01_AIntroduced by Manager Gifford
Requested by School Board/Assembly
Drafted by Finance Director/Bond Counsel
Introduced on 07116/2009
Public Hearing 08/06/2009
Amended 08/06/2009
Adopted 08106/2009
KODIAKISLAND BOROUGH
10 ORDINANCE NO FY2OIO-03
11
12 AN ORDINANCEOF THE KODIAK ISLAND BOROUGH ASSEMBLY
13 AUTHORIZINGTHE BOROUGH TO ISSUE GENERALOBUGATION BONDS
14 IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $76310000
15 TO FINANCE THE PLANNING DESIGN AND CONSTRUCTION OF SCHOOL
16 AND RELATED CAPiTAL IMPROVEMENTS IN THE BOROUGH INCLUDINGWiTHOUT
17 LIMITATION THE RECONSTRUCTION AND RENOVATiON OF THE KODIAK HIGH
18 SCHOOL ANDTO SUBMT THE QUESTION OFTHE ISSUANCE OF SUCHBONDSTO
19 THE QUALIFiED VOTERSOF THE BOROUGH ATTHE OCTOBER 2009 REGULAR
20 BOROUGH ELECTION
21
22 WHEREAS under the provisions of AS 29.47.190 municipality may incur general obligation
23 debt only after bond authorization ordinance is approvedby majority of those voting on the
24 question at regular or special election and
25
26 WHEREAS educational requirements have changed sinceKodiak High School was originally
27 constructed in 1966 as regional education center and
28
zg WHEREAS Kodiak High Schools design shortfalls were recognized and multiple remodeling
30 projects have been completed to bring the facility into code compliance and
31
32 WHEREAS the lastaddition of vocational or academic space to Kodiak High Schooloccurred
33 in 1972 and
34
35 WHEREAS In the late 980s 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 Schoolhas soared from 550 students to as high as
42 650 overthe past twenty years and is forecasted to remain at approximately 800 students into
43 the foreseeable 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 FY2O1O-03
Page of
51
52 WHEREAS the instructional space available for Kodiak High Schooldoesnot support he
53 instructional programs whichare needed to prepare our high schoolstudents for success inJl
54 world marketplace and
55
56 WHEREAS the current state debt service reimbursement plan provides that the Stateof
57 Alaska will reimburse the Borough for not less than sixty percent 60%of debt service on the
58 eligible portion of bonds authorized by the qualified voters of the Borough on orafter October
59 2006 butbefore November 30 2010 to pay costsof school construction additionsto schools
50 and major rehabilitation projects and
61
62 WHEREAS the Board of Education and Borough Assembly have commissioned an architect
63 to fully evaluate reconstruction options that support the kind of programs necessary for Kodiak
64 High School to fully meet the educational expectations defined by our community and
65
66 WHEREAS the conceptualprocess has undergone two years of refinement and
67
68 WHEREAS theeducational facilities and spacesurvey identified thatsubstantial remodel
69 andnew expansion of Kodiak High School Will meet instructional space needs in grades K-12
70 throughout our community and
71
72 WHEREAS theKodiak Island borough School Districts educationalmission is severely
73 compromised by facility limitations at Kodiak High School and
74
75 WHEREAS the Board of Education believes the District would be best served by all District
76 wide services beingcongregated in renovated space in the existing Kodiak High School
77 building and
78
79 WHEREAS public feedback since the first bond election in 2008 has yielded more cost
80 effective design for therenovation and expansion of Kodiak High School and
81
82 WHEREAS funding for further architectural design work and cost estimation for the
83 renovationand expansion of Kodiak High School depends on voter approval of bond
84 ordinance for the project arid
85
86 WHEREAS the School District has identified grants and industry-based taxincentive
87 programs which could fund millionsofdollars towals the Boroughsdebt service for
88 constructionof Kodiak High School but for which an application can be submitted only after
89 bond ordinance is approved and
go
91 WHEREAS the Borough and School District will continue to seek arid apply for additional
92 grants and reimbursement options to reduce the debt service cost of the renovation and
93 expansion of Kodiak High School and
94-WHEREAS $4490000 in proceeds of Borough schoolbonds previously issued for school
96 repair and replacements projects is available for the renovation of KodIak High School and
97
98 WHEREAS the Borough viewstheschooland related capital improvements authorized
99 herein as necessary and beneficial to the community
100
Kodiak Island Borough Ordinance No FY2O1O-03
Page of
101 NOW THEREFORE BE IT ORDAINED BY THE ASSEMBLYOF THE KODIAK iSLAND
102 BOROUGH ThAT
103
104 Section This ordinance 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 publlc interest ofthe
103 Borough to incur general obligation bonded indebtedness in anamount notto
109 exceed Seventy Six Million Three Hundred andTenThousand Dollars
110-$76310000 for the purpose of paying thecost of planning design
lii 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 andSchool
114 District administrative space and demolition ofthe Business
115 DepartmentlLeaming Center
116
117 Section The Borough is authorized to borrowthe sum of Seventy Six Million Three
118 HundredandTenThousand Dollars $76310000 to finance the capital
119 improvements described in Section and the borrowing shall beevidenced 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 debt service
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 and ad
124 valoremtaxes 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
izs Section The Borough shall submit the 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 PR0P0SmON NO
134 GENERAL OBLIGATION BONDS $76310000 KODIAK HIGH SCHOOL
135
136 Shall theKodiak island Borough incur debt and issue general
137 obligation bonds in an amount not to exceed Seventy Six Million
138 Three Hundred and TenThousand Dollars $76310000 for the
139 purpose of paying the cost of planning design construction
140 furnishing and equipping of school and related capital
141 improvements in the Borough including without limitation the
142 projects described below
143
Kodiak Island Borough Ordinance No FY201003
Page of
Project Estimated Cost
Mditions to Kodiak High School 44210000
Renovate existing Kodiak High School 35210000
Renovate part of Kodiak High School
for School District Administralon 1100000
Demolish Existing Business Department
and Learning Center 220000
Total 80800000
Less available Funds in other projects
KHS Exterior insulation andWindow Replacement 590000
KHS Voc Ed Renor.ation Pod 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 debt service reimbursement funding for which is subject to annual
147 appropriation The projects will be phased to limit disruption tothe
148 education of students andbonds will be sold only as needed to
149 pay project costs If theState fully fundsthe debt service
150 reimbursement program the average annualdebtservice payable
isi by the Borough after Slatereimbursement estimated to be
152 $240842 $2409.317 This amount of debtservice may require
153 an additional annual.property tax levy of $577L $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 If additional funding becomes available for the projects from
158 grants orother sources only enough bonds to finish the projects
159 will be sold
160
163 Thebonds shall be secured bypledge of the lull faith and credit
162 of the BoroughOrdinance No FY 2010-03
163
164 Section The proposition shall be printed on ballot which may setforthother general
165 obligation bond propositions and the following words shall beadded as
166 appropriate next to an oval provided for marking the ballotfor voting by hand or
167 machine
168 PROPOSITION NO
YES
NO
169
170
Kodiak Island Borough Ordinance No FY201003
Page of
171 Section Secbonsand of this ordinance shaH become effective only if the proposition
172 described in Section is approved by majority of the qualified voters voting on
173 the proposition at theOctober 2009 regular Borough election The remaining
174 sections ofthis ordinance shall become effective upon adoption by theKodiak
175 Island Borough Assembly
176
177 ADOPTED BY THE ASSEMBLYOF THE KODIAKiSLAND BOROUGH
178 THISSIXTH DAY OF AUGUST 2009
179
180
181 KODIAK ISLAND BOROUGH
182
.183
186 orne Selby Borough Ma
187 A1TEST
192 Nova Javier MMC Borough Cletk
Kodiak.Island Borough Ordinance No FY2O1O03
Page of