2008-08-14 Special Meeting1. ROLL CALL
Kodiak Island Borough
Assembly Special Meeting Agenda
August 14, 2008, Immediately Following the Work Session
Work Session of the Assembly Starts at 7:30 p.m.
Borough Conference Room
2. CITIZENS COMMENTS (Limited to Three Minutes per Speaker)
3. CONSIDERATION OF MATTERS IN THE CALL FOR THE SPECIAL MEETING
ORDINANCE FOR INTRODUCTION
Ordinance FY2009 -06 Authorizing The Borough To Issue General Obligation Bonds In
The Principal Amount Of Not To Exceed $115,300,000 To Finance The Planning,
Design, And Construction Of A New High School, An Administrative Building And
Related Capital Improvements And To Submit The Question Of The Issuance Of Such
Bonds To The Qualified Voters Of The Borough At The October 7, 2008 Regular
Borough Election.
(If adopted, this ordinance will be added to the August 21, 2008 agenda for public
hearing.)
4. ADJOURNMENT
This meeting was called by the Assembly.
TITLE:
ORDINANCE NO. FY2009 -06 AUTHORIZING THE BOROUGH TO ISSUE GENERAL
OBLIGATION BONDS IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $115,300,000 TO
FINANCE THE PLANNING, DESIGN, AND CONSTRUCTION OF A NEW HIGH SCHOOL, AN
ADMINISTRATIVE BUILDING AND RELATED CAPITAL IMPROVEMENTS AND TO SUBMIT
THE QUESTION OF THE ISSUANCE OF SUCH BONDS TO THE QUALIFIED VOTERS OF
THE BOROUGH AT THE OCTOBER 7, 2008 REGULAR BOROUGH ELECTION
SUMMARY:
The Kodiak Island Borough wishes to replace the Kodiak Island High School with a new
building. There are several reasons for this.
They include skyrocketing maintenance and utility costs. The building is old and not very
efficient. The high school is also a "patchwork" of several different buildings that do not fit
together that well.
The needs of our students and the makeup of our student body have changed. When the high
school was originally built computers were not in use. Now they are in the mainstream of our
children's education.
By designing and building a new high school we will save a considerable amount of money on
utility and maintenance costs. We will also be able to give our children a better education to
help prepare them for their future.
FISCAL NOTES:
Account No.:
Amount Budgeted:
Expenditure Required: $115,300,000
APPROVAL FOR AGENDA:
KODIAK ISLAND BOROUGH
AGENDA STATEMENT
AUGUST 14, 2008 SPECIAL MEETING
ITEM NO: 3
RECOMMENDED MOTION: Move to adopt Ordinance No. FY2009 -06 in first reading to
advance to public hearing on August 21, 2008.
KODIAK ISLAND BOROUGH
ORDINANCE NO. FY 2009 -06
Introduced by: Manager Gifford
Requested by: School District/Assembly
Drafted by: Finance Director /Bond Counsel
Introduced: 08/11/2008
Public Hearing:
Adopted:
AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ASSEMBLY AUTHORIZING
THE BOROUGH TO ISSUE GENERAL OBLIGATION BONDS IN THE PRINCIPAL
AMOUNT OF NOT TO EXCEED $115,300,000 TO FINANCE THE PLANNING,
DESIGN, AND CONSTRUCTION OF A NEW HIGH SCHOOL, AN ADMINISTRATIVE
BUILDING AND RELATED CAPITAL IMPROVEMENTS AND TO SUBMIT THE
QUESTION OF THE ISSUANCE OF SUCH BONDS TO THE QUALIFIED VOTERS OF
THE BOROUGH AT THE OCTOBER 7, 2008 REGULAR BOROUGH ELECTION
WHEREAS, under the provisions of AS 29.47.190, a municipality may incur general obligation
debt only after a bond authorization ordinance is approved by a majority of those voting on the
question at a regular or special election; and
WHEREAS, the Alaska legislature extended the current plan for school debt reimbursement
during the special session; and
WHEREAS, the Kodiak Island Borough (the "Borough ") is in need of a new high school; and
WHEREAS, the administrative offices for the Borough, the Kodiak Island Borough School
District and the City of Kodiak are located in a remodeled high school dorm that is inefficient and
has very high utility costs; and
WHEREAS, the current debt service reimbursement plan provides that the State of Alaska will
reimburse the Borough for not less than sixty percent (60 %) of debt service on the eligible
portion of bonds authorized by the qualified voters of the Borough on or after October 1, 2006
but before December 1, 2008, to pay costs of school construction, additions to schools, and
major rehabilitation projects; and
WHEREAS, the Borough views a new high school, new administrative building, and related
capital improvements authorized herein as necessary and beneficial to the community;
NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH THAT:
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: It is hereby determined to be for a public purpose and in the public interest of the
Borough to incur general obligation bonded indebtedness in an amount not to
exceed One Hundred Fifteen Million, Three Hundred Thousand Dollars
($115,300,000) for the purpose of paying the cost of planning, designing, and
constructing a new high school administration building and related capital
improvements in the Borough.
Kodiak Island Borough, Alaska Ordinance No. FY 2009 -06
Page 1 of 3
Section 3: The Borough is authorized to borrow the sum of One Hundred Fifteen Million,
Three Hundred Thousand Dollars ($115,300,000) to finance the capital
improvements described in Section 2, and the borrowing shall be evidenced by
the issuance of general obligation bonds of the Borough; provided that bonds
may not be issued for any project unless the project is eligible for debt service
reimbursement by the State of Alaska. The full faith and credit of the Borough
are pledged for payment of the principal of and interest on the bonds, and ad
valorem taxes upon all taxable property in the Borough shall be levied without
limitation as to rate or amount to pay the principal of and interest on the bonds
when due.
Section 4:
The Borough shall submit the following proposition to the qualified voters of the
Borough at the October 7, 2008 regular Borough election. The proposition must
receive an affirmative vote from a majority of the qualified voters voting on the
question to be approved.
Shall the Kodiak Island Borough incur debt and issue
general obligation bonds in an amount not to exceed One
Hundred Fifteen Million Three Hundred Thousand Dollars
($115,300,000) to finance the planning, design and construction of
school and other capital improvements in the Borough, including
without limitation the projects described below?
Project
GENERAL OBLIGATION BONDS FOR A
NEW HIGH SCHOOL AND ADMINISTRATIVE BUILDING
New High School
Administration Building
PROPOSITION NO. 1
Estimated Cost
$106,660,000
$ 8,640,000
The approximate amount of taxes on $100,000 of assessed real
and personal property value (based on total 2008 assessed
valuation) required to pay 100% of the debt service for the
projects above is $1,114.77 per year. The approximate amount of
taxes on $100,000 of assessed real and personal property value
(based on total 2008 assessed valuation) required to pay the
Borough share of debt service with full State debt service
reimbursement is $412.43 per year for the New High School and
$54.39 per year for the Administration Building.
If additional funding, grants, or otherwise becomes available, only
enough bonds to finish the project will be sold.
The bonds shall be secured by a pledge of the full faith and credit
of the Borough. (Ordinance No. FY 2009 -06)
Kodiak Island Borough, Alaska Ordinance No. FY2009 -06
Page 2 of 3
Section 5:
Section 6:
ATTEST:
The proposition, both for paper ballots and machine ballots, shall be printed on a
ballot which may set forth other general obligation bond propositions, and the
following words shall be added as appropriate next to an oval provided for
marking the ballot for voting by hand or machine:
O YES
O NO
Sections 2 and 3 of this ordinance shall become effective only if the proposition
described in Section 4 is approved by a majority of the qualified voters voting on
the proposition at the October 7, 2008 regular Borough election. The remaining
sections of this ordinance shall become effective upon adoption by the Kodiak
Island Borough Assembly.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS DAY OF , 2008
Nova M. Javier, CMC, Borough Clerk
PROPOSITION NO. 1
KODIAK ISLAND BOROUGH
Jerome Selby, Borough Mayor
Kodiak Island Borough, Alaska Ordinance No. FY2009 -06
Page 3 of 3
TITLE:
KODIAK ISLAND BOROUGH
AGENDA STATEMENT
AUGUST 14, 2008 SPECIAL MEETING
TEM NO: 3
ORDINANCE NO. FY2009 -06 AUTHORIZING THE BOROUGH TO ISSUE GENERAL
OBLIGATION BONDS IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $115,300,000 TO
FINANCE THE PLANNING, DESIGN, AND CONSTRUCTION OF A NEW HIGH SCHOOL,
THE RENOVATION OF A PORTION OF THE EXISTING HIGH SCHOOL TO CREATE AN
ADMINISTRATION BUILDING, DEMOLITION OF THE EXISTING BOROUGH BUILDING
AND RELATED CAPITAL IMPROVEMENTS; AND TO SUBMIT THE QUESTION OF THE
ISSUANCE OF SUCH BONDS TO THE QUALIFIED VOTERS OF THE BOROUGH AT THE
OCTOBER 7, 2008 REGULAR BOROUGH ELECTION
SUMMARY:
The Kodiak Island Borough wishes to replace the Kodiak Island High School with a new
building. There are several reasons for this.
They include skyrocketing maintenance and utility costs. The building is old and not very
efficient. The high school is also a "patchwork" of several different buildings that do not fit
together that well.
The needs of our students and the makeup of our student body have changed. When the high
school was originally built, computers were not in use. Now they are in the mainstream of our
children's education.
By designing and building a new high school we will save a considerable amount of money on
utility and maintenance costs. We will also be able to give our children a better education to
help prepare them for their future.
The Kodiak Island Borough also wants to renovate part of the existing high school into
administrative offices for the Borough, School District, and maybe the City of Kodiak.
If these new administrative offices are constructed than the Borough Building can be
demolished since it is an old and inefficient building.
FISCAL NOTES:
Account No.:
Amount Budgeted:
Expenditure Required: $115,300,000
.14-4 115,
APPROVAL FOR AGENDA: RECOMMENDED MOTION: Move to adopt Ordinance No.
FY2009 -06.
KODIAK ISLAND BOROUGH
ORDINANCE NO. FY 2009 -06
Introduced by: Manager Gifford
Requested by: School District/Assembly
Drafted by: Finance Director /Bond Counsel
Introduced: 08/11/2008
Public Hearing:
Adopted:
AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ASSEMBLY
AUTHORIZING THE BOROUGH TO ISSUE GENERAL OBLIGATION BONDS
IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $115,300,000 TO
FINANCE THE PLANNING, DESIGN, AND CONSTRUCTION OF A NEW HIGH
SCHOOL, THE RENOVATION OF THE EXISTING HIGH SCHOOL TO
CREATE AN ADMINISTRATION BUILDING, DEMOLITION OF THE EXISTING
BOROUGH BUILDING AND RELATED CAPITAL IMPROVEMENTS; AND TO
SUBMIT THE QUESTION OF THE ISSUANCE OF SUCH BONDS TO THE
QUALIFIED VOTERS OF THE BOROUGH AT THE OCTOBER 7, 2008
REGULAR BOROUGH ELECTION
WHEREAS, under the provisions of AS 29.47.190, a municipality may incur general
obligation debt only after a bond authorization ordinance is approved by a majority of
those voting on the question at a regular or special election; and
WHEREAS, the Kodiak Island Borough (the "Borough ") is in need of a new high school;
and.
WHEREAS, the administrative offices for the Borough, the Kodiak Island Borough
School District and the City of Kodiak are located in a remodeled high school dorm that
is functionally obsolete, and has very high utility costs; and
WHEREAS, the current debt service reimbursement plan provides that the State of
Alaska will reimburse the Borough for not less than sixty percent (60 %) of debt service
on the eligible portion of bonds authorized by the qualified voters of the Borough on or
after October 1, 2006 but before November 30, 2010, to pay costs of school
construction, additions to schools, and major rehabilitation projects; and
WHEREAS, the Borough views a new high school, renovation of part of the existing
high school into an administration building, demolition of the Borough Building and
related capital improvements authorized herein as necessary and beneficial to the
community;
NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK
ISLAND BOROUGH THAT:
Section 1:
Section 2:
This ordinance is not of a general and permanent nature and shall not
become a part of the Kodiak Island Borough Code of Ordinances.
It is hereby determined to be for a public purpose and in the public interest
of the Borough to incur general obligation bonded indebtedness in an
Kodiak Island Borough, Alaska Ordinance No. FY 2009 -06
Page 1 of 3
amount not to exceed One Hundred Fifteen Million, Three Hundred
Thousand Dollars ($115,300,000) for the purpose of paying the cost of
planning, designing, and constructing a new high school, renovating part
of the existing high school into an administration building, demolition of the
existing Borough Building and related capital improvements in the
Borough.
Section 3: The Borough is authorized to borrow the sum of One Hundred Fifteen
Million, Three Hundred Thousand Dollars ($115,300,000) to finance the
capital improvements described in Section 2, and the borrowing shall be
evidenced by the issuance of general obligation bonds of the Borough;
provided that bonds may not be issued for any project unless the project is
eligible for debt service reimbursement by the State of Alaska. The full
faith and credit of the Borough are pledged for payment of the principal of
and interest on the bonds, and ad valorem taxes upon all taxable property
in the Borough shall be levied without limitation as to rate or amount to
pay the principal of and interest on the bonds when due.
Section 4: The Borough shall submit the following proposition to the qualified voters
of the Borough at the October 7, 2008 regular Borough election. The
proposition must receive an affirmative vote from a majority of the qualified
voters voting on the question to be approved.
Shall the Kodiak Island Borough incur debt and issue
general obligation bonds in an amount not to exceed One
Hundred Fifteen Million Three Hundred Thousand Dollars
($115,300,000) to finance the planning, design and
construction of school and other capital improvements in the
Borough, including without limitation the projects described
below?
Project
New High School
Renovation of part of the existing High
School into an Administration Building
Demolition of the existing Borough Building
The approximate amount of taxes on $100,000 of assessed
real and personal property value (based on total 2008
assessed valuation) required to pay 100% of the debt
Kodiak Island Borough, Alaska
PROPOSITION NO. 2
GENERAL OBLIGATION BONDS FOR A
NEW HIGH SCHOOL ,RENOVATION OF PART OF THE
EXISTING HIGH SCHOOL INTO AN ADMINISTRATION
BUILDING AND DEMOLITION OF THE EXISTING
BOROUGH BUILDING
Estimated Cost
$106,660,000
$ 6,530,000
$2,110,000
Ordinance No. FY2009 -06
Page 2 of 3
The bonds shall be secured by a pledge of the full faith and
credit of the Borough. (Ordinance No. FY 2009 -06)
Section 5: The proposition, both for paper ballots and machine ballots, shall be
printed on a ballot which may set forth other general obligation bond
propositions, and the following words shall be added as appropriate next
to an oval provided for marking the ballot for voting by hand or machine:
ATTEST:
service for the projects above is $1,114.77 per year. The
approximate amount of taxes on $100,000 of assessed real
and personal property value (based on total 2008 assessed
valuation) required to pay the Borough share of debt service
with full State debt service reimbursement is $412.43 per
year for the New High School, $41.11 per year for the
renovation of part of the existing High School into an
Administration Building and $17.86 for the demolition of the
existing Borough Building..
If additional funding, grants, or otherwise becomes available,
only enough bonds to finish the project will be sold.
Nova M. Javier, CMC, Borough Clerk
Kodiak Island Borough, Alaska
PROPOSITION NO. 2
o YES
o NO
Section 6: Sections 2 and 3 of this ordinance shall become effective only if the
proposition described in Section 4 is approved by a majority of the
qualified voters voting on the proposition at the October 7, 2008 regular
Borough election. The remaining sections of this ordinance shall become
effective upon adoption by the Kodiak Island Borough Assembly.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS DAY OF , 2008
KODIAK ISLAND BOROUGH
Jerome Selby, Borough Mayor
Ordinance No. FY2009 -06
Page 3 of 3
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Mr. Friend
Ms. Jeffrey
Ms. Lynch
Mr. Oswalt
Ms. Stutes
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SLAND BOROUGH ASSEMBLY ROLL CALL SHEET
1. ROLL CALL
Kodiak Island Borough
Assembly Special Meeting Guidelines
August 14, 2008, 7:30 p.m., Borough Conference Room
KIBC 2.16.070.... the Chair shall cause the record to reflect the absence of the member,
the REASON for the absence, and whether the absence is excused by the Assembly.
Assembly members Jeffrey and Stutes will be absent and asked to be excused due to
personal leave.
Recommended motion: Move to specifically excuse Assembly members Jeffrey
and Stutes who are absent.
VOICE VOTE ON MOTION.
2. CITIZENS' COMMENTS (These are limited to three minutes per speaker.)
A. Agenda items not scheduled for public hearing and general comments.
ASK SPEAKERS TO SIGN IN AND STATE THEIR NAME FOR THE RECORD.
3. CONSIDERATION OF MATTERS IN THE CALL FOR THE SPECIAL MEETING
A. ORDINANCE FOR INTRODUCTION
1. Ordinance No. FY2009 -06 Authorizing the Borough to Issue General
Obligation Bonds in the Principal Amount of Not to Exceed $115,300,000 to
Finance the Planning, Design, and Construction of a New High School, an
Administrative Building and Related Capital Improvements and to Submit the
Question of the Issuance of Such Bonds to the Qualified Voters of the
Borough at the October 7, 2008 Regular Borough Election.
Recommended motion: Move to adopt Ordinance No. FY2009 -06 in first
reading to advance to public hearing on August 21, 2008.
Staff Report — Manager Gifford.
Assembly discussion - Amendments may be offered at this time.
ROLL CALL VOTE ON MOTION.
4. ADJOURNMENT
Recommended motion: Move to adjourn the meeting.
ROLL CALL VOTE ON MOTION
Kodiak Island Borough Assembly Guidelines
August 14, 2008 Page 1
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KODIAK ISLAND BOROUGH
ASSEMBLY WORK SESSION
Work Session of: EJI
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