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Tab_138CERTIFICATE I, the undersigned, the duly appointed Clerk of City of Ketchikan, Alaska (the "City"), DO HEREBY CERTIFY: 1. That the attached resolution is a true and correct copy of Resolution No. 16-263 5 (the "Resolution") adopted by the City Council of the City (the "Council"), at a meeting of the Council held on September 15, 2016, and the Resolution has been duly recorded in my office. 2. That said meeting was duly convened and held in all respects in accordance with law, and to the extent required by law, due and proper notice of such meeting was given; that a legal 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 other requirements and proceedings incident to the proper adoption of the Resolution have been duly fulfilled, carried out and otherwise observed; and that I am authorized to execute this certificate. 3. The Resolution has not been amended, modified, or superseded or repealed since the date of its passage. IN WITNESS WHEREOF, I have hereunto set my hand this 3rd day of November, 2016. .. Katherine M. Suiter, City Clerk City of Ketchikan, Alaska CITY OF KETCHIKAN, ALASKA GENERAL OBLIGATION BOND, 2016 (HARBOR IMPROVEMENTS) $2,000,000 RESOLUTION NO. 1.6-2635 A RESOLUTION of the City Council of the City of Ketchikan, Alaska, 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 harbor facilities of the City as authorized by Ordinance No. 12-1697 and ratified by the City's voters at a special election held on June 26, 2012; authorizing tax levies to 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. ADOPTED: SEPTEMBER 15, 2016 Prepared by: Stradling Yocca Carlson & Rauth, P.C. Seattle, Washington Resolution No. /6-2635 CITY OF KETCHIKAN, ALASKA RESOLUTION NO, 16-2635 TABLE OF CONTENTS Page Section1. Definitions ......................... ................................... .............................................. I Section 2. Authorization of Bond .......................................................... ............................. 3 Section 3. Registration, Payment and Transfer ........................... ................. ....................... 3 Section4. Prepayment ........................................................................................................4 Section 5. Bond Fund; Pledge of Taxes .............................................................................. 4 Section6. Defeasance ................................. ........................................................................ 5 Section7, Tax Covenants ...................................................................................................5 Section8. Lost or Destroyed Bond.....................................................................................5 Section 9. Form of the Bond ................................................. .... .......................................... 6 Section 10. Execution of the Bond .......................................................................................9 Section It. Application of Bond Proceeds ...........................................................................9 Section12. Sale of the Bond .................... ............................................................................. 9 Section 13. Ongoing Disclosure .........................................................................................10 Section 14, General Authorization; Prior Acts ...................................................................10 Section15. Repealer ........................................................................................ ................... 10 Section16. Severability ......................................................................................................10 Section17. Effective Date ..................................................................................................10 EXHIBIT A Form of Loan Agreement Neither this table of contents nor the preceding cover page is a part of this Resolution, Resolution No. /62635 -1- 09/16/15 CITY OF KETCHIKAN, ALASKA RESOLUTION NO. 16-2635 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KETCHIKAN, ALASKA, 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 HARBOR FACILITIES OF THE CITY AS AUTHORIZED BY ORDINANCE NO. 12-1697 AND RATIFIED BY THE CITY'S VOTERS AT A SPECIAL ELECTION HELD ON JUNE 26, 2012; AUTHORIZING TAX LEVIES TO 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. WHEREAS, at an election held in the City of Ketchikan, Alaska (the "City"), on June 26, 2012, the number and proportion of qualified electors of the City as required by law for the adoption thereof voted in favor of a proposition authorizing the issuance of general obligation bonds of the City in a principal amount not to exceed $5,000,000 to fmance all or a portion of the cost of certain improvements to harbor facilities of the City (the "Project"), as authorized by Ordinance No. 12-1697 of the City passed on April 5, 2012 (the "Election Ordinance"); and WHEREAS, as authorized by Resolution No. 14-2550, adopted by the City Council on May 1, 2014, the City issued a portion of the authorized bonds as its General Obligation Bond 2014B (Harbor Improvements), dated June 19, 2014, in the principal amount of $2,720,000 (the "2014 Bond"); and WHEREAS, the Council wishes to authorize the issuance of the balance of the authorized bonds in a principal amount not to exceed $2,000,000; and WHEREAS, on September 15, 2016, the Council held a public hearing on the issuance of the 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; and WHEREAS, it is in the best interest of the City to sell the bonds to the Alaska Municipal Bond Bank (the "Bond Bank") on the terms and conditions set forth herein and in a loan agreement authorized by this resolution to be entered into by the City Manager; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ketchikan, Alaska, as follows: Section 1, Definitions. As used in this resolution, the following words have the following meanings, unless a different meaning clearly appears from the context: Resolution No. /6-2635 "Bond" means the City of Ketchikan, Alaska, General Obligation Bond, 2016 (Harbor Improvements), in a principal amount not to exceed $2,000,000, authorized to be issued and sold to the Bond Bank pursuant to this resolution. "Bond Bank" means the Alaska Municipal Bond Bank, a public corporation and instrumentality of the State of Alaska, created pursuant to the provisions of Chapter 85, Title 44, Alaska Statutes, as amended, "Bond Bank Bonds" means bonds to be issued by the Bond Bank to provide funds to be loaned to the City pursuant to the Loan Agreement. "Bond Fund" means the "City of Ketchikan General Obligation Bond Redemption Fund, 2016 (Harbor Improvements)," authorized to be created by Section 5 of this resolution. "Bond Premium" means proceeds of the Bond representing an allocation of the original issue premium, if any, on the Bond Bank's Bond. "Bond Regist er" means the registration books for the Bond maintained by the Registrar, for the purpose of complying with the requirements of Section 149 of the Code and listing, inter alia, the names and addresses of the Registered Owner of the Bond. means the City of Ketchikan, Alaska, a home rule municipal corporation duly organized and existing under the Constitution and laws of the State of Alaska and its City Charter. "Code" means the federal Internal Revenue Code of 1986, as amended, together with corresponding and applicable final, temporary or proposed regulations and revenue rulings issued or amended with respect thereto by the United States Treasury Department or the Internal Revenue Service, to the extent applicable to the Bond. "Council?' means the City Council of the City, the general legislative authority of the City, as duly constituted from time to time, or any successor body. "Election Ordinance" means Ordinance No. 12-1697 the City, passed by the Council on April 5, 2012, and ratified by the City's voters in an election held in the City on June 26, 2012. "Finance Director" means the Finance Director of the City or the successor to the duties of that office. "Government Obligations" means any bonds or other obligations that, as to principal and interest, constitute direct obligations of, or are unconditionally guaranteed by, the United States of America. "Loan Agreement" means the Loan Agreement by and between the City and the Bond Bank authorized to be entered into pursuant to Section 12 of this resolution. "Project Fund" means the "Harbor Improvements Project Fund, 2016," created pursuant to Section Il of this resolution. Resolution No, 16-2635 -2- 09116/16 "Registrar" means the Finance Director, for the purposes of registering and authenticating the Bond, maintaining the Bond Register, and paying principal of and interest on the Bond. "Registered Owner" means the person in whose name the Bond is registered on the Bond Register. means the SEC's Rule 15c2-12 under the Securities Exchange Act of 1934. means the Securities and Exchange Commission. "Tax Certificate" means the certificate with respect to federal tax matters relating to the Bond authorized to be executed by the Finance Director pursuant to the provisions of Section 7 of this resolution. Words of the masculine gender are deemed and construed to include correlative words of the feminine and neuter genders. Words imparting the singular number include the plural numbers and vice versa unless the context otherwise indicates. Reference to sections and other subdivisions of this resolution are to the sections and other subdivisions of this resolution as originally adopted unless expressly stated to the contrary. The headings or titles of the sections hereof, and the table of contents appended hereto, are for convenience of reference only and do not define or limit the provisions hereof. Section 2. Authorization of the Bond. The City shall now issue and sell not to exceed $2,000,000 principal amount of the general obligation bonds authorized by the Election Ordinance and approved by the City's voters at an election held on June 26, 2012, to finance a portion of the cost of certain improvernents to harbor facilities of the City as described in the Election Ordinance and to pay costs of issuance of the bonds, all as authorized by the Election Ordinance. The bonds shall be issued and sold to the Bond Bank as a single bond in a principal amount not to exceed $2,000,000, designated as the "City of Ketchikan, Alaska, General Obligation Bond, 2016 (Harbor Improvements)" (the "Bond"). The Bond shall be fully registered as to both principal and interest, shall be numbered separately in such manner as the Registrar determines, shall be dated as of the date to be established in accordance with Section 12 hereof, and shall mature on the date or dates, bear interest at the rate or rates, and be payable on the dates and in the principal amounts to be established in accordance with Section 12 hereof. Interest on the Bond shall be computed on the basis of a 360-day year consisting of twelve 30- day months. Section 3. Registration, Payment and Transfer. The Finance Director will act as authenticating agent, transfer agent, paying agent and registrar for the Bond (collectively, the "Registrar"). Both principal of and interest on the Bond are payable in lawful money of the United States of America. Interest on the Bond will be paid by check or draft of the Registrar mailed (on the date such interest is due) to the Registered Owner or nominee at the addresses appearing on the Bond Register on the fifteenth day of the month preceding each interest payment date. Principal of the Bond is payable upon presentation and surrender of the Bond to the Registrar by the Registered Owner or nominee at the office of the Registrar in Ketchikan, Alaska. Notwithstanding the foregoing, if the Bond is sold to the Bond Bank pursuant to the Resolution No. 16-2635 -3 09116/16 - provisions of Section 12 of this resolution, and for so long as the Bond Bank is the owner of the Bond, payments of principal of and interest on the Bond will be made to the Bond Bank in accordance with the Loan Agreement. The Bond may be transferred only on the Bond Register maintained by the Registrar for that purpose upon the surrender thereof by the Registered Owner or nominee or his or her duly authorized agent and only if endorsed in the manner provided thereon, and thereupon a new fully registered Bond of like principal amount, maturity and interest rate will be issued to the transferee in exchange therefor. Upon surrender thereof to the Registrar, the Bond is interchangeable for a bond or bonds (in denominations of $5,000 or any integral multiple thereof) of an equal aggregate principal amount and of the same interest rates and principal payment amounts as the Bond. Such transfer or exchange will be without cost to the Registered Owner or transferee. The City may deem the person in whose name the Bond is registered to be the absolute owner thereof for the purpose of receiving payment of the principal of and interest on the Bond and for any and all other purposes whatsoever. Sections. Prepayment. Provisions for the optional prepayment of some or all principal installments of the Bond may be established pursuant to Section 12 and will be set forth in the Loan Agreement. Portions of the principal amount of the Bond, in increments of $5,000 or any integral multiple of $5,000, may be prepaid. So long as the Bond Bank is the owner of the Bond, notice of prepayment will be given according to the terms of the Loan Agreement. If the Bond Bank is not the owner of the Bond, notice of prepayment thereof will be given not less than 30 nor more than 60 days prior to the date fixed for prepayment by first class mail, postage prepaid, to the Registered Owner of the Bond at the address appearing on the Bond Register. The requirements of this section will be deemed complied with when notice is mailed as herein provided, regardless of whether it is actually received by the owner of the Bond. Each official notice of prepayment will be dated and state: (i) the prepayment date, (ii) the prepayment price or prepayment premium, if any, payable upon prepayment; (iii) if less than all of an installment of principal is to be prepaid, the principal amount to be prepaid (which must be an integral multiple of $5,000); (iv) that the interest on the Bond, or on the principal amount thereof to be prepaid, designated for prepayment in the notice, will cease to accrue from and after the prepayment date; and (v) that on that date there will become due and payable on the Bond the principal amount thereof to be prepaid and the interest accrued on that principal amount to the prepayment date. Section 5. Bond Fund; Pledge of Taxes. A special fund of the City known as the "City of Ketchikan General Obligation Bond Redemption Fund, 2016 (Harbor Improvements)" (the "Bond Fund"), is hereby authorized to be created in the office of the Finance Director. The Bond Fund will be drawn upon for the sole purpose of paying the principal of and interest on the Bond. The Bond is a general obligation of the City. As authorized by the Election Ordinance, the City hereby irrevocably covenants that, unless the principal of and interest on the Bond are paid from charges for harbor services, raw fish tax revenues, or other sources, it will make Resolution No. 16-2635 -4- 09116116 annual levies of property taxes without limitation as to rate or amount, and in amounts sufficient, together with other legally available funds, to pay such principal and interest as the same become due. The full faith, credit and resources of the City are hereby irrevocably pledged for the annual levy and collection of such property taxes and for the prompt payment of such principal and interest. Section 6. Defeasance. If money and/or Government Obligations, maturing at such time or times and bearing interest to be earned thereon in amounts sufficient to redeem and retire the Bond or a portion thereof in accordance with its terms, are set aside in a special account to effect such prepayment and retirement, and such money and the principal of and interest on such obligations are irrevocably set aside and pledged for such purpose, then no further payments need be made into the Bond Fund for the payment of the principal of and interest on the Bond or portion thereof so provided for, and the Bond or portion thereof will cease to be entitled to any lien, benefit or security of this resolution except the right to receive the money so set aside and pledged, and the Bond or portion thereof will be deemed not to be outstanding hereunder. Section 7. Tax Covenants. (a) General. The City covenants not to take any action, or knowingly to omit to take any action within its control, that if taken or omitted would cause the interest on the Bond to be includable in gross income, as defined in section 61 of the Code, for federal income tax purposes. (b) Tax Certificate. Upon the issuance of the 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 Bond, based on the facts and estimates known or reasonably expected on the date of their issuance, and make certain covenants with respect to the 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 Bond. (c) No Special Designation. The Bond is not a "qualified tax-exempt obligation" within the meaning of Section 265(b)(3) of the Code. Section 8. Lost or Destroyed Bond. If a Bond is lost, stolen or destroyed, the Registrar may authenticate and deliver a new Bond of like amount, date, and tenor to the Registered Owner upon such owner's paying the expenses and charges of the City in connection with preparation and authentication of the replacement Bond and upon his or her filing with the Registrar evidence satisfactory to the Registrar that the Bond was actually lost, stolen or destroyed and of his or her ownership, and upon furnishing the City with indemnity satisfactory to the Registrar. Section 9. Form of the Bond, The Bond will be in substantially the following form: Resolution No. /6-2635 -5- 09116/16 NO. Rt UNITED STATES OF AMERICA STATE OF ALASKA CITY OF KETCHIKAN GENERAL OBLIGATION BOND, 2016 (HARBOR IMPROVEMENTS) INTEREST RATE: FINAL MATURITY DATE: SEE BELOW REGISTERED OWNER: ALASKA MUNICIPAL BOND BANK PRINCIPAL AMOUNT: DOLLARS The City of Ketchikan, Alaska (the "City"), a municipal corporation organized and existing under and by virtue of its charter and the laws and Constitution of the State of Alaska, hereby acknowledges itself to owe and for value received promises to pay to the Registered Owner identified above, or registered assigns, the principal amount specified above, in installments payable as set forth below, together with interest on such installments from the date hereof or the most recent date to which interest has been paid or duly provided for, at the interest rates set forth below, on. ________, 20, and on each 1 and 1 thereafter until payment of the principal sum has been made or duly provided for. Principal Installment Payment Year Principal Installment Interest 1) Amount Rate Both principal of and interest on this bond are payable in lawful money of the United States of America. Installments of principal of and interest on this bond are payable by check or draft of the Finance Director of the City (the "Registrar") mailed on the date such interest is due to the Registered Owner at the address appearing on. the Bond Register as of the fifteenth day of the month preceding the interest payment date. The final installment of principal of and interest on this bond will be paid to the Registered Owner upon presentation and surrender of this bond at the office of the Registrar, Notwithstanding the foregoing, so long as the Bond Bank is the Registered Owner of this bond, payments of principal of and interest on this bond will be made to the Bond Bank in accordance with. the Loan Agreement. This bond is a general obligation bond of the City, as authorized by Ordinance No. 12- 1697 of the City, which was approved by the voters of the City, and issued pursuant to Resolution No. 16-2635, adopted by the City Council on September 15, 2016 (the "Bond /?osoluEir,n No, 16-263-5 -6- 09I16/1 Resolution"), to finance capital improvements to harbor facilities of the City. Capitalized terms used in this bond and not otherwise defined herein have the meanings given those terms in the Bond Resolution. Principal installments of this bond are subject to prepayment as provided in the Loan Agreement. The City hereby irrevocably covenants that, unless the principal of and interest on this bond are paid from charges for harbor services, raw fish tax revenues, or other sources, it will make annual levies of property taxes without limitation as to rate or amount, and in amounts sufficient, together with other legally available funds, to pay such principal and interest as the same becomes due. The full faith, credit and resources of the City are hereby irrevocably pledged for the annual levy and collection of such property taxes and for the prompt payment of such principal and interest. The pledge of tax levies for payment of principal of and interest on this bond may be discharged prior to maturity of the bond by making provision for the payment thereof on the terms and conditions set forth in the Bond Resolution. This bond will not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Bond Resolution until the Certificate of Authentication hereon has been manually signed by the Registrar. It is hereby certified and declared that this bond is issued pursuant to and in strict compliance with the Constitution and laws of the State of Alaska and the charter, ordinances, and resolutions of the City, that all acts, conditions and things required to be done precedent to and in the issuance of this bond have happened, been done and performed, and that this bond does not exceed any Constitutional or statutory limitations. IN WITNESS WHEREOF, the City of Ketchikan, Alaska, has caused this bond to be signed on behalf of the City with the manual or facsimile signature of the Mayor, attested by the manual or facsimile signature of the Clerk, and the seal of the City to be imprinted or impressed hereon, as of this day of , 2016. CITY OF KETCHIKAN, ALASKA By Is! Mayor [SEAL] ATTEST: Is/ Clerk Resolution No. 16-2635 -7- 09/16/16 CERTIFICATE OF AUTHENTICATION Date of Authentication: This is the City of Ketchikan, Alaska, General Obligation Bond, 2016 (Harbor Improvements), dated , 2016, as described in the Bond Resolution, Finance Director, City of Ketchikan, Alaska, as Registrar ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto PLEASE INSERT SOCIAL SECURITY OR TAXPAYER IDENTIFICATION NUMBER OF TRANSFEREE (Please print or typewrite name and address, including zip code of Transferee) the within bond and all rights thereunder and does hereby irrevocably constitute and appoint of ,orits successor, as agent to transfer said bond on the books kept by the Registrar for registration thereof, with full power of substitution in the premises. SIGNATURE GUARANTEED: NOTE: The signature of this Assignment must correspond with the name of the Registered Owner as it appears upon the face of the within bond in every particular, without alteration or enlargement or any change whatever. Resolution No. 16-2635 -8 09116/16 - Section 10. Execution of the Bond. The Bond will be signed on behalf of the City by the manual or facsimile signature of the Mayor, attested by the manual or facsimile signature of the City Clerk, and the seal of the City will be impressed or imprinted thereon. Only a Bond that bears thereon a Certificate of Authentication in the form set forth in Section 9 hereof, manually executed by the Registrar, will be valid or obligatory for any purpose or entitled to the benefits of this resolution. The executed Certificate of Authentication will be conclusive evidence that the Bond so authenticated has been duly executed, authenticated, registered, and delivered hereunder and is entitled to the benefits of this resolution. If any officer who has signed or attested the Bond ceases to be an officer of the City authorized to sign bonds before the Bond bearing his or her signature is authenticated or delivered by the Registrar or issued by the City, that Bond nevertheless may be authenticated, issued and delivered and, when authenticated, issued and delivered, will be as binding on the City as though that person had continued to be an officer of the City authorized to sign bonds. The Bond also may be signed on behalf of the City by any person who, on the actual date of signing of the Bond, is an officer of the City authorized to sign bonds, although he or she did not hold the required office on the date of issuance of the Bond. Section 11, Appli cation of Bond Proceeds. A special fund of the City known as the "Harbor Improvements Project Fund, 2016" (the "Project Fund") is hereby authorized to be created in the office of the Finance Director. At the time of delivery of the Bond, the proceeds of the sale of the Bond will be deposited as follows: (a) The accrued interest, if any, to the date of delivery will be deposited in the Bond Fund and used to pay a portion of interest on the Bond on the first interest payment date; and (b) The remaining Bond proceeds including Bond Premium will be deposited in the Project Fund and used to pay costs of the Project and costs of issuance of the Bond, as authorized and to the extent permitted by the Election Ordinance; provided, however, that any additional Bond Premium exceeding the costs of issuing the Bond will be deposited in the Bond Fund. Money remaining in the Project Fund after all such costs have been paid or reimbursed will be deposited in the Bond Fund. Money in the Project Fund may be invested as permitted by law. All interest earned and profits derived from such investments will be retained in and become a part of the Project Fund. Section l. Sale of the Bond. The Finance Director and City Manager are authorized to complete the sale of the Bond to the Bond Bank on terms and conditions consistent with this resolution and a loan agreement in substantially the form set forth on Exhibit A attached to this resolution (the "Loan Agreement"). Following the sale of the Bond Bank Bonds, such terms and conditions, including the final principal amount, date, principal installment payment schedule, interest rates and prepayment provisions for the Bond, all as provided for in this resolution, will be set forth in the Loan Agreement, subject to the City Manager's approval, which approval will be conclusively evidenced by his signing and delivering the Loan Agreement to the Bond Bank, Resolution No, I62635 9 0911e/16 EXHIBIT A FORM OF LOAN AGREEMENT THIS LOAN AGREEMENT, dated as of the day of 20, 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 [City] [Borough], Alaska, a duly constituted [City] [Borough] of the State (the "[City] [Borough]"): WITNES SETH: WHEREAS, pursuant to the Act, the Bank is authorized to make loans of money (the "Loan" or "Loans") to governmental units; and WHEREAS, the [City] [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; and WHEREAS, the [City] [Borough] desires to borrow money from the Bank in the amount not to exceed $_________ and has submitted an application to the Bank for a Loan in the amount not to exceed $ and the [City] [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 Loan Agreement; and WHEREAS, the application of the [City] [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 Obligation Bond Resolution on July 13, 2005, as amended (the "General Bond Resolution") and Series Resolution No. 20-, approved on ____ , 20_ (together with the General Bond Resolution, the "Bond Resolution"), authorizing the making of such Loan to the [City] [Borough] and the purchase of the Municipal Bond; and WHEREAS, the Board of the Bank approved certain modifications to the General Bond Resolution, effective on the date when all bonds issued under the terms of the General Bond Resolution, prior to February 19, 2013, cease to be outstanding. NOW, THEREFORE, the parties agree: The Bank hereby makes the Loan and the [City] [Borough] accepts the Loan in the aggregate principal amount of $ . As evidence of the Loan made to the [City] [Borough] and such money borrowed from the Bank by the [City] Borough], the [City] [Borough] hereby sells to the Bank the Municipal Bond in the principal amount, with the A-i principal installment payments, and bearing interest from its date at the rate or rates per annum, stated in Exhibit A appended hereto. The [City] [Borough] represents that it has duly adopted or will adopt all necessary ordinances or resolutions, including [Ordinance] [Resolution] No. , adopted on 20 (the "[City] [Borough] [Ordinance] [Resolution]"), 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, secured by the full faith and credit] [a revenue bond, a special and limited obligation] of the [City] [Borough], all duly authorized by the [City] [Borough] [Ordinance] [Resolution]. Subject to any applicable legal limitations, the amounts to be paid by the [City] [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 shall be paid by the [City] [Borough] at least seven (7) business days before the interest payment date so as to provide funds sufficient to pay interest as the same becomes due on the Loan Obligations. The amounts to be paid by the [City] [Borough] pursuant to this Loan Agreement representing principal due on its Municipal Bond (the "Municipal Bond Principal Payments"), shall be paid at least seven (7) business days before the payment date stated in the Municipal Bond so as to provide funds sufficient to pay the principal of the Loan Obligations as the same matures based upon the maturity schedule stated in Exhibit A appended hereto. In the event the amounts referred to in Sections 3 and 4 hereof to be paid by the [City] [Borough] pursuant to this Loan Agreement are not made available at any time specified herein, the [City] [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 [City] [Borough], as provided in the Act. 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 [City] [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 [City] [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 the 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 [City] [Borough] for the [City's] [Borough's] A-2 approval, a revised schedule of principal installment amounts and interest rates for the Municipal Bond. If approved by the [City] [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. The [City] [Borough] is obligated to pay to the Bank Fees and Charges. Such Fees and Charges actually collected from the [City] [Borough] shall be in an amount sufficient, together with the [City's] [Borough's] Allocable Proportion (as defined below) 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 Section 606 of the General Bond Resolution: to pay, as the same become due, the [City's] [Borough's] Allocable Proportion of the Administrative Expenses of the Bank; and to pay, as the same become due, the [City's] [Borough's] Allocable Proportion of the fees and expenses of the Trustee and paying agent for the Loan Obligations. The [City's] [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 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. The [City] [Borough] is obligated to make the Municipal Bond Principal Payments scheduled by the Bank. The first such Municipal Bond Principal Payment is due at least seven (7) business days prior to the date indicated on Exhibit A appended hereto, and thereafter on the anniversary thereof each year. The [City] [Borough] is obligated to make the Municipal Bond Interest Payments scheduled by the Bank on a semi-annual basis commencing seven (7) business days prior to 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, The Bank shall not sell and the [City] [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 (i) 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, (iii) 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 [City] [Borough] shall give the Bank at least 50 days' notice of intention to redeem its Municipal Bond. A-3 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 [City] [Borough] shall be obligated to pay or the Bank shall receive under item (1) 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 pay on the Loan Obligations, the amount which the [City] [Borough] shall be obligated to pay or the Bank shall receive under item (ii) 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 [City] [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 [City] [Borough] from refunding the Municipal Bond in exchange for a new Municipal Bond in conjunction with a refunding of the Loan Obligations. Simultaneously with the delivery of the Municipal Bond to the Bank, the [City] [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 and binding [general obligation] [special and limited obligation] of the [City] [Borough], secured by the [full faith and credit] [revenue of the I of the [City] [Borough]. Invoices for payments under this Loan Agreement shall be addressed to the [City] [Borough], Attention: Alaska 99. The [City] [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. [The [City] [Borough] hereby agrees that it shall fully fund, at the time of loan funding, its debt service reserve fund (in an amount equal to $ ) which secures payment of principal and interest on its Municipal Bond, that such fund shall be held in the name of the [City] [Borough] with the Trustee, and that the yield on amounts held in such fund shall be restricted to a yield not in excess of percent. (Applies to revenue bonds only.)] [Rate covenant language - if applicable.] The [City] [Borough] hereby agrees to keep and retain, until the date six years after the retirement of the Municipal Bond, or any bond issued to refund the Municipal Bond, or such longer period as may be required by the [City's] [Borough's] record retention policies and procedures, records with respect to the investment, expenditure and use of the proceeds derived M from the sale of its Municipal Bond, including without limitation, records, schedules, bills, invoices, check registers, cancelled checks and supporting documentation evidencing use of proceeds, and investments and/or reinvestments of proceeds. The [City] [Borough] agrees that all records required by the preceding sentence shall be made available to the Bond Bank upon request. 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: Any representation, warranty or other statement made by the [City] [Borough] to the Bank in connection with its application to the Bank for a Loan shall be incorrect or incomplete in any material respect. The [City] [Borough] has violated commitments made by it in the terms of this Loan Agreement. The financial position of the [City] [Borough] has, in the opinion of the Bank, suffered a materially adverse change between the date of this Loan Agreement and the scheduled time of delivery of the Municipal Bond to the Bank. The obligation of the Bank under this Loan Agreement is contingent upon delivery of its General Obligation Bonds, 20 Series and receipt of the proceeds thereof. The [City] [Borough] agrees that it will provide the Bank with written notice of any default in covenants under the [City] [Borough] [Ordinance] [Resolution] within thirty (30) days from the date thereof, The [City] [Borough] agrees that it shall file its annual financial statement with the Municipal Securities Rulemaking Board not later than two hundred ten (210) days after the end of each fiscal year of the [City] [Borough] for the term of the Municipal Bond. The [City] [Borough] further agrees that filings under this Section 18 shall be made in connection with CUSIP Nos. 01 179P, 011798 and 01 179R. Additional or alternate CUSIP number(s) may be added from time to time by written notice from the Bank to the [City] [Borough]. The [City] [Borough] agrees that if it shall receive from the Bank CUSIP number(s) in addition to those set forth in this Section then it shall make its filings using both CUSIP numbers herein stated and any additional CUSIP number(s). The [City] [Borough] agrees that it 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 [City] [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 [City] [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" under Section 148 of the Code. So long as the Municipal Bond is outstanding, the [City] [Borough], 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 [City] [Borough] shall indemnify and hold harmless the Bank from any obligation of the [City] [Borough] to make rebate payments to the United States under said Section 148 arising from the [City's] [Borough's] use or investment of the proceeds of the Municipal Bond. Upon request of the Bank, the [City] [Borough] agrees that if its bonds constitute ten percent (10%) or more of the outstanding principal of municipal bonds held by the Bank under its General Bond Resolution, it shall execute a continuing disclosure agreement prepared by the Bank for purposes of Securities and Exchange Commission Rule I 5c2- 12, adopted under the Securities and Exchange Act of 1934. The [City] [Borough] agrees that if its bonds constitute ten percent (10%) or more of the outstanding principal of municipal bonds held by the Bank under its General Bond Resolution it shall provide the Bank for inclusion in future official statements, upon request, financial information generally of the type included in Appendix D, under the heading "Summaries of Borrowers Representing 10% or More of Outstanding Principal of Bonds issued Under the 2005 General Bond Resolution," to the Official Statement and attached hereto as Exhibit B. 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. 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. No waiver by either party of any term or condition of this Loan Agreement shall be deemed or construed 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. 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. 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. A-6 IN WITNESS WHEREOF, the parties hereto have executed this Loan Agreement the day and year first above written. ALASKA MUNICIPAL BOND BANK 0.31 DEVEN J. MITCHELL Executive Director [CITY] BOROUGH OF ALASKA pI Its: A-7 EXHIBIT A [City] [Borough], Alaska [General Obligation] [Revenue] Bond, 20Lj ("Municipal Bond") Due Principal Interest Amount Rate Principal installments shall be payable on 1 in each of the years, and in the amounts set forth above, Interest on the Municipal Bond shall be payable on 1, 20 and thereafter on 1 and I of each year. Prepayment Provisions: The Municipal Bond principal installments are not subject to prepayment prior to maturity. Optional Prepayment: The Municipal Bond principal installments due on or after 1, 20_ are subject to prepayment in whole or in part at the option of the [City] [Borough] on any date on or after 1, 20_, at a price of 100% of the principal amount thereof to be prepaid, plus accrued interest to the date of prepayment. A-8 09/16116 Section 13, Ongoing Disclosure, The City acknowledges that, under Rule 15c2-12 of the Securities and Exchange Commission (the "Rule"), the City may now or in the future be an "obligated person" with respect to the Bond Bank Bonds. In accordance with the Rule and as the Bond Bank may require, the City will undertake to provide certain annual financial information and operating data as set forth in the Loan Agreement, Section 14. General Authorization; Prior Acts, The Mayor, City Manager, Finance Director and City Clerk and any other appropriate officers of the City are each hereby authorized and directed to take such steps, to do such other acts and things, and to 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. All acts taken pursuant to the authority of this resolution but prior to its effective date are hereby ratified and confirmed. Section 15. Repealer. Resolution No. 16-26 19, adopted by the Council on March 17, 2016, is repealed in its entirety. Section 16. Severability. If any one or more of the covenants or agreements provided in this resolution to be performed on the part of the City is declared by any court of competent jurisdiction to be contrary to law, then such covenant or covenants, agreement or agreements, will be null and void and will be deemed separable from the remaining covenants and agreements of this resolution and will in no way affect the validity of the other provisions of this resolution or of the Bond. Section 17. 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 thereof, held on September 15, 2016. cBy c , Lew Williams III, Mayor ATTEST: 4KIhebr~NeHuiter, City Clerk Rsolwion jVO. /6-2635 -10- 09/16/16 CERTIFICATE I, the undersigned, duly chosen, qualified and acting City Clerk of the City of Ketchikan, Alaska (the "City") and keeper of the records of the City Council of the City (the "Council"), DO HEREBY CERTIFY: That the attached is a true and correct copy of Resolution No. I62635 of the Council (the "Resolution"), as finally adopted at a regular meeting of the Council held on September 15, 2016, and duly recorded in my office. 2. That said meeting was duly convened and held in all respects in accordance with law, and to the extent required by law, due and proper notice of such meeting was given; that a legal quorum of the Council 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 other requirements and proceedings incident to the proper passage of said Resolution have been duly fulfilled, carried out and otherwise observed, and that I am authorized to execute this certificate. IN WITNESS WHEREOF, I have hereunto set my hand this _____ day of September, 2016. City Clerk, City of Ketchikan 09116116 September 15, 2016 Regular Ketchikan City Council meeting was called to order by Mayor Williams at 7:00 p.m., September 15, 2016, with the following members present: Dick Coose, Janalee Gage, Julie Isom, David Kiffer (via teleconference), Robert Sivertsen and Judy Zenge. Councilmember K Harris was absent. The Pledge of Allegiance was given by all persons in the Chambers. Staff present were Manager Amylon, Assistant Manager Martin, Finance Director Newell, Attorney Seaver, Public Works Director Hilson, Deputy Police Chief Dossett, Port and Harbors Director Corporon, Assistant Telecommunications Division Manager Lindgren and City Clerk Suiter. PUBLIC HEARING ON RESOLUTION NO. 16-2628 - AMENDING THE 2016 GENERAL GOVERNMENT OPERATING AND CAPITAL BUDGET FOR THE FIRE DEPARTMENT - $122 AND THE LIBRARY DEPARTMENT -$6,900 Mayor Williams called the public hearing on Resolution No. 16-2628 to order at 7:01 p.m. and requested public testimony. As there was no testimony, Mayor Williams declared the public hearing closed at 7:01 p.m. PUBLIC HEARING ON RESOLUTION NO. 16-2635 AUTHORIZING ISSUANGE OF A GENERAL OBLIGATION BOND IN THE AMOUNT OF NOT TO EXCEED $2,000,000 TO FINANCE CERTAIN IMPROVEMENTS TO THE HARBOR FACILITIES OF THE CITY David Thompson, Bond Counsel with the law firm Stradling, Yocca, Carlson & Rauth, said he was asked by Finance Director Newell to conduct the public hearing as it is required by the Federal Tax Code for certain types of tax exempt bonds, including both types of bonds that are the subject of the resolutions that are before the Council tonight. He went on to say that under the Federal Tax Code, notice of the public hearings had to be published, which was done in the Ketchikan Daily News on August 29, 2016, He explained the first bond issue is for General Obligation bonds to pay for the cost of harbor improvements. He said the bonds were approved by voters in 2012, with the first series of bonds issued then and now a second series is going to be issued. He explained these were for the improvements that were publicized in the summary notice for replacement of the facilities at Hole-In-The-Wall Harbor, and for replacing the ramp and upgraded electrical service at Bar Harbor. He specifically noted the addresses of the improvements, saying Hole-In-The-Wall Harbor is located at 7522 South Tongass Highway and Bar Harbor is located at 2933 Tongass Avenue. He said all these improvements will continue to be owned and operated by the City. Mr. Thompson asked if there were any members of the public present to speak on the resolution. As there was no testimony, Mayor Williams declared the public hearing closed at 7:03 p.m. 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 IPTV 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. 16-263 5 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 CERTIFICATE REGARDING MINUTES I, the undersigned, Katherine M. Suiter, City Clerk of the City of Ketchikan, Alaska (the "City"), and keeper of the records of the City Council (the "Council"), DO HEREBY CERTIFY that the attached is a true and correct copy of an excerpt of the minutes of the meeting of the Council held on September 15, 2016 that reflect (1) the public hearing held with respect to the proposed issuance of a general obligation bond of the City to finance certain harbor improvements and (2) the adoption of Resolution No. 16-263 5. Dated as of November 3, 2016. . .. Katherine M. Suitr, City Clerk City of Ketchikan, Alaska September 15, 2016 Regular Ketchikan City Council meeting was called to order by Mayor Williams at 7:00 p.m., September 15, 2016, with the following members present: Dick Coose, Janalee Gage, Julie Isom, David Kiffer (via teleconference), Robert Sivertsen and Judy Zenge. Councilmember Kj Harris was absent. The Pledge of Allegiance was given by all persons in the Chambers. Staff present were Manager Amylon, Assistant Manager Martin, Finance Director Newell, Attorney Seaver, Public Works Director Hilson, Deputy Police Chief Dossett, Port and Harbors Director Corporon, Assistant Telecommunications Division Manager Lindgren and City Clerk Suiter. PUBLIC HEARING ON RESOLUTION NO. 16-2628 - AMENDING THE 2016 GENERAL GOVERNMENT OPERATING AND CAPITAL BUDGET FOR THE FIRE DEPARTMENT - $122 AND THE LIBRARY DEPARTMENT -$6,900 Mayor Williams called the public hearing on Resolution No. 16-2628 to order at 7:01 p.m. and requested public testimony. As there was no testimony, Mayor Williams declared the public hearing closed at 7:01 p.m. PUBLIC HEARING ON RESOLUTION NO. 16-2635 AUTHORIZING ISSUANGE OF A GENERAL OBLIGATION BOND IN THE AMOUNT OF NOT TO EXCEED $2,000,000 TO FINANCE CERTAIN IMPROVEMENTS TO THE HARBOR FACILITIES OF THE CITY David Thompson, Bond Counsel with the law firm Stradling, Yocca, Carlson & Rauth, said he was asked by Finance Director Newell to conduct the public hearing as it is required by the Federal Tax Code for certain types of tax exempt bonds, including both types of bonds that are the subject of the resolutions that are before the Council tonight. He went on to say that under the Federal Tax Code, notice of the public hearings had to be published, which was done in the Ketchikan Daily News on August 29, 2016. He explained the first bond issue is for General Obligation bonds to pay for the cost of harbor improvements. He said the bonds were approved by voters in 2012, with the first series of bonds issued then and now a second series is going to be issued. He explained these were for the improvements that were publicized in the summary notice for replacement of the facilities at Hole-In-The-Wall Harbor, and for replacing the ramp and upgraded electrical service at Bar Harbor. He specifically noted the addresses of the improvements, saying Hole-In-The-Wall Harbor is located at 7522 South Tongass Highway and Bar Harbor is located at 2933 Tongass Avenue. He said all these improvements will continue to be owned and operated by the City. Mr. Thompson asked if there were any members of the public present to speak on the resolution. As there was no testimony, Mayor Williams declared the public hearing closed at 7:03 p.m. 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 IPTV 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 $2000,000 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