1989-34 Relating to the Issuance and Sale of $10,000,000 of 1989 General Obligation School Refunding Bonds Authorized by Ordinance No. 89-11Resolution No. 89 -34 -R
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By:
Introduced:
Adopted:
KODIAK ISLAND BOROUGH
RESOLUTION NO. 89 -34 -R
Finance Director
June 1 ,1989
June 1, 1989
A RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY, RELATING
TO THE ISSUANCE AND SALE OF $10,000,000 OF 1989 GENERAL
OBLIGATION SCHOOL REFUNDING BONDS AUTHORIZED BY ORDINANCE
NO. 89 -11 -0; FIXING' THE DATE, TERMS, MATURITIES AND INTEREST
RATES FOR SAID BONDS; PROVIDING FOR THE USE AND APPLICATION
OF THE PROCEEDS OF SAID BONDS; PROVIDING FOR THE REDEMPTION
OF CERTAIN OUTSTANDING BONDS OF THE BOROUGH; AUTHORIZING THE
EXECUTION OF AN ESCROW AGREEMENT; AND APPROVING
THE EXECUTION OF A BOND PURCHASE CONTRACT
WHEREAS, on April 6, 1989 the Assembly of the Kodiak Island
,Borough, Alaska (the "Borough ") adopted Ordinance No. 89 -11 -0 authorizing
.the issuance and sale of not to exceed $10,100,000 of 1989 General Obligation
School Refunding Bonds (the "Ordinance "); and
WHEREAS, pursuant to the Ordinance the proper officials of the
Borough have negotiated a bond purchase contract dated June 1, 1989 (the
"Bond Purchase Contract ") with John Nuveen 8 Co. Incorporated (the
"Underwriter ") which provides, inter alia for the issuance and sale by the
Borough and the purchase by the Underwriter of $10,000,000 of the bonds
authorized by the Ordinance; and
WHEREAS, the Ordinance provides that the Assembly shall by
..resolution establish the total amount of bonds to be issued pursuant to the
Ordinance, the date of said bonds, denominations, numbers, interest rates,
.interest payment dates, maturities, redemption provisions, and any other
details of said bonds; and
WHEREAS, it is hereby found to be in the best interest of the
Borough that the Bond Purchase Contract be approved and executed and that
!certain matters relating to such bonds and the use of the proceeds of such
sale be established.
NOW THEREPORE, BE IT RESOLVED BY THE KODIAK ISLAND
BOROUGH, as follows:
Section 1. Definitions. Capitalized terms used in this Resolution
which are not otherwise defined herein shall have the same meaning as in the
Ordinance.
Section 7. Application of Bond Proceeds. The proceeds of sale of
the Bonds shall be used and applied as provided in Schedule B attached
t hereto and by this reference made a part hereof.
Section 8. Ratification. All actions taken by the Mayor and the
Finance Director relative to the sale of the Bonds are hereby in all respects
ratified and confirmed. The appropriate officers of the Borough are hereby
authorized and directed to execute the Bond Purchase Contract and to do all
things necessary for the prompt execution, issuance and delivery of the
Bonds and for the proper application and use of the Bond proceeds.
Section 9. Official Statement. The form and content of the
Preliminary Official Statement dated May 22, 1989 in connection with the
Bonds (the "Preliminary Official Statement "), a copy of which is on file with
the Borough Clerk, shall be and the same hereby are in all respects
authorized, approved and confirmed, and the previous use of the Preliminary
Official Statement by the Underwriter in connection with the resale of the
Bonds is hereby in all respects authorized, approved and ratified, and the
Mayor and Finance Director be and they each hereby are authorized,
empowered and directed to execute the final Official Statement in the name of
and on behalf of the Borough and to cause the same to be delivered to the
Underwriter for use in connection with resale of the Bonds with such
changes, modifications, additions or deletions as shall seem necessary,
desirable or appropriate, their execution thereof to constitute conclusive
evidence of the approval of any and all changes, modifications, additions or
deletions from the form and content of the Preliminary Official Statement; and
the Mayor and Finance Director are hereby authorized, empowered and
directed to do all such acts and things necessary to carry out and comply
with the provisions of the Preliminary Official Statement and of the final
Official Statement.
Section 10. Approval of Escrow Agreement. Security Pacific Bank
Washington, N.A. is hereby appointed as the Escrow Agent to act as such
under the terms of the Escrow Agreement. The form of the Escrow
Agreement, on file with the Borough Clerk, is hereby approved and its
execution by the Mayor or Finance Director on behalf of the Borough is
hereby authorized.
Section 11. Bond Insurer. Municipal Bond Investors Assurance
Corporation is hereby designated as the Bond Insurer under the Ordinance
(the "Bond Insurer ") pursuant to its commitment to issue a policy of bond
insurance dated May 23, 1989, and the term Bond Insurer shall include any
successor thereto.
Resolution No. 89 -34 -R
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SCHEDULE B
APPLICATION OF BOND PROCEEDS
Sources of Funds
Par Amount of Bonds $10,000,000.00
Premium 20,612.60
Accrued Interest 94,265.71
Uses of Funds
10,114,877.71
Underwriter's Discount $ 134,000.00
Costs of Issuance 52,700.00
Escrow 9,865,100.00
Bond Insurance Premium 62,000.00
Contingency 1,077.71
Resolution No. 89 -34 -R
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$10,114,877.71
Section 14. Effective Date. This Resolution shall take effect
;immediately.
ATTEST:
ruugn (iyyrK - 7
Resolution No. 89 -34 -R
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PASSED AND APPROVED THIS 1st DAY OF JUNE, 1989.
KODIAK ISLAND BOROUGH