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2004-11-04 Regular MeetingKodiak Island Borough November 4, 2004 - 7:30 p.m. Regular Meeting Mr. Jerome Selby Borough Mayor Term Expires 2007 Mr. Tom Abell Assemblymember Term Expires 2005 Mr. Mike Anderson Assemblymember Term Expires 2006 Mr. Tuck Bonney Deputy Mayor Assemblymember Term Expires 2005 Ms. Pat Branson Assemblymember Term Expires 2007 Mr. Cecil Ranney Assemblymember Term Expires 2006 Ms. Nancy Wells Assemblymember Term Expires 2005 Ms. Barbara Williams Assemblymember Term Expires 2007 Mr. Pat Carlson -- •coyn ivienage! Ms. Judi. Nielsen, CMC Borough Clerk Kodiak Island Borough November 4, 2004 Assembly Agenda Assembly Chambers Meeting broadcast live over radio station KMXT 100.1 FM and Cablevision station 8. 1. INVOCATION 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVAL OF AGENDA 5. APPROVAL OF MINUTES A. Kodiak Island Borough Assembly Regular Meeting of September 16, Special Meeting of Sepm 2004 bpr�3 and Regular Meeting of October 7, Ai 6. AWARDS AND PRESENTATIONS - None 7. CITIZENS' COMMENTS (Limited to Three Minutes per Speaker) A. Agenda Items Not Scheduled for Public Hearing and General Comments. 8. COMMITTEE REPORTS 9. PUBLIC HEARING (Limited to Five Minutes per Speaker) (Toll Free Telephone Number 1 -800- 478 -5736) (Local Telephone Number 486- 3231) Ordinance No. FY 2005 -08 Authorizing the Borough to Issue General Obligation School Bonds, 2004 Series B in the Principal Amount of Not to Exceed $ 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. 10. BOROUGH MANAGER'S REPORT 11. MESSAGES FROM THE BOROUGH MAYOR Assembly Agenda Page 1 12. UNFINISHED BUSINESS - None 13. NEW BUSINESS A. REORGANIZATION OF THE KODIAK ISLAND BOROUGH ASSEMBLY 1. Election of Deputy Presiding Officer. B. CONTRACTS 1. Contract No. 2004 -57 Mission Lake Tide Gate Project. C. RESOLUTIONS - None D. ORDINANCES FOR INTRODUCTION 1. Ordinance No. 2004 -10A Amending Ordinance No. 2004 -10 to to Establish a Budget for the $9,300,000 General Obligation Bond 2004 Series A and the $1- 1,050,000 General Obligation Bond Series B Issues and Related Projects Funded by These Bonds. E. OTHER ITEMS 1. Resignation of Bay View Road Service Area Board Member. 2. Appointments to Seats on the Providence Kodiak Island Service Area Community Board 14. INFORMATION MATERIALS (No Action Required) A. MINUTES OF OTHER MEETINGS 1. Service Area No. 1 Board Regular Meeting of January 21, 2004. 2. Kodiak Island Borough School District Board of Education Regular Meeting of September 27, 2004. B. REPORTS 15. CITIZEN COMMENTS 16. ASSEMBLYMEMBER COMMENTS 17. ADJOURNMENT Copies of agenda items are available at the Borough Clerk's Office, 710 Mill Bay Road, or just prior to the meeting outside the Assemb' Chambers. Kodiak Island Borough Assembly Agenda November 4, 2004 Page 2 Kodiak Island Borough November 4, 2004 - 7 30 p.m. Mr. Jerome Se /by Borough Mayor Term Expires 2007 Mr. Tom Abell Assemb /ymember Term Expires 2005 Mr. Mike Anderson Assemb /ymember Term Expires 2006 Mr. Tuck Bonney Deputy Mayor Assemblymember Term Expires 2005 Ms. Pat Branson Assemblymember Term Expires 2007 Mr. Cecil Ranne y A ssemb /ymember Term Expires 2006 Ms. Nancy Wells Assemb /ymember Term Expires 2005 Ms. Barbara Williams Assemb /ymember Term Expires 2007 Mr. Pat Carlson Borouah Manager Ms. Judi. Nielsen, CMC Borough Clerk Kodiak Island Borough November 4, 2004 1. INVOCATION 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVAL OF AGENDA 5. APPROVAL OF MINUTES Assembly Agenda Regular Meeting Assembly Chambers Meeting broadcast live over radio station KMXT 100.1 FM and Cablevision station 8. 10. BOROUGH MANAGER'S REPORT 11. MESSAGES FROM THE BOROUGH MAYOR DRAFT A. Kodiak Island Borough Assembly Regular Meeting of September 16, Special Meeting of September 30 and Regular Meeting of October 7, 2004 6. AWARDS AND PRESENTATIONS - None 7. CITIZENS' COMMENTS (Limited to Three Minutes per Speaker) A. Agenda Items Not Scheduled for Public Hearing and General Comments. 8. COMMITTEE REPORTS 9. PUBLIC HEARING (Limited to Five Minutes per Speaker) (Toll Free Telephone Number 1 - 800- 478 -5736) (Local Telephone Number 486- 3231) A. Ordinance No. FY 2005 -08 Authorizing the Borough to Issue General Obligation School Bonds, 2004 Series B in the Principal Amount of Not to Exceed S11,050,000 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. Assembly Agenda Page 1 12. UNFINISHED BUSINESS - None 13. NEW BUSINESS A. REORGANIZATION OF THE KODIAK ISLAND BOROUGH ASSEMBLY 1. Election of Deputy Presiding Officer. B. CONTRACTS 1. Contract No. 2004 -57 Mission Lake Tide Gate Project. C. RESOLUTIONS - None D. ORDINANCES FOR INTRODUCTION Ordinance No. 2004 -10A Amending Ordinance No. 2004 -10 to to Establish a Budget for the $9,300,000 General Obligation Bond 2004 Series A and the $1 1,050,000 General Obligation Bond Series B Issues and Related Projects Funded by These Bonds. E. OTHER ITEMS 1. Resignation of Bay View Road Service Area Board Member. 2. Appointments to Seats on the Providence Kodiak Island Service Area Community Board. 14. INFORMATION MATERIALS (No Action Required) A. MINUTES OF OTHER MEETINGS 1. Service Area No. 1 Board Regular Meeting of January 21, 2004. 2. Kodiak Island Borough School District Board of Education Regular Meeting of September 27, 2004. B. REPORTS 15. CITIZEN COMMENTS 16. ASSEMBLYMEMBER COMMENTS 17. ADJOURNMENT Copies of agenda items are available at the Borough Clerk's Office, 710 Mill Bay Road, or just prior to the meeting outside the Assembly Chambers. Kodiak Island Borough Assembly Agenda November 4, 2004 Page 2 KODIAK ISLAND BOROUGH Regular Assembly Meeting September 16, 2004 DRAFT A regular meeting of the Kodiak Island Borough Assembly was held September 16, 2004 in the Assembly Chambers of the Kodiak Island Borough Building, 710 Mill Bay Road. The meeting was called to order at 7:30 p.m. A silent invocation was held, followed by the Pledge of Allegiance. Present were Mayor Gabrielle LeDoux, Assemblymembers Tom Abell, Mike Anderson, Tuck Bonney, Pat Branson, Robin Heinrichs, Cecil Ranney, and Nancy Wells. Staff present were Manager Pat Carlson, Clerk Judi Nielsen, and Assistant Clerk Laura Casey. APPROVAL OF AGENDA BRANSON moved to approve the agenda, seconded by HEINRICHS VOICE VOTE ON MOTION CARRIED UNANIMOUSLY APPROVAL OF MINUTES - None. AWARDS AND PRESENTATIONS - None. CITIZENS' COMMENTS Omar Stratman said mile 23.8 on the Chiniak Highway just before the Mayflower Lake turn off was a very dangerous curve. He said the Alaska Department of Transportation had no intent to realign the road prior to paving next year. He proposed moving the road around the south side of the hill approximately 1500 feet to eliminate the curve. He wanted the Borough implement a law that public hearings be held at the Borough level prior to any road work. Jerome Selby Chamber of Commerce Interim Director, applauded the Fiber Optics Project that he felt would open many opportunities for the community. Emil Christiansen Sr, Old Harbor Native Corporation, said the Corporation worked on the Fiber Optic Project for three years. He appreciated the support given. Scott Arndt was concerned that the bonds that passed in April were for repairs that would not last 20 years and he supported ten year repairs. He said two million dollars would have built .a new Old Harbor gym, instead of 20 years of repairs. He said a plan should have been designed for the Learning Center. He wanted to see funds invested wisely. COMMITTEE REPORTS - None. PUBLIC HEARING - None. BOROUGH MANAGER'S REPORT Manager Carlson noted his written report that the Assembly received at the last work session. He was updating the priority list, calendar, and waste water mixing zones for the next work session. An Iceland committee would be in Kodiak for a presentation September 23 He would be entering preliminary negotiations with the new Dean for Oceans and Fish. Kodiak Island Borough September 16, 2004 Volume XXIX Page 1 MESSAGES FROM THE BOROUGH MAYOR Mayor LeDoux acknowledged that Kodiak National Guard members were being called up to Iraq and wished them well. She agreed with Omar Stratman's comments and suggested the Assembly adopt a support resolution and contact the Legislature to have the curve realigned prior to paving. Manager Carlson suggested speaking with the lobbyist and have it included in the STIP. Mayor LeDoux congratulated Doug Mathers for 20 years of volunteer service to Bayside Fire Department. She also congratulated Scott Arndt for 20 years on the Fire Protection Area No. 1 Board. UNFINISHED BUSINESS - None. NEW BUSINESS A. CONTRACTS 1. Contract No. 2004 -46 Larsen Bay Electric Fencing Project /EVOS KIB WMP. WELLS moved to approve Contract No. 2004 -46 to Anderson Construction Company in an amount not to exceed $30,000 contingent on verification of reimbursement by EVOS for a project completion date of no later than November 1, 2004, seconded by BRANSON Assemblymember Anderson excused himself declaring a conflict of interest. Manager Carlson said the original bidder was unable to complete the project so staff contacted the two remaining bidders and Anderson Construction Company was the next best bid. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Abell, Bonney, Branson, Heinrichs, Ranney, Wells; EXCUSED: Anderson 2. Contract No. 2004 -47 Purchase of Fencing Material for Port Lions - EVOS KIB WMP BONNEY moved to approve Contract No. 2004 -47 to Bugni Enterprises to purchase fencing material for the Port Lions landfill in an amount not to exceed $44,000, seconded by BRANSON Manager Carlson said Bugni Enterprises was recommended due to their expertise in fencing, fencing materials, and a strong working relationship with the Borough. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Anderson, Bonney, Branson, Heinrichs, Ranney, Wells, Abell 3. Contract No. 2004 -48 Agreement for Provision of E -911 Operation and Maintenance Services. HEINRICHS moved to approve Contract No. 2004 -48 Agreement for Provision of E -911 Operation and Maintenance Services, seconded by BRANSON Manager Carlson said this would provide enhanced E -911 services through the City's central dispatch. The existing system was installed and operated under an initial working agreement that was no longer applicable. Kodiak Island Borough September 16, 2004 Volume XXIX Page 2 In response to Assemblymember Branson, Manager Carlson said the original fee was paid in Fiscal Year 2003, so this was retroactive to what was paid. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Bonney, Branson, Heinrichs, Ranney, Wells, Abell, Anderson B. RESOLUTIONS - None. C. ORDINANCES FOR INTRODUCTION - None. D. OTHER ITEMS 1. October 5, 2004 Regular Municipal Election Workers. BRANSON moved to approve the regular municipal election workers as submitted by the Borough Election Supervisor, seconded by BONNEY Clerk Nielsen thanked the volunteers for their time during the elections. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY : Branson, Heinrichs, Ranney, Welts, Abell, Anderson, Bonney 2. Authorization for Manager to Negotiate a Sole Source Contract for Unique Professional Services for a Fiber Optic Marine Survey from Anchorage to Kodiak. HEINRICHS moved to authorize the Manager to negotiate a sole source contract for unique professional services for a Fiber Optic Marine Survey from Anchorage to Kodiak, seconded by BONNEY Manager Carlson said this would authorize him to negotiate a contract for unique professional services with Kodiak -Kenai Cable Company, LLC to provide support services, data analysis, and a work product of an underwater survey for a fiber optic cable route. This contract request was part of the federal grant recently accepted by the Assembly from NOAA. Assemblymember Branson said the letter from Senator Ted Stevens spelled out how this would benefit communities. Assemblymember Anderson supported the project. He noted the funds were from a NOAA grant, not Borough funds. He applauded Old Harbor Native Corporation for initiating and moving this forward. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY: Heinrichs, Ranney, Wells, Abell, Anderson, Bonney, Branson CITIZEN COMMENTS - None. ASSEMBLYMEMBER COMMENTS Assemblymember Branson congratulated Deputy Clerk Nova Javier for receiving_ her Certified Municipal Clerk designation, Doug Mathers and Scott Arndt for volunteering in a very difficult field, and Manager Carlson for becoming a grandfather. She would like to see the In -kind committee meet to conclude discussions. Kodiak Island Borough September 16, 2004 Volume XXIX Page 3 Assemblymember Heinrichs said the Fiber Optic would be a tremendous benefit to the communities. He asked the Assembly to discuss at a work session the Sea Lion mitigation unclaimed funds that Manager Carlson and Manager Freed had initiated to receive. Assemblymember Bonney was disappointed to see a large amount of litter on the island while he was camping. He urged the public to think twice before throwing their garbage on the ground. Assemblymember Wells thanked those who participated in the Health Fair. She said it was the largest turn out for blood testing. She requested information on the rocket launch facility's request for more land. She would keep all those going to Iraq in her prayers. Assemblymember Abell said they were moving forward with dicussion on the garbage problem. He asked if bond money could be used for other projects and if there was a penalty to pay the bonds earlier. Assemblymember Ranney concurred with the previous Assemblymember comments on the Chiniak Highway switch -back and supported a resolution to the Legislature to have it resolved. He said with our National Guard being called to Iraq, it brings it close to home and residents closer together. He wished them well. ADJOURNMENT With no objection, Mayor LeDoux adjourned the meeting at 8:15 p.m. ATTEST: Gabrielle LeDoux, Mayor Judith A. Nielsen, CMC, Borough Clerk Approved: Kodiak Island Borough September 16, 2004 Volume XXIX Page 4 KODIAK ISLAND BOROUGH Special Assembly Meeting September 30, 2004 A special meeting of the Kodiak Island Borough Assembly was held September 30, 2004 in the Borough Conference Room of the Kodiak Island Borough Building, 710 Mill Bay Road. The meeting was called to order at 8:53 p.m. Present were Mayor Gabrielle LeDoux, Assemblymembers Tom Abell, Tuck Bonney, Cecil Ranney, and Nancy Wells. Absent was Assemblymember Mike Anderson, Pat Branson, Robin Heinrichs. Staff present were Manager Pat Carlson, Clerk Judi Nielsen, and Assistant Clerk Laura Casey. CITIZENS' COMMENTS - None. CONSIDERATION OF MATTERS FOR THE SPECIAL MEETING A. Contract No. 2004 -49 EVOS Scrap Metal Removal from Karluk. Bonney moved to approve Contract No. 2004 -49 with West Bay Corporation M/V Cape Douglas in an amount not to exceed $20,000, seconded by Abell Manager Carlson reported that this was funded by an EVOS Grant that would expire at midnight. Staff reviewed several proposals to remove the metals and two proposals had merit and were approved by the DEC and the EVOS Trustee Council. Staff recommended approving the Contract with the West Bay Corporation. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Abell, Bonney, Ranney, Wells B. Contract No. 2004 -50 EVOS Scrap Metal Removal from Port Lions. Ranney moved to approve Contract No. 2004 -50 with Robert J. Barge Company in an amount not to exceed $48,500, seconded by Bonney Manager Carlson reported that this also was funded by an EVOS Grant that would expire at midnight. Two proposals were received and approved by the DEC and the EVOS Trustee Council. Staff recommended approving the contract with the Robert J. Barge Company. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Bonney, Ranney, Wells, Abell C. Approval of Election Workers in Ouzinkie. Wells moved to approve the election workers submitted by the Election Supervisor, seconded by Bonney Clerk Nielsen reported that the election workers previously approved were unable to work the election. She requested that the Assembly approve the appointment of four new election workers. ROLL CALL VOTE ON MOTION CARRIED UNANTMnU LY: Ranney, We Kodiak Island Borough September 30, 2004 DRAFT A cl' uvun Volume XXIX Page 1 ADJOURNMENT With no objection, Mayor LeDoux adjourned the meeting at 9:18 p.m. ATTEST: Gabrielle LeDoux, Mayor Judith A. Nielsen, CMC, Borough Clerk Approved: Kodiak Island Borough September 30, 2004 Volume XXIX Page 2 CITIZENS' COMMENTS KODIAK ISLAND BOROUGH Regular Assembly Meeting October 7, 2004 APPROVAL OF AGENDA BRANSON moved to approve the agenda, seconded by HEINRICHS VOICE VOTE ON MOTION CARRIED UNANIMOUSLY APPROVAL OF MINUTES - None. AWARDS AND PRESENTATIONS 1. Proclamation - Domestic Violence Awareness Month DRAFT A regular meeting of the Kodiak Island Borough Assembly was held October 7, 2004 in the Assembly Chambers of the Kodiak Island Borough Building, 710 Mill Bay Road. The meeting was called to order at 7:30 p.m. The invocation was given by Pastor Larry Cornett of the Church of the Nazarene, followed by the Pledge of Allegiance. Present were Assemblymembers Tom Abell, Mike Anderson, Tuck Bonney, Pat Branson, Robin Heinrichs, Cecil Ranney, and Nancy Wells. Absent was Mayor Gabrielle LeDoux. Staff present were Manager Pat Carlson, Clerk Judi Nielsen, and Assistant Clerk Laura Casey. Mayor LeDoux proclaimed October 2004 as "Domestic Violence Awareness Month" urging all citizens to actively support and participate in the ongoing programs designed to reduce, and eventually eliminate domestic violence as a social problem. Aksana Mather of the Kodiak Womens Resource Center accepted the proclamation and thanked the Assembly for their support. Mike Sirofchuck, Parks and Recreation Committee member, said many hours of work by the Committee as well as public comment went into the draft of Resolution No. FY 2005 -06. He urged the Assembly to adopt the Resolution. Deputy Mayor Bonney thanked the Committee for their time and efforts to bring forward a plan that would benefit everyone.on the island. COMMITTEE REPORTS Assemblymember Heinrichs said SWAMC rescheduled their meeting to Thursday, October 14 due to lack of a quorum. He said the In -Kind Bond Committee would meet Monday, October 18 to complete a Memorandum of Agreement for the School District. PUBLIC HEARING - None. BOROUGH MANAGER'S REPORT Manager Carlson said we should feel fortunate to live in the United Sates where the voting process was good. Kodiak Island Borough October 7, 2004 Volume XXIX Page 1 MESSAGES FROM THE BOROUGH MAYOR Deputy Mayor Bonney said the North Pacific Fisheries Management Council meetings were held in Sitka and encouraged the Borough and City to agree on issues that would benefit the community and not one person or any one group. UNFINISHED BUSINESS - None. NEW BUSINESS A. CONTRACTS 1. Contract No. 2004 -51 Fiscal Year 2005 -2006 Towing Services. BRANSON moved to approve Contract No. 2004 -51 with Rhino Towing in an amount not to exceed $13,100, seconded by ABELL Manager Carlson said the document reflected an end date of June 30, 2006. He said the contract amount was based on historical numbers. In response to Assemblymember Wells, Manager Carlson said this would bind Rhino Towing to provide the services only if they were called out. Manager Carlson numbers without number of calls Kodiak Island Borough October 7, 2004 reaffirmed that the amount approved was based on historical a cap; however, the amount paid would be determined by the made. Bonney moved to postpone Contract No. 2004 -51 to the next seconded by Anderson Deputy Mayor Bonney wanted discussion about solid waste session. ROLL CALL VOTE ON MOTION TO POSTPONE CARRIED UNANIMOUSLY: Bonney, Branson, Heinrichs, Ranney, Wells 2. Contract No. 2004 -52 Construction and Kodiak Island Borough and Kodiak Kenai Optic Marine Survey from Anchorage to regular meeting, at the next work Abell, Anderson, License Agreement Between the Cable Company, LLC for a Fiber Kodiak. HEINRICHS moved to approve Contract No. 2004 -52 in the amount of $2,473,694 with Kodiak Kenai Cable Company, LLC and authorize the manager to enter into a two -year license agreement, seconded by BRANSON Manager Carlson said based on new information the contract should be amended to reflect a two and half year agreement. Assemblymember Wells wanted to postpone action to review the new contract. WELLS moved to postpone Contract No. 2004 -52 to the next regular meeting, seconded by BONNEY In response to Assemblymember CluedllUllC, Ik 'Lard, Icard Consulting Services, .,3, gave a brief review of the contract, saying the time -frame to install equipment by next year was tight because ground work needed to be done. Assemblymember Branson wanted legal counsel present at the next work session to answer questions about the contract. Volume XXIX Page 2 ROLL CALL VOTE ON MOTION TO POSTPONE FAILED UNANIMOUSLY: Anderson, Bonney, Branson, Heinrichs, Ranney, Wells, Abell HEINRICHS moved to postpone Contract No. 2004 -52 to a special meeting on October 14, 2004, seconded by BRANSON ROLL CALL VOTE ON MOTION TO POSTPONE CARRIED UNANIMOUSLY: Bonney, Branson, Heinrichs, Ranney, Wells, Abell, Anderson B. RESOLUTIONS 1. Resolution No. 2005 -05 Accepting a FY 2005 Alaska Coastal Management Program (ACMP) Grant for the Purpose of Partially Funding the Amendment of the 1984 Kodiak Island Borough Coastal Management Plan (KIB CMP) and Authorizing the Borough Manager to Enter into a Sole Source Contract with Glenn Gray and Associates for Unique Professional Services. WELLS moved to adopt Resolution No. FY 2005 -05, seconded by BRANSON Manager Carlson said this accepted Alaska Coastal Management Program grant funds for the KIB Coastal Management Plan. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Branson, Heinrichs, Ranney, Welts, Abell, Anderson, Bonney 2. Resolution No. 2005 -06 Adopting Recommendations on the Department of Natural Resources Recommended Revisions and Issue a Response Summary Relating to the Public Review Draft of the Kodiak Area Plan for Alaska State Lands. HEINRICHS moved to adopt Resolution No. FY 2005 -06, seconded by BRANSON Manager Carlson said this had been a long process for the Parks and Recreation Committee and the Planning and Zoning Commission to protect community access to state lands. Assemblymember Wells thanked the Parks and Recreation Committee and Planning and Zoning Commission members. Deputy Mayor Bonney said this was the result of a two year process by a balanced group to bring a trail plan forward. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Heinrichs, Ranney, Wells, Abell, Anderson, Bonney, Branson C. ORDINANCES FOR INTRODUCTION 1. Ordinance No. FY 2005 -07 Amending Kodiak Island Borough Code of Ordinances Title 1 General Provisions Chapter 1.04 General Provision Section 1.04.030 Definitions Title 2 Administration and Personnel Chapter 2.15 n i, Mayor Section Chapter ...... �.,. . u v,. i.iou 2.13.080 Executive Absence Chapter 2.16 Borough Assembly Section 2.16.050 Oath Deputy Mayor Section 2.16.060 Declaring and Filling Vacancies Chapter 2.17 Rules of the Assembly Section 2.17.030 Types of Meetings Title 3 Revenue and Finance Chapter 3.16 Contract, Purchase, Sale, and Transfer Procedure Section 3.16.100 Change Orders Manager Authority. Kodiak Island Borough October 7, 2004 Volume XXIX Page 3 ANDERSON moved to adopt Ordinance No. FY 2005 -07 in first reading to advance to public hearing on October 21, 2004, seconded by HEINRICHS Clerk Nielsen said this would change the Code reference of Deputy Mayor to Deputy Presiding Officer to conform with Title 29. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Ranney, Wells, Abell, Anderson, Bonney, Branson, Heinrichs D. OTHER ITEMS 1. Revenue Accountant Hire at a Salary Range 20 Step I. WELLS moved to authorize the Manager to hire the Revenue Accountant at a salary range 20 step I, seconded by HEINRICHS Manager Carlson said the actual salary range was 20.5 step I. It was difficult to fill the position and the applicant wanted to retain their current rate of pay. HEINRICHS moved to amend the salary range to 20.5 step I, seconded by BRANSON ROLL CALL VOTE ON MOTION TO AMEND CARRIED UNANIMOUSLY: Wells, Abell, Anderson, Bonney, Branson, Heinrichs, Ranney ROLL CALL VOTE ON MOTION AS AMENDED CARRIED UNANIMOUSLY: Abell , Anderson, Bonney, Branson, Heinrichs, Ranney, Wells 2. Review of Liquor License Renewal for Kodiak Island Winery. HEINRICHS moved to voice non - objection to the Alcoholic Beverage Control Board renewal application for the Kodiak Island Winery, seconded by BRANSON Manager Carlson said there were issues regarding platting and zoning that would not be resolved until completion of the Chiniak Comprehensive Plan. There was general Assemblymember discussion regarding the importance of the Chiniak Comprehensive Plan to allow the issues to be resolved. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Anderson, Bonney, Branson, Heinrichs, Ranney, Wells, Abell CITIZEN COMMENTS John Miller thanked Manager Carlson for his letter responding to the questions he had regarding taxes and finances of the Borough. ASSEMBLYMEMBER COMMENTS Assemblymember Abell was concerned about hiring new personnel at the top of the salary range. Assemblymember Wells congratulated those who were elected and those who ran. She received a letter from Jim Nestic, Mayor of Old Harbor, asking for support due to reduced village revenue sharing. Kodiak Island Borough October 7, 2004 Volume XXIX Page 4 Assemblymember Anderson congratulated Nova Javier for receiving her Certified Municipal Clerk designation and Barbara Williams for being elected to the Assembly. He noted that propositions one and two were approved by the voters and he hoped to pay for the projects without raising property taxes. Assemblymember Heinrichs congratulated newly- elected Assemblymembers Pat Branson, Mike Anderson, and B .ara liams. He encouraged the City and Borough to evaluate fish re -nue. — EXECUTIVE SESSION A. Matters Pertainin ANDERSON moved to convene pertaining to personnel, secon nnel: into executi e Assemblymember Branson co gratulated the new elected officials. She wanted discussion on the need o increase revenue next joint work session: aring for the villages at the session to discuss matters ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Bonney, Branson, Heinrichs, Ranney, Wells, Abell, Anderson Deputy Mayor Bonney recessed the regular meeting at 8:30 p.m. and asked Manager Carlson and Donna Carlson to join them in executive session. Deputy Mayor Bonney reconvened the regular meeting and announced that no action would be taken as a result of the executive session. ADJOURNMENT With no objection, Deputy Mayor Bonney adjourned the meeting at 9:18 p.m. ATTEST: Tuck Bonney, Deputy Mayor Judith A. Nielsen, CMC, Borough Clerk Approved: Kodiak Island Borough October 7, 2004 Volume XXIX Page 5 Regular Meeting of November 4, 2004 APPROVAL FOR AGENDA: Kodiak Island Borough AGENDA STATEMENT ITEM NO. 9.A Ordinance No. FY 2005 -08 An Ordinance of the Kodiak Island Borough Assembly Authorizing the Borough to Issue General Obligation School Bonds, 2004 Series B in the Principal Amount of Not to Exceed $11,050,000 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. This ordinance provides for the bonds to be sold. Fiscal Notes: Expenditure amount: Recommended motion: Move to adopt Ordinance No. FY2005 -08. KODIAK ISLAND BOROUGH ORDINANCE NO. FY 2005 -08 Introduced by: Manager Cadson Requested by: Assembly Drafted by: Bond Counsel Introduced: 10/21/2004 Public Hearing: 10/21/2004 Adopted: AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ASSEMBLY AUTHORIZING THE BOROUGH TO ISSUE GENERAL OBLIGATION SCHOOL BONDS, 2004 SERIES B IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $11,050,000 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 ( "April Proposition 1"), was passed and approved; and WHEREAS, pursuant to Ordinance No. FY2005 -04 of the Borough, adopted September 2, 2004, a question whether the Borough should issue not to exceed $6,210,000 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 regular Borough election held on October 5, 2004 as Proposition No. 1 ("October Proposition 1"), was passed and approved; and WHEREAS, pursuant to Ordinance No. FY2005 -05 of the Borough, adopted September 2, 2004, a question whether the Borough should issue not to exceed $4,190,000 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 regular Borough election held on October 5, 2004 as Proposition No. 2 ("October Proposition 2"), was passed and approved; and WHEREAS, said elections have been duly canvassed and the results thereof certified and confirmed in accordance with law, and $650,000 principal amount of general obligation bonds remains unissued under April Proposition 1, $6,210,000 principal amount of general obligation bonds remains unissued under October Proposition 1, and $4,190,000 principal amount of general obligation bonds remains unissued under October 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 April Proposition 1 as the Kodiak High School Pool Space Reclamation; in October Proposition 1 as the New School Pool, 6-Lane, 1 Diving Board; and in October Proposition 2 as the Kodiak High Voc Ed /Classroom Reclamation (collectively, the "Project"); and to issue not to exceed $650,000 principal amount of general obligation bonds referred to in April Proposition 1, not to exceed $6,210,000 principal amount of general obligation bonds referred to in October Proposition 1, and not to exceed $4,190,000 principal amount of general obligation bonds referred to in October Proposition 2, to pay costs of the Proje n..rl (rats .d inn„{.... 8... 1.....d........1 Project and LiVJLJ VI issuing the bonds; 01114 Kodiak Island Borough, Alaska Ordinance No, FY2005 -08 Page 1 of 11 WHEREAS, the Assembly finds that it is necessary and appropriate to delegate to each of the Borough 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 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 B" 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 D 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 Kodiak Island Borough, Alaska Ordinance No. FY2005 -08 Page 2 of 11 Section 3: Section 5: 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, 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, 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 0) "Loan Agreement" means the Loan Agreement between the Borough and the Bond Bank conceming the Bonds. (k) "Ordinance" means this Ordinance No. FY 2005 -08 of the Borough. (I) 'Registered Owner" means the person named as the registered owner of a Bond in the Bond Register. (m) 'Registrar" means the Borough Treasurer. 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 $11,050,000. 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. Designation, Maturities, Interest Rates, and Other Details of Bonds. The Bonds shall be designated "Kodiak isiand Borough, Alaska, General Obligation School Bonds, 2004 Series B." 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 Kodiak Island Borough, Alaska Ordinance No. FY2005 -08 Page 3 of l l 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 $1,500,000. The Bonds shall bear interest from their date, payable commencing on a date on or after July 1, 2005, 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 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. Section 6: 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 .. Notice i l Register on the day the notice is maneo. ivonce or redemption snau l 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 Kodiak Island Borough, Alaska Ordinance No. FY2005 -08 Page 4 of 11 Section 8: Year 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 place 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 provided for payment of interest. Upon surrender of any Bond for partial redemption, there shall be prepared for the Registered Ownera 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. 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 B 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 Amount Rate Kodiak Island Borough, Alaska Ordinance No. FY2005 -08 Page 5 of 11 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 owned by the Bond Bank, installments of principal 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 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 B 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. FY2005 -_ of the Borough entitled: AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ASSEMBLY AUTHORIZING THE BOROUGH TO ISSUE GENERAL OBLIGATION SCHOOL BONDS, 2004 SERIES B IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $11,050,000 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 (H) upon surrender of this Bond together with a written instrument of transfer duly executed by the registered owner or the duly authorized attomey 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 the _ this Bond .: t J the absolute owner consider the person in whose name uuy aunu 1� registered as ��.0 a��� t lu« ������� 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. Kodiak Island Borough, Alaska Ordinance No. FY2005 -08 Page 6 of 11 Section 9: 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 or to have been performed precedent to or in the issuance of this Bond exist, have 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 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 Kodiak Island Borough, Alaska Ordinance No. FY2005 -08 Page7of 11 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 nor 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 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 Kodiak Island Borough, Alaska Ordinance No. FY2005 -08 Page 8 of 11 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 Ordinance, other covenants and agreements thereafter to be observed, or 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 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 /l . -.1: .. L...11 I.....J..........1 1... L... ......I:i:. A .....1 .. ,,A ..1 .�..In...... 1L.........:1L. VI41110114G 011011 UV UCCI1 ICU L4 4G II IV4111CM at I4 PI I ICI I4C4 11 I P44V140I I40 LI ICI CVVILI1, 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 Kodiak Island Borough, Alaska Ordinance No. FY2005 -08 Page 9 of I I 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 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 Director, 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 Kodiak Island Borough, Alaska Ordinance No. FY2005 -08 Page 10 of 11 Section 21: Miscellaneous. 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 may bring an action for specific performance, to cause the Borough to comply with its obligations under this section. Section 23: this Ordinance, to the end that the Borough may carry out its obligations under the Bonds and this Ordinance. (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 Borough. 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 'DAY OF , 2004 ATTEST: Jerome M. Selby, Borough Mayor Judith A. Nielsen, CMC, Borough Clerk KODIAK ISLAND BOROUGH Kodiak Island Borough, Alaska Ordinance No. FY2005 -08 Page 11 of 11 APPENDIX A Kodiak Island Borough APPENDIX E KODIAK ISLAND BOROUGH, ALASKA Authorization and Purpose of the General Obligation School Bond, 2004 Series B The Kodiak Island Borough (the "Borough ") General Obligation School Bond, 2004 Series B (the "Bond ") is issued under the provisions of the constitution and statutes of the State of Alaska, and pursuant to Ordinance No. 2004 -03, Ordinance No. FY2005 -04, and Ordinance No. FY2005 -05. The qualified voters of the Borough ratified Ordinance No. 2004 -03 at the April 20, 2004 special Borough election, and ratified Ordinance No. FY2005 -04 and Ordinance No. FY2005 -05 at the October 5, 2004 regular Borough election. Ordinance No. 2004 -03 authorized the issuance of up to $2,765,000 of general obligation bonds, $650,000 of which remain unissued, to finance the acquisition and construction of school capital improvements in the Borough, including the Kodiak High School Pool Space Reclamation, and Ordinance No. FY2005 -04 and Ordinance No. FY2005 -05 authorized the issuance of up to $10,400,000 of general obligation bonds, $10,400,000 of which remain unissued, to finance the acquisition and construction of school capital improvements in the Borough, including a New School Pool and the Kodiak High Voc Ed/Classroom Reclamation.. The Bond will be issued pursuant to Ordinance No. FY2005 -08, which was enacted by the Borough Assembly on November 4, 2004. Security The Borough has irrevocably covenanted that it will, without limitation as to rate or amount, levy taxes annually on all taxable property within its boundaries in an amount sufficient to pay the principal of and interest on the Bond as the same shall come due. The full faith and credit of the Borough have been irrevocably pledged for the payment of the principal and interest on the Bond. The rights and remedies of Bond owners are subject to applicable bankruptcy or insolvency laws or other similar laws generally affecting creditors' rights. Debt Payment Record The Borough has always promptly met principal and interest payments on its debt obligation when due. Future Financing The Bond is the only authorized but unissued debt of the Borough. General and Economic Data The Borough is located at the western border of the Gulf of Alaska, approximately 250 miles southwest of Anchorage. Kodiak Island, encompassing an area of 3,670 square miles, is the largest island of an archipelago area of nearly 7,130 square miles (about the size of the State of Connecticut). The Borough also includes 2,500 square miles of land and sea along the coast of the Alaska Peninsula and the Shelikof Strait. The City of Kodiak is at the northeast tip of the island, 50 minutes by air from Anchorage and three and one -half hours from Seattle. The city is the economic, transportation and governmental center of the island group. The Alaska State Ferry system connects Kodiak with communities northeast of the Borough on the Kenai Peninsula and Prince William Sound, and with communities west of the Borough on the Aleutian Islands, such as Dutch Harbor and Unalaska. Population 2003 2000 1990 1980 Borough 13,852 13,913 13,309 9,939 Source: U.S. Census Figures; Alaska Department of Community and Economic Development The City of Kodiak and Dutch Harbor (located approximately 630 miles west of Kodiak in the Aleutian Islands) are the two centers of the Alaskan fishing industry. The port of Kodiak provides facilities for an extensive fishing fleet that harvests a variety of species. Processors in Kodiak have made substantial investments in facilities for producing value added, final products for domestic and foreign consumption. The location of the nation's largest Coast Guard base in Kodiak, as well as research facilities of the federal and State government, are important elements of the infrastructure that support the fishing industry in Kodiak, and add to the stability of the Borough economy. The timber industry is also making a contribution to the Borough economy. Seafood Industry Kodiak is the center of fishing activities for the Gulf of Alaska. Its fishery is among the most diverse in the state. Residents participate in at least 27 different fisheries not including the numerous groundfish fisheries, which are lumped together in a single category by the Commercial Fisheries Entry Commission. In addition to being quite diverse, Kodiak's fishing industry is also one of its oldest, dating back to the early 1800s when the Russians built the first salmon cannery in Karluk. Kodiak is consistently one of the top three fishing ports in the United States. The 2003 ex- vessel value of all fish corning into Kodiak was $82.9 million, up from $62.1 million in 2002, and volume in 2003 was 274.4 million pounds, up from 252.5 million pounds the year before 450,000,000 400,000,000 350,000,000 300,000,000 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 Commercial Seafood Harvest Value & Volume Port of Kodiak 1990 - 2003 O N M V N CO 1— co m O N M m m m m m m m m m m O 0 0 0 0) m m m m m m m m m 0 0 0 0 Source: Ak. Dept. of Fish and Game —a —Total Lbs —0—Total $ Salmon has traditionally been the mainstay of Kodiak's fisheries. Because of the cyclic nature of the salmon fisheries -- especially pink salmon -- the volume and value of Kodiak's salmon catch varies greatly. Increased competition in world markets has also driven prices to new lows. In 1997, the exvessel value of Kodiak's salmon harvest was $18.8 million compared to $25 million in 1996 and $53 million in 1995. The ex- vessel value of salmon n 9nn1 ,. c $17.9 minlnn , n frnn, 811.1 milfnn hnrvnctP,1 in 7nn9 Fish Landed at the Port of Kodiak 2003 SPECIES Pounds a Exvessel Value Dungeness Crab 472,573 704,134 Bristol Bay Red King Crab 879,269 4,712,882 Other Crab 540,173 1,299,915 Sea Cucumbers 153,903 210,847 Misc. (shrimp, sea urchins) 118,493 51,764 Octopus 64,875 27,896 Halibut * 7,891,904 22,407,370 Pacific Cod 52,935,977 16,410,153 Sabelfish 2,405,403 8,034,046 Pollock 73,136,066 6,582,246 Flatfish r 14,264,333 747,899 Flathead Sole 2,798,544 251,869 Pacific Ocean Perch 11,507,301 575,365 Rockfish , 10,982,826 700,627 Rock Sole 8,123,946 1,137,352 Black Rockfish 83,854 31,865 Salmon 83,646,938 17,890,468 Herring 4,361,882 1,086,270 TOTAL 274,368,260 82,910,951 During recent years, the groundfish fishery (primarily pollock and cod) has become increasingly important to Kodiak's economy. From 1986 through 2003, the wholesale value of this fishery increased from $23.5 million to more than $34 million. Source: Alaska Department of Fish and Game Table Key a represents lbs. of product landed at the port of Kodiak including harvests outside of the Kodiak management area (from Fish Ticket data) f Includes the following species: butter sole, yellowfin sole, starry flounder, Alaska plaice and Greenland turbot g Includes the following rockfish species: northern, thornyhead, yelloweye, rougheye, shortraker, and dusky rockfish * Halibut poundage from NMFS website: http: / /www.fakr.noaa.gov /ram /ifcireports.htm includes all landings in Kodiak regardless of where the fish were harvested In addition to the fish harvesting and processing sectors, there are also several government and educational institutions that operate fisheries- related research facilities in Kodiak. The National Marine Fisheries Service Utilization and Research Division, along with the University of Alaska's Fisheries Industrial Technology Center, provide lab services, quality and handling studies, product development assistance and other research efforts. The University of Alaska Marine Advisory Program also has a field office in Kodiak. The Kodiak Fisheries Research Center, owned and operated by the Kodiak Island Borough, is a world -class research institute, open to both state and federal researchers. Port Facilities The Port of Kodiak is the largest protected commercial fishing harbor in the United States. Combined facilities provide moorage for 650 vessels up to 150 feet in length and include three commercial piers that can handle larger vessels such as the state ferry, cruise ships and cargo vessels. St. Paul Harbor, constructed in 1957, and St. Herman Harbor, completed m 1982, serves as the home of the Kodiak fishing fleet. St. Paul has 250 boat slips and St. Herman has 325 slips. St. Herman Harbor was expanded in 1993 to meet the needs of Kodiak's growing fleet. A 1,865 -foot long breakwater at the harbor's main entrance was constructed to prevent damage to vessels during storms. A secondary entrance channel was widened and deepened. In addition, 178 new boat slips were added, the majority for commercial fishing vessels Longer than 90 feet The State of Alaska recently awarded the City of Kodiak $7.5 million to do deferred maintenance in the St. Paul harbor. The City is in the process of repairing and upgrading the harbor as well as developing additional inner harbor facilities, including additional large vessel moorage and dock space. U.S. Coast Guard Base The U.S. Coast Guard operates its largest base on Kodiak Island. The 21,000 -acre facility supports nine Coast Guard Commands with responsibility for the Gulf of Alaska, Aleutian Island and Bering Sea regions. Missions include search and rescue, fisheries law enforcement, marine environmental protection, fishing vessel safety, navigational aids and their. After 9/11 the Coast Guard has also been very involved with homeland security. The base is an important component of the Kodiak economy. The Coast Guard has approximately 110 active duty personnel at the Kodiak base, with close to 1,600 dependents, and employs 130 full -time civilians. The annual payroll of the base exceeds $35 million. In addition to employment, the Coast Guard spends approximately $40 million annually in facility maintenance and capital improvements. The Coast Guard is a division of the Department of Transportation, not the Department of Defense. The base plays a crucial role in Alaska's thriving fishing industry, and the Coast Guard expects future activity and personnel levels to remain stable. No major program cutbacks are currently planned. University Marine Research The University of Alaska operates the Fishery Industrial Technology center in Kodiak. The $7.5 million facility on Near Island brings together more seafood specialists than any other university food science research center in the United States. The faculty and research staff conduct extensive marine research, develop and test new seafood technology, and teach classes. The "fish tech center" is supported by the University, the fishing industry and government grants. Resources are currently focused on improving fish harvesting methods and seafood processing. The center also develops and tests new seafood products. Successful technology advances are transferred to the fishing industry and state and federal agencies. Kodiak Fisheries Research Center In October 1998 the Borough opened the Kodiak Fisheries Research Center adjacent to University of Alaska's Fishery Industrial Technology Center on Near Island. The Center serves as a multi- agency research facility committed to the preservation, enhancement and management of the North Pacific marine ecosystem and resources. The Center contains an interpretive area that provides an educational and interactive overview of Kodiak Island wildlife, marine life and research programs through graphic display panels, interactive computer programs and videos, a topographic map of the island, a touch tank with live tide pool creatures and a 10 foot diameter aquarium featuring local marine fauna. The $21 million, 45,397 square foot facility provides laboratory, dormitory and office space for the National Marine Fisheries Service (a division of NOAA), the Alaska Department of Fish and Game, and the University of Alaska. Approximately 30 researchers and support staff work in the facility. Timber Industry The timber industry began developing in the Borough in the early 1990s. Afognak Island, north of Kodiak Island and within the Borough boundaries, has an area of approximately 700 square miles. The island contains substantial stands of virgin old growth Sitka Spruce. Under the terms of the Alaska Native claims Settlement Act of 1971, thirteen native corporations were given land on Afognak Island. Today, two logging ventures, the Afognak Native Corporation and Koncor Corporation, cut Sitka Spruce on land owned by these native corporations and several other private owners. The gross value of timber production on Kodiak is shown below: Timber Industry Gross Production Year ($'s in millions) 2003 $ 6.2 2002 5.0 2001 6.1 2000 9.9 1999 10.3 1998 19.4 1997 42.3 1996 38.5 1995 . 44.1 Source: Kodiak Chamber of Commerce website (www.kodiak.org). Kodiak Launch Complex In January 1998, the Alaska Aerospace Development Corporation ( "AADC "), a public corporation of the State of Alaska, began building a commercial spaceport at Narrow Cape on Kodiak Island, about 25 miles southwest of the City of Kodiak. The Kodiak Launch Complex is the first complete rocket launch facility built in the United States since the 1960s and the first not owned by the federal government. Completed in late 2000, the state -of -the -art facility includes a launch control center, payload processing facility, spacecraft assembly building and launch pad. Designed to handle the small to medium size rockets that are used to launch low earth orbit satellites, as well as military, scientific and research missions, the complex will provide a $28 million investment in the Borough for a unique, aerospace facility. The KLC celebrated its first mission November 15, 1998. Orbital Sciences Corporation launched a sub - orbital vehicle for the US Air Force called "art -1." The second successful launch from KLC lifted off September 15, 1999. The US Air Force atmospheric interceptor technology (ait -2) rocket launched into sub - orbital flight along the West Coast of North America. The US Air Force had developed a program to launch rockets on sub - orbital flights in support of Department of Defense operations. The Quick Reaction Launch Vehicle (QRLV) program made its initial launch from KLC in March 2001. The Kodiak STAR, the first planned orbital launch from the KLC lifted off on September 29, 2001. This launch was a NASA collaborative mission with the Department of Defense. The payload consisted of four small satellites launched aboard a Lockheed Martin Athena I launch vehicle. The Strategic Targets Product Office (STOP) launched the Ballistic Missile Defense Organization, Strategic Target System (STARS) from the KLC on November 9, 2001. STARS was designed to deploy a multiple object payload suite in supp of sensors that may tiP. i a_: U.S. may be used n the J.S. missile defense system. This STARS mission was designated as the West Coast Risk Reduction Flight ( WCRRF). WCRRF was designed to be launched from Kodiak and fly along a trajectory at a safe distance off the west coast of the Continental United States to a broad ocean area impact southwest of California. The WCRRF trajectory provides unique test opportunities for missile defense system sensors. According to the Institute of Social and Economic Research (ISER), University of Alaska Anchorage, the economic impact of the September 2001 launch on the Kodiak Island Borough and the state of Alaska was an estimated $4.2 million in sales and $2.6 million in payroll. It created the equivalent of 85 year -round jobs. That effect was felt about equally on Kodiak Island and in Anchorage. ISER estimated that people visiting Kodiak to work on the launch spent an additional $92,000 for recreational and personal expenses. Income and Employment Kodiak Island Borough has a growing economy. As shown below, Kodiak's per capital income is less that the state average, but falls among those of the more populated areas such as Matanuska - Susitna Borough (located just north of Anchorage) and Fairbanks North Star Borough: Kodiak Island Borough Income Levels Per Capita July, 2001 $27,726 State of Alaska $31,027 Fairbanks North Star Borough 29,307 Matanuska - Susitna Borough 20,261 Source: Alaska Department of Labor, Research and Analysis Section The Alaska Department of Labor provides two measures of employment data. The first is a breakdown by industry, but excludes self - employed proprietors and unpaid family business members. As such, this series understates employment in the Borough's fishing industry. When measuring the total labor force and unemployment, the Department makes adjustments for these factors. Department of Labor statistics also exclude employment of military personnel, which includes approximately 1,100 employees at the Kodiak Coast Guard base. Based on the number of commercial fishing permits held by Kodiak residents and accepted crew ratios, annual commercial fishing employment is estimated to be 3,200. Employment in the Borough 1998 -2002 1998 1999 2000 2001 2002 Total Industries 5,737 5,801 5,701 6,091 5,616 Government 1,121 1,120 1,145 1,229 1,258 - Federal 170 182 208 208 216 -State 242 226 225 240 251 -Local 709 712 713 781 791 Natural Resources & Mining 69 80 86 60 94 Construction 154 127 137 167 184 Manufacturing 1,968 1,871 1,774 2,102 1,536 - Food 1,875 1,753 1,678 2,025 1,532 Trans., Comm. & Utilities 297 279 266 288 330 Trade 840 998 9225 934 589 - Wholesale 69 50 51 54 40 - Retail 771 948 877 880 549 Finance, Ins. & Real Estate 162 162 179 169 189 Services 1,125 1,161 1,185 1,142 1,919 Source: Alaska Department of Labor, Research and Analysis Total Borough Employment and Unemployment Rate, 1999 -2003 Annual Average Employment Unemployment Rate 1999 2000 2001 2002 2003 6,336 6,100 5,995 5,832 5,877 7.2% 10.2% 9.7% 10.1% 10.3% Employment in the Borough is highly seasonal due to the nature of the fishing industry. Employment usually peaks during the third quarter, when fish harvesting is busiest, and declines in the fourth quarter when yearly fishing quotas are reached. Unemployment rates throughout the year might range from a low of 5.9% (Sept 2003) up to 17.4% (Dec 2003). Commercial and residential construction has proceeded at a moderate pace in the Borough as shown below: Commercial Residential Fiscal Year No. of Units Value No. of Units Value Total Value 1995 59 6,055,321 159 4,305,352 10,400,673 1996 41 3,862,599 160 7,864,907 11,727,506 1997 36 1,559,938 112 6,262,439 7,812,377 1998 39 16,676,612 149 8,103,624 24,780,236 1999 51 6,784,879 141 8,222,313 15,007,192 2000 54 2,720,259 156 9,086,074 11,806,333 2001 33 1,379,673 198 11,501,804 12,881,477 2002 30 1,494,337 190 10,439,985 11,934,322 2003 47 2,915,740 166 11,707,269 14,623,009 2004 44 2,859,775 179 14,798,679 17,658,454 Source: Borough Records COMPUTATION OF DIRECT AND OVERLAPPING DEBT JUNE 30, 2003 Kodiak Island Borough: General obligation bonds $ 15,601121 100% City of Kodiak: Revenue bonds 1,675,000 ° 100% (a) (b) Total General Obligation Debt Direct and Overlapping Debt Percentage Kodiak Island Net debt applicable to this Borough outstanding governmental share of (a) unit (b) debt (c) $ 17,277,121 $ 17,277,121 Gross debt outstanding less applicable amounts in the Debt Service Funds. Determined by ratio of assessed valuation of property subject to taxation in overlapping unit to valuation of property subject to taxation in reporting unit. (c) Under Alaska Statutes Title 29, there is no limitation on municipal debt. Sources: Borough general ledger and City of Kodiak records. Bonded Debt RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL OBLIGATION DEBT TO TOTAL GENERAL FUND EXPENDITURES AND TRANSFERS LAST TEN FISCAL YEARS $ 15,602,121 1,675,000 Total Ratio of General Fund debt service Fiscal Interest Total debt expenditures to General Fund year Principal (a) and fees service and transfers expenditures 1994 1,775.833 690,170 2.466.003 7,162,545 34.4 1995 2,270,833 1,760,185 4,031.018 8,150.732 49.5 1996 2,480,833 1,386,681 3.867.514 9,278,184 41.7 1997 1,565,833 1,239.996 2,805,829 9.391.162 29.9 1998 1,660,833 1,141.366 2,802,199 11,393,083 24.6 1999 1,915.833 853,652 2,769,485 10,957.892 25.3 2000 1.905,833 858,164 2,763,997 9,793,574 28.2 2001 2,015,834 746,994 2,762,828 10,735,365 25.7 2002 1,095,833 853,543 1,949,376 10,726,858 18.2 2003 1,140,833 803,224 1,944,057 13,071,957 14.9 (a) Reflects annual debt service requirements for tern bonds. Source: Borough general ledger and debt documents PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Tax Collection Record Percent of Percent of Percent of current Delinquent total tax Outstanding delinquent Fiscal Total Current tax levy tax Total tax collections delinquent taxes to year tax levy collections collected collections collections to tax levy taxes tax levy 1994 4,353,371 4,176,676 95.9 21,295 4,197,971 96.4 193,624 4.4 1995 5,141,728 4,955,108 96.4 56.140 5,011,248 97.5 232,679 4.5 1996 5,466.066 5,249,168 96.0 56,531 5,305,699 97.1 289,210 5.3 1997 5,576,773 5.478,939 98.2 96,490 5.575,429 100.0 192,722 3.5 1998 7,384,490 7,121,678 96.4 77,576 7,199,254 97.5 381,180 5.2 1999 7,704,172 7575,491 98.3 314,367 7,889,858 102.4 234,738 3.0 2000 7,743.649 7.507,018 96.9 175,066 7.682,084 99.2 316,482 4.1 2001 8,164,127 7,912,859 96.9 204,458 8,117,316 99.4 264,044 4.5 2002 8,411,173 8,313,881 98.8 362,377 8,676,258 103.2 292,823 3.5 2003 8,395,117 8,167,437 97.3 178,885 8,346,322 99.4 312,925 3.7 TEN LARGEST PROPERTY TAXPAYERS YEAR ENDED JUNE 30, 2003 Ten Largest Taxpayers Percentage Percentage of total 2002 Net of total assessed Assessed taxes taxes value valuation levied levied Western Alaska Fisheries 1.7% 12,579,868 131,918 1.6% Alaska Communication Systems 1.7"/ 13,130,076 128,601 1.5% International Seafoods of Alaska 1.4% 10,297,293 117,449 1.4% Ocean Beauty Seafoods I.9% 14,327,724 105,481 1.3% Alaska Pacific Seafoods 1.4"/ 10,387,734 104,438 1.2% Brechan Enterprises, Inc. 1.2% 9,131,003 100,663 1.2% CSX Lines LLC 1.2"/ 9,283,545 99,871 1.2% Wal -Mart Real Estate Bus. Trust 1.0% 7,934,200 89,260 1.1% Mill Bay Plaza Associates. Inc. 0.9% 7,138,400 80,307 1.0% Kodiak Fishmeal Company 1.0% 7,751,105 76,402 0.9% Totals 13.4% $ 101,960,948 $ 1,034,390 12.4% KODIAK ISLAND BOROUGH Balaire Sheet Gyvernmental Funds June 30, 2003 Education Other Total and governmental governmental Assets Genend Facilities health funds funds Assets: Equity in central treasury $ 650 $ 225.182 $ 17.879 $ 1.246,788 $ 1,490,499 Temporary investnrntss 5306.856 30.445.075 — 1,041,415 36,793,346 Receivables. — Acwtmts and other receivables net 212,712 19 551 — 403,263 State of Alaska 60,362 193294 253,656 Federal Gmenmrnt 38$413 388,413 Property taxes, net of allowmmceof$192,114 295,689 — 17,239 312,928 Lund sales contracts 54,325 54,325 Rue from otter finis 704,885 124.775 966,130 1,795,790 Advances to other boils — 7.130,000 — 7,130,000 Total $ 6,581,154 $ 38,115,583 $ 17,879 $ 3,907,604 $ 48,67270 Liabilities and Fund Balances Liabilities: Aatximts payable $ 75.579 $ — $ — $ 326891 $ 402,470 Retainages payable 45,860 45,860 Accred compensation and relied liabilities 7638 156 7,794 Customer deposits — 678 678 Deterred revenues 276,836 54.325 331,161 Rue to component unit 3.452.254 3,452,254 Rue to other finds 9(4735 406,329 1,371,064 Total liabilities 4,777,042 834,239 5,611,281 Fund balances: Reserved' Lang -tear interfiud borrowings 6,875.000 6,875,000 Unreserved Desigmatedtbr self-insurance — — 100,000 100,000 Rsigtated for subsequent year expenditures 334,950 334,950 Undesigt<ated 1.804,112 31,240,583 17,879 2,638,415 35,7(0,989 Total huxt lxttair s 1,804,112 38,115,583 17,879 3,073,365 43,010,939 Total $ 6,581,154. $ 38,115,583 $ 17,879 $ 3,907,604 $ 48,622,220 Revenues: Property Imes Intergovernmental: Store serves Federal sowas Land sale proceed: Severance taxes Lianses, permits, tees, and ether' wentes Odrer Investment income Total revenues See aceonpanying notes to financial statements. KODIAK ISLAND BOROUGH Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds Year ended June 30, 2003 Education Other Total and governmental governmental General Facilities health funds funds $ 7,326.448 $ $ - $ 663,185 $ 7,989,633 1,479,397 - 800,012 1.235,121 3,514,530 1.204,063 28,650 1,232,713 11.805,734 - 46,130 11,851,864 702,065 - 702,065 153.727 - - 181,512 335,239 - - 58,645 1,481 60,126 171,532 1,160,335 43.514 448,260 1,823,641 I1,037,232 12,966,069 902,171 2,604,339 27,509,811 Expenditures: Cenral govemment 4.578.042 22,232 - 4,(00,274 Fire saviors - - 260,120 260,120 Ehergetxy preparedness 2,369 - 20,(KK) 22,369 Cannnnity and eananic d;veleprent 320.853 123,607 444,460 Health and sanitation [kyartnrnt 286,095 498,635 784,730 Fcknxuia>, culture and recreation 152,282 53,584 205,866 Maintenance and operations • - 606,724 606,724 Service district maintenance - 190,058 190,058 Prinauy and secondary aknauian 7,251,840 - 7,251,840 Capital outlay: Schools 372,122 372,122 General - 656,083 656,083 Debt service: Prindpal 1,145,061 1,145,061 Interest 783,524 783,524 Band issuance costs 43,509 43,509 Total expenditures 12,591,481 1,994,326 2,780,933 17,366,740 Excess of'revenue over (under) expeditues (1,554,249) 12,966,069 (1,092,155) (176,594) 10,143,071 Other financing (uses) sauces: Refunding bonds issued 3,075,000 - 3,075000 Payment to refunded handescmw agora - - (3,068,781) - (3,068,781) Transfers in 1,000,(0404) - 1,005,750 909,894 2,915,644 Trnsfersan (480,476) (1,139,147) (350,000) (721,681) (2,691,304) Net other financing (uses) sources 519,524 (1,139,147) 661,969 188,213 230,559 Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses (1,034,725) 11,826,922 (430,186) 11,619 10,373,630 Fund balances, at beginning of year 2,838,837 26,288,661 448,065 3,061,746 32,637,309 Fund balances, at and of the year $ 1,804,112 $ 38,115,583 $ 17,879 $ 3,073,365 $ 43,010,939 LOAN AGREEMENT AGREEMENT, dated as of the 1st day of 2004, between the Alaska Municipal Bond Bank (the "Bank "), a body corporate and politic constituted as an instrumentality of the State of Alaska (the "State ") exercising public and essential governmental functions, created pursuant to the provisions of Chapter 85, Title 44, Alaska Statutes, as amended (the "Act "), having its principal place of business at Juneau, Alaska, and the Kodiak Island Borough, Alaska, a duly constituted second class borough of the State (the "Borough "): WITNESSETH: DRAFT 10 -29 -04 WHEREAS, pursuant to the Act, the Bank is authorized to make loans of money (the "Loan" or "Loans ") to governmental units; and WHEREAS, the Borough is a Governmental Unit as defined in the General Bond Resolution of the Bank hereinafter mentioned and pursuant to the Act is authorized to accept a Loan from the Bank to be evidenced by its municipal bonds purchased by the Bank; and WHEREAS, the Borough is desirous of borrowing money from the Bank in the amount of not to exceed $11,050,000 and has submitted an application to the Bank for a Loan in the amount of not to exceed $11,050,000, and the Borough has duly authorized the issuance of its fully registered bond in the aggregate principal amount of $ (the "Municipal Bond "), which bond is to be purchased by the Bank as evidence of the Loan in accordance with this Agreement; and WHEREAS, the application of the Borough contains the information requested by the Bank; and WHEREAS, to provide for the issuance of bonds of the Bank in order to obtain from time to time money with which to make Loans, the Bank has adopted the General Bond Resolution on May 27, 1976, as amended (the "General Bond Resolution "), and a Series Resolution adopted on November 3, 2004 (together with the General Bond Resolution, the "Bond Resolution "), authorizing the making of such Loan to the Borough and the purchase of the Municipal Bond. DRAFT 10 -29 -04 NOW, THEREFORE, the parties agree: 1. The Bank hereby makes the Loan and the Borough accepts the Loan in the principal amount of $ As evidence of the Loan made to the Borough and such money borrowed from the Bank by the Borough, the Borough hereby sells to the Bank the Municipal Bond in the principal amount, with the principal installment payments, and bearing interest from its date at the rate or rates per annum, stated in Exhibit "A" appended hereto. For purposes of this Loan Agreement, the interest on the Municipal Bond will be computed without regard to the provision in Section 7 hereof for the Borough to make funds available to the Trustee acting under the General Bond Resolution for the payment of principal and interest at least seven business days prior to each respective principal and interest payment date. 2. The Borough represents that it has duly adopted or will adopt all necessary ordinances or resolutions, including Ordinance No. FY 2005 -08 passed by the Borough Assembly on November 4, 2004 (the "Borough's Ordinance "), and has taken or will take all proceedings required by law to enable it to enter into this Loan Agreement and issue its Municipal Bond to the Bank and that the Municipal Bond will constitute a general obligation bond and the full faith and credit of the Borough will be pledged for payment of the principal of, and interest on, the Municipal Bond. 3. Subject to any applicable legal limitations, the amounts to be paid by the Borough pursuant to this Loan Agreement representing interest due on its Municipal Bond (the "Municipal Bond Interest Payments ") shall be computed at the same rate or rates of interest borne by the corresponding maturities of the bonds sold by the Bank in order to obtain the money with which to make the Loan and to purchase the Municipal Bond (the "Loan Obligations ") and, unless required under Section 7 hereof to be paid at least seven business days before the interest payment date, shall be paid by the Borough in such manner and at such times so as to provide funds sufficient to pay interest as the same becomes due on the Loan Obligation. 4. The amounts to be paid by the Borough pursuant to this Loan Agreement representing principal due on its Municipal Bond (the "Municipal Bond Principal Payments "), unless required under Section 7 hereof to be paid at least seven business days before the maturity date, shall be scheduled by the Bank in such manner and at such times (notwithstanding the dates of payment as stated in the Municipal Bond) so as to provide funds sufficient to pay the principal of the Loan Obligations as the came ma ture_ based upon the maturity schedule stated in - __.,... stated In Exnibit'.A,. appended __..... matures pp nded hereto. 5. the event the amounts referred the Bo rough p to this Loan Agreement are ono Sections made available at any time s paid by AMBB /General Obligation Bonds, 2004 Series D pecified Loan Agreement - FOB 1 :1Docs\3 7421 6 9 21Loan Agreement Kodiak v2.xpd Page 2 AMBB /General Obligation Bonds, 2004 Series D Loan Agreement - KIB I: \Dots \37421692 \Loan Agreement Kodiak v2.vpd DRAFT 10 -29 -04 herein, the Borough agrees that any money payable to it by any department or agency of the State may be withheld from it and paid over directly to the Trustee acting under the General Bond Resolution, and this Loan Agreement shall be full warrant, authority and direction to make such payment upon notice to such department or agency by the Bank, with a copy provided to the Borough, as provided in'the Act. 6. In the event Loan Obligations have been refunded and the interest rates the Bank is required to pay on its refunding bonds in any year are less than the interest rates payable by the Borough on the Municipal Bond for the corresponding year pursuant to the terms of the Municipal Bond, then both the Municipal Bond Interest Payments and the Municipal Bond Principal Payments will be adjusted in such a manner that (i) the interest rate paid by the Borough on any principal installment of the Municipal Bond is equal to the interest rate paid by the Bank on the corresponding principal installment of Bank's refunding bonds and (ii) on a present value basis the sum of the adjusted Municipal Bond Interest Payments and Municipal Bond Principal Payments is equal to or less than the sum of the Municipal Bond Interest Payments and Municipal Bond Principal Payments due over the remaining term of the Municipal Bond as previously established under this Loan Agreement. In the event of such a refunding of Loan Obligations, the Bank shall present to the Borough for the Borough's approval, a revised schedule of principal installment amounts and interest rates for the Municipal Bond. If approved by the Borough the revised schedule shall be attached hereto as Exhibit "A" and incorporated herein in replacement of the previous Exhibit "A" detailing said principal installment amounts and interest rates. 7. The Borough is obligated to pay to the Bank Fees and Charges. Such Fees and Charges actually collected from the Borough shall be in an amount sufficient, together with the Borough's Allocable Proportion of other money available therefor under the provisions of the Bond Resolution, and other money available therefor, including any specific grants made by the United States of America or any agency or instrumentality thereof or by the State or any agency or instrumentality thereof and amounts applied therefor from amounts transferred to the Operating Fund pursuant to paragraph (3) of Section 603 of the General Bond Resolution: (a) to pay, as the same become due, the Borough's Allocable Proportion of the Administrative Expenses of the Bank; and (b) to pay, as the same become due, the Borough's Allocable Proportion of the fees and expenses of the Trustee and paying agent for the Loan Obligations. The Borough's Allocable Proportion as used herein shall mean the proportionate amount of the total requirement in respect to which the term is used determined by the ratio that the principal amount of the Municipal Bond outstanding bears to the total of all Page 3 AMBB /General Obligation Bonds, 2004 Series D Loan Agreement - KIB I:\Docs\37421692 \Loan Agreement Kodiak v2.wpd DRAFT 10 -29 -04 Loans then outstanding to all Governmental Units under the General Bond Resolution, as certified by the Bank. The waiver by the Bank of any fees payable pursuant to this Section 7 shall not constitute a subsequent waiver thereof. During any period where the Borough's Allocable Proportion of the fees and expenses of the Trustee and paying agent for the Loan Obligations is reduced in consideration of the Borough so making funds available, the Borough shall make funds available to the Trustee for each Municipal Bond Interest Payment and Municipal Bond Principal Payment at least seven business days before the respective principal or interest payment date. 8. The Borough is obligated to make the Municipal Bond Principal Payments scheduled by the Bank. The first such Municipal Bond Principal Payment is due on the date indicated on Exhibit "A" appended hereto, and thereafter on the anniversary thereof each year. The Borough is obligated to make the Municipal Bond Interest Payments scheduled by the Bank on a semi - annual basis commencing on the date indicated on Exhibit "A" appended hereto, and to pay any Fees and Charges imposed by the Bank within 30 days of receiving the invoice of the Bank therefor. 9. The Bank shall not sell and the Borough shall not redeem prior to maturity any portion of the Municipal Bond in an amount greater than the Loan Obligations which are then outstanding and which are then redeemable, and in the event of any such sale or redemption, the same shall be in an amount not less than the aggregate of (1) the principal amount of the Municipal Bond (or portion thereof) to be redeemed, (ii) the interest to accrue on the Municipal Bond (or portion thereof) to be redeemed to the next redemption date thereof not previously paid, (Hi) the applicable premium, if any, payable on the Municipal Bond (or portion thereof) to be redeemed, and (iv) the cost and expenses of the Bank in effecting the redemption of the Municipal Bond (or portion thereof) to be redeemed. The Borough shall give the Bank at least 50 days' notice of intention to redeem its Municipal Bond. In the event the Loan Obligations with respect to which the sale or redemption prior to maturity of such Municipal Bond is being made have been refunded and the refunding bonds of the Bank issued for the purpose of refunding such Loan Obligations were issued in a principal amount in excess of or less than the principal amount of the Municipal Bond remaining unpaid at the date of issuance of such refunding bonds, the amount which the Borough shall be obligated to pay or the Bank shall receive under item (i) above shall be the principal amount of such refunding bonds outstanding. In the event the Loan Obligations have been refunded and the interest the Bank is required to pay on the refunding bonds is less than the interest the Bank was required to Page 4 AMBB /General Obligation Bonds, 2004 Series D Loan Agreement - KIB I:\Docs \37421692 \Loan Pgreemen[Kodiak v2 wpd DRAFT 10 -29 -04 pay on the Loan Obligations, the amount which the Borough shall be obligated to pay or the Bank shall receive under item (H) above shall be the amount of interest to accrue on such refunding bonds outstanding. In the event the Loan Obligations have been refunded, the amount which the Borough shall be obligated to pay or the Bank shall receive under item (iii) above, when the refunded Loan Obligations are to be redeemed, shall be the applicable premium, if any, on the Loan Obligations to be redeemed. Nothing in this Section shall be construed as preventing the Borough from refunding the Municipal Bond in exchange for a new Municipal Bond in conjunction with a refunding of the Loan Obligations. 10. Simultaneously with the delivery of the Municipal Bond to the Bank, the Borough shall furnish to the Bank evidence satisfactory to the Bank which shall set forth, among other things, that the Municipal Bond will constitute a valid general obligation of the Borough. 11. Invoices for payments under this Loan Agreement shall be addressed to the Kodiak Island Borough, 710 Mill Bay Road, Kodiak, Alaska 99615, Attention: Finance Director. The Borough shall give the Bank and the corporate trust office of the Trustee under the General Bond Resolution at least 30 days' written notice of any change in such address. 12. Prior to payment of the amount of the Loan or any portion thereof, and the delivery of the Municipal Bond to the Bank or its designee, the Bank shall have the right to cancel all or any part of its obligations hereunder if: (a) Any representation, warranty or other statement made by the Borough to the Bank in connection with its application to the Bank for a Loan shall be incorrect or incomplete in any material respect. (b) The Borough has violated commitments made by it in the terms of this Loan Agreement. (c) The financial position of the Borough has, in the opinion of the Bank, suffered a materially adverse change between the date of this Loan Agreement and the scheduled _ J_I:.._.-.. of tL-. Municipal B....A 4.. 4L... B LIII IC of UCIIVCIy of LI IC IVIUI U UIpaI Bond to the. Bank. Page 5 DRAFT 10 -29 -04 13. The obligation of the Bank under this Loan Agreement is contingent upon delivery of its 2004 Series D General Obligation Bonds (the "2004 Series D Bonds ") and receipt of the proceeds thereof. 14. The Borough agrees that it will provide the Bank with written notice of any default in covenants under the Borough's Ordinance within 30 days from the date thereof. 15. The Borough shall not take, or omit to take, any action lawful and within its power to take, which action or omission would cause interest on the Municipal Bond to become subject to federal income taxes in addition to federal income taxes to which interest on such Municipal Bond is subject on the date of original issuance thereof. The Borough shall not permit any of the proceeds of the Municipal Bond, or any facilities financed with such proceeds, to be used in any manner that would cause the Municipal Bond to constitute a "private activity bond" within the meaning of Section 141 of the Code. The Borough shall make no use or investment of the proceeds of the Municipal Bond which will cause the Municipal Bond to be an "arbitrage bond" subject to taxation by reason of Section 148 of the Code. So long as the Municipal Bond is outstanding, the Borough, with respect to the proceeds of the Municipal Bond, shall comply with all requirements of said Section 148 and all regulations of the United States Department of Treasury issued thereunder, to the extent that such requirements are, at the time, applicable and in effect. The Borough shall indemnify and hold harmless the Bank from any obligation of the Borough to make rebate payments to the United States under said Section 148 arising from the Borough's use or investment of the proceeds of the Municipal Bond. 16. The Bank shall cause to be prepared an Official Statement (the "Official Statement ") for the 2004 Series D Bonds. The Borough shall provide promptly to the Bank the information concerning the Borough and the Municipal Bond (the "Municipal Information ") (i) that the Bank requests for inclusion in the Official Statement, or (ii) that the Borough considers to be material to the purposes for which the Official Statement is to be used. As a condition to the payment of the amount of the Loan or any portion thereof, the Borough shall provide to the Bank a certificate, dated the date of issue of the 2004 Series _ Rnnric of an authorized officer of the Rnrnugh that (i) the Municipal Information consists of fair and accurate statements or summaries of the matters therein set forth and such information does not contain any untrue statement of material fact or omit to state a material fact that should be stated therein for the purposes for which it is to be used or that AMBB /General Obligation Bonds, 2004 Series D Loan Agreement - KIB \Docs437421692 \Loan Agreement Kodiak v2.vpd Page 6 is necessary to make the statements therein, in light of the circumstances under which they were made, not misleading in any material respect; and (ii) to the best knowledge of such officer, no event affecting the Borough has occurred since the date of the Official Statement that should be disclosed in the Official Statement for the purposes for which it is to be used or that it is necessary to disclose therein in order to make the statements and information therein not misleading in any material respect. The Borough will undertake in the Disclosure Certificate for the benefit of the Beneficial Owners of the 2004 Series D Bonds to provide or cause to be provided to each nationally recognized municipal securities information repository ( "NRMSIR ") and to a state information depository ( "SID "), if one is established in the State, annual financial information and operating data which shall be substantially similar to the financial information found in Appendix E to the Official Statement as required by Rule 15c2- 12(b)(5) of the Securities and Exchange Act of 1934, as the same may be amended from time to time (the "Rule "). The Borough will provide to each NRMSIR or to the Municipal Securities Rulemaking Board, and to the SID, timely notice of a failure by the Borough to provide required annual financial information on or before the date specified below. The annual financial information that the Borough will provide will consist of annual financial statements for the Borough, prepared in accordance with generally accepted accounting principles applicable to governmental entities, as such principles may be changed from time to time; and will be provided not later than 180 days after the end of each fiscal year of the Borough, as such fiscal year may be changed from time to time, commencing with the Borough's fiscal year ending June 30, 2004. 17. If any provision of this Loan Agreement shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this Loan Agreement and this Loan Agreement shall be construed and enforced as if such invalid or unenforceable provision had not been contained herein. 18. This Loan Agreement may be executed in one or more counterparts, any of which shall be regarded for all purposes as an original and all of which constitute but one and the same instrument. Each party agrees that it will execute any and all documents or other instruments, and take such other actions as are necessary, to give effect to the terms of this Loan Agreement. 19. No waiver by either party of any term or condition of this Loan Agreement shall be deemed nr nnnstn lerl as a waiver of any other term or condition hereof, nor shall a waiver of any breach of this Loan Agreement be deemed to constitute a waiver of any subsequent breach, whether of the same or of a different section, subsection, paragraph, clause, phrase or other provision of this Loan Agreement. AMBB /General Obligation Bonds, 2004 Series D Loan Agreement - KIB I:\Docs \37421692 \Loan Agreement Kodiak v2.wpd DRAFT 10 -29 -04 Page 7 20. In this Loan Agreement, unless otherwise defined herein, all capitalized terms which are defined in Article I of the General Bond Resolution shall have the same meanings, respectively, as such terms are given in Article I of the General Bond Resolution. 21. This Loan Agreement merges and supersedes all prior negotiations, representations and agreements between the parties hereto relating to the subject matter hereof and constitutes the entire agreement between the parties hereto in respect thereof. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written. [SEAL] ATTEST: Judith Nielsen, CMC Borough Clerk ALASKA MUNICIPAL BOND BANK By: KODIAK ISLAND BOROUGH, ALASKA By: DEVEN J. MITCHELL Executive Director PATRICK CARLSON Borough Manager DRAFT 10 -29 -04 AMBB /General Obligation Bonds, 2004 Series D Loan Agreement - KIB \ Does \37421692 \Loan Agreement Kodiak v2 vqd Page 8 EXHIBIT "A" TO LOAN AGREEMENT BETWEEN THE KODIAK ISLAND BOROUGH, ALASKA, AND THE ALASKA MUNICIPAL BOND BANK AMBB /General Obligation Bonds, 2004 Series D Loan Agreement - Exhibit A I : \Docs \37421692 \Loan Agreement Kodiak v2.vpd Kodiak Island Borough, Alaska General Obligation School Bond, 2004 Series B Principal Date Principal Interest (November 1) Amount Rate DRAFT 10 - 29 - 04 Principal installments shall be payable on November 1 in each of the years, and in the amounts set forth above. Interest on the Bond shall be payable on November 1, 2005, and thereafter on May 1 and November 1 of each year. Optional Redemption: The Bonds maturing on or after November 1, 2015, are subject to prepayment in whole or in part, on any date, or after November 1, 2014, at a price of 100% of the principal amount thereof to be prepaid plus accrued interest to the date of prepayment. Page A -1 DRAFT 10/29/04 CONTINUING DISCLOSURE CERTIFICATE The Kodiak Island Borough, Alaska (the "Borough ") executes and delivers this Continuing Disclosure Certificate (the "Disclosure Certificate ") in connection with the issuance of $ Alaska Municipal Bond Bank General Obligation Bonds, 2004 Series D (the "Bonds "). The Bonds are being issued under the General Bond Resolution of the Alaska Municipal Bond Bank (the "Issuer") adopted May27, 1976, as amended, (the "General Resolution ") and a Resolution of the Issuer entitled, "A Series Resolution Authorizing the Issuance of General Obligation Bonds, 2004 Series D, of the Alaska Municipal Bond Bank; Rescinding Resolution No. 2004 -07, as Amended; and Related Matters," adopted November 3, 2004 (together with the General Resolution, the "Resolutions "). The Borough covenants and agrees as follows: Section 1. Purpose of the Disclosure Certificate. The Borough is executing and delivering this Disclosure Certificate for the benefit of the Beneficial Owners of the Bonds, and to assist the Participating Underwriter in complying with Securities and Exchange Commission Rule 15c2- 12(b)(5). The Borough is an "Obligated Person" within the meaning of the Rule. Section 2. Definitions. In addition to the definitions set forth in the Resolutions, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Report" means any Annual Report provided by the Borough pursuant to, and as described in, Section 3 of this Disclosure Certificate. "Borough" means the Kodiak Island Borough, Alaska. "Fiscal Year" means the fiscal year of the Borough (currently the 12 -month period ending June 30) as such fiscal year may be changed from time to time as required by State law and the Borough's ordinances. "Issuer" means the Alaska Municipal Bond Bank. "NRMSIR" means any Nationally Recognized Municipal Securities Information Repository for purposes of the Rule. The NRMSIRs, as of the date hereof, are listed in Attachment A. "Participating Underwriter" means .any of the ongtnal underwriters of the Bonds required to comply with the Rule in connection with the offering of the Bonds. "Repository" means each NRMSIR and the SID. "Rule" means Rule 15c2- 12(b)(5) adopted by the Securities and Exchange DRAFT 10/29/04 Commission under the Securities Exchange Act of 1934, as amended from time to time. "SID" means any public or private repository or entity designated by the State of Alaska as a state depository for the purposes of the Rule. Currently there is no SID. Section 3. Provision of Annual Reports and Financial Statements. Commencing with its Fiscal Year ending June 30, 2004, the Borough will provide to each Repository the following: (a) Not later than 180 days after the end of each Fiscal Year, an Annual Report for the Fiscal Year. The Annual Report shall contain or incorporate by reference the following annual financial information and operating data (i) annual financial statements for the Borough, prepared in accordance with generally accepted accounting principles applicable to governmental entities, as such principles may be changed from time to time; (ii) financial information generally of the type included in Appendix E of the Official Statement; (Hi) a statement of authorized, issued, and outstanding general obligation debt of the Borough; (iv) the assessed value of the property within the Borough subject to ad valorem taxation; and (v) ad valorem tax levy rates and amounts and percentages of taxes collected. Any or all of these items may be incorporated by reference from official statements of debt issues of the Borough that are available from the Municipal Securities Rulemaking Board, and from other documents which have been submitted to the Repositories or the Securities and Exchange Commission. The Borough shall clearly identify each such other document so incorporated by reference. The Annual Report may be submitted as a single document or as separate documents comprising a package, provided that audited financial statements of the Borough may be submitted separately from the remainder of the Annual Report. (b) If not provided as part of the Annual Report, then promptly upon their public release, the audited financial statements of the Borough for each Fiscal Year, prepared in accordance with generally accepted accounting principles applicable to governmental iiii _ u_�_ pit be changed from time to time. Cflll lle5, d5 Sul �.11II Il:I�llcS Illd r ti y be changed nuns time w un tc. AMBB /General Obligation Bonds, 2004 Series D Continuing Disclosure Certificate - KIB I: \Docs \37421692\cont disc KIB.wpd Page 2 DRAFT 10/29/04 Section 4. Notice of Failure to Provide Information. The Borough shall provide in a timely manner to each Repository notice of any failure to satisfy the requirements of Section 3 of this Disclosure Certificate. Section 5. Termination of Reporting Obligation. The Borough's obligations under this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of its loan obligation with the Issuer.: Section 6. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the Borough may amend this Disclosure Certificate, provided that the amendment meets each of the following conditions: (a) The amendment is made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature or status of the Borough; (b) This Disclosure Certificate, as amended, would have complied with the requirements of the Rule as of the date hereof, after taking into account any amendments or interpretations of the Rule, as well as any changes in circumstances; and (c) The Borough obtains an opinion of nationally recognized bond counsel to the effect that the amendment will not adversely affect the Issuer's compliance with the Rule or its continuing disclosure undertaking; and (d) The Borough notifies and provides the Issuer and each then existing Repository and any SID with the copies of the opinions and amendments. Any such amendment may be adopted without the consent of any Beneficial Owner of any of the Bonds, notwithstanding any other provision of this Disclosure Certificate or the Resolutions. The first Annual Report containing amended operating data or financial information pursuant to an amendment of this Disclosure Certificate shall explain, in narrative form, the reasons for the amendment and its effect on the type of operating data and financial information being provided. Section 7. Default. In the event of a failure of the Borough to comply with any provision of this Disclosure Certificate, any Beneficial Owner may take such actions as may be necessary and appropriate, including an action to compel specific performance, to Certificate. the Borough to comply with its obligations unifier this Disclosure Certificate. enufiwatc. rvu failure to comply with any provision of this Disclosure Certificate shall be deemed an Event of Default under the Resolutions, and the sole legal remedy under this Disclosure AMBB /General Obligation Bonds, 2004 Series D Continuing Disclosure Certificate - KIB I:\Docs \37421692 \cant disc KIB.wpd Page 3 Certificate in the event of any failure of the Borough to comply with this Disclosure Certificate shall be an action to compel specific performance. DATED this st day of 2004. Section 8. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the Borough, the Issuer, the Trustee, the Participating Underwriter, and the Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity. AMBB /General Obligation Bonds, 2004 Series D Continuing Disclosure Certificate - KIB I ; \nocs\37421692 \cont disc KI B.apd DRAFT 10/29/04 KODIAK ISLAND BOROUGH, ALASKA By: Page 4 1. Bloomberg Municipal Repository 100 Business Park Drive Skillman, NJ 08558 Phone: (609) 279 -3225 Fax: (609) 279 -5962 www.bloomberq.com /markets /muni contactinfo.html Email: Munis @Bloomberg.com 2. DPC Data Inc. One Executive Drive Fort Lee, NJ 07024 Phone: (201) 346 -0701 Fax: (201) 947 -0107 www.dpcdata.com Email: nrmsir @dpcdata.com ATTACHMENT A -- NRMSIRs (As of October 1, 2004) 3. FT Interactive Data ATTN: NRMSIR 100 William Street New York, NY 10038 Phone: (212) 771 -6999 Fax: (212) 771 -7390 (Secondary Market Information (212) 771 -7391 (Primary Market Information www.interactivedata.com Email: NRMSIRanFTID.com 4. Standard & Poor's Securities Evaluations, Inc. 55 Water Street, 45th Floor New York, NY 10041 Phone: (212) 438 -4595 Fax: (212) 438 -3975 www.jikennv.com /iikennv /pser descrip data rep.html E -mail: nrmsir repository(&sandp.com In lieu of the foregoing, filings may be made directly through the facilities of _. , ,, . t , --b-_...- -u- org/ UISCIOSUreVJH a[ nllp:l /www.wsuiusuicuaa.uiyt. AMBB /General Obligation Bonds, 2004 Series D Continuing Disclosure Certificate • KIB I. \Docs \37421692 \cont disc KIB wpd DRAFT 10/29/04 Page 5 Kodiak Island Borough AGENDA STATEMENT Regular Meeting of November 4, 2004 ITEM NO. 13.A.1 Reorganization of the Kodiak Island Borough Assembly 2.17.040 Organization and deputy presiding officer. A. Organization: The assembly shall annually, at the November meeting, elect from its members a deputy presiding officer to serve at the assembly's pleasure. B. Election of the deputy presiding officer of the assembly shall be in the following manner: 1. as the first order of new business, nominations for deputy presiding officer shall be opened. 2. nominations may be made by any member of the assembly. 3. at the close of nominations, a ballot shall be taken. The clerk shall distribute, collect, and with the assistance of one (1) other person, tally the ballots. The clerk shall announce the results. 4. a majority vote of the assembly shall be required for election. 5. if no majority is cast for any candidate, the candidate with the fewest ballots shall be dropped from the list of candidates until there are two (2) remaining and balloting shall continue until one (1) candidate is elected. C. Deputy presiding officer: The deputy presiding officer shall preside as the chair at assembly meetings in the absence of the mayor. If at any meeting the deputy presiding officer is not present, or is unable to act, the senior assemblymember present shall preside as the chair. Kodiak Island Borough AGENDA STATEMENT Regular Meeting of November 4, 2004 Contract No. 2004 -57 Mission Lake Tide Gate Project. APPROVAL FOR AGENDA: Recommended motion: Move ITEM NO. 13.B.1 Meeting of: November 4, 2004 1 APPROVAL FOR AGENDA: Kodiak Island Borough AGENDA STATEMENT ITEM NO. 13.D.1 Ordinance No. 2004 -10A AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ASSEMBLY AMENDING ORDINANCE NO. 2004 -10 FISCAL YEAR 2005 BUDGET TO ESTABLISH A BUDGET FOR THE $9,300,000 GENERAL OBLIGATION BOND 2004 SERIES A AND THE $11,050,000 GENERAL OBLIGATION BOND SERIES B ISSUES AND RELATED PROJECTS FUNDED BY THESE BONDS. An ordinance establishing a budget for projects funded by GO Bond issues 2004A and 2004B. The first issue has been sold; the second issue will be sold on December 1, 2004. These budgets are the same as in the Bond Ordinances and in the voter's pamphlets. This ordinance also allows the Engineering Facilities Director to hire a projects manager /inspector (grade 20.5) and projects assistant (grade 12) to work on these bonded projects until project completion, estimated at 3 to 5 years. FISCAL NOTES: ACCOUNT NO.: ❑ N/A Expenditure Amount Required: Budgeted: RECOMMENDED MOTION: Move to adopt Ordinance No. 2004 -10A in first reading to advance to public hearing on November 18, 2004. Judith Nielsen, CMC, Borough Clerk KODIAK ISLAND BOROUGH ORDINANCE NO. 2004 -10A Introduced by: Manager Carlson Requested by: Manager Carlson Drafted by: Finance Director Introduced: 11/04/2004 Public Hearing: Adopted: AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ASSEMBLY AMENDING ORDINANCE NO. 2004 -10 FISCAL YEAR 2005 BUDGET TO ESTABLISH A BUDGET FOR THE $9,300,000 GENERAL OBLIGATION BOND 2004 SERIES A AND THE $11,050,000 GENERAL OBLIGATION BOND SERIES B ISSUES AND RELATED PROJECTS FUNDED BY THESE BONDS. WHEREAS, On July 21, 2004 the Borough sold the $9,300,000 General Obligation Bond Issue 2004 Series A and the Borough is anticipating selling the $11,050,000 General Obligation Bond Issue Series B on December 1, 2004; and WHEREAS, We need to budget for the proceeds of these bond issues and to budget for expenditure of the proceeds; and WHEREAS, The Borough needs to hire a project manager /inspector and a projects assistant to ensure the integrity of the new projects; NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: This ordinance is not of a permanent nature and will not be codified. Section 2: The FY2005 Borough Budget will be amended per the attached worksheet. Section 3: The Borough Facilities Director can hire a projects manager /inspector (grade 20.5) and projects assistant (grade 12) to work on these bonded projects until project completion, estimated at 3 to 5 years. These positions will be in the Engineering /Facilities department and these salaries will be an expense of these projects. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2004 KODIAK ISLAND BOROUGH ATTEST: Jeroimme M. Selby, Borough Mayor Kodiak Island Borough, Alaska Ordinance No. 2004 - 10A Page 1 of 1 Kodiak Island Borough AGENDA STATEMENT Regular Meeting of November 4, 2004 Resignation of Bay View Road Service Area Board Member. At the October 5, 2004 Municipal Election, Reed Oswalt was elected to a three -year term on the Bay View Road Service Area Board, having received the highest write -in vote tally. As Mr. Oswalt currently holds a two -year seat on the board and cannot hold two seats, his choice would be to either resign the current seat or decline to assume the duties of the newly elected seat. In either case a vacancy would be created that would be filled per MB 4.15.040 Mr. Oswalt has submitted his resignation for the current two -year seat. ITEM NO. 13.E.1 Per KIBC 4.15.040 Vacancies. A. Vacancies on service area boards, other than by expiration of the member's term, are created when: 3. a member submits a resignation accepted by the assembly; C. The clerk shall provide a standard application form for interested persons to complete. The form, letters or other expressions of interest shall be made to the clerk who shall forward copies to the service area board. D. The service area board may submit its nomination of a person from the submitted applications to fill the vacancy to the assembly. The assembly shall appoint a new member selected from the submitted applications for the remaining unexpired term. APPROVAL FOR AGENDA: Recommended motion: Move to accept, with regret, the resignation of Reed Oswalt from the Bay View Road Service Area Board and direct the Borough Clerk to advertise the vacancy per Borough Code. To: Judi Nielsen, Borough Clerk From: Reed Oswalt Date: October 28, 2004 Having been elected to a three year seat on the Bay View Road Service Area Board, I would like to resign my current term and accept the new three -year term. Reed Oswalt VIDEOVE J ti OCT 2 8 2004 BOROUGH CLERK'S OFFICE Kodiak Island Borough AGENDA STATEMENT Regular Meeting of November 4, 2004 ITEM NO. 13.E.2 Appointments to Seats on the Providence Kodiak Island Service Area Community Board. The attached letter from Donald J. Rush, CEO, Providence Kodiak Island Medical Center expresses the Providence Kodiak Island Service Area Community Boards recommendation to appoint the following: Jimmy Ng, Kodiak Island Health Care Foundation Director to an ex- officio, non- voting seat on the Service Area Community Board; and Norm Wooten, Kodiak Island Health Care Foundation Board President, to a seat on the Service Area Community Board. Per Contract No. 97 -07A: An advisory board meeting the requirements of 7AAC 13.030(a) will be appointed by Providence...One assemblymember shall be appointed by Providence as a full voting member of the advisory board, and Providence shall give the borough the opportunity for review and comment before appointments to the advisory board are made. APPROVAL FOR AGENDA: Recommended motion: Move to voice non - objection to the appointments of Jimmy Ng, Kodiak Island Health Care Foundation Director to an ex- officio, non - voting seat and Mr. Norm Wooten, President of the Kodiak Island Health Care Foundation to a service area board seat on the Providence Kodiak Island Service Area Community Board. October 22, 2004 Mayor Gabrielle LeDoux 710 Mill Bay Road Kodiak, AK 99615 Re: Appointment of Jimmy Ng, Kodiak Island Health Care Foundation (KIHCF) Director and Norm Wooten, KIHCF Board President to the Providence Kodiak Island Service Area Community Board. Dear Honorable LeDoux and Assembly Members: The Providence Kodiak Island Service Area Community Board is recommending an ex officio, non - voting seat for the KIHCF Director and the KIHCF Board President as a Service Area Board member. The Service Area Board believes it will be beneficial for the KIHCF Director and Board President to hold seats on the Service Area Community Board helping to ensure open communication between the two organizations. Please let us know if you have any concerns or comments regarding the appointment of Jimmy Ng, KIHCF Director and Norm Wooten, KIHCF Board President to the Service Area Community Board. Sincerely, Donald J. Rush, CEO Providence Kodiak Island Medical Center Medical Center 1915 E. Rezanof Drive Kodiak, Alaska 99615 Tel 907 486 -3281 OCT 2 7 2004 70EcEivEn BOROUGH CLERK'S OFFICE A. Call to Order B. Roll Call C. Approval of Agenda D. Approval of Minutes E. Public Comments None. w w4 n .-4 a1 Rnpnr4• Service Area No. 1 Board Regular Meeting Minutes 21 January 2004 at 7:00 p. KIB Conference Room p ill OCT 1 9 2004 \ \dove \Departments \EF \Service Districts \Service Area No. 1 Board \Minutes 21 Jan 2004.doc Page 1 of 4 BOROUGH CLERK'S OFFICE Chairperson Charlie Lorenson called the meeting to order at 7:15pm Present were Board Members Kevin Arndt, Scott Arndt, Rob Casey, Charlie Lorenson, Kaye McClain, Greg Spalinger and Peggy Tuttle. Also present were Bud Cassidy [E /F Department] and Sharon Lea Adinolfi, recording secretary, and Louis Rocheleau of Brechan Enterprises. It was moved and seconded [S. Arndt and G. Spalinger] to approve the Agenda. The Minutes of the last regular meeting of the Board [11 November 2003] were distributed and read. S. Arndt indicated that No. 3 under New Business, Ditching and Grading, should read "D -1 needs to be placed...", not "grading needs to be done...". S. Arndt moved that the Minutes be approved as amended. G. Spalinger seconded the Motion. There was a unanimous voice vote to approve the Minutes, as amended. G. Spalinger made a motion to acknowledge receipt of the new Financial Report. S. Arndt seconded the motion. There was a unanimous affirmative voice vote. G. Old Business 1. Chair Report. The Chair said we had gotten a good deal of snow and overall, a good job had been done. He also stated that he would have a better handle on the costs for the work done at the next meeting. L. Rocheleau of Brechan Enterprises questioned some roads not marked on the SD #1 map. S. Arndt informed the Board that the residents of Anna Way have requested no roadwork, snow removal, etc. be done. B. Cassidy will review the matter, alerting that this could be a liability issue. S. Arndt indicated that "L" Street gets the first 100' plowed and that Givens gets plowed all the way back. G. Spalinger questioned the new roads at the end of Spruce Cape. C. Lorenson said that they were doing just snow removal and sanding. The road off Otmeloi near Dark Lake should be done. The Chair mentioned that KEA had called and one of their vaults had been hit. Chair requested that he be alerted if there are any accidents /damages. The Chair said that most of the D -1 has been put down. There may be a few culvert problems and once the snow melts, those problems will be identified. R. Casey noted that there was a stop sign down on the bike path. That is a state responsibility, although C. Lorenson will take a look at it himself. 2. Selief Lane Paving. S. Arndt indicated he had met with the City Engineer regarding the paving of Selief Lane. The City is going out to bid on their portion [S. Arndt said there was 1439' of road which needs to be addressed.] and the estimated cost is $80 /lf for 2" overlay. The total cost is estimated at $115,000 plus another $5000 for traffic control. The City's portion of this total cost would be approximately $103,000. The Service District would be able to "piggyback" onto the project. There was a Aiannecinn re boundary li ma_ installation of culverts, paving, cost to impacted homeowners. S. Arndt recommended the formation of an "Improvement District" and went on to make a motion to recommend to the Borough Assembly that an Improvement District for the Selief Lane \ \dove \Departments \EF \Service Districts \Service Area No. 1 Board \Minutes 21 Jan 2004.doc Page 2 of 4 Overlay be created. R. Casey seconded the motion and there was a unanimous affirmative voice vote. H. New Business Snow Removal. The Chair asked Louis Rocheleau of Brechan Enterprises to speak on this topic. L. Rocheleau said he felt that in spite of being hit pretty hard [with snowfall], a reasonable job had been done [by Brechan]. L. Rocheleau offered "kudos" to C. Lorenson for his participation. L. Rocheleau cited some equipment difficulties encountered, but, in general, he felt that a decent job had been done. R. Casey noted for the group that there had been 9 vehicular accidents during the storms [in the Bayside District] and that they all occurred on State roads. S. Arndt said that he thought Brechan had done a good job. R. Casey asked if the paved roads were going to be cleaned after winter and S. Arndt said yes. P. Tuttle questioned the berms at intersections. L. Rocheleau indicated that that was fairly normal, but the berms would have been less if the snowgate had been operational. B. Cassidy said that it seems as though everyone wants things done immediately. There are 13 -15 miles of paved roads and the snow removal /sanding, etc. does take time. C. Lorenson thanked L. Rocheleau for his attendance at the meeting and the work done in the Service District. There was a brief discussion regarding upcoming meetings in March - a work session and a hearing re the new FY budget. The meetings will be held at the Bayside Fire Hall at 7:30p on 2 and 23 March 2004. I. Public Comments None. J. Board Comments. K. Arndt: Things seem to be going smoothly. \ \dove \Departments \EF \Service Districts \Service Area No. 1 Board \Minutes 21 Jan 2004.doc Page 3 of 4 SCHOOL BOARD REGULAR MEETING September 27, 2004 Page 4 Board President Jeff Stephan suggested that it would be worthwhile to contact the Department of Transportation to see what opportunities might be available. He also urged community members, along with PTA's to work on possible solutions and to share with Board members. SUPERINTENDENT'S REPORT: 1. Superintendent Walters encouraged community members to attend the upcoming Quality Schools /Quality Students (QS2) meetings that are beginning Monday, October 11, 2004. 2. She apprised the listening audience of a recent grant award obtained by the University of Alaska Anchorage to develop innovative new methods to improve elementary and high school education and that Kodiak is one of eight school districts that will be participating. 3. She reminded the listening audience that the High School Qualifying Exam will be administered October 5, 6 and 7, beginning with math, then reading and then writing. She stressed the importance of families encouraging their children to do their best. 4. She encouraged families and community members to visit their local schools during the island -wide open houses. 5. She extended her congratulations.to Main Elementary School Principal Marilyn Davidson who was recently nominated through the Kennedy Center for a committee being formed by U.S. Secretary of Education Rod Paige for the purpose of determining educational priorities for the nation. UNFINISHED BUSINESS: None NEW BUSINESS: AMEND AGENDA Board members concurred to amend the agenda to add Approval of Employment under New Business as item #7. 1. Request for Sale of School Property — Per School Board Policy, Section 9.3(c) Care of School Property requires Board approval for the sale or exchange of school property. MOTION BARRY STILL moved to approve the request to sell the storage building and banya that will be constructed as part of the Catch the Vision grant in Old Harbor. SCOTT WILLIAMS seconded the motion and it carried unanimously by a roll call vote. 2. Facility Use Agreements — These agreements provide for District facility access by the respective agency. SCHOOL BOARD REGULAR MEETING September 27, 2004 Page 5 MOTION SCOTT WILLIAMS moved to approve the 2004/2005 Facility Use Agreements for Kodiak College, City of Kodiak, Akhiok School, Ouzinkie School, Larsen Bay School and Chiniak School, including the waivers of liability for Chiniak and Akhiok. BARRY STILL seconded the motion and it carried unanimously by a voice vote. 4. Memorandum of Agreement Between Alaska Federation of Native and Kodiak Island Borough School District - This agreement continues the implementation of the Alaska Rural Systemic Initiatives project funded by the National Science Foundation and also partially funds the Alutiiq Studies Coordinator position with the District. MOTION ELIZABETH ODELL moved to approve the Memorandum of Agreement Between Alaska Federation. of Natives and Kodiak Island Borough School District in the amount of $37,000. NORM WOO FEN seconded the motion and it carried unanimously by a roll call vote. 5. FY 05 Following the Leaders Grant Award — This grant provides funding for a District coordinator who monitors student progress in state standards and provides software tools and technical support for web -based assessment and instructional tools. MOTION NORM WOOTEN moved to accept the FY 05 Following the Leaders grant award in the amount of $70,000. BARRY STILL seconded the motion and it carried unanimously by a roll call vote. 6. Revised 2004/2005 Danger Bay School Calendar — This item requires no action due to having less than ten the students needed to open school 7. FY 05 Boarding Home Grant Applications — This program provides a travel and student stipend for the District's one student who lives in town who does not have daily access to a school of the appropriate grade level in the student's home village. MOTION SCOTT WILLIAMS moved to approve the FY 05 Boarding Home grant application in the amount of $3,754. NORM WOOTEN seconded the motion and it carried unanimously by a roll call vote. 7. Approval of Employment — Alaska Statutes Section 14.14.140, Restriction of employment; compensation of board members states in section (a) Members of the immediate family of a school board member may not be employed by the school board except upon written approval of the commissioner. Under Alaska Administrative Code, 04 AAC 18.031, employment of members of immediate families of school board members must have fonnal approval in the form of a motion passed by the majority of a quorum of the board. SCHOOL BOARD REGULAR MEETING September 27, 2004 Page 6 MOTION NORM WOOTEN moved to approve the hire of Beverly Williams, wife of School Board member Scott Williams, as a Secretary I for the Alaska Community Center Learning Program Grant. ELIZABETH ODELL seconded the motion. Scott Williams asked to be excused from the vote. The motion carried with a voice vote of the following members. Norm Wooten, Elizabeth Odell, Barry Still and Jeff Stephan. Motion passes. FUTURE BUSINESS: 1. The meeting schedule for October is a Work Session on Monday, October 4, 2004 and the Regular Meeting will be Monday, October 18, 2004 at 7 p.m. in the Borough Assembly Chambers. 2. The Quality Schools /Quality Students (QS2) meetings are scheduled for Monday, October 11, 2004 for the elementary advisory committee; Tuesday, October 12, 2004 for middle school and high school advisory committees, and Wednesday, October 13, 2004 for the rural school and learning center advisory committees. 3. Don't forget to vote on Tuesday, October 5, 2004. 4. A Work Session is scheduled for Monday, October 11, 2004 to discuss pupil transportation. COMMUNITY COMMENTS: 1. Ouzinkie Community member Larry Chichenof phoned in regarding the closure of Danger Bay School. He inquired about the teacher funds designated to support Danger Bay School. Superintendent Betty Walters apprised the listening audience that the teacher would he reassigned based on enrollment needs. Due to the lack of students attending Danger Bay School the District will not be eligible for funding for that school. BOARD COMMENTS: 1. Elizabeth Odell thanked the men and women of the U.S. Coast Guard for their continued volunteerism in schools. She thanked staff as well as the Kodiak Baptist Mission who made the formal dinner with rural high school students such a success. She shared that on her way home to Chiniak she drove up on a bad accident that involved three high school students. SCHOOL BOARD REGULAR MEETING September 27, 2004 Page 7 2. Barry Still expressed his appreciation to volunteers throughout the District and urged drivers to be cautious of the possibility of black ice on the roads. 3. Scott Williams stated that the NEAR presentation was an excellent demonstration of elders teaching young adults and hoped to see similar ideas throughout the community. 4. Norm Wooten shared that the District has a powerpoint presentation on the bond propositions that is available for community groups to view. Please call the Central Office if you are interested in a presentation. 5. CDR John Furman congratulated the Kodiak High School cross country team on their recent success. 6. Jeff Stephan thanked the U.S. Coast Guard for their tremendous contribution to schools and the way that they are always available to accommodate children. He recognized Elizabeth Odell for being the first one at the scene of the recent accident and providing critical assistance. He urged the listening audience to be cautious when driving in the upcoming winter conditions. ADJOURNMENT: NORM WOOTEN moved to adjourn the Regular Meeting. BARRY STILL seconded the motion, and it carried unanimously by a voice vote. There being no further business, President Jeff Stephan adjoumed the Regular Meeting at 9:21 p.m. Approved by the Kodiak Island Borough School District Board of Education at their Regular Meeting of October 25, 2004. of the Board Respectfully Submitted, Sheila J. Rob is Administrativ& Assistant Kodiak Island Borough November 4, 2004 - 7:30 p.m. 1. INVOCATION Captain Dave Davis of the Salvation Army. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL Assemblymembers may be out and asked to be excused. Recommended motion: Move to specifically excuse any Assemblymembers that are absent. VOICE VOTE ON MOTION 4. APPROVAL OF AGENDA Recommended motion: Move to approve the agenda. VOICE VOTE ON MOTION 5. APPROVAL OF MINUTES Assembly Guidelines Regular Meeting Assembly Chambers A. Kodiak Island Borough Assembly Regular Meeting of September 16, Special Meeting of September 30 and Regular Meeting of October 7, 2004. Recommended motion: Move to approve the minutes as submitted. Ask if there are any corrections or additions to the minutes. VOICE VOTE ON MOTION Kodiak Island Borough Assembly Guidelines November 4, 2004 Page 1 6. AWARDS AND PRESENTATIONS - None 7. CITIZENS' COMMENTS (Limited to Three Minutes per Speaker) A. Agenda Items Not Scheduled for Public Hearing and General Comments. (Limited to three minutes per speaker.) 9. PUBLIC HEARING Read phone numbers: Local Telephone Number 486 -3231 Toll Free Telephone Number 1- 800 - 478 -5736 PLEASE ASK SPEAKERS TO SIGN IN AND STATE THEIR NAME FOR THE RECORD. 8. COMMITTEE REPORTS Ask if any other member of the audience has a committee report. Ask if any member of the assembly has a committee report. A. Ordinance No. FY 2005 -08 Authorizing the Borough to Issue General Obligation School Bonds, 2004 Series B in the Principal Amount of Not to Exceed $11,050,000 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. Recommended motion: Move to adopt Ordinance No. FY 2005 -08. Clerk's note: Attached for your review are Appendix A, the Draft Loan Agreement, and the Continuing Disclosure Statement - these do not require a separate action. Staff report - Manager Carlson Mayor Selby opens the public hearing. Read phone numbers: Local Telephone Number 486 -3231 Toll Free Telephone Number 1- 800 - 478 -5736 Mayor Selby closes the public hearing. Assembly discussion. Amendments may be offered at this time. ROLL CALL VOTE ON MOTION TO ADOPT Kodiak Island Borough Assembly Guidelines November 4, 2004 Page 2 10. BOROUGH MANAGER'S REPORT - Manager Carlson 1 1 . MESSAGES FROM THE BOROUGH MAYOR - Mayor Selby 12. UNFINISHED BUSINESS - None 13. NEW BUSINESS A. REORGANIZATION OF THE KODIAK ISLAND BOROUGH ASSEMBLY 1. Election of Deputy Presiding Officer. Mayor Selby opens the nominations. B. CONTRACTS 1 Con l Reco Kodiak Island Borough November 4, 2004 Mayor Selby closes the nominations and asks the clerk to distribute, collect, and tally the ballots. Clerk Nielsen announces the Assemblymember elected to serve as Deputy Presiding Officer. • 1 ra No. mend e , Staff -port - Assem ly di CALL ission Move also men MOTTO 004 -57 motion Manager cussion. TE O C. RESOLUTIONS - None Lake Tide ments ate Pro -ct. to approv Contract o. 2004 -57. y be offere at this t Assembly Guidelines Page 3 D. ORRINANCES FOR INTRODUCTION 1. Ordinance No. 2004 -10A Amending Ordinance No. 2004 -10 to to Establish a Budget for the $9,300,000 General Obligation Bond 2004 Series A and the $11,050,000 General Obligation Bond Series B Issues and Related Projects Funded by These Bonds. Recommended motion: Move to adopt Ordinance No. 2004 -10A in first reading to advance to public hearing on November 18, 2004. Staff report - Manager Carlson Assembly discussion. Amendments may be offered at this time. ROLL CALL VOTE ON MOTION E. OTHER ITEMS 1. Resignation of Bay View Road Service Area Board Member. Recommended motion: Move to accept, with regret, the resignation of Reed Oswalt from the Bay View Road Service Area Board and direct the Borough Clerk to advertise the vacancy per Borough Code. Staff report - Manager Carlson Assembly discussion. ROLL CALL VOTE ON MOTION 2. Appointments to Seats on the Providence Kodiak Island Service Area Community Board. Recommended motion: Move to voice non - objection to the appointments of Jimmy Ng, Kodiak Island Health Care Foundation Director, to an ex- officio, non- voting seat and Mr. Norm Wooten, President of the Kodiak Island Health Care Foundation, to a service area board seat on the Providence Kodiak Island Service Area Community Board. Staff report - Manager Carlson Assembly discussion. ROLL CALL VOTE ON MOTION Kodiak Island Borough Assembly Guidelines November 4, 2004 Page 4 14. CITIZEN COMMENTS (Limited to three minutes per speaker) 16. ADJOURNMENT Read phone numbers:Local Telephone Number 486 -3231 Toll Free Telephone Number 1- 800 - 478 -5736 PLEASE ASK SPEAKERS TO SIGN IN AND STATE THEIR NAME FOR THE RECORD. 15. ASSEMBLYMEMBER COMMENTS ANNOUNCEMENTS - Mayor Selby • Members of the Assembly may be traveling to Fairbanks to attend Alaska Muncipal League meetings November 8 -12. • The Kodiak Island Borough Offices will be closed on November 11, 2004 in observance of Veterans' Day. • The Assembly will meet in a work session on Tuesday, November 16 at 7:30 p.m. in the Borough Conference room and a regular meeting on Thursday, November 18 at 7:30 p.m. in the assembly chambers. ROLL CALL VOTE Recommended motion: Move to adjourn. Kodiak Island Borough Assembly Guidelines November 4, 2004 Page 5 i TOTAL II Ms. Winans Ms. Wells II Ms. Branson Mr. Bonney I Mr. Anderson Mr. Abell CID eli CD .< 0 E S. \ v " �c L TOTAL Ms Williams Ms. Wells I Ms. Branson Mr. Bonney Mr. Anderson Mr. Abell Cr eli ,. A z TOTAL Ms. Williams Ms. Wells Mr. Ranney Ms. Branson Mr. Bonney Mr. Anderson Mr. Abell n R- Go Ci Z TOTAL Ms. Williams Ms. Wells Mr. Ranney Ms. Branson Mr. Bonney Mr. Anderson Mr. Abell cn tiy 0 o .-.p re a e 4".G -, z TOTAL Ms. Williams 17 /1-. Bonney P r. Abell z a <.-- L _ .0 z cn t. rD 0 0 0 0 0 0 CID 0 0 w 0 c to 0 x tri I I SAL l Ms. Williams II Mr. Rarme I i I Mr. Anderson . Mr. Abell k �o g o a � ` 1 J 1 z TOTAL Ms. Williams Mr. Ranney Mr. Abell Mr. Anderson CD Q� a r<< \ ..-9 -c TOTAL •k. • If. Ms. Williams I Ms. Branson I ,ci, Mr. Abell Mr. Andetson 0 ro 0 , 0 .4 . , •�� , J, C \ N. z TOTAL Ms. Williams Mr. Ranney Ms. Branson 0 Mr. Abell Mr Anderson n .. , ,„ to o ,, z/ cr \\c„.., \ I ,Y/ v 0 i z Ma. Williams TOTAL I -ki, 1 r. Bonney Mr. Abell Mr. Anderson eP ----e--2_ o , , -- >/ V z cn 0 0 a. 0 a rlf cro V) its r n O CD N L O Ms Williams II Mr. Rannev I Ms. Mr. Abell CID MI I: \ \ \ II v z Ms. Williams — ICEells Mr. Ranney 1 Ms. Branson Mr. Abell ch t o n R- �C Z TOTAL Ms. Williams Wells Mr. Ranney Mr Bonney Ms. Branson Mr. Anderson Mr. Abell cn to n 0 a 1-C TOTAL Ms. Williams Mr. Ranney Mr. Bonney Ms. Brinson Mr. Abell I TOTAL Ms. Williams M. Branson M - . Anderson By: Second: z n O CD N L KODIAK ISLAND BOROUGH ASSEMBLY MEETING Regular Meeting of: • lOdeiiihey' � 2Db9 Please print your name Please print your name '4, Q y l A regular meeting of the Kodiak Island Borough Assembly was held November 4, 2004 in the Assembly Chambers of the Kodiak Island Borough Building, 710 Mill Bay Road. The meeting was called to order at 7:30 p.m. The invocation was given by Judi Nielsen of the Borough Clerk's Office, followed by the Pledge of Allegiance. Present were Mayor Jerome Selby and Assemblymembers Tom Abell, Mike Anderson, Pat Branson, Cecil Ranney, and Barbara Williams. Absent were Tuck Bonney and Nancy Wells. Staff present were Manager Pat Carlson, Clerk Judi Nielsen, and Assistant Clerk Laura Casey. BRANSON moved to excuse Assemblymembers Tuck Bonney and Nancy Wells, seconded by ABELL VOICE VOTE ON MOTION CARRIED UNANIMOUSLY APPROVAL OF AGENDA BRANSON moved to approve the agenda, seconded by WILLIAMS BRANSON moved to amend the agenda by removing Contract No. 2004 -57 Mission Lake Tide Gate Project, seconded by ABELL VOICE VOTE ON MOTION TO AMEND CARRIED UNANIMOUSLY VOICE VOTE ON MOTION AS AMENDED CARRIED UNANIMOUSLY APPROVAL OF MINUTES Kodiak Island Borough Assembly Regular Meeting of September 16, Special Meeting of September 30, and Regular Meeting of October 7, 2004. BRANSON moved to approve the minutes as submitted, seconded by ABELL Assemblymember Branson noted that her comment on page 5 of the October 7 minutes should reflect "fish tax revenue" not "revenue sharing ". VOICE VOTE ON MOTION CARRIED UNANIMOUSLY AWARDS AND PRESENTATIONS - None CITIZENS' COMMENTS Julie Knagin, Senior Citizens of Kodiak Chairman, provided an update of the services used by senior citizens. COMMITTEE REPORTS - None PUBLIC HEARING A. Ordinance No. FY 2005 -08 Authorizing the Borough to Issue General Obligation School Bonds, 2004 Series B in the Principal Amount of Not to Exceed $11,050,000 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 Kodiak Island Borough November 4, 2004 KODIAK ISLAND BOROUGH Regular Assembly Meeting November 4, 2004 DRAFT Volume XXIX Page 5 Providing for Related Matters. BRANSON moved to adopt Ordinance No. FY 2005 -08, seconded by ABELL Manager Carlson said this provided for the bonds to be sold and currently there was a lower interest rate than projected. This would provide for a new school pool, conversion of the old pool. Mayor Selby called for public testemony; hearing and seeing none, he reconvened the regular meeting. ROLL CALL VOTE ON MOTION TO ADOPT CARRIED UNANIMOUSLY: Abell, Anderson, Branson, Ranney, Williams BOROUGH MANAGER'S REPORT Manager Carlson reported on the Community Development Director's resignation; Providence Kodiak Island Hospital issues; Shared Fisheries Business Tax; Small Community State Revenue Sharing; Airline Miles; City Municipal Airport; Coast Guard Solid Waste Negotiations; Large Format Scanner Copier; Bond Sale; and Mayflower Beach Switchback. In response to Assemblymember Branson, he said the Small Community State Revenue Sharing was funded with grants and not a loan from the state. MESSAGES FROM THE BOROUGH MAYOR Mayor Selby thanked everyone who voted at the election. UNFINISHED BUSINESS - None NEW BUSINESS A. REORGANIZATION OF THE KODIAK ISLAND BOROUGH ASSEMBLY 1. Election of Deputy Presiding Officer. Mayor Selby opened the nominations. Assemblymember Branson nominated Assemblymember Bonney, seconded by Assemblymember Anderson Mayor Selby closed the nominations and directed the clerk to distribute, collect, and tally the ballots. Clerk Nielsen announced that Assemblymember Bonney was elected to serve as Deputy Presiding Officer of the Assembly. B. CONTRACTS - None C. RESOLUTIONS - None D. ORDINANCES FOR INTRODUCTION 1. Ordinance No. 2004 -10A Amending Ordinance No. 2004 -10 to Establish a Budget for the $9,300,000 General Obligation Bond 2004 Series A and the $11,050,000 General Obligation Bond Series B Issues and Related Projects Funded by These Bonds. ABELL moved to adopt Ordinance No. 2004 -10A in first reading to advance to public hearing on November 18, 2004, seconded by BRANSON Kodiak Island Borough November 4, 2004 Volume XXIX Page 5 Manager Carlson said this would establish a budget for the projects funded by the bonds and would allow for the hire of a projects manager and projects assistant. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Anderson, Branson, Ranney, Williams, Abell D. OTHER ITEMS 1. Resignation of Bay View Road Service Area Board Member BRANSON moved to accept, with regret, the resignation of Reed Oswalt from the Bay View Road Service Area Board and direct the Borough Clerk to advertise the vacancy per Borough Code, seconded by WILLIAMS Clerk Nielsen said Reed Oswalt was elected at the October 5, 2004 election for a three year term and, as a current Board member, he chose to resign his existing seat. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Branson, Ranney, Williams, Abell, Anderson 2. Appointments to Seats on the Providence Kodiak Island Service Area Community Board. WILLIAMS moved to voice non - objection to the appointments of Jimmy Nq, Kodiak Island Health Care Foundation Director to an ex- officio, non - voting seat and Mr. Norm Wooten President of the Kodiak Island Health Care Foundation to a service area board seat on the Providence Kodiak Island Service Area Community Board, seconded by BRANSON Manager Carlson said the code provided for the Board to give the Assembly an opportunity to review and comment before appointments to the advisory board were made. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Ranney, Williams, Abell, Anderson, Branson CITIZEN COMMENTS - None ASSEMBLYMEMBER COMMENT Assemblymember Branson encouraged a member of the Assembly or City Council to submit a nomination application for the Alaska Municipal League Board because it was important to have a representative from Kodiak. She looked foward to the Assembly's Strategic Planning Meeting November 19 -20, 2004. Assemblymember Ranney congratulated everyone that voted and noted the large turnout. Assemblymember Anderson congratulated Senator Gary Stevens for running a clean campaign. Assemblymember Williams asked for consensus of the Assembly to hold a special meeting November 10 to meet with Michelle Stearns, Community Development Director, to discuss her proposed contract options. After much debate, Ms. Williams withdrew her request for the special meeting. Mayor Selby announced Members of the Assembly would be traveling to Fairbanks to attend Alaska Muncipal League meetings November 8 -12. Kodiak Island Borough November 4, 2004 Volume XXIX Page 5 The Kodiak Island Borough Offices would be closed on November 11, 2004 in observance of Veterans' Day. The Assembly would meet in a work session on Tuesday, November 16 at 7:30 p.m. in the Borough Conference room and a regular meeting on Thursday, November 18 at 7:30 p.m. in the assembly chambers. The Assembly would meet for Strategic Planning on November 19' and 20' at the Kodiak Fisheries Research Center Conference Room. ADJOURNMENT BRANSON moved to adjourn, seconded by ANDERSON ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Williams, Abell, Anderson, Branson, Ranney Mayor Selby adjourned the meeting at 8:35 p.m. ATTEST: Jerome Selby, Mayor Judith A. Nielsen, CMC, Borough Clerk Approved: Kodiak Island Borough November 4, 2004 Volume XXIX Page 5