1986-17 Authorizing $9,930,000 Principal Amount General Obligation Variable Rate Demand Bonds, 1986 Series A, to Pay the Costs of School ImprovementsKODIAK ISLAND BOROUGH
ORDINANCE NO. 86 -17 -0
AN ORDINANCE OF THE KODIAK ISLAND BOROUGH, ALASKA, AUTHORIZING
$9,930,000 PRINCIPAL AMOUNT OF GENERAL OBLIGATION VARIABLE RATE DEMAND BONDS,
1986 SERIES A, TO PAY THE COSTS OF SCHOOL IMPROVEMENTS IN THE BOROUGH;
PROVIDING FOR THE AUTHORIZATION BY RESOLUTION OF A PRELIMINARY OFFICIAL
STATEMENT, AN OFFICIAL STATEMENT, AN INDENTURE, A REIMBURSEMENT AGREEMENT, A
REMARKETING AGREEMENT AND A CONTRACT OF PURCHASE WITH RESPECT TO THE BONDS; AND
DETERMINING RELATED MATTERS.
WHEREAS, pursuant to Ordinance No. 86 -08 -0 of the Kodiak Island
Borough (the "Borough "), passed and approved on February 6, 1986, the following
question:
PROPOSITION NO. 1
Shall Ordinance No. 86 -8 -0 of the Kodiak Island Borough be
approved? Said Ordinance authorized the incurring of bonded
indebtedness in an amount not to exceed $9,930,000 for the
purpose of acquiring property for, planning, designing,
equipping, improving and constructing the following school
related capital improvements in the Borough pursuant to
Ordinance No. 86 -8 -0:
Estimated Cost
State Borough
DOE # Proiect Total Funds Funds
05 -86 -251 Kodiak High
Handicap /Code
Upgrade /Roof Repair 1,000,000 800,000 200,000
05 -85 -262 Larsen Bay Addition 1,750,000 1,400,000 350,000
05 -85 -269 East Elementary 3,000,000 2,400,000 600,000
Addition /Upgrade
05 -85 -264 Old Harbor Addn. 1,800,000 1,440,000 360,000
Upgrade
05 -85 -263 Port Lions Addn. 1,800,000 1,440,000 360,000
Upgrade
1 05 -85 -250 Peterson Elem. 580,000 464,000 116,000
Upgrade Phase II
d Actual current and projected post construction annual operations and
maintenance costs for these facilities are as follows:
Proiect
Ord. No. 96 -17 -C
Current Post- Construction
Total State Boro Total State Boro
Kodiak High
School Handicap
Code Upgrade/
Roof Repair 822,869 758,685 64,184 822,869 758,685 64,184
Larsen Bay
Addition 137,838 127,087 10,751 130,000 119,860 10,140
East Elem.
Addn /Upgrade 201,061 185,378 15,683 300,000 276,600 23,400
Old Harbor
Addn /Upgrade 168,377 155,244 13,133 168,377 155,244 13,133
Current Post— Construction
Projesit Total State Boro Total State Boro
Port Lions
Addn /Upgrade 163,337 150,597 12,740 163,337 150,597 12,740
Peterson Elem.
Upgrade
Phase II
Said general obligation bonded indebtedness shall mature within
thirty (30) years from the date of issue, bear interest at a
rate or rates not to exceed the maximum allowed by law, and be
secured by a pledge of the full faith and credit of the Kodiak
Island Borough.
(herein called the "Proposition ") was passed and approved by a vote of 881 for
and 673 against Proposition No. 1, at the special election held in the Borough
on March 18, 1986, and said election has been duly canvassed and the results
thereof certified and confirmed in accordance with law; and
WHEREAS, the Borough Assembly of the Kodiak Island Borough has
determined and does hereby determine that it is necessary to proceed to acquire
property for , plan, design, equip, improve, and construct the school related
capital improvements to the school system of the Kodiak Island Borough as set
forth in the Proposition (all hereinafter collectively referred to as the
"Project "); and
WHEREAS, it is now deemed necessary and advisable and in the best
interests of the Borough and its inhabitant that $9,930,000 principal amount of
general obligation bonds, referred to in the Proposition, be issued at this
time in a single series, as hereinafter fixed and determined, for the purpose
of raising funds to pay the cost of constructing and acquiring the Project;
WHEREAS, negotiations are in progress for the sale of the Bonds to
John Nuveen & Co., Incorporated (the "Underwriter "); and
WHEREAS, it has been determined that the variable rate demand form
of bond financing provided for in the Indenture hereinafter mentioned is the
most advantageous to the Borough and said form of financing requires a letter
of credit bank under the Reimbursement Agreement hereafter mentioned; and
WHEREAS, negotiations for the sale of the Bonds include
negotiations for the selection of a bank to provide a letter of credit under
the Reimbursement Agreement and a trustee under the Indenture; and
WHEREAS, there shall be presented to a subsequent meeting of the
Assembly for approval by resolution the form of the following documents
concerning the Bonds:
(i) An Indenture Securing Kodiak Island Borough, Alaska,
General Obligation Variable Rate Demand Bonds 1986 Series A, dated as of
April 1, 1986 (the "Indenture ") between the Authority and
as Trustee
189,496 174,715 14,781 170,000 156,740 13,260
(ii) A Reimbursement Agreement dated as of April 1, 1986
between the Borough and (the
"Reimbursement Agreement ").
(iii) A Remarketing Agreement between the Borough and John
Nuveen & Co., Incorporated (the "Remarketing Agreement ").
(iv) A Contract of Purchase between the Borough and the
Underwriter relating to the Bonds (the "Contract of Purchase ").
(v) A Preliminary Official Statement relating to the Bone
(the "Preliminary Official Statement ").
: NOW THEREFORE, THE KODIAK ISLAND BOROUGH ASSEMBLY HEREBY ORDAINS:
Section 1. The Borough is hereby authorized to issue its General
Obligation Variable Rate Demand Bonds, 1986 Series A, in the aggregate
principal amount of $9,930,000 for the purpose of paying the cost of the
Project and for paying costs and expenses incidental thereto and to the
issuance of the Bonds. The interest on the Bonds will be payable at the rates
and on the dates and at such places as are specified in the Indenture. In no
event will the interest rate on the Bonds exceed the maximum interest rate
specified in the Bonds. The Bonds shall be dated and numbered as provided in
the Indenture, shall mature as provided in the Indenture, shall be subject to
redemption and shall have the form, details and specifications set out in the
Indenture. The Bonds shall be executed on behalf of the Borough with the
manual or facsimile signature of the Borough Mayor and attested by the Borough
Clerk and shall be impressed or imprinted thereon the official seal of the
Borough or a facsimile thereof.
Section 2. After the terms of the same have been fully negotiated I
by the Borough officials referred to in Section 4, there shall be presented to
a subsequent meeting of the Assembly for approval by resolution the form of the
following documents concerning the Bonds:
(i) An Indenture Securing Kodiak Island Borough, Alaska,
General Obligation Variable Rate Demand Bonds, 1986 Series A, dated as of
April 1, 1986 (the "Indenture ") between the Authority and
as Trustee
(ii) A Reimbursement Agreement dated as of April 1, 1986
between the Borough and (the "Reimbursement
Agreement ").
(iii) A Remarketing Agreement between the Borough and John
Nuveen & Co., Incorporated (the "Remarketing Agreement ").
(iv) A Contract of Purchase between the Borough and the
Underwriter (the "Contract of Purchase ").
(v) A Preliminary Official Statement with respect to the
Bonds (the "Preliminary Official Statement ").
The resolution shall approve the form and content of said documents, and
authorize the Mayor to execute and deliver said documents on behalf of the
Borough, including necessary counterparts, in substantially the form and
content before said meeting but with such changes, modifications, additions or
deletions as to him shall seem necessary, desirable or appropriate, his
execution thereof to constitute conclusive evidence of his approval of any and
all changes, modifications, additions or deletions from the form and content
of said documents before said meeting, and authorize the Mayor, the Finance
Director and the Clerk, from and after the execution and delivery of said
documents, to do all such acts and things and to execute all such documents as
may be necessary to carry out and comply with the provisions of said documents
as executed.
Section 3. The Assembly by resolution shall approve the previous
use of the Preliminary Official Statement by the Underwriters in connection
with the sale of the Bonds, and authorize the Mayor or Finance Director to
execute a final Official Statement in the name and on behalf of the Borough to
be delivered to the Underwriter for use in connection with the sale of the
Bonds with such changes, modifications, additions or deletions as to him shall
seem necessary, desirable or appropriate, his execution thereof to constitute
conclusive evidence of his approval of any and all changes, modificat_:-.s,
additions or deletions from the form and content of the approved Pry::- : -.iry
official Statement, and authorize the Mayor, the Finance Director and
do all such acts and things necessary to carry out and comply with t.._
provisions of the Preliminary Official Statement and the final Official
Statement provided that this approval shall not extend to informatics 7..rt3_ned
therein relating to the Bank (as defined in the Indenture) but such :..f ^rration
may nevertheless be included in the Preliminary Official Statement and ..
Statement.
a pproval.
ATTEST:
Gaye Va
yr
The Mayor, the Finance Director and the e Clerk
kor
Borough GS any other to
person authorized by the Borough hereby
h any and all additional
Section 4.
executor and papers deliver for and on behalf of the Borough
perform all otheroacts as certificates, documents, opinions or other p P and lenient and carry
they may deem necessary or appropriate in order to imp
Ordinance. I,
intent and purposes of this passage and
Section 5. This Ordinance shall be effective upo n P
PASSED AND APPROVED by the Assembly of the Kodiak Island Borough,
this 1st day of May 1986.
,
an, Borough Clerk
KODIAK ISLAND BOROUGH
L. a
white, presiding Officer