 Gill
Section 9:
otherwise reproduced hereon and attested by the manual or facsimile signature of its
Clerk, all as of the day of 2004.
ATTEST:
Clerk
[SEAL]
Mayor
Execution. The Bonds shall be executed in the name of the Borough by the manual or
facsimile signature of the Mayor, and its corporate seal (or a facsimile thereof) shall be
impressed or otherwise reproduced thereon and attested by the manual or facsimile
signature of the Borough Clerk. The execution of a Bond on behalf of the Borough by
persons who at the time of the execution are duly authorized to hold the proper offices
shall be valid and sufficient for all purposes, although any such person shall have
ceased to hold office at the time of delivery of the Bond or shall not have held office on
the date of the Bond.
Section 10: Payment of Principal and Interest. The Bonds shall be payable in lawful money of the
United States of America which at the time of payment is legal tender for the payment of
public and private debts. When the Bond Bank is the Registered Owner of the Bonds,
payment of principal and interest on the Bonds shall be made as provided in the Loan
Agreement. When the Bond Bank is not the Registered Owner of the Bonds,
installments of principal and interest on the Bonds shall be paid by check mailed by first
class mail to the Registered Owner as of the record date for the installment payment at
the address appearing on the Bond Register; provided that the final installment of
principal and interest on a Bond shall be payable upon presentation and surrender of the
Bond by the Registered Owner at the office of the Registrar.
Section 11: Registration. The Bonds shall be issued only in registered form as to both principal and
interest. The Borough designates the Borough Treasurer as Registrar for the Bonds.
The Registrar shall keep, or cause to be kept, the Bond Register at the principal office of
the Borough. The Borough covenants that, until all Bonds have been surrendered and
canceled, it will maintain a system for recording the ownership of each Bond that
complies with the provisions of Section 149 of the Code. The Borough and the Registrar
may treat the person in whose name any Bond shall be registered as the absolute owner
of such Bond for all purposes, whether or not the Bond shall be overdue, and all
payments of principal of and interest on a Bond made to the Registered Owner thereof
or upon its order shall be valid and effectual to satisfy and discharge the liability upon
such Bond to the extent of the sum or sums so paid, and neither the Borough nnr the
Registrar shall be affected by any notice to the contrary.
Section 12: Transfer and Exchange. Bonds shall be transferred only upon the books for the
registration and transfer of Bonds kept at the office of the Registrar. Upon surrender for
transfer or exchange of any Bond at such office, with a written instrument of transfer or
authorization for exchange in form and with guaranty of signature satisfactory to the
Registrar, duly executed by the Registered Owner or the duly authorized attorney of the
Kodiak Island Borough, Alaska Ordinance No. 2004 -12
Page 7 of 11
Registered Owner, the Borough shall execute and deliver an equal aggregate principal
amount of Bonds of the same maturity of any authorized denominations, subject to such
reasonable regulations as the Borough may prescribe and upon payment sufficient to
reimburse it for any tax, fee or other governmental charge required to be paid in
connection with such transfer or exchange. All Bonds surrendered for transfer or
exchange shall be canceled by the Registrar.
Section 13: Bonds Mutilated, Destroyed, Stolen or Lost. Upon surrender to the Registrar of a
mutilated Bond, the Borough shall execute and deliver a new Bond of like maturity and
principal amount. Upon filing with the Registrar of evidence satisfactory to the Borough
that a Bond has been destroyed, stolen or lost and of the ownership thereof, and upon
furnishing the Borough with indemnity satisfactory to it, the Borough shall execute and
deliver a new Bond of like maturity and principal amount. The person requesting the
execution and delivery of a new Bond under this section shall comply with such other
reasonable regulations as the Borough may prescribe and pay such expenses as the
Borough may incur in connection therewith.
Section 14: Disposition of the Sale Proceeds of the Bonds. The sale proceeds of the Bonds
representing accrued interest on the Bonds shall be applied to pay a portion of the
interest due on the Bonds on the first interest payment date for the Bonds. The sale
proceeds of the Bonds representing original issue premium on the Bonds shall be
applied to pay issuance costs of the Bonds, a portion of the interest due on the Bonds on
the first interest payment date for the Bonds, or Costs of the Project, and shall be
deposited in such manner, as the Borough Manager or the Borough Finance Director
may determine. The remaining sale proceeds of the Bonds shall be applied to pay
Costs of the Project and issuance costs of the Bonds, and shall be deposited in the
appropriate funds or accounts of the Borough for such purposes.
Section 15: Tax Covenants. The Borough covenants to comply with any and all applicable
requirements set forth in the Code in effect from time to time to the extent that such
compliance shall be necessary for the exclusion of the interest on the Bonds from gross
income for federal income tax purposes. The Borough covenants that it will make no
use of the proceeds of the Bonds which will cause the Bonds to be "arbitrage bonds"
subject to federal income taxation by reason of Section 148 of the Code. The Borough
covenants that it will not take or permit any action that would cause the Bonds to be
"private activity bonds" as defined in Section 141 of the Code.
Section 16: Amendatory and Supplemental Ordinances.
(a) The Assembly from time to time and at any time may adopt an ordinance or
ordinances supplemental hereto, which ordinance or ordinances thereafter shall become
a part of this Ordinance, for any one or more of the following purposes:
(1) To add to the covenants and agreements of the Borough in this
nrdinance, ether c nvenante and agreements thereafter to be nhcerved nr to
surrender any right or power herein reserved to or conferred upon the Borough.
(2) To make such provisions for the purpose of curing any ambiguities or of
curing, correcting or supplementing any defective provision contained in this
Ordinance or in regard to matters or questions arising under this Ordinance as
the Assembly may deem necessary or desirable and not inconsistent with this
Kodiak Island Borough, Alaska Ordinance No. 2004 -12
Page 8 of 11
Ordinance and which shall not adversely affect the interests of the Registered
Owners of the Bonds.
Any such supplemental ordinance may be adopted without the consent of the Registered
Owners of any of the Bonds at any time outstanding, notwithstanding any of the
provisions of subsection (b) of this section.
(b) With the consent of the Registered Owners of not less than 60 percent in
aggregate principal amount of the Bonds at the time outstanding, the Assembly may
adopt an ordinance or ordinances supplemental hereto for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of this
Ordinance or of any supplemental ordinance; provided, however, that no such
supplemental ordinance shall:
(1) Extend the fixed maturity of any of the Bonds, or reduce the rate of
interest thereon, or extend the time of payments of interest from their due date,
or reduce the amount of the principal thereof, or reduce any premium payable on
the redemption thereof, without the consent of the Registered Owners of each
Bond so affected; or
(2) Reduce the aforesaid percentage of Registered Owners of Bonds
required to approve any such supplemental ordinance without the consent of the
Registered Owners of all of the Bonds then outstanding.
It shall not be necessary for the consent of the Registered Owners of the Bonds under
this subsection to approve the particular form of any proposed supplemental ordinance,
but it shall be sufficient if such consent approves the substance thereof.
(c) Upon the adoption of any supplemental ordinance under this section, this
Ordinance shall be deemed to be modified and amended in accordance therewith, and
the respective rights, duties and obligations under this Ordinance of the Borough and all
Registered Owners of outstanding Bonds shall thereafter be subject in all respects to
such modification and amendment, and all the terms and conditions of the supplemental
ordinance shall be deemed to be part of the terms and conditions of this Ordinance for
any and all purposes.
(d) Bonds executed and delivered after the execution of any supplemental ordinance
adopted under this section may bear a notation as to any matter provided for in such
supplemental ordinance, and if such supplemental ordinance shall so provide, new
Bonds modified so as to conform, in the opinion of the Borough, to any modification of
this Ordinance contained in any such supplemental ordinance may be prepared by the
Borough and delivered without cost to the Registered Owners of the Bonds then
outstanding, upon surrender for cancellation of such Bonds in equal aggregate principal
amounts.
Section 17: Defeasance. In the event money and /or non - callable Government Obligations maturing
at such times and bearing interest to be earned thereon in amounts sufficient to redeem
and retire any or all of the Bonds in accordance with their terms are set aside in a
special trust account to effect such redemption or retirement and such moneys and the
principal of and interest on such Government Obligations are irrevocably set aside and
pledged for such purpose, then no further payments need be made to pay or secure the
payment of the principal of and interest on such Bonds and such Bonds shall be deemed
Kodiak Island Borough, Alaska Ordinance No. 2004 -12
Page 9 of 11
not to be outstanding.
Section 18: Sale of Bonds. The Bonds shall be sold at negotiated sale to the Bond Bank as
provided in the Loan Agreement. Subject to the limitations provided in Sections 3 and 5,
each of the Borough Manager and the Borough Finance Director is hereby authorized to
determine the aggregate principal amount, maturity amounts, interest rates, yields, dated
date, principal and interest payment dates, redemption terms, if any, for the Bonds, and
other details of the Bonds; provided that the true interest cost of the Bonds, expressed
as an annual rate, does not exceed 6.5 percent. In determining the maturity amounts,
sinking fund installments, if any, interest rates, yields, and redemption terms, if any, for
the Bonds, the Borough Manager or Borough Finance Director shall take into account
those factors which, in his judgment, will result in the lowest true interest cost on the
Bonds to their maturity, including without limitation current financial market conditions
and current interest rates for obligations comparable in tenor and quality to the Bonds.
Based upon the foregoing determinations, the Borough Manager and the Borough
Finance Director each is authorized to execute the Loan Agreement, in substantially the
form presented at this meeting.
Section 19: Official Statement. The distribution of the preliminary Official Statement for the Bond
Bank Bonds in substantially the form presented at this meeting is approved as it pertains
to the Borough and the Bonds. The information in the preliminary Official Statement
relating to the Borough and the Bonds may be modified as the Borough Manager or
Borough Finance Director may determine. The Borough Manager and Borough Finance
Director each is hereby authorized to approve the form of the final Official Statement for
the Bond Bank Bonds as it pertains to the Borough and the Bonds.
Section 20: Authority of Officers. The Mayor, the acting Mayor, the Borough Manager, the acting
Borough Manager, the Borough Finance Director, the acting Borough Finance Manager,
the Borough Clerk, and the acting Borough Clerk each is authorized and directed to do
and perform all things and determine all matters not determined by this Ordinance, to the
end that the Borough may carry out its obligations under the Bonds and this Ordinance.
Section 21: Miscellaneous.
(a) All payments made by the Borough of, or on account of, the principal of or
interest on the Bonds shall be made on the several Bonds ratably and in proportion to
the amount due thereon, respectively, for principal or interest as the case may be.
(b) No recourse shall be had for the payment of the principal of or the interest on the
Bonds or for any claim based thereon or on this Ordinance against any member of the
Assembly or officer of the Borough or any person executing the Bonds. The Bonds are
not and shall not be in any way a debt or liability of the State of Alaska or of any political
subdivision thereof, except the Borough, and do not and shall not create or constitute an
indebtedness or obligation, either legal, moral or otherwise, of said state or of any
political subdivision thereof, except the B VIVVI�IugL
I.
Section 22: Continuing Disclosure. The Borough hereby covenants and agrees that it will comply
with and carry out all of the provisions of the Continuing Disclosure Certificate that has
been presented at this meeting. Notwithstanding any other provision of this Ordinance,
failure of the Borough to comply with the Continuing Disclosure Certificate shall not be
considered a default of the Borough's obligations under this Ordinance, the Loan
Agreement or the Bonds; however, the beneficial owner of any Bond or Bond Bank Bond
Kodiak Island Borough, Alaska Ordinance No, 2004 -12
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Section 23: Severability. If any one or more of the provisions of this Ordinance shall be declared by
any court of competent jurisdiction to be contrary to law, then such provision shall be null
and void and shall be deemed separable from the remaining provisions of this Ordinance
and shall in no way affect the validity of the other provisions of this Ordinance or of the
Bonds.
Section 24: Effective Date. This Ordinance shall become effective upon passage and approval.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS THIRD DAY OF JUNE 2004
KODIAK ISLAND BOROUGH
ATTEST:
2
Judith A. Nielsen, C
may bring an action for specific performance, to cause the Borough to comply with its
obligations under this section.
C, Borough Clerk
Gabrielle LeDoux, Borough Mayor
Kodiak Island Borough, Alaska Ordinance No. 2004 -12
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