01_AIntroduced by Manager Cifford
Requested by School Board/Assembly
Orafted by FinanceDirector/BondCounsel
Introduced on 0711612009
Public Hearing 08/0612009
Amended 08/06/2009
Adopted 08/06/2009
KODIAK ISLAND BOROUGH
10 ORDINANCE NO FY2OIO-03
11
12 AN ORDINANE OF THE KODIAK ISLAND BOROUGH ASSEMBLY
13 AUTHORIZING THE BOROUGH TO ISSUE GENERAL OBUGATION BONDS
14 IN THE PRINCIPAL AMOUNT OF NOTTO EXCEED $76310000
15 TO FINANCE THE PLANNING DESIGN AND CONSTRUCTIONOF SCHOOL
16 AND RELATED CAPiTAL IMPROVEMENTS IN THE BOROUGH INCLUDING W1THOUT
17 LIMITATION THE RECONSTRUCTION AND RENOVATIONOF THE KODIAK HIGH
18 SCHOOL ANDTO SUBMIT THE QUESTION OF THE ISSUANCE OF SUCH BONDS TO
19 THE QUALIFIED VOTERS OF THE BOROUGH AT THE OCTOBER 2009 REGULAR
20 BOROUGH ELECTION
21
22 WHEREAS under the provisions of AS 29.47.i90 municipality may incur general obligation
23 debt only after bond authorization ordinance is approved by majority of those voting on the
24 question at regularor special election and
25
26 WHEREAS educational requirements have changed since Kodiak Hi9h School was originally
27 constructed in 1966 as regional education center and
28
29 WHEREAS Kodiak High Schools design shortfalls were recognized and multiple remodeling
30 projects havebeen completed to bring the facility into code compliance and
31
32 WHEREAS the last addition of vocational or academic space to Kodiak High School occurred
33 in 1972 and
34
35 WHEREAS in the late 1980s enrollment at Kodiak High School grew beyond 500 students
36 and four-phase reconstruction project began and
37
38 WHEREAS the fourth phase of the above project Which would have addressed needed
39 additional academic instructional space was never started and
40
41 WHEREAS enrollment at Kodiak High School has soared from 550 students to as high as
42 650 over the pasttwenty years and is forecasted to remain at approximately 800 students into
43 theforeseeable future and
44
45 WHEREAS enrollment projections demonstrate continued enrollment of 200 or more
46 students above the capacity of the existing Kodiak High School educational facility and
47
48 WHEREAS providing the space that currently is needed for Kodiak High School instruction
49 requires the use of community schools facilities auditorium space and rented space as well as
50 overcrowding of the existing high school facilities and
Kodiak Island Borough Ordinance No FY20 10-03
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51
52 WHEREAS the instructional space available for Kodiak High School does not support the
53 instructional programs which are needed to prepare our high schoolstudents for success inih
54 world marketplace and
55
56 WHEREAS the current state debtservice reimbursement planprovides that theState of
57 Alaska will reimburse the Borough for not less than sixty percent 60%of debtservice on the
58 eligible portion of bonds authorized by the qualified voters of the Boroughon or after October
59 2006 but before November 30 2010 to paycosts of school construction additions to schools
60 and major rehabilitation projects and
61
62 WHEREAS the Board of Education and Borough Assembly have commissioned an architect
53 to fully evaluate reconstruction options that support thekind of programsnecessary for Kodiak
64 High School to fully meet theeducational expectations defined by our community and
65
66 WHEREAS the conceptualprocess has undergone two years of refinement and
67
68 WHEREAS theeducational facilities and space survey identified that substantial remodel
69 and new expansion of Kodiak High School will meet instructional space needs in grades K-12
70 throughoutour community and
71
72 WHEREAS the Kodiak Island Borough School Districts educationalmission is severely
73 compromised by facility limitations at Kodiak HighSchool and
74
75 WHEREAS the Board of Educationbelieves The District would be bestserved by all District-
76 wide services being congregated in renovated space in the existing Kodiak High School
77 building and
78
79 WHEREAS public feedback sincethe first bond election in 2008has yielded more cost
80 effective design for therenovation and expansion of Kodiak High School and
81
82 WHEREAS funding for further architectural design workand cost estimation for the
83 renovation and expansion of Kodiak High School depends on voter approval of bond
84 ordinance for the project and
85
86 WHEREAS the School District has identified grants and industry-based tax incentive
87 programs which couldfund millions of dollars towards the Boroughs debtservice for
88 construction of Kodiak High School but for which an application canbe submitted only after
89 bond ordinance is approved and
90
91 WHEREAS the Borough and School District Will continue to seekand apply for additional
92 grants and reimbursement options to reduce thedebtservicecost of therenovation and
93 expansion of Kodiak High School and
94-
95 WHEREAS $4490000 in proceeds of Borough school bonds previously issued for school
96 repair and replacements projects is available for therenovation of Kodiak High School and
97
98 WHEREAS the Borough views theschool and related capital improvements authorized
99 herein as necessary and beneficialto the community
100
Kodiak Island Borough Ordinance No FY2O1 0-03
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101 NOW THEREFORE BE IT ORDAINEDBY THE ASSEMBLY OF THE KODIAK ISLAND
102 BOROUGH fl-IAT
103
104 Section Thisordinance is not of general or permanent nature and shall not become
105 part of the Kodiak Island Borough Code of Ordinances
106
107 Section It is hereby determined to be for public purpose and in the public interest of the
108 Borough toincur general obligation bonded indebtedness in an amount not to
109 exceed Seventy Six Million Three Hundredand Ten Thousand Dollars
110 $76310000 for the purpose of paying thecost of planning design
111 construction furnishing and equipping of school and related capital
112 improvements in the Borough including without limitation additions to Kodiak
113 High School renovation of Kodiak High School for instructional and School
114 District administrative space and demolition of theBusiness
115 Department/Learning Center
116
117 Section The Borough is authorized to borrow the sum of Seventy Six Million Three
118 Hundredand Ten Thousand Dollars $76310000 to financethe capital
119 improvements described in Section and the borrowing shall be evidenced by
120 the issuance of general obligation bonds of the Borough provided that bonds
121 may not be issued for any project unlessthe project is eligible for debtservice
122 reimbursement by theState of Alaska The full faith and credit of the Borough
123 are pledged for payment of the principal of and interest on the bonds andad
124 valorem taxes upon all taxable property in the Borough shall be levied without
125 limitation as torate or amount to pay the principal of and interest on the bonds
126 when due
127
128 Section The Borough shall submitthe following proposition to the qualified voters of the
129 Borough at the October 2009 regular Borough election The proposition must
130 receive an affirmative vote from majority of the qualified voters voting on the
131 question to be approved
132
133 PROPOSITiON NO
134 GENERAL OBLIGATION BONDS $76310000 KODIAK HiGH SCHO
135
136 Shall the Kodiak Island Borough incur debt and issue general
137 obligation bonds in an amount not to exceed Seventy Six Million
138 Three Hundredand Ten Thousand Dollars $76310000 for the
139 purpose of paying thecost of planning design construction
140 furnishing and equipping of school and related capital
141 improvements in the Borough including without limitation the
142 projects described below
143
Kodiak Island Borough Ordinance No FY2OIO-03
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Project Estimated Cost
Mditions to Kodiak High School 44270000
Renovate existing Kodiak High School 35210000
Renovate part of Kodiak High School
for School District Administralon 1100000
Demolish Existing Business Department
and Leeming Center 220000
Total 80600000
Less available Funds in other projects
KHS Exterior Insulation and Window Replacement 590000
KHS VocEd Renoetion Pool Reclamation 3900000
Total deductions 4490000
Total amount of bond issue 76310000
144
145 The projects are expected to qualify for not less than 60%State
146 debtservice reimbursement funding for which is subject to annual
147 appropriation The projects will be phased to limit disruption to the
148 education of students andbonds wifl be sold only as needed to
149 pay project costs if theState fully fundsthe debt service
150 reimbursement program the average annualdebtservice payable
151 by the Borough after State reimbursement is estimated to be
isz $Z408152 $2409317 This amount of debtservice may require
153 an additional annual property tax levy of $77 $66Q per $250000
154 of assessed value or its equivalent This example of property
155 tax Levy is provided for illustrative purposes only
156
157 II additional funding becomes available for the projects from
158 grants or other sources only enough bonds to finish the projects
159 will be sold
160
161 The bonds shall be secured by pledge of the full faith and credit
162 of the Borough Ordinance No FY 2010-03
163
164 Section The proposition shall be printed on ballot which may set forth other general
165 obligation bond propositions and the following words shall beadded as
166 appropriate next to an oval provided for marking the ballot for voting by hand or
167 machine
168 PROPOSITION NO
YES
NO
169
170
Kodiak Island Borough Ordinance No FY201003
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171 Section Sections and of this ordinance shall become effective only if the proposition
172 described in Section is approved by majority of the qualified voters voting on
173 the proposition at the October 2009 regular Borough election The remaining
174 sections of this ordinance thall become effective upon adoption by the Kodak
175 Island Borough Assembly
176
177 ADOPTED BY THE ASSEMBLYOF THE KODIAK iSLAND BOROUGH
178 THISSIXTH DAY OF AUGUST 2009
179
180
181 KODIAK iSLAND BOROUGH
182
.183
186 ome Selby Borough May
187 ATTEST
19.2 Nova Javier MMC Borough Clark
Kodiak.lsland Borough Ordinance No FY2O1O-03
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