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RESOLUTION NO. 2016-15
A RESOLUTION of the Assembly of the City and Borough of Sitka, Alaska,
approving the City's participation in a proposed refinancing by the Alaska
Municipal Bond Bank of its General Obligation Bonds, 2007 Series One,
which provided funds to purchase the City's General Obligation
Refunding Bond, 2007; authorizing the issuance to the Bond Bank of a
refunding bond of the City if the Bond Bank successfully refinances its
bonds; and authorizing the City's Chief Finance and Administrative
Officer to enter into an agreement with the Bond Bank to accomplish the
refunding.
WHEREAS, the City and Borough of Sitka, Alaska (the "City"), issued and sold its
General Obligation Bond, 1999, in the original principal amount of $11,000,000 (the "1999
Bond"), to the Alaska Municipal Bond Bank (the "Bond Bank"), as authorized by Ordinance
No. 99-1525 and Resolution No. 99-731 of the City (the "1999 Bond Legislation"), on the terms
and conditions set forth in the 1999 Bond Legislation and in a loan agreement between the City
and the Bond Bank dated as of April 1, 1999 (the "Original Loan Agreement"); and
WHEREAS, the Bond Bank issued and sold its General Obligation Bonds, 1999 Series A
(the "1999 Bond Bank Bonds"), to provide funds to purchase the 1999 Bond, as provided in the
Original Loan Agreement; and
WHEREAS, Section 6 of the Original Loan Agreement provides that the debt service
schedule for the 1999 Bond may be revised from time to time if the Bond Bank is able to achieve
debt service savings by refinancing its bonds; and
WHEREAS, in 2006, Resolution No. 2006-31 of the City authorized the refinancing of
the 1999 Bond to achieve debt service savings for the City if the Bond Bank successfully
refinanced the 1999 Bond Bank Bonds; and
WHEREAS, the Bond Bank issued its General Obligation Refunding Bonds, 2007
Series One (the "2007 Bond Bank Bonds"), in an advance refunding, to refinance the 1999 Bond
Bank Bonds, and in connection with the issuance of the 2007 Bond Bank Bonds, the City and the
Bond Bank entered into an amendatory loan agreement dated as of January 1, 2007 (the "2007
Amendatory Loan Agreement"), in accordance with the Original Loan Agreement and as
authorized by Resolution No. 2006-31, under which the City and the Bond Bank agreed to a
revised debt service schedule; and
WHEREAS, as further authorized by Resolution No. 2006-31, the revised debt service
schedule agreed to in the 2007 Amendatory Loan Agreement was set forth in the City's General
Obligation Refunding Bond, 2007, in the original principal amount of $8,285,000 (the "2007
Bond"), issued to the Bond Bank in exchange for the 1999 Bond; and
WHEREAS, the Bond Bank now wishes to refinance the 2007 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 2007 Bond
Bank Bonds; and
WHEREAS, the Assembly wishes to approve the City's participation in this refinancing
and, if the Bond Bank successfully refinances the 2007 Bond Bank Bonds, to authorize the City's
Chief Finance and Administrative Officer to accept a revised debt service schedule for the 2007
Bond, to be evidenced in a refunding bond issued to the Bond Bank in exchange for the 2007
Bond;
NOW, THEREFORE, BE IT RESOLVED by the Assembly of the City and Borough of
Sitka, Alaska, as follows:
Section 1. Approval of Refinancing. The Assembly hereby approves the City's
participation in the Bond Bank's refinancing of the 2007 Bond Bank Bonds and authorizes the
Chief Finance and Administrative Officer to approve a revised schedule of principal payment
amounts and interest rates for the 2007 Bond, in accordance with Section 6 of the Original Loan
Agreement, so long as the revised debt service schedule is financially advantageous to the City.
The revised schedule of debt service on the 2007 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 2007 Bond.
The Chief Finance and Administrative Officer or his designee 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 1999 Bond Legislation and this resolution, as
applicable, to the Bond Bank in exchange for the 2007 Bond. The Chief Finance and
Administrative Officer 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. 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 Chief Financial and Administrative
Officer 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.
IPA
Section 3, General Authorization, The Mayor, Chief Finance and Administrative
Officer, Clerk, 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 4. Prior Acts. Any and all acts heretofore taken by officers, agents, attorneys
and employees of the City in connection with refinancing the 2007 Bond and issuing the 2016
Bond are hereby ratified and confirmed.
Section 5. Effective Date. This resolution will take effect immediately upon its
adoption.
PASSED, APPROVED, AND ADOPTED by the Assembly of the City and Borough of
Sitka, Alaska this 13th day of September, 2016.
By,A;L,—AcLrvt-~
Mirn McConnell, Mayor
ATTEST:
Melissa Henshaw
Acting Municipal Clerk
-3-
CLERK'S CERTIFICATE
I, the undersigned, Clerk of the City and Borough of Sitka, Alaska (the "City"), and keeper
of the records of the Assembly (the "City"), DO HEREBY CERTIFY:
I. That the attached resolution (the "Resolution") is a true and correct copy of
Resolution No. 2016-15 of the City, as adopted at a regular meeting of the Assembly held on
September 13, 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
quorum was present throughout the meeting and a legally sufficient number of members of the
Assembly voted in the proper manner for the adoption of the Resolution; that all other requirements
and proceedings incident to the proper adoption of the Resolution have been fully 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 September LL, 2016.
Municipal Clerk
City and Borough of Sitka, Alaska
CERTIFICATE OF MINUTES
I, Sara Peterson, Municipal Clerk of the City and Borough of Sitka, Alaska, DO
HEREBY CERTIFY that the attached is a copy of an excerpt of the minutes of the Assembly
meeting of September 13, 2016, showing Assembly action on Resolution No. 2016-15.
Dated November 3, 2016.
CITY AND BOROUGH OF SITKA, ALASKA
Sara Peterson, CMC, Municipal Clerk
City and Borough Assembly Minutes - Final September 13, 2016
PASSED by the following vote.
Yes: 4 - Hunter, Swanson, Miyasato, and Guevin
Absent: 1 - Potrzuski
Recused: 2 - McConnell, and Eisenbeisz
N RES 16-15 Approving the City's participation in a proposed refinancing by the Alaska
Municipal Bond Bank of its General Obligation Bonds, 2007 Series One,
which provided funds to purchase the City's General Obligation Refunding
Bond, 2007; authorizing the issuance to the Bond Bank of a refunding
bond of the City if the Bond Bank successfully refinances its bonds; and
authorizing the City's Chief Finance and Administrative Officer to enter
into an agreement with the Bond Bank to accomplish the refunding
Hunter thanked Jay Sweeney, Chief Finance and Administrative Officer, for the
memo and was glad the City would receive a better interest rate. Guevin echoed
thank you to the Finance Department for finding the lower interest rate. Sweeney told
of outstanding debt, current bonds and savings. He stated that by borrowing the
additional amount of money, it meant a lower interest rate and told of the bond bank
process.
A motion was made by Swanson that this Resolution be APPROVED on FIRST
AND FINAL READING. The motion PASSED by the following vote.
Yes: 6 - McConnell, Hunter, Swanson, Miyasato, Eisenbeisz, and Guevin
Absent: 1 - Potrzuski
0 16-164 Approve the Employment Agreement between the City and Borough of
Sitka and Municipal Attorney Brian Hanson
A motion was made by Hunter to APPROVE the Employment Agreement
between the City and Borough of Sitka and Municipal Attorney Brian Hanson.
The motion PASSED by the following vote.
Yes: 6 - McConnell, Hunter, Swanson, Miyasato, Eisenbeisz, and Guevin
Absent: 1 - Potrzuski
XIII. PERSONS TO BE HEARD:
Retired educator, Karen Grussendorf, came forward and thanked young Sitka School
District children whom stayed in Sitka and are serving the community.
XIV. EXECUTIVE SESSION
None.
XV. ADJOURNMENT
A motion was made by Miyasato to ADJOURN. Hearing no objections, the
meeting ADJOURNED at 8:40 p.m.
CITY AND BOROUGH OF SITKA Page 7