1997-04 Authorizing Investment - Near Island Research FacilityKODIAK ISLAND BOROUGH
ORDINANCE NO. 97 -04
Introduced by:
Requested by:
Drafted by:
Introduced:
Public Hearing:
Adopted:
Mayor Selby
Bond Attorneys
Bond Attorneys
04/03/97
04/17/97
04/17/97
AN ORDINANCE AUTHORIZING AN INVESTMENT OF AN AMOUNT IN THE
KODIAK ISLAND BOROUGH FACILITIES FUND
IN THE LEASE OF THE NEAR ISLAND RESEARCH FACILITY,
APPROPRIATING THE SUM OF $8,000,000 FROM THE FACILITIES FUND
FOR SUCH INVESTMENT, APPROPRIATING CERTAIN GROUND RENT
UNDER THE LEASE OF THE NEAR ISLAND RESEARCH FACILITY
TO THE FACILITIES FUND, AND PROVIDING FOR RELATED MATTERS
WHEREAS, the Kodiak Island Borough (the "Borough ") has entered into a lease (the
"Lease ") of the Near Island Research Facility (the "Project ") with the General Services
Administration ( "GSA ") on behalf of the National Oceanic and Atmospheric
Administration ( "NOAA "); and
WHEREAS, under the terms of the Lease, the Borough has undertaken to construct
the Project, and GSA for NOAA has agreed to pay Ground Rent to the Borough for
a period of twenty (20) years in the amount of seven hundred fifty -six thousand
dollars ($756,000) per year to compensate the Borough for the capital cost of the
Project; and
WHEREAS, the amount of Ground Rent payable to the Borough will be adjusted to
reflect any prepayments of Ground Rent by GSA for NOAA; and
WHEREAS, under Kodiak Island Borough Code of Ordinances (KIBC) 3.04.051, the
Borough has established the Facilities Fund, which may be invested in, among other
things, obligations of the United States; and
WHEREAS, the obligation of GSA for NOAA to pay Ground Rent under the Lease is
an obligation of the United States for purposes of KIBC 3.04.051; and
WHEREAS, investment of the amount of not to exceed eight million dollars
($8,000,000) from the Facilities Fund in the Lease for exchange for the payment into
the Facilities Fund of the Ground Rent under the Lease is in the best interest of the
Borough, as it will represent an investment of an amount in the Facilities Fund in an
obligation of the United States at a favorable rate of return;
NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH THAT:
Kodiak Island Borough, Alaska Ordinance No. 97 -04
Page 1 of 2
Section 1: This ordinance is not of a general and permanent nature and shall not
become a part of the Kodiak Island Borough Code of Ordinances.
Section 2: The investment of the sum of not to exceed eight million dollars
($8,000,000) from the Facilities Fund in the Lease in exchange for the payment into
the Facilities Fund of twenty (20) annual installments of Ground Rent from GSA for
NOAA under the Lease in the amount of seven hundred fifty -six thousand dollars
($756,000) (or such lesser number or amount of installments as may be determined
after adjustment for prepayments of Ground Rent by GSA for NOAA) is hereby
authorized and approved. To effect this investment, the sum of eight million dollars
($8,000,000), or so much of said sum as is required for the construction of the
Project, is hereby appropriated from the Facilities Fund to the Near Island Research
Facility Construction Fund.
Section 3: Twenty (20) annual installments of Ground Rent from GSA for NOAA
under the Lease in the amount of seven hundred fifty -six thousand dollars ($756,000)
(or such lesser number or amount of installments as may be determined after
adjustment for prepayments of Ground Rent by GSA for NOAA), plus all prepayments
of Ground Rent by GSA for NOAA, shall be deposited in the Facilities Fund upon their
receipt by the Borough, and such amount or amounts paid by GSA for NOAA in the
fiscal year commencing July 1, 1997 are hereby appropriated to the Facilities Fund.
For the purpose of the Kodiak Island Borough Code 3.04.051, a portion of each
annual Ground Rent payment shall be allocated to principal, and a portion to interest,
as set forth in Exhibit A to this ordinance.
Section 4: The mayor, finance director, borough clerk, or any other person
authorized by the Borough each hereby is authorized to execute and deliver for and
on behalf of the Borough any and all additional certificates, documents, opinions, or
other papers and perform all other acts as each of them respectively may deem
necessary or appropriate in order to implement and carry out the intent and purposes
of this ordinance.
Section 5: This ordinance shall take effect immediately upon passage and approval.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS SEVENTEENTH DAY OF APRIL, 1997
Kodiak Island Borough, Alaska
KODIAK ISLAND BOROUGH
ATTEST: Robin Heinrichs, Presiding Officer
o nna F. Smith, CMC /AAE, Borough Clerk
Ordinance No. 97 -04
Page 2 of 2
Date
10/ 1/97
4/ 1/98
10/ 1/91
4/ 1/99
10/ 1/99
4/1/0
10/ 1/ 0
4/ 11 1
10/ 1/ 1
4/1/2
10/ 1/ 2
4/ 1/3
10/1/3
4/1/4
10/ 1/ 4
4/ 1/ 5
10/ 1/ 5
4/ 1/ 6
10/1/6
4/ 1/ 7
10/
4/
10/
4/
10/
4/
10/
4/
10/
4/
10/ 1/12
4/ 1/13
10/ 1/13
4/ 1/14
10/ 1/14
4/ 1/15
10/ 1/15
4/ 1/16
10/ 1/16
4/ 1/17
10/ 1/17
4/ 1/18
10/ 1/1*
ACCRUED
195,000.00
210,000.00
225,000.00
240,000.00
255,000.00
275,000.00
290,000.00
315,000.00
335,000.00
360,000.00
385,000.00
410,000.00
440,000.00
470,000.00
500,000.00
540,000.00
575,000.00
615,000,00
660,000.00
705,000.00
8,000,000.00
8,000,000.00
asas,se6.4:.==77
Dated 5/ 1/97 with
Bond Years
Average Coupon
Average Life
NIC X
TIC X
Arbitrogo *Mold
7.000000
7.000000
7.000000
7.000000
7.000000
7.000000
7.000000
7.000000
7.000000
7.000000
7.000000
7.000000
7.000000
EXHIBIT A
Kodiak Island 9orough
FescreL Lease Revenue Bonds. Series 1997
(Near Island Research Center)
Debt Service schedule
L= _= s...e === Same=
Principal Coupon Interest Period Total
233,333.33
280.000.00
280,000.00
280,000.00
280,000.00
273,175.00
273,175.00
265,825.00
265,825.00
257,950.00
257,950.00
P40,550.00
249,550.00
240,625.00
240,423,00
231,000.00
231,000.00
220,850.00
220,850.00
200,825.00
209,825.00
198,100.00
198,100.00
135.500.00
185,500.00
172,025.00
172,025.00
157,675.00
157.675.00
142,275.00
7.000000 142
125,525.00
7.000000 125,825.00
108,325.00
7.000000 108,325,00
89, 425.00
7.000000 59,425.00
69,300,00
7.000000 69,300.0U
47,775.00
7.000000 47,775.00
24,675.00
7.000000 24,675.00
Delivery of 5/ 1/97
112,753.333
7.000000
14.094167
7 .127712 X Using 98,2000000
7.217105 X From Delivery Date
7.000066 l
233,333.33
280,000.00
280,UW.00
280,000.00
475,000.00
273,175.00
483,175.00
265,025.00
4
257,950.00
497,950.00
269,550.00
504,550.00
240,625.00
515,627.00
231,000.00
521,000.00
220,850.00
535,850.00
209,821.00
544,825.00
198, "00.00
558,100.00
185,500.00
570,500,00
172,025.00
562,U5.00
157,675.00
557,675.no
142,275.00
612,275.00
125,825.00
625,825.00
108,325.00
648,325.00
89,425.00
664,425.00
69,300.00
664,500.00
47,775.00
707,775.00
24,675.00
729,675,00
7,892,733.33 15.892,733.33
7,892,733.33 15,892,733.33
slam / :n - - -__ .._.____.__
Fiscal Total
233,333.33
560,000.00
755,000.00
756,350.00
756,650.00
755,900.00
754,100.00
/56,250.00
75P,m0 no
756,700.00
754,650.00
756,200.00
756,000,00
754,050.00
755.350.00
754,550,00
751,650.00
756,650.00
753,850.00
753,600.00
755,550.00
754,550.00