Tab_126I, Katherine M. Suiter, City Clerk of the City of Ketchikan, Alaska (the "City"), DO
HEREBY CERTIFY:
1. That the attached Resolution No. 16-2636 (the "Resolution") is a true and complete
copy of a resolution of the City Council (the "Council") adopted at a regular meeting of the Council
held on September 15, 2016, and duly recorded in my office;
2. That the meeting was duly convened and held in all respects in accordance with law;
and that to the extent required by law, due and proper notice of such meeting was given; that a
quorum was present throughout the meeting and a legally sufficient number of members of the
Council voted in the proper manner for the passage of the Resolution; that all of the requirements and
proceedings incident to the proper passage of the Resolution have been duly fulfilled, carried out and
otherwise observed, and that I am authorized to execute this certificate.
Dated as of November 3, 2016.
CITY OF KETCHIKAN, ALASKA
/
C
Katherine M. Suiter, City Clerk
City of Ketchikan, Alaska
CITY OF KETCIIIKAN, ALASKA
RESOLUTION NO. 16-2636
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
KETCHIKAN, ALASKA, APPROVING THE CITY'S PARTICIPATION
IN A PROPOSED REFINANCING BY THE ALASKA MUNICIPAL BOND
BANK OF ITS GENERAL OBLIGATION BONDS, 2006 SERIES TWO,
WHICH PROVIDED FUNDS TO PURCHASE THE CITY'S PORT
REVENUE BOND, 2006; AUTHORIZING THE ISSUANCE TO THE
BOND BANK OF A REFUNDING BOND OF THE CITY IF THE BOND
BANK SUCCESSFULLY REFINANCES ITS BONDS; AUTHORIZING
THE CITY TO ENTER INTO AN AGREEMENT WITH THE BOND
BANK TO ACCOMPLISH THE REFUNDING; AND ESTABLISHING AN
EFFECTIVE DATE.
WHEREAS, the City of Ketchikan, Alaska (the "City"), issued and sold its Port Revenue
Bond, 2006 in the original principal amount of $38,500,000 (the "2006 Bond"), to the Alaska
Municipal Bond Bank (the "Bond Bank"), as authorized by Ordinance No. 06-1549 of the City
(the "Bond Ordinance") and Resolution No. 06-2171 of the City Council (together with the Bond
Ordinance, the "2006 Bond Legislation"), on the terms and conditions set forth in the 2006 Bond
Legislation and in a loan agreement between the City and the Bond Bank dated as of July 1,
2006 (the "2006 Loan Agreement"); and
WHEREAS, the Bond Bank issued and sold its General Obligation Bonds, 2006 Series
Two (the "2006 Bond Bank Bonds"), to provide funds to purchase the 2006 Bond, as provided in
the 2006 Loan Agreement; and
WHEREAS, Section 6 of the 2006 Loan Agreement provides that payments of principal
of and interest on the 2006 Bond may be adjusted to reduce debt service if the Bond Bank is able
to achieve debt service savings by refunding the 2006 Bond Bank Bonds; and
WHEREAS, the Bond Bank now wishes to refinance the 2006 Bond Bank Bonds to
achieve debt service savings for borrowers including the City by issuing a series of its general
obligation bonds (the "2016 Bond Bank Bonds") to currently refund the outstanding 2006 Bond
Bank Bonds; and
WHEREAS, the City Council wishes to approve the City's participation in this
refinancing and, if the Bond Bank successfully refinances the 2006 Bond Bank Bonds, to
authorize the City Manager and Finance Director to accept a revised debt service schedule for
the 2006 Bond, to be evidenced in a refunding bond issued to the Bond Bank in exchange for the
2006 Bond; and
WHEREAS, on September 15, 2016, the Council held a public hearing on the issuance
of the refunding bonds in accordance with Section 147(f) of the Internal Revenue Code of 1986,
as amended, following publication on August 29, 2016, in the Ketchikan Daily News of a notice
of the public hearing;
Resolution No. 16-2636
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Ketchikan, as follows:
Section 1: Approval of Refinancing. The City Council hereby approves the City's
participation in the Bond Bank's refinancing of the 2006 Bond Bank Bonds and authorizes the
City Manager and Finance Director to approve a revised schedule of principal payment amounts
and interest rates for the 2006 Bond, in accordance with Section 6 of the 2006 Loan Agreement,
so long as the revised debt service schedule is financially advantageous to the City. The revised
schedule of debt service on the 2006 Bond and other provisions as may be required by the Bond
Bank will be set forth in a loan agreement or amendatory loan agreement (the "2016 Loan
Agreement") and in a refunding bond (the "2016 Refunding Bond") to be issued to the Bond
Bank in exchange for the 2006 Bond.
The City Manager or Finance Director is authorized to execute and deliver the 2016 Loan
Agreement on behalf of the City and to deliver the 2016 Refunding Bond, executed in
accordance with the provisions of the 2006 Bond Legislation and this resolution, to the Bond
Bank in exchange for the 2006 Bond. The City Manager, Finance Director, and other
appropriate officers and employees of the City are also hereby authorized to provide financial
information about the City that the Bond Bank may require for the official statement for the 2016
Bond Bank Bonds.
Section 2: Satisfaction of Parity Conditions. So that the 2016 Refunding Bond may
be issued as a Parity Bond, the Council hereby finds, in accordance with the provisions of
Section 7.4 of the Bond Ordinance, as follows:
• There is not now, and at the time of the issuance of the 2016 Refunding Bond there will
not be, any deficiency in the Bond Fund or any accounts therein.
o The principal of and interest on the 2016 Refunding Bond will be payable out of the
Bond Fund.
• Issuance of the 2016 Refunding Bond will not result in a Sinking Fund Requirement for
the 2016 Refunding Bond nor any increase in the Reserve Account Requirement.
• The 2016 Refunding Bond is being issued as a refunding to achieve debt service savings
and will not require an increase of more than $5,000 in any year for Debt Service on the
2016 Refunding Bond, therefore no certification of the type described in Section 7.4(3) or
(4) of the Bond Ordinance will be required.
The parity conditions being satisfied or provided for, the 2016 Refunding Bond may be
issued with a lien on Port Revenue equal to the lien thereon of the 2006 Bond.
Section 3: Definitions Covenants. Capitalized terms used in this resolution and not
otherwise defined herein have the meanings given those terms in the Bond Ordinance.
The City hereby ratifies and confirms as applicable to the 2016 Refunding Bond the
covenants of the City set forth in Article VII of the Bond Ordinance, as it may be amended from
time to time.
Resolution No. 16-2636
Section 4: Tax Covenants: Tax Certificate. The City covenants to undertake all
actions required to maintain the tax-exempt status of interest on the 2016 Refunding Bond under
Section 103 of the Internal Revenue Code of 1986, as amended.
Upon the issuance of the 2016 Refunding Bond, the Finance Director is authorized to
execute a federal tax certificate (the "Tax Certificate"), which will certify to various facts and
representations concerning the 2016 Refunding Bond, based on the facts and estimates known or
reasonably expected on the date of its issuance, and make certain covenants with respect to the
2016 Refunding Bond as may be necessary or desirable to obtain or maintain the benefits
conferred under the Code relating to tax-exempt bonds.
The City covenants that it will comply with the Tax Certificate unless it receives advice
from nationally recognized bond counsel or the Internal Revenue Service that certain provisions
have been amended or no longer apply to the 2016 Refunding Bond.
Section 5: General Authorization. The Mayor, City Manager, Finance Director, City
Clerk, City Attorney, and any other appropriate officers, agents, attorneys and employees of the
City are each hereby authorized and directed to cooperate with the Bond Bank and to take such
steps, do such other acts and things, and execute such letters, certificates, agreements, papers,
financing statements, assignments or instruments as in their judgment may be necessary,
appropriate or desirable to carry out the terms and provisions of, and complete the transactions
contemplated by, this resolution.
Section 6: Prior Acts. Any and all acts heretofore taken by officers, agents, attorneys
and employees of the City in connection with refinancing the 2006 Bond and issuing the 2016
Refunding Bond are hereby ratified and confirmed.
Section 7: Effective Date. This resolution will be in full force and effect
immediately upon its adoption.
APPROVED AND ADOPTED by the City Council of the City of Ketchikan, Alaska, at
a regular meeting held on September 15, 2016.
Lew Williams III, Mayor
ATTEST:
( - 1-M
K herine M. Suiter, City Clerk
Resolution 1'/. 16-2636 -3-
t N I (I N all] A iiISI N *
I, Katherine M. Suiter, City Clerk of the City of Ketchikan, Alaska (the "City"), DO
HEREBY CERTIFY that the attached is a true and correct copy of an excerpt of the minutes of the
City Council's meeting of September 15, 2016, showing Council approval of Resolution No. 16-
2636 authorizing the refinancing of the City's Port Revenue Bond, 2006, through the Alaska
Municipal Bond Bank.
Dated as of November 3, 2016.
CITY OF KETCHIKAN, ALASKA
Katherine Muiter, City Clerk
City of Ketchikan, Alaska
September 15, 2016
PUBLIC HEARING ON RESOLUTION NO. 16-2636
APPROVING THE CITY'S PARTICIPATION IN A
PROPOSED REFINANCING BY THE ALASKA
MUNICIPAL BOND BANK OF ITS GENERAL
OBLIGATION BONDS, 2006 SERIES TWO, WHICH
PROVIDED FUNDS TO PURCHASE THE CITY'S PORT
REVENUE BOND, 2006
David Thompson continued by discussing the public hearing for Resolution No. 16-2636, saying
it is similar to refinancing a mortgage. He felt the market was pretty good at this time. He
described elements of the bonds and asked if there were any comments from the public. None
were heard.
COMMUNICATIONS
A notice of resignation of the Senior Engineering Technician Matt Brown was laid on the table.
Mayor Williams read the proclamation for National Recovery Month & Suicide Prevention and
Awareness Month, and presented it to Leah Canfield of Ketchikan Wellness Coalition. Ms.
Canfield said one of the things that the Wellness Coalition strives to do is look into the
community to find ways to support National Recovery Month as well as the Suicide Prevention
and Awareness Month. She said they strive for commonalities, addressing and resolving some of
the issues in substance abuse and mental health disorders in order to build awareness in the
community. She outlined events they will be having this month, and she thanked the Council for
the proclamation.
PERSONS TO BE HEARD
Shawn McFarlane, Moffatt and Nichol, provided a brief update of the market research they did
for the port facilities expansion as well as the concepts they developed for the public workshops.
He explained how they went about conducting their research and summarized the feedback they
received during the public meetings. He continued by saying they will take the comments into
consideration and come back with further information. He said he was available to answer any
questions regarding the additional design work. In response to Mayor Williams, he talked about
the negative input received on extending Berth I and possibility to modify Berth IV. He as well
as Port and Harbors Director Corporon answered questions from the Council. Councilmember
Coose indicated the City needed to think about the number of passengers disembarking into the
community from the larger ships.
Mark Adams, Electric Division Operations Manager, introduced Jeremy Bynum, the new
Electric Division Systems Engineer. Mr. Bynum said he looks forward to working for KPU and
hopes to bring his experience to help the community.
Jason Kolanko spoke regarding the ordinance concerning retail marijuana stores. He felt when
the decision was made to reduce the number of stores to one, there was a perception that one
license in town was well-progressed. He didn't feel this would be good for market competition
and he asked the Council to repeal the amendment and move forward with two stores in town.
Page 2
September 15, 2016
Supplemental Agreement No. 2 to Lease No. 57-0109-4-00074 -
United States Department of Agriculture - Forest Service
Bunkhouse at 2957 Tongass Avenue
Moved by Sivertsen, seconded by Zenge the City Council approve Supplemental Agreement No.
2 to Lease No, 57-0109-4-00074 between the City of Ketchikan and the United States
Department of Agriculture and authorize the city manager to execute the supplemental
agreement on behalf of the City Council.
Councilmember Coose commented on the Forest Service bunkhouse, saying it is disappointing
the feds and the City can't get anything done on this in 34 years.
Motion passed with Sivertsen, Kiffer, Coose, Zenge, Isom and Gage voting yea; Harris absent.
Exempting the Procurement of Annual Maintenance Services
for the IPTV Middleware System from Competitive
Bidding/Written Quotation Requirements - Minerva Networks
Moved by Sivertsen, seconded by Zenge pursuant to subparagraph 6 of Section 3.12.050(a) of
the Ketchikan Municipal Code, the City Council exempt the procurement of annual maintenance
service for the TPTV Middleware System from the competitive bidding/written quotation
requirements of the Ketchikan Municipal Code; authorize the procurement of such maintenance
services from Minerva Networks at a cost of $27,248.84; approve funding from the
Telecommunications Division's 2016 Software and Equipment Maintenance Services Account
No. 635.04; and direct the general manager to execute the contract documents on behalf of the
City Council.
Motion passed with Sivertsen, Kiffer, Coose, Zenge, Isom and Gage voting yea; Harris absent.
Resolution No. 16-2635 - Authorizing the Issuance of a General
Obligation Bond in A Principal Amount Not to Exceed
$2,000,000 to Finance the Cost of Improvements to the Harbor
Facilities of the City
Moved by Sivertsen, seconded by Zenge the City Council approve Resolution No. 16-2635
authorizing the issuance of a general obligation bond of the City in a principal amount not to
exceed $2,000,000 to finance the cost of certain improvements to the harbor facilities of the City
as authorized by Ordinance No. 12-1697 and ratified by the City's voter at a special election held
on June 26, 2012; authorizing tax levies o pay the principal thereof and interest thereon;
authorizing the sale of the bond to the Alaska Municipal Bond Bank on the terms and conditions
provided in this resolution; and establishing an effective date.
Motion passed with Sivertsen, Kiffer, Coose, Zenge, Isom and Gage voting yea; Harris absent.
Resolution No. 16-2636 - Authorizing the City's Participation
in a Proposed Refinancing by the Alaska Municipal Bond
Bank of Its General Obligation Bonds, 2006 Series Two Which
Page 5
September 15, 2016
Provided Funds to Purchase the City's Port Revenue Bond,
2006
Moved by Sivertsen, seconded by Zenge the City Council approve Resolution No. 16-2636
authorizing the City's participation in a proposed refinancing by the Alaska Municipal Bond
Bank of its general obligation bonds, 2006 Series Two, which provided funds to purchase the
City's Port revenue bond, 2006; authorizing the issuance to the Bond Bank of refunding bond of
the City if the Bond Bank successfully refinances its bonds; authorizing the City to enter into an
agreement with the Bond Bank to accomplish the refunding; and establishing an effective date.
Motion passed with Sivertsen, Kiffer, Coose, Zenge, Isom and Gage voting yea; Harris absent.
Ordinance No. 16-1828 - Amending Ordinance No. 06-1549
Relating to the City's Port Revenue Bonds by Modifying
Certain Covenants in the Ordinance - First Reading
Copies of Ordinance No. 16-1828 were available for all persons present.
Moved by Sivertsen, seconded by Zenge the City Council approve in first reading Ordinance No.
16-1828 amending Ordinance No. 06-1549 relating to the City's port revenue bonds by
modifying certain covenants in the ordinance; and establishing an effective date.
Motion passed with Sivertsen, Kiffer, Coose, Zenge, Isom and Gage voting yea; Harris absent.
Budget Transfer - Contract No. 16-39 - Design of Berth I & II
Rehabilitation, Phase IVa - Moffatt & Nichol
Moved by Sivertsen, seconded by Zenge the City Council approve Contract No. 16-39, Design
of Berth I & II Rehabilitation Phase IVa, between the City of Ketchikan and Moffatt & Nichol in
an amount not to exceed $167,399; authorize a budget transfer of $200,000 from the Berths I and
IT Rehabilitation - Phase IV Capital Account to the Berths I and II Rehabilitation - Phase IVa
Capital Account; approve funding from the Port Department's Berth I and I Replacement - Phase
IVa Capital Account; and direct the city manager to execute the agreement on behalf of the City
Council,
Manager Amylon noted staff will be bringing back a report on different alternatives for the port
expansion options following yesterday's public meetings. He said he has asked the Port and
Harbors director to get a quote from Moffatt & Nichol to take a look at Berth IV in terms of
accommodating the larger ships. He pointed out the original scope of work did not address that
since we don't own Berth IV, but in light of the public comment received it may be something
the Council will want to take a look at. He said this will be brought back at the first meeting in
October.
Councilmember Sivertsen spoke to the removal of rock in the channel because he didn't see how
to accommodate those ships with it intact. He felt perhaps federal money may be able to fund
that. Councilmember Coose suggested we start working with the federal delegation on that need,
and see what they would suggest.
Page 6