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2016-09-15 Regular MeetingPage Page 1 of 494 Kodiak Island Borough Assembly Regular Meeting Agenda Thursday, September 15, 2016, 6:30 p.m., Assembly Chambers 1. INVOCATION 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVAL OF AGENDA AND CONSENT AGENDA All items listed with an asterisk (*) are considered to be routine and non- controversial by the Assembly and will be approved by one motion. There will be no separate discussion of these items unless an Assembly member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda. 5. *APPROVAL OF MINUTES 6. CITIZENS' COMMENTS (Limited to Three Minutes per Speaker) A. Agenda Items Not Scheduled for Public Hearing and General Comments 7. AWARDS AND PRESENTATIONS A. Assessing Department's Update to the Assembly. 8. COMMITTEE REPORTS 9. PUBLIC HEARING 6-117 A. Ordinances Amending the 2008 Comprehensive Plan By Changing The Future Land Use Designation Of The Following Borough Owned Lands From Public Ownership/Facilities To Residential Or Rural Residential: • Ordinance No. FY2017-05, Lot 7A, Block 2, Monashka Meeting broadcast live over radio station KMXT 100.1 FM. Citizens' Comments and Public Hearing Numbers: Toll Free (855) 492-9202 and Local 486-3231. Visit our website at ,� facebook.com/Kodiakislandborough © @KodiakBorough www.kodiakak.us Page 2 of 494 Bay Subdivision From Public Ownership/Facilities To Rural Residential (P&Z Case No. 16-024). • Ordinance No. FY2017-07, Lot 5, Block 5, Monashka Bay Subdivision From Public Ownership/Facilities To Rural Residential (P&Z Case No. 16-033). • Ordinance No. FY2017-09, A±20,000 Square Foot Portion Of U.S. Survey 3099 From Public Ownership/Facilities To Urban Residential (P&Z Case No. 16-036). • Ordinance No. FY2017-13, A ± 1 Acre Portion of Lot 1A-4, U.S. Survey 3465 From Public Ownership/Facilities To Urban Residential (P&Z Case No. 16-030). Agenda Statement Summary Comp Plan Change - Pdf Ordinance No FY2017-05 and Backup - Pdf Ordinance No FY2017-07 and Backup - Pdf Ordinance No FY2017-09 and Backup - Pdf Ordinance No. FY2017-13 and Backup - Pdf 118-248 B. Ordinances Rezoning The Following Borough Owned Lands From PL -Public Use Lands District to R1 -Single -Family Residential District, R2 -Two -Family Residential District, Or RR1- Rural Residential One District: • Ordinance No. FY2017-06, Lot 7A, Block 2, Monashka Bay Subdivision From PL -Public Use Lands District To RR1- Rural Residential One District (P&Z Case No. 16-025). • Ordinance No. FY2017-08, Lot 5, Block 5, Monashka Bay Subdivision From PL -Public Use Lands District To RR1-Rural Residential One District (P&Z Case No. 16-034). • Ordinance No. FY2017-10, Rezoning A ± 20,000 Square Foot Portion Of Lot 29, U.S. Survey 3099 From PL -Public Use Lands District To R2 -Two -Family Residential District (P&Z Case No. 16-037). • Ordinance No. FY2017-14, A ± 1 Acre Portion of Lot 1A-4, U.S. Survey 3465 From PL -Public Use Lands District To R2 -Two- family Residential District (P&Z Case No. 16-031). Agenda Statement Summary Rezoning - Pdf Ordinance No FY2017-06 and Backup - Pdf Ordinance No FY2017-08 and Backup - Pdf Ordinance No. FY2017-08 PH Comment Pruitt Ordinance No FY2017-10 and Backup - Pdf Ordinance No. FY2017-14 and Backup - Pdf Meeting broadcast live over radio station KMXT 100.1 FM. Citizens' Comments and Public Hearing Numbers: Toll Free (855) 492-9202 and Local 486-3231. Visit our website at www.facebook.com/Kodiakislandborough@KodiakSorough @KodiakSorough www.kodiakak.us 91 Page 3 of 494 10. BOROUGH MANAGER'S REPORT 11. MESSAGES FROM THE BOROUGH MAYOR 12. UNFINISHED BUSINESS 249-260 A. Contract No. FY2016-45A Amending Contract No. FY2016-45 Twin Creeks Fire Salvage Timber Sale Contract, Between A-1 Timber Consultants, Inc. And The Kodiak Island Borough, To Provide An Exception To Section 11 Timber Operations, Subsection "C", Slash Operations. Contract No. FY2016-45A Timber Slash Operations - Pdf 13. NEW BUSINESS 13.A. Contracts 13.B. Resolutions 261 -441 1. Resolution No. FY2017-10 Authorizing The Borough To Issue A General Obligation School Refunding Bond To Refund Certain Principal Installments Of An Outstanding General Obligation School Bond Of The Borough And To Pay Costs Of Issuing The Bond, Fixing Certain Details Of Such Bond, Authorizing Its Sale, And Providing For Related Matters. Resolution No. FY2017-10 Refunding 2008 Bond - Pdf 442-445 2. Resolution No. FY2017-12 Approving Fiscal Year 2017 Kodiak Island Borough Non -Profit Funding. Resolution No. FY2017-12 Non profit funding and back up - Pdf 446-464 3. Resolution No. FY2017-14 Appointing Members to the Kodiak Fisheries Development Association Board of Directors (Stosh Anderson). Resolution No. FY2017-14 KDFA Appointment - Pdf 465-470 4. Resolution No. FY2017-15 Encouraging The State Of Alaska To Declare A Condition Of Economic Disaster In Kodiak And Requesting The Utilization Of The Commercial Fishing Revolving Loan Fund (CFRLF) To Assist The Affected Fishermen And Their Families Impacted By The Meeting broadcast live over radio station KMXT 100.1 FM. Citizens' Comments and Public Hearing Numbers: Toll Free (855) 492-9202 and Local 486-3231. Visit our website at www.facebook.com/Kodiakislandborough@KodiakBorough @KodiakBorough www.kodiakak.us 91 Page 4 of 494 Fisheries Disaster Resolution No. FY2017-15 Fish Econ Disaster - Pdf 13.C. Ordinances for Introduction 471 -487 1. Ordinance No. FY2017-17 Placing A Temporary Moratorium On The Enforcement Of Those Sections Of Title 17 (Zoning) Of The Borough Code That Prohibit The Keeping Of Chickens And Other Animals Useful To People In The Rr-Rural Residential, R1 -Single -Family Residential, R2 -Two -Family Residential, And R3 -Multi -Family Residential Zoning Districts, And Initiating A Planning And Zoning Commission Review Of Title 17 (Zoning) Of The Borough Code To Consider Amendments That Will Allow Such Uses In Those Districts, And Directing Staff To Perform A Concurrent Review Of Chapter 6.04 (Animal Control) Of The Borough Code To Recommend Amendments That More Specifically Address The Control Of Chickens And Other Animals Useful To People. Ordinance No. FY2017-17 and Backup Information - Pdf 13.D. Other Items 14. CITIZENS' COMMENTS (Limited to Three Minutes per Speaker) 15. EXECUTIVE SESSION A. Matters Involving Negotiations With The IBEW B. Borough Manager's Evaluation 16. ASSEMBLY MEMBERS' COMMENTS 17. ADJOURNMENT 18. INFORMATIONAL MATERIALS (No Action Required) 18.A. Minutes of Other Meetings 488-494 1. Parks And Recreation Committee Regular Meeting Minutes Of June 28 And July 26, 2016. Minutes Of Other Meetings 18.B. Reports Meeting broadcast live over radio station KMXT 100.1 FM. Citizens' Comments and Public Hearing Numbers: Toll Free (855) 492-9202 and Local 486-3231. Visit our website at www.facebook.com/Kodiakislandborough@KodiakBorough @KodiakBorough www.kodiakak.us 10 Page 5 of 494 Meeting broadcast live over radio station KMXT 100.1 FM. Citizens' Comments and Public Hearing Numbers: Toll Free (855) 492-9202 and Local 486-3231. Visit our website at www.facebook.com/Kodiakislandborough@KodiakBorough @KodiakBorough www.kodiakak.us 93 Page A34 ItEm O.A. KODIAK ISLAND BOROUGH AGENDA STATEMENT SEPTEMBER 15, 2016 ASSEMBLY REGULAR MEETING TITLE: Ordinances Amending the 2008 Comprehensive Plan By Changing The Future Land Use Designation Of The Following Borough Owned Lands From Public Ownership/Facilities To Residential Or Rural Residential: • Ordinance No. FY2017-05, Lot 7A, Block 2, Monashka Bay Subdivision From Public Ownership/Facilities To Rural Residential (P&Z Case No. 16-024). • Ordinance No. FY2017-07, Lot 5, Block 5, Monashka Bay Subdivision From Public Ownership/Facilities To Rural Residential (P&Z Case No. 16-033). • Ordinance No. FY2017-09, A t 20,000 Square Foot Portion Of U.S. Survey 3099 From Public Ownership/Facilities To Urban Residential (P&Z Case No. 16-036). • Ordinance No. FY2017-13, A t 1 Acre Portion of Lot 1A-4, U.S. Survey 3465 From Public Ownership/Facilities To Urban Residential (P&Z Case No. 16- 030). ORIGINATOR: Jack Maker FISCAL IMPACT: Account Number: SUMMARY STATEMENT: FUNDS AVAILABLE: Amount Budgeted: For efficiency, Ordinance Nos. FY2017-05, FY2017-07, FY2017-09, And FY2017-13 were lumped together as one item. Several parcels identified by resolution as surplus to the public's need do not currently have Future Land Use Designations that allow for residential development. Changes in their Future Land Use Designations will allow for subsequent rezones of these parcels, which will in turn allow residential uses. Staff will be presenting one staff report and there will be one recommended motion. The Assembly will have the flexibility to process each ordinance as a stand alone item by using the incidental motion DIVISION OF QUESTION. RECOMMENDED MOTION: Move to adopt Ordinance Nos. FY2017-05, FY2017-07, FY2017-09, And FY2017-13. After discussion, the Assembly may divide the question (motion). The process to divide the question is as follows: Recommended motion: Move that the motion be divided and consider (each ordinance or Ordinance No. FY2017-XX separately). The Chair will restate the motion and ask for any objection. If the question is divided, the "separated" ordinance is treated as a separate motion, discuss, and vote. Kodiak Island Borough Ordinances Amending the 2008 Comprehensive Plan By Changing Page ffi3ifff401tEM O.A. The chair will state that the second motion is on the floor (the remaining ordinances), discuss, and vote. Kodiak Island Borough Ordinances Amending the 2008 Comprehensive Plan By Changing KODIAK ISLAND BOROUGH AGENDA STATEMENT SEPTEMBER 16, 2016 ASSEMBLY REGULAR MEETING pal: 7 Page ffi3ifff401tEM O.A. The chair will state that the second motion is on the floor (the remaining ordinances), discuss, and vote. Kodiak Island Borough Ordinances Amending the 2008 Comprehensive Plan By Changing Page A50449 4 -Em #s.a. KODIAK ISLAND BOROUGH AGENDA STATEMENT !�' SEPTEMBER 15. 2016 -� ASSEMBLY REGULAR MEETING TITLE: Ordinance No. FY2017-05 Amending The 2008 Comprehensive Plan By Changing The Future Land Use Designation Of Lot 7A, Block 2, Monashka Bay Subdivision From Public Ownership/Facilities To Rural Residential (P&Z Case No. 16-024). ORIGINATOR: Sara Mason FISCAL IMPACT: No Account Number: SUMMARY STATEMENT: FUNDS AVAILABLE: Amount Budgeted: This Future Land Use Designation change request was recommended by the Borough Lands Committee and initiated by the Borough Assembly in conjunction with P&Z Case No. 16-023 (land disposal) and P&Z Case No. 16-025 (rezone). The Planning and Zoning Commission held a public hearing on this Comprehensive Plan amendment request at their July 13, 2016 regular meeting. The Commission voted unanimously to recommend that the Assembly approve this Future Land Use Designation change. MOTION: Kodiak Island Borough Ordinances Amending the 2008 Comprehensive Plan By Changing ... 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Introduced by: Requested by: Dratted by: Introduced: Public Hearing Adopted: KODIAK ISLAND BOROUGH ORDINANCE NO. FY2017-05 Page )PG0►04-Em N.A. Borough Assembly KIB Lands Committee CDD 09/01/2016 09/15/2016 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING THE 2006 COMPREHENSIVE LAND USE PLAN TO CHANGE THE FUTURE LAND USE DESIGNATION OF LOT 7A, BLOCK 2, MONASHKA BAY SUBDIVISION FROM PUBLIC FACILITIES/OWNERSHIP TO RURAL RESIDENTIAL (P&Z CASE NO. 16-024) WHEREAS, as a second class borough, the Kodiak Island Borough exercises planning, platting, and land use regulations on an area wide basis pursuant to Chapter 29.40 Alaska Statutes; and WHEREAS, in accordance with AS 29.40, the Kodiak Island Borough adopted the 2008 Comprehensive Plan update on December 6, 2007 (Ordinance No. FY2008-10) to replace the 1968 Comprehensive Plan; and WHEREAS, the Kodiak Island Borough has adopted KIBC Title 17 (Zoning) in accordance with AS 29.40 to implement the Kodiak Island Borough Comprehensive Plan; and WHEREAS, KIBC 17.205.010 provides that "Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts"; and WHEREAS, The Borough Lands Committee recommended and the Borough Assembly initiated an amendment to the 2008 Comprehensive Plan to change the Future Land Use Designation of Lot 7A, Block 2, Monashka Bay Subdivision; and WHEREAS, at an advertised public hearing, consistent with Kodiak Island Borough Code 17.205.040, the Planning and Zoning Commission considered the merits of the Comprehensive Plan and amendment request; and WHEREAS, the Commission voted to recommend to the Borough Assembly that the Comprehensive Plan Future Land Use Designation of this lot be changed finding that the public necessity, convenience, general welfare, and good zoning practice would be enhanced by such action; and WHEREAS, the Commission hereby recommends that this amendment be reviewed and approved by the Borough Assembly. Kodiak Island Borough, Alaska Ordinances Amending the 2008 Comprehensive Plan By Changing ... Ordinance No. FY2017-05 Page 1 of 2 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 Page 1"fV0JtEM O.A. 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: The 2008 Comprehensive Plan Future Land Use Designation of Lot 7A, Block 2, Monashka Bay Subdivision is hereby changed from Public Facilities/Ownership to Rural Residential. Section 3: By this ordinance, the Borough Assembly adopts the following findings of fact in support of their approval of this amendment. 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to properties with a Future Land Use Designation of Rural Residential. 3. The subject parcel is of sufficient area and are capable of providing suitable rural residential building sites. 4. The amendment is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 5. The amendment is necessary to allow for a subsequent rezone from PL -Public Use Lands to RR1-Rural Residential One. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this Comprehensive Plan amendment. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2016 ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Ordinances Amending the 2008 Comprehensive Plan By Changing KODIAK ISLAND BOROUGH Jerrol Friend, Borough Mayor Ordinance No. FY2017-05 Page 2 of 2 Page 1406f4oArEM #s.a. PUBLIC HEARING ITEM 7-H P 8 Z REGULAR MEETING'. JULY 13, 2016 N KIB Location & Zoning Map WE s Location and Zoning Request: A Comprehensive Plan Amendmentto change Case No. 16-024 the Future Land Use Designation of Lot 7A, Block 2, Applicant: Kodiak Island Borough Monashka Bay Subdivision from Public Facilities/Ownership to Rural Residential (Chapter 17.205 KIBC). Unkf own I Ilil ,{4( Qt1VB.. e snxa � � BaY pea .y _ s yYay lacy 2 Legend Subject Parcel 1 V 4._ Zoning Legend Public Use Lands 0 Rural Residential 1 0 Multi Family Residential Light Industrial Q Watershed Rural Residential 2 0 Business 0 Rural Neighborhood Commercial Conservation 0 Single Family Residential 0 Retail Business Urban Neighborhood Commercial I� Rural Residential Two Family Residential Q Industrial 0 Natural Use Katllax Islam earouph ol5 http'//xxw.kodiakak.usf9ia (907)48&9337 Community Oevelopm end Department Th°'^ee IVVradrer for lniormnllonof forposos mlyentl is nod Infrared for any bpahogaseriations, =_-- Access eoeds Un.nslNC(ed Riyht Or Wey9 Case No. 16-024 Introduction Ordinances Amending the 2008 Comprehensive Plan By Changing ... Image Overlay Case No. 16-024 Applicant: Kodiak Island Borough Request: A Comprehensive Plan Amendment to change the Future Land Use Designation of Lot Block 2, Monashka Bay Subdivision from Public Facilities/Ownership to Ru (Chapter 17.205 KIBC). Page 1A,)G614"4-EM #s.A. yPNo tv- PUBLIC HEARING ITEM 7-H P 8 Z REGULAR MEETING: JULY 13, 2016 4 STAFF REPORT AND RECOMMENDATION Case No. 16-024. A Comprehensive Plan amendment to change the Future Land Use Designation of Lot 7A, Block 2, Monashka Bay Subdivision from Public Facilities/Ownership to Rural Residential (KIBC 17.205). DATE: June 28, 2016 TO: Planning and Zoning Commission FROM: Community Development Department SUBJECT: Staff Report and Recommendation CASE: 16-024 APPLICANT: Kodiak Island Borough LOCATION: 3116 Bay View Drive LEGAL DSC: Lot 7A, Block 2, Monashka Bay Subdivision ZONING: PL -Public Use Lands District FUTURE LAND USE DESIGNATION: Public Facilities/Ownership NOTICE: Nineteen (19) public hearing notices were mailed on June 9, 2016. Zero (0) public hearing notices were returned as of the date this report was prepared. SITE VISIT: None 1. Zoning History: • Zoned Service Recreational by 1968 Metropolitan Zoning Map • Zoned PL -Public Use Lands by Ordinance No. 83-30-0 2. Site Size: 3.25 acres 3. Existing Land Use: Vacant 4. Surrounding Land Use and Zoning: All other lots in the area are zoned RR1-Rural Residential One and most are occupied with single family homes 5. Comprehensive Plan: • Designated Public and Open Space by the 1968 Comprehensive Plan • Designated Public Facilities/Ownership by the 2008 Comprehensive Plan 6. Applicable Comprehensive Plan Future Land Use Designations: Public Facilities: This designation is intended for public facilities such as water or wastewater treatment facilities, police or fire stations and other public facilities, not including parks and recreation facilities. Rural Residential: This designation allows for residential development at rural densities where municipal water and sewer treatment facilities are not available. Such development must occur on larger lots and would include uses allowed in the RR, RR1, and RR2 zones. 7. _Applicable Regulations: The following sections of Title 17 (Zoning) of the Borough Code are applicable to this request: 17.10.020 Reference and use (Comprehensive Plan). In accordance with Alaska Statutes, zoning decisions shall be based upon the Case No. 16-024 Staff Report and Recommendation Ordinances Amending the 2008 Comprehensive Plan By Changing ... recommendations contained in the comprehensive plan. 17.205.010 Authority (Amendments and chances). Page 1"f4047Em#9.A. PUBLIC HEARING ITEM 7-H P & Z REGULAR MEETING: JULY 13, 2016 Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts. 17.205.020 Report from planning and zoning commission (Amendments and changes) The commission shall report in writing to the assembly on any proposed change or amendment regardless of the manner in which such change is initiated and such report shall find: A. Findings as to need and justification for a change or amendments; B. Findings as to the effect a change or amendment would have on the objectives of the comprehensive plan; and C. Recommendations as to the approval or disapproval of the change or amendment. 17.205.055 Submission to assembly (Amendments and changes) A. Within 30 days after the commission has acted favorably upon a proposed zoning change in accordance with the above provisions; a report with recommendations shall be submitted to the assembly together with the proposed ordinance. Such recommendations of the commission shall be advisory only and shall not be binding upon the assembly. When an ordinance has been forwarded to the assembly, the assembly shall act in accordance with this chapter, and notice shall be issued as provided in KIBC 17.205.070 by the clerk. B. If the commission recommends denial of any proposed amendment; its action shall be final unless the initiating party, within 10 days, files a written statement with the clerk requesting that the commission's action be taken up by the assembly. STAFF ANALYSIS This is the request to change the Comprehensive Plan Future Land Use Designation of the lot from Public Facilities/Ownership to Rural Residential that is referred to in the land disposal staff report for the same parcel (Case No. 16-023). Please note that the below criteria also apply to the subsequent rezone request for the same parcel (Case No. 16-025). CURRENT USE AND ZONING The subject parcel is zoned PL -Public Use Lands and is vacant. RECENT DEVELOPMENT TRENDS IN THE AREA All development in the area over the last several decades has been low density residential development. COMPATABILITY OF LAND USES The lot is surrounded by RRt-Rural Residential One zoned lots, with Future Land Use Designations of Rural Residential. Changing the Future Land Use Designation of the subject lot to Rural Residential to accommodate a rezone to RR1-Rural Residential One would allow uses that are consistent with the historic character of the neighborhood. LAND SUITABILITY Case No. 16-024 Staff Report and Recommendation Ordinances Amending the 2008 Comprehensive Plan By Changing ... Page 1, 4- V"L_EM #s.A. PN �9 Y Q pi PUBLIC HEARING ITEM 7.H P & Z REGULAR MEETING: JULY 13, 2016 ALASKA The subject parcel exceeds the 40,000 square foot minimum lot area requirements for RR1- Rural Residential One zoning in areas not served by public water and sewer services. It also exceeds the minimum lot width of 120 feet. As such, this parcel is capable of supporting rural residential development and accommodating all land use regulations for the proposed zone, as identified in Chapter 17.70 KIBC. TRAFFIC IMPACTS The site is accessed by a local roadway (Bay View Drive) that has proven capable of accommodating the traffic generated by existing neighborhood uses for several decades. The minimal traffic generated by residential development on this lot should have no adverse impact on neighborhood traffic. PLAN CONSISTENCY The proposed amendment is consistent with the following goals, policies, and implementation actions of the adopted Comprehensive Plan: • Land Use Goal: Regulate and manage land uses to balance the tights of private property owners with community values and objectives. • Policy., Zone lands to meet future housing, commercial, industrial, and other land needs. o Implementation Action: Identify an adequate supply of land in each community to meet future residential and other land development needs based on future population and employment growth projections, assumptions about the type and land requirements for the projected uses, and conditions or constraints that may affect development. Consider the use of public or private Native -owned lands to helpmeet these needs. • Land Use Goal., Continue to update and improve the effectiveness of Borough policies, plans, regulations, and procedures. • Implementation Action: Update and enhance the KIS Zoning Ordinance, as well as other planning procedures to meet land use and planning goals cost-effectively and efficiently. • Implementation Action: Periodically update the Comprehensive Plan with maximum public input and review. • Housing Goal., Help ensure that an adequate supply of land for housing and a sufficient stock of housing, including affordable housing, are available for Borough residents. • Policy., In partnership with local communities, Tribal councils, Native Corporations, the Kodiak Island Housing Authority and others, help ensure that there is an adequate supply of developable residential land to meet long-term housing needs throughout the Borough, including housing for seniors. CONCLUSION Staff analysis shows that the amendment is consistent with the objectives of the adopted Comprehensive Plan and satisfies the requirements of Title 17 of the Kodiak Island Borough Code for amendments and changes. Case No. 16-024 Staff Report and Recommendation Ordinances Amending the 2008 Comprehensive Plan By Changing ... RECOMMENDATION Page 1A53&J0 7EM #s.a. PUBLIC HEARING ITEM 7-H P & Z REGULAR MEETING: JULY 13, 2016 Staff recommends that the Commission forward this Comprehensive Plan amendment request to the Kodiak Island Borough Assembly with a recommendation for approval. APPROPRIATE MOTION Should the Commission agree with the staff recommendation, the appropriate motion is Move to recommend that the Kodiak Island Borough Assembly approve the Comprehensive Plan amendment to change the Future Land Use Designation of Lot 7A, Block 2, Monashka Bay Subdivision from Public Facilities/Ownership to Rural Residential (KIBC 17.205) and to adopt the findings of fact listed in the staff report entered into the record for this case as "Findings of Fad" for Case No. 16- 024. FINDINGS OF FACT (KIBC 17.205.020.A -C) 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to properties with a Future Land Use Designation of Rural Residential. 3. The subject parcel is of sufficient area and is capable of providing suitable rural residential building sites. 4. The amendment is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 5. The amendment is necessary to allow for a subsequent rezone from PL -Public Use Lands to RR1-Rural Residential One. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this Comprehensive Plan amendment. Case No. 16-024 Staff Report and Recommendation Ordinances Amending the 2008 Comprehensive Plan By Changing ... 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Page 140gf4oitEM #s.a. PUBLIC HEARING ITEM 7-H P 8 Z REGULAR MEETING: JULY 13, 2016 Introduced by: Requested by: Drafted by: Introduced: Public Hearing: Adopted. KODIAK ISLAND BOROUGH ORDINANCE NO. FY2017-xx Borough Assembly Ka Lands Committee CDD xx/xx/xxxx xx/xx/xxxx xx/xx/xxxx AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING THE 2008 COMPREHENSIVE LAND USE PLAN TO CHANGE THE FUTURE LAND USE DESIGNATION OF LOT 7A, BLOCK 2, MONASHKA BAY SUBDIVISION FROM PUBLIC FACILITIES/OWNERSHIP TO RURAL RESIDENTIAL (P&Z CASE NO. 16-024) WHEREAS, as a second class borough, the Kodiak Island Borough exercises planning, platting, and land use regulations on an area wide basis pursuant to Chapter 29.40 Alaska Statutes; and WHEREAS, in accordance with AS 29.40, the Kodiak Island Borough adopted the 2008 Comprehensive Plan update on December 6, 2007 (Ordinance No. FY2008-10) to replace the 1968 Comprehensive Plan; and WHEREAS, the Kodiak Island Borough has adopted KIBC Title 17 (Zoning) in accordance with AS 29.40 to implement the Kodiak Island Borough Comprehensive Plan; and WHEREAS, KIBC 17.205.010 provides that "Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts': and WHEREAS, The Borough Lands Committee recommended and the Borough Assembly initiated an amendment to the 2008 Comprehensive Plan to change the Future Land Use Designation of Lot 7A, Block 2, Monashka Bay Subdivision; and WHEREAS, at an advertised public hearing, consistent with Kodiak Island Borough Code 17.205.040, the Planning and Zoning Commission considered the merits of the Comprehensive Plan and amendment request; and WHEREAS, the Commission voted to recommend to the Borough Assembly that the Comprehensive Plan Future Land Use Designation of this lot be changed finding that the public necessity, convenience, general welfare, and good zoning practice would be enhanced by such action; and WHEREAS, the Commission hereby recommends that this amendment be reviewed and approved by the Borough Assembly. Kodiak Island Borough, Alaska Ordinance No. FY2017-xx Case No, 16-024 Staff Report and Recommendation Page 1 of 2 Ordinances Amending the 2008 Comprehensive Plan By Changing ... 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 Page 1AG6f401tEM NA PUBLIC HEARING ITEM 7-H P 8 Z REGULAR MEETING'. JULY 13, 2016 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: The 2008 Comprehensive Plan Future Land Use Designation of Lot 7A, Block 2, Monashka Bay Subdivision is hereby changed from Public Facilities/Ownership to Rural Residential. Section 3: By this ordinance, the Borough Assembly adopts the following findings of fact in support of their approval of this amendment. 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to properties with a Future Land Use Designation of Rural Residential. 3. The subject parcel is of sufficient area and are capable of providing suitable rural residential building sites. 4. The amendment is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 5. The amendment is necessary to allow for a subsequent rezone from PL -Public Use Lands to RR1-Rural Residential One. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this Comprehensive Plan amendment. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2016 KODIAK ISLAND BOROUGH Jerrol Friend, Borough Mayor ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Ordinance No. FY2017-xx Case No. 16-024 Staff Report and Recommendation Page 2 of 2 Ordinances Amending the 2008 Comprehensive Plan By Changing Page 1 of 1 Page 1Aj-41VO4"EM #s.A. PUBLIC HEARING ITEM 7-H P 8 Z REGULAR MEETINGJULY 13, 2016 Kodiak Island Borough OFFICE of the MANAGER 710 Mill Bay Road, Room 101 Kodiak, Alaska 99615 Phone (907) 486-9304 Fax (907) 486-9374 E-mail: dd,mk, kodiAak.us To: Planning & Zoning Commission Through: Community Development Department rn From: Duane Dvorak, Resource Management Officer Dale: June 23, 2016 Re: Cases 16-023, 16-024, 16-025, regarding the comprehensive plan designation, zoning status and request for disposal of Lot 7A, Block 2, Monashka Bay Subdivision Lot 7A has been recommended for disposal by the recently empaneled Borough Lands Committee. That recommendation was reviewed and accepted by the assembly, who then authorized staff action to begin making the parcel ready for sale. Lot 7A is currently zoned PL -Public Use Land and designated for public use in the comprehensive plan. It is believed that the lot was originally reserved for some public purpose, but that purpose has never been made clear. At present the lot serves only as open space. The borough has no plans to make any recreation or institutional improvements at this site. Lot 7A is constrained by steep topography along the road frontage which may require substantial investment to gain vehicular access to a proper building site on the lot. In addition, the lower elevations show signs of being wetlands affected. Given that this is an area not served by municipal water and sewer, physical circumstances such as wet soils and steep slopes can be challenging matters to address. That said, the lot is 3.25 acres in size which should provide adequate compensation for its perceived challenges. The proposed zoning designation of RRl-Rural Residential One will allow for single-family residential development which will ensure that the development density is kept low. The surrounding lots are all zoned RRl as well, so that the zoning density and designation will be in keeping with other single-family residential lots in the area. Resource Management staff will plan on attending the packet review and regular meeting for these requests and would be happy to answer any questions at those times. Case No. 16-024 Application Package Ordinances Amending the 2008 Comprehensive Plan By Changing Page 2AMV494-EM #9.a. PUBLIC HEARING ITEM 7-H P & Z REGULAR MEETING'. JULY 13, 2016 Kodiak Island Borough Print Form I F--Submftby Emall - CommunityDevelopmentelopment Department III IIIIII II IIIIIII IIII 710 MIII Bay Rd.Rm 205 Kodiak AK 99615 Ph. (907) 486 - 9362 Fax(907)486-9396 httol/www.kodiakakus 22104 PROP_ID 22104 Application for Comprehensive Plan Amendment KIBC 17.205 icy-o2.y, The following Information is to be supplied by the Applicant - Property Owner/Applicant: Kodlak Island Borough/Duane Dvorak, Resource Management Officer Mailing Address: 710 MIII Bay Road, Room 101 Kodiak AK 99615 Phone Number. 907486.9304 Other Contact email, etc.: ddvorak@kodiakakus Legal Description: Subciv: Monashka Bay Sub. Block 2 Lot: 7A Street Address: 3116 Bay View Drive Current F.LU.D. Public Use KIBC 17.130 Proposed F.LU.D-- RR1 KIBC 17.70 Applicable Comprehensive Plan: A. Kodiak Island Comprehensive Plan Update 2008 Explanation of the need & Justification for a change or amendment of the applicable comprehensive plan: The most pressing need of the community in recent years has been for additional residential land to develop. Lot 7A has been held in public ownership as open space for many years. No documentation has been found that associates Lot 7A with the proposed development of specific public facilities or uses. �Conllnued on rev e Case No. 16-024 Application Package Ordinances Amending the 2008 Comprehensive Plan By Changing ... Page 2401004EM O.A. PUBLIC HEARING ITEM 7-H P & Z REGULAR MEETING: JULY 13, 2016 Explanation of the effect such a change or amendment would have on the objectives of the applicable comprehensive plan: The amendment would be a minor change to the comprehensive plan as Lot 7A has been In public ownership for manyyears with no plan for actual deveiopmenL Given the topography of the site and the lack of water and sewer facilities It would be a difficult site to develop fora public facility. The most pressing need of the community at present Isa perceived need to provide more land for residential development- The proposed plan change would reduce Public and Recreation area by 3.25 acres and Increase the Residential designation by 315 acres. Date: 1un3,2016 Signature: / CDD Staff Certification Date: Ly- 3_ (t9 CDD Staff. Payment Verificatlon Fee Payable in Cashlees Office Room »104- Main Boor of Borough Building KIBC 17105.030 Manner of Initiation. Changes in this title may be Initiated In the following manner. A. The assembly upon its own motion: ❑x Waiver of fee B. The commission upon Its own motion: Walveroffee C By petition: Less than 1.75 acres 5350.00 1.76 to 5.00 acres: $750.00 5.01 to 40.00 acres: $1,000.00 40.01 acres or more: ❑ $1,500.00 *Note: Only one fee will apply to a comprehensive plan future land use designation change application that is submitted with a related rezone application. Case No. 16-024 Application Package Ordinances Amending the 2008 Comprehensive Plan By Changing ... Page 2Rc6fVO4-Em Ai. PUBLIC HEARING ITEM 7-H P & Z REGULAR MEETING. JULY 13. 2016 Case No. 16-024 Application Package Ordinances Amkph 2008 Comprehensive Plan By Changing . rt�s#@@#§@$$ { , ) f � � \ In Lf) 2 ( \■■!§« } c � 0 n ! \ - !. /}F- 2 P 2P / ,-9 qm� ! {k Kin !ay`wba! !§ k a, 2 J 777/f7)k ki J% /§ k {§44264;■ » \\\sag 28 Case No. 16-024 Application Package Ordinances Amkph 2008 Comprehensive Plan By Changing . Page 2aG044-SitEe#: Ordinances Amending tw 2008ay U_k Plan By Changing ... PUBLIC HEARING ITEM 7-H o> : .j\ ] \ �Lr) * � c � 0 Z1. 110,11 /2\ ! ! K§! \!) S || §§ : §� iY � Y . \] )!|!! )| / 2 {, §/ \ J \( 2 \ § ® !§ ! Case No. 16-024 Application Package Ordinances Amending tw 2008ay U_k Plan By Changing ... Page 2406VOLtEM O.A. PUBLIC HEARING ITEM 7-H P 8 Z REGULAR MEETING: JULY 13. 2016 AGENDA ITEM W.B.I. Resolution No. FY2016-34 Accepting the Recommendation of the... Page 219 of 334 Case Na. 16-024 Application Package Ordinances Amending the 2008 Comprehensive Plan By Changing ... 6 n " a flxi 1 OmP3� ¢ z- - G � u O 2 N 9T t g 3 Q o� Z i1 5 0 LL N J W U F nl Resolution No. FY2016-34 Accepting the Recommendation of the... Page 219 of 334 Case Na. 16-024 Application Package Ordinances Amending the 2008 Comprehensive Plan By Changing ... 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Page ZWV0 -EM #s.A. PUBLIC HEARING ITEM 7-H P 8 Z REGULAR MEETING: JULY 13, 2016 Introduced by: Requested by Drafted by Introduced on. Adopted on KODIAK ISLAND BOROUGH RESOLUTION NO. FY2016.34 Borough Mayor Borough Mayor Resource Management Officer 051192016 051192016 A RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY ACCEPTING THE RECOMMENDATION OF THE BOROUGH LANDS COMMITTEE RECOMMENDING THE DISPOSAL OF CERTAIN BOROUGH LANDS AS SURPLUS TO THE PUBLIC'S NEED AND AUTHORIZING STAFF ACTION TO MAKE THE RECOMMENDED PARCELS READY TO BE SOLD AT A FUTURE LAND SALE WHEREAS, Kodiak Island Borough Code (KIBC) Chapter 2.160 provides for the duties and responsibilities of the Borough Lands Committee, to review land and land related issues within the Kodiak Island Borough and make appropriate recommendations to the assembly; and WHEREAS, since its Initial meeting on December 16, 2015, the committee has been reviewing borough lands with a priorit of identifying borough lands with residential development potential that may be surplus to the public's need and which may be included in a future land sale; and, WHEREAS, the committee, on April 20, 2016, adopted Borough Lands Committee Resolution No. FY2016-01 identifying thirteen prospective parcels of land with residential development potential that may be found to be surplus to the public's need; and, WHEREAS, many of the parcels identified for disposal will require additional staff work, Planning and Zoning Commission review, or surveying and platting In order to be made sale ready; and, WHEREAS, in the interest of targeting a land sale for Fall 2016, it is imperative that the assembly acknowledge the recommended parcels for disposal and authorize staff to begin the work of preparing those identified parcels for future disposal and development. WHEREAS, it should be noted that not all the lands identified by the committee resolution for disposal require further disposal approval by the assembly, some having been previously approved for disposal and then withdrawn from sale by the assembly; and, WHEREAS, the committee has re-evaluated those parcels and found adequate potential for residential development that should be sufficient to justify disposal this time around given the need in the community for new residential development. Kodiak Island Borough, Alaska Case No. 16-024 Application Package Ordinances Amending the 2008 Comprehensive Plan By Changing Resolution No. FY2016-34 Page 1 of 2 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 Page 24MV04-Em N.A. PUBLIC HEARING ITEM 7-H P & Z REGULAR MEETING. JULY 13, 2016 NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: The Kodiak Island Borough Lands Committee, in accordance with KIBC Chapter 2.160, recommends disposal of the borough's interest in the following thirteen (13) proposed parcels of land comprising about 12.7 acres of property described in the attached exhibit as: 1. East Addition, Block 38, Lot 2 2. East Addition, Block 38, Lot 3 3. Monashka Bay Sub., Block 2, Lot 7A 4. Proposed Lakeside Sub. 3i° Addition, Lot 1 5. Proposed Lakeside Sub. 3'o Addition, Lot 2 6. Proposed Lakeside Sub. 31tl Addition, Lot 3 7. Proposed Lakeside Sub. 3" Addition, Lot 4 8. Raven Hills Sub., Lot 1 9. Raven Hills Sub., Lot 2 10. Lake Orbin Sub., Lot 3 11. Monashka Bay Sub., Block 5, Lot 5 12. Proposed U.S. Survey 3099, Lot 29-1 13. Proposed U.S. Survey 3099, Lot 29-2 Section 2: The assembly acknowledges and accepts the recommended parcels set forth in Section 1 above and authorizes staff to initiate the comprehensive plan amendment and zoning change process under KIBC 17.205, and Initiating any needed survey and platting required under KIBC Title 16, that is necessary to make aforesaid parcels sale ready by ensuring that the parcels conform to regulations that will facilitate residential development. Section 3: The aforementioned parcels, which may require rezoning, survey, and platting to be made ready for disposal, should be offered for disposal to the public in a subsequent land sale. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS NINETEENTH DAY OF MAY 2016 KODIAK ISLAND BOROU H r ATTEST: mol ria , rough Mayor Nava M. Javier, N C, Borough Clerk Kodiak Island Borough, Alaska Resolution No. FY2016-34 Page 2 of 2 Case No. 16-024 Application Package Ordinances Amending the 2008 Comprehensive Plan By Changing ... June 10, 2016 Page M30449itEM O.A. PUBLIC HEARING ITEM 7-H P 8 Z REGULAR MEETING: JULY 13, 2016 Kodiak Island Borough Conmtunity Development Department 710 Mill Bay Road Room 205 Kodiak, Alaska 99615 Phone(907)486-9363 Fax (907) 486-9396 www.kodiakak.us Duane Dvorak, Borough Resource Management Officer Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Re: Case 16.024. Request a Comprehensive Plan Amendment to change the Future Land Use Designation of Lot 7A, Block 2, Monashka Bay Subdivision from Public Facilities/Ownership to Rural Residential (Chapter 17.205 KIBC). The intent of this request is to facilitate a rezone to accommodate listing this parcel in a future Borough land sale. Dear Mr. Dvorak: Please be advised that the Kodiak Island Borough Planning and Zoning Commission has scheduled the case referenced above for Public Hearing at their July 13, 2016 regular meeting. This meeting will begin at 6:30 p.m. in the Assembly Chambers, 710 Mill Bay Road, Kodiak, Alaska. Attendance at this meeting is not mandatory but recommended. One week prior to the regular meeting, on Wednesday, July 6, 2016 at 6:30 p.m. in the Borough Conference Room (#121), the Commission will hold a packet review work session for the purpose of reviewing packet materials and staff summaries of cases scheduled for the regular meeting. The public is welcome to attend the packet review work session; however, the work session is not for the purpose of receiving public testimony. Applicants who wish to present testimony and/or evidence related to their case should appear in the Public Hearing during the Regular Meeting and present such information in person. Please contact the Community Development Department at 486-9363 if we can answer any outstanding questions or provide additional information. In advance, thank you for your cooperation. Sincerely, � Sheila Smith, Secretary Community Development Department Case No. 16-024 Public Comment Package Ordinances Amending the 2008 Comprehensive Plan By Changing Page 230404 -EM #9.a. PUBLIC HEARING ITEM 7-H P a Z REGULAR MEETING: JULY 13, 2016 KODIAK ISLAND BOROUGH COMMUNITY DEVELOPMENT DEPARTMENT 710 Mill Bay Road, Kodiak, Alaska 99615 (907)486-9363 www.kodinkak.us I PUBLIC HEARING NOTICE I A public hearing will be held on Wednesday, July 13, 2016. The meeting will begin at 6:30 p.m. in the Borough Assembly Chambers, 710 Mill Bay Road, Kodiak, Alaska, before the Kodiak Island Borough Planning and Zoning Commission, to hear comments if any, on the following request: CASE: 16-024 APPLICANT: Kodiak Island Borough AGENT: KIB Resource Management Officer REQUEST: A Comprehensive Plan Amendment to change the Future Land Use Designation of Lot 7A, Block 2, Monashka Bay Subdivision from Public Facilities/Ownership to Rural Residential (Chapter 17.205 KIBC). The intent of this request is to facilitate a rezone to accommodate listing this parcel in a future Borough land sale. LOCATION: 3116 Bay View Drive ZONING: PL -Public Use Lands This notice is being sent to you because our records indicate you are a property owner/interested party in the area of the request. If you do not wish to testify verbally, you may provide your comments in the space below or in a letter to the Community Development Department. Written comments must be received by 5 nm. Tuesday. June28, 2016 to be considered bs the commission. If you would like to fax your comments to us, our fax number is: (907) 486-9396, or you may email your comments to ssmith0`Bodiakak.us. If you would like to testify via telephone, please call in your comments during the appropriate public hearing section of the meeting. The local tali -in telephone number is 486-3231. The tall free telephone number is 1-855492-9202. One week prior to the regular meeting, on Wednesday, July 6, 2016, a work session will be held at 6:30 p.m. in the Kodiak Island Borough Conference Room (M 121), to review the packet material for the case. Kodiak Island Borough Code provides you with specific appeal rights if you disagree with the Commission's decision on this request. If you have any questions about the request or your appeal rights, please feel free to call us at 486-9363. Your Name: Muilina Addrns: Your Property description: Commenb• Case No. 16-024 Public Comment Package Ordinances Amending the 2008 Comprehensive Plan By Changing Page 2SW40ATEm #9. A. PUBLIC HEARING ITEM 7-H P & Z REGULAR MEETING. JULY 13, 2016 Case 16-024 Request a Comprehensive Plan Amendment to change the Location Future Land Use Designation of Lot 7A, Block 2, Monashka 3116 Bay View Drive Bay Subdivision from Public Facilities/Ownership to Rural Applicant Residential (Chapter 17.205 KIBC). The intent of this reques Kodiak Island Borough is to facilitate a rezone to accommodate listing this parcel in a future Borough land sale. I .P 6 ]]]] Bay View Drive JJBJ F JISa ]]IB �P 0- P rvc v P 121 l 11 II 1 AP •_ pu\ 1m o. � ]+1] BCdVer yyay JJ+ iJ]B ,j e" o° w�oc ^' Public Hearing Notice Fccl 0 262.5 525 11050 I Kotliaklslantl Bar.. gh GIS hnp:Owww.kotliakak uslgis (9011486933] for for =SubjLegend "1'! ect Parcel w E Q Notification Area I •••• Accass Reads i.„J Uncon9rucmE Right of Ways Case No. 16-024 Public Comment Package Ordinances Amending the 2008 Comprehensive Plan By Changing first—name JOSEPH RONALD STEPHEN C BRAXTON THOMAS WILLIAM HENRY MARY GUILAS ERIC SEAN SHANNA RICHARD BARRY & ERICKA JAMES WILLIAM H SHAWN LESLIE last_name BLACK CHASE COEN ETAL CUMMINGS LIVING TRUST DEW ETAL FINN FULTON HAGEMEYER ETAL HAWVER KODIAK ISLAND BOROUGH MUNK RAUWOLF ROCKENBACH SALTONSTALL SCHAUFF STREET UNANGST VAINIO ZELOOF Mall— Line-PO BOX 1912 P.O. BOX 416 P.O. BOX 3269 3265 BAY VIEW DR 3233 BAY VIEW DR PO BOX 8506 PO BOX 8837 PO BOX 187 PO BOX 2018 710 MILL BAY RD P.O. BOX 2940 3571 PATRICK COURT PO BOX 325 1637 THREE SISTERS WAY 316 CENTER STREET P.O. BOX 8881 182 LEVEL ROAD PO BOX 8508 P 0 BOX 2728 Page 3"VO4-Em O.A. PUBLIC HEARING ITEM 7-H P & Z REGULAR MEETING: JULY 13, 2015 Mall _City KODIAK KODIAK KODIAK KODIAK KODIAK KODIAK KODIAK NOME KODIAK KODIAK KODIAK KODIAK KODIAK KODIAK KODIAK KODIAK COLLEGEVILLE KODIAK KODIAK Case No. 15-024 Public Comment Package Ordinances Amending the 2008 Comprehensive Plan By Changing Mall_Stat Mail _Zip AK 99615 AK 99615 AK 99615 AK 99615 AK 99615 AK 99615 AK 99615 AK 99762 AK 99615 AK 99615 AK 99615 AK 99615 AK 99615 AK 99615 AK 99615 AK 99615 PA 19426 AK 99615 AK 99615 CHAIR ARNDT expressed concern and asked staff whether there should be a restriction due to the wetlands and the restriction being that there is no potential for subdividing. He would have a problem with someone purchasing it and it coming back for subdivision. Duane Dvorak stated they talked about it but did not recommend any restrictions. He said they planned to do in the sale guide is include the fact that there is wetlands, steep slopes, and issues or challenges to be overcome in the development. We do believe that with a 3.25 -acre parcel, as it stands, that there is adequate area to build a residence, a well, and septic. If someone were to propose a subdivision, we are requesting the RR1 zoning, primarily because that's what everything out there is zoned and it allows for a 40,000 sq. foot minimum but he would think that if someone did bring a request to subdivide that staff and the commission would review it on its merits at that time and if the wetlands are delineated it makes it a non-starter and we would cross that bridge when we get to it. FINDINGS OF FACT 1. The subject parcel is surplus to the public's need and, as such, is suitable for disposal by the Borough. 2. Developable residential lots are a known need throughout the Borough. This disposal will provide one lot that will assist in satisfying that need. 3. This disposal is supported by various land use and housing goals, policies, and implementation actions identified in the adopted Comprehensive Plan. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY H. CASE 16-024. Request a Comprehensive Plan Amendment to change the Future Land Use Designation of Lot 7A, Block 2, Monashka Bay Subdivision from Public Facilities/Ownership to Rural Residential (Chapter 17.205 KIBC). The Intent of this request is to facilitate a rezone to accommodate listing this parcel in a future Borough land sale. The applicant is the Kodiak Island Borough and the agent is the KIB Resource Management Officer. The location is 3116 Bay View Drive and the zoning Is PL -Public Use Lands. COMMISSIONER BALDWIN MOVED to recommend that the Kodiak Island Borough Assembly approve the Comprehensive Plan amendment to change the Future Land Use Designation of Lot 7A, Block 2, Monashka Bay Subdivision from Public Facilities/Ownership to Rural Residential (KIBC 17.205) and to adopt the findings of fact listed in the staff report entered into the record for this case as "Findings of Fad" for Case No. 16-024. Mason stated this is the future land use designation change for the property we just talked about in 16-023. It's zoned PL -Public Use Lands due to the ownership of the parcel and not because there were any plans to use it for a public purpose. RR1 lots surround it and all development in the area has been low density residential. This lot, being over three acres exceeds all the lot requirements for the zone. Even though there are some development hurdles to get over staff believes the lot is capable of accommodating the uses in RR1. We are not anticipating any traffic impacts. It is consistent with land use and housing goals in the Comp Plan. Staff recommends the commission forward this request to the assembly with a recommendation of approval. Open public hearing: Duane Dvorak, Borough Resource Management Officer and agent, stated he concurs with the staff recommendation. He is available for questions. _Close public hearing: Kodiak Island Borough Planning & Zoning Commission Minutes July 13, 2016 Page 10 Ordinances Amending the 2008 Comprehensive Plan By Changing Page 32GV4 r -Em O.A. FINDINGS OF FACT 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to properties with a Future Land Use Designation of Rural Residential. 3. The subject parcel is of sufficient area and is capable of providing suitable rural residential building sites. 4. The amendment is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 5. The amendment is necessary to allow for a subsequent rezone from PL -Public Use Lands to RR1-Rural Residential One. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this Comprehensive Plan amendment. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY I. CASE 16-025. Request a Rezone of Lot 7A, Block 2, Monashka Bay Subdivision from PL- Public Use Lands District to RR1-Rural Residential One District (Chapter 17.205 KIBC). The intent of this request is to rezone this parcel to a zoning district that permits residential construction so the parcel may be listed in a future Borough land sale. The applicant is the Kodiak Island Borough and the agent is the KIB Resource Management Officer. The location is 3116 Bay View Drive and the zoning is PL -Public Use Lands. COMMISSIONER BALDWIN MOVED to recommend that the Kodiak Island Borough Assembly approve the rezone of Lot 7A, Block 2, Monashka Bay Subdivision from PL -Public Use Lands to RR1-Rural Residential One (KIBC 17.205) and to adopt the findings of fact listed in the staff report entered into the record for this case as "Findings of Fact" for Case No. 16-025. Mason reported the staff analysis for the previous Case 16-024 also applies to this case. Staff recommends you forward this request to the assembly with a recommendation for approval. Open public hearing: Duane Dvorak, Borough Resource Management Officer and agent, stated he concurs with staff's recommendation. Close public hearing: During discussion, CHAIR ARNDT said he would like to see that there is no further subdividing of this parcel as a condition of the land sale until there is public sewer and water. FINDINGS OF FACT 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to RR1-Rural Residential One zoned land and uses. 3. The subject parcel is of sufficient area and is capable of providing suitable rural residential building sites. 4. The rezone is consistent with the adopted 2008 Comprehensive Plan Rural Residential Future Land Use Designation per Case No. 16-024. 5. The rezone is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this rezone. Kodiak Island Borough Planning 8 Zoning Commission Minutes July 13, 2016 Page 11 Ordinances Amending the 2008 Comprehensive Plan By Changing ... July 20, 2016 Page 31`40 tEM #9.A - Kodiak Island Borough Community Development Department 710 MITI Bay Road Kodiak, Alaska 99615 Phone(907)486-9363 Fax(907)486-9396 www.kodiakak.us Mr. Duane Dvorak, Resource Management Officer Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Re: Case 16-024. Request for a Comprehensive Plan Amendment to change the Future Land Use Designation of Lot 7A, Block 2, Monashka Bay Subdivision from Public Facilities/Ownership to Rural Residential (Chapter 17.205 KIBC). The intent of this request is to facilitate a rezone to accommodate listing this parcel in a future Borough land sale. Dear Mr. Dvorak: The Kodiak Island Borough Planning & Zoning Commission, at their meeting on July 13, 2016, moved to forward the request cited above, recommending approval, to the Borough Assembly. Please contact the Borough Clerk's Office at 486-9310 for information on when your case will be scheduled for a first reading and public hearing before the Assembly. According to KIBC 17.205.055 (Submission to assembly) of the Borough Code states: B. If the planning commission recommends denial of any proposed amendment, its action shall be final unless the initiating party, within ten days, files a written statement with the clerk requesting that the commission's action be taken up by the borough assembly. The commission adopted the following findings of fact in support of their recommendation to the assembly: FINDINGS OF FACT 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to properties with a Future Land Use Designation of Rural Residential. Ordinances Amending the 2008 Comprehensive Plan By Changing Page ,l"f4oLtEm O.A. 3. The subject parcel is of sufficient area and is capable of providing suitable rural residential building sites. 4. The amendment is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 5. The amendment is necessary to allow for a subsequent rezone from PL -Public Use Lands to RR1-Rural Residential One. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this Comprehensive Plan amendment. Should this Comprehensive Plan Amendment be approved by the Kodiak Island Borough Assembly, you will still need to obtain permits for any construction activities. If you have any questions about the action of the commission, please contact the Community Development Department at 486-9363. Sincerely, Sara Mason, Director Community Development Department CC: Nova Javier, Borough Clerk Planning & Zoning Commission Ordinances Amending the 2008 Comprehensive Plan By Changing ... Page 36000'EM #s.a. KODIAK ISLAND BOROUGH AGENDA STATEMENT SEPTEMBER 15. 2016 ASSEMBLY REGULAR MEETING •v TITLE: Ordinance No. FY2017-07 Amending The 2008 Comprehensive Plan By Changing The Future Land Use Designation Of Lot 5, Block 5, Monashka Bay Subdivision From Public Ownership/Facilities To Rural Residential (P&Z Case No. 16-033). ORIGINATOR: Sara Mason FISCAL IMPACT: No Account Number: FUNDS AVAILABLE: Amount Budgeted: SUMMARY STATEMENT: This Future Land Use Designation change request was recommended by the Borough Lands Committee and initiated by the Borough Assembly in conjunction with P&Z Case No. 16-032 (land disposal) and P&Z Case No. 16-034 (rezone). The Planning and Zoning Commission held a public hearing on this Comprehensive Plan amendment request at their July 13, 2016 regular meeting. The Commission voted unanimously to recommend that the Assembly approve this Future Land Use Designation change. MOTION: Kodiak Island Borough Ordinances Amending the 2008 Comprehensive Plan By Changing 6 7 8 9 10 Il 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Page 36W VO4-EM #9 -A - Introduced by: Borough Assembly Requested by: KIB Lands Committee Drafted by: CDD Introduced: 09/0112016 Public Hearing: 09/09/2016 Adopted: KODIAK ISLAND BOROUGH ORDINANCE NO. FY2017-07 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING THE 2008 COMPREHENSIVE LAND USE PLAN TO CHANGE THE FUTURE LAND USE DESIGNATION OF LOT 5, BLOCK 5, MONASHKA BAY SUBDIVISION FROM PUBLIC FACILITIES/OWNERSHIP TO RURAL RESIDENTIAL (P&Z CASE NO. 16-033) WHEREAS, as a second class borough, the Kodiak Island Borough exercises planning, platting, and land use regulations on an area wide basis pursuant to Chapter 29.40 Alaska Statutes; and WHEREAS, in accordance with AS 29.40, the Kodiak Island Borough adopted the 2008 Comprehensive Plan update on December 6, 2007 (Ordinance No. FY2008-10) to replace the 1968 Comprehensive Plan; and WHEREAS, the Kodiak Island Borough has adopted KIBC Title 17 (Zoning) in accordance with AS 29.40 to implement the Kodiak Island Borough Comprehensive Plan; and WHEREAS, KIBC 17.205.010 provides that "Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts'; and WHEREAS, The Borough Land Committee recommended and the Borough Assembly initiated an amendment to the 2008 Comprehensive Plan to change the Future Land Use Designation of Lot 5, Block 5, Monashka Bay Subdivision; and WHEREAS, at an advertised public hearing, consistent with Kodiak Island Borough Code 17.205.040, the Planning and Zoning Commission considered the merits of the Comprehensive Plan and amendment request; and WHEREAS, the Commission voted to recommend to the Borough Assembly that the Comprehensive Plan Future Land Use Designation of this lot be changed finding that the public necessity, convenience, general welfare, and good zoning practice would be enhanced by such action; and WHEREAS, the Commission hereby recommends that this amendment be reviewed and approved by the Borough Assembly. Kodiak Island Borough, Alaska Ordinance No. FY2017-07 Page 1 of 2 Ordinances Amending the 2008 Comprehensive Plan By Changing ... 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 Page 3*30404-EM N.A. 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: The 2008 Comprehensive Plan Future Land Use Designation of Lot 5, Block 5, Monashka Bay Subdivision is hereby changed from Public Facilities/Ownership to Rural Residential. Section 3: By this ordinance, the Borough Assembly adopts the following findings of fact in support of their approval of this amendment. 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to properties with a Future Land Use Designation of Rural Residential. 3. The subject parcel is of sufficient area and are capable of providing suitable rural residential building sites. 4. The amendment is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 5. The amendment is necessary to allow for a subsequent rezone from PL -Public Use Lands District to RR1-Rural Residential One District. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this Comprehensive Plan amendment. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2016 ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Ordinances Amending the 2008 Comprehensive Plan By Changing ... KODIAK ISLAND BOROUGH Jerrol Friend, Borough Mayor Ordinance No. FY2017-07 Page 2 of 2 Page 36GO404-Em #s.a. PUBLIC HEARING ITEM 7-0 P & Z REGULAR MEETING: JULY 13, 2016 N KIB Location & Zoning Map I s li 11 p, 1 t' r as Era Mamshxe l� � �Oruc rr �� if m` t;p J: �i. pnwnu WnY 01'1cr yya'/. Zoning Legend Legend Subject Parcel Public Use Lands Rural Residential 1 Multi Family Residential Light Industrial Q Watershed - Rural Residential 2 Q Business ® Rural Neighborhood Commercial i� Conservation 0 Single Family Residential 0 Retail Business Urban Neighborhood Commercial (� Rural Residential Two Family Residential 0 Industrial Natural Use Kodiak Wind eomuyh al5 Community Development Department—=- Ad:ess Roads Itttp 11w kodlakak.usl is (90])486.9339 This mop is Wowdnd for 1pfotmntlonal purooses .. 0 only and is not lMendud for any offal reprusenlatlons. f.. 1, Unocmtrudad Right of Weya Case No. 16-033 Introduction Ordinances Amending the 2008 Comprehensive Plan By Changing u a, If ¢` Zoning Legend Legend Subject Parcel Public Use Lands Rural Residential 1 Multi Family Residential Light Industrial Q Watershed - Rural Residential 2 Q Business ® Rural Neighborhood Commercial i� Conservation 0 Single Family Residential 0 Retail Business Urban Neighborhood Commercial (� Rural Residential Two Family Residential 0 Industrial Natural Use Kodiak Wind eomuyh al5 Community Development Department—=- Ad:ess Roads Itttp 11w kodlakak.usl is (90])486.9339 This mop is Wowdnd for 1pfotmntlonal purooses .. 0 only and is not lMendud for any offal reprusenlatlons. f.. 1, Unocmtrudad Right of Weya Case No. 16-033 Introduction Ordinances Amending the 2008 Comprehensive Plan By Changing Image Overlay Request: A Comprehensive Plan Amendment to Case No. 16-033 change the Future Land Use Designation of Applicant: Kodiak Island Borough Lot 5, Block 5 Monashka Bay Subdivision from Public Facilities/Ownership to Rural Residential (Chapter 17.205 KIBC). i , 0 8 Sj3\ // Ali a Page 4CG040 -EM O.A. �VPNo tvo� PUBLIC HEARING ITEM 7-0 P 8 Z REGULAR MEETING: JULY 13,2016 STAFF REPORT AND RECOMMENDATION Case No. 16-033. A Comprehensive Plan amendment to change the Future Land Use Designation of Lot 5, Block 5, Monashka Bay Subdivision from Public Facilities/Ownership to Rural Residential (KIBC 17.205). DATE: June 28, 2016 TO: Planning and Zoning Commission FROM: Community Development Department SUBJECT: Staff Report and Recommendation CASE: 16-033 APPLICANT: Kodiak Island Borough LOCATION: 3482 Monashka Bay Road LEGAL DSC: Lot 5, Block 5, Monashka Bay Subdivision ZONING: PL -Public Use Lands District FUTURE LAND USE DESIGNATION: Public Facilities/Ownership NOTICE: Twenty -Two (22) public hearing notices were mailed on June 9, 2016. Zero (0) public hearing notices were returned as of the date this report was prepared. SITE VISIT: None 1. Zoning History: • Zoned Service Recreation by 1968 Metropolitan Zoning Map • Zoned PL -Public Use Lands by Ordinance No. 83-30-0 2. Site Size: 2.48 acres 3. Existing Land Use: Vacant 4. Surrounding Land Use and Zoning: Other lots in the area are zoned RR1-Rural Residential One and most are occupied with single family homes. Easterly adjacent lot is zoned PL -Public Use Lands and is a park space. 5. Comprehensive Plan: • Designated Public and Open Space by the 1968 Comprehensive Plan • Designated Public Facilities/Ownership by the 2008 Comprehensive Plan 6. Applicable Comprehensive Plan Future Land Use Designations: Public Facilities: This designation is intended for public facilities such as water or wastewater treatment facilities, police or fire stations and other public facilities, not including parks and recreation facilities. Rural Residential: This designation allows for residential development at rural densities where municipal water and sewer treatment facilities are not available. Such development must occur on larger lots and would include uses allowed in the RR, RR1, and RR2 zones. 7. Applicable Regulations: The following sections of Title 17 (Zoning) of the Borough Code are applicable to this request: 17.10.020 Reference and use (Comprehensive Plan). Case No. 16-033 Staff Report and Recommendation Ordinances Amending the 2008 Comprehensive Plan By Changing .. PNv So,q� Y Y O� 0 O A _ ALASKA Page 44GO►04-EM #s.a. PUBLIC HEARING ITEM 7-0 P & Z REGULAR MEETING: JULY 13, 2016 In accordance with Alaska Statutes, zoning decisions shall be based upon the recommendations contained in the comprehensive plan. 17.205.010 Authority (Amendments and changes). Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts. 17.205.020 Report from planning and zoning commission (Amendments and changes) The commission shall report in writing to the assembly on any proposed change or amendment regardless of the manner in which such change is initiated and such report shall find: A. Findings as to need and justification for a change or amendments; B. Findings as to the effect a change or amendment would have on the objectives of the comprehensive plan; and C. Recommendations as to the approval or disapproval of the change or amendment. 17.205.055 Submission to assembly (Amendments and changes) A. Within 30 days after the commission has acted favorably upon a proposed zoning change in accordance with the above provisions; a report with recommendations shall be submitted to the assembly together with the proposed ordinance. Such recommendations of the commission shall be advisory only and shall not be binding upon the assembly. When an ordinance has been forwarded to the assembly, the assembly shall act in accordance with this chapter, and notice shall be issued as provided in KIBC 17.205.070 by the clerk. B. If the commission recommends denial of any proposed amendment; its action shall be final unless the initiating party, within 10 days, files a written statement with the clerk requesting that the commission's action be taken up by the assembly. STAFF ANALYSIS This is the request to change the Comprehensive Plan Future Land Use Designation of the lot from Public Facilities/Ownership to Rural Residential that is referred to in the land disposal staff report for the same parcel (Case No. 16-032). Please note that the below criteria also apply to the subsequent rezone request for the same parcel (Case No. 16-034). CURRENT USE AND ZONING The subject parcel is zoned PL -Public Use Lands and is vacant. RECENT DEVELOPMENT TRENDS IN THE AREA All development in the area over the last several decades has been low density residential development. COMPATABILITY OF LAND USES The lot is surrounded by RR1-Rural Residential One zoned lots with Future Land Use Designations of Rural Residential, with exception of Lot 6 to the northeast, which is zoned PL - Public Use Lands with a Future Land Use Designation of Public Facilities/Ownership. Changing the Future Land Use Designation of the subject lot to Rural Residential to accommodate a Case No. 16.033 Staff Report and Recommendation Ordinances Amending the 2008 Comprehensive Plan By Changing ... �r.10 6pgp 0'L AL45KA PUBLIC HEARING ITEM 7-0 P & Z REGULAR MEETING: JULY 13, 2016 rezone to RR1-Rural Residential One would allow uses that are consistent with the historic character of the neighborhood. Otmeloi Park (Lot 6) will remain public use land. LAND SUITABILITY The subject parcel exceeds the 40,000 square foot minimum lot area requirement for RR1-Rural Residential One zoning in areas not served by public water and sewer services. It also exceeds the minimum lot width of 120 feet. As such, this parcel is capable of supporting rural residential development and accommodating all land use regulations for the proposed zone, as identified in Chapter 17.70 KIBC. TRAFFIC IMPACTS The site is accessed by Monashka Bay Road, a minor collector, that has proven capable of accommodating the traffic generated by existing uses in the area for several decades. The minimal traffic generated by residential development on this lot should have no adverse impact on neighborhood traffic. COMPREHENSIVE PLAN CONSISTENCY The proposed amendment is consistent with the following goals, policies, and implementation actions of the adopted Comprehensive Plan: • Land Use Goat Regulate and manage land uses to balance the tights of private property owners with community values and objectives. • Policy., Zone lands to meet future housing, commercial, industrial, and other land needs. o Imolementation Action: Identify an adequate supply of land in each community to meet future residential and other land development needs based on future population and employment growth projections, assumptions about the type and land requirements for the projected uses, and conditions or constraints that may affect development. Consider the use of public or private Native -owned lands to help meet these needs. • Land Use Goal: Continue to update and improve the effectiveness of Borough policies, plans, regulations, and procedures. • Implementation Action: Update and enhance the KIB Zoning Ordinance, as well as other planning procedures to meet land use and planning goals cost-effectively and efficiently. • Implementation Action: Periodically update the Comprehensive Plan with maximum public input and review. • Housing Goal. Help ensure that an adequate supply of land for housing and a sufficient stock of housing, including affordable housing, are available for Borough residents. • Policy: In partnership with local communities, Tribal councils, Native Corporations, the Kodiak Island Housing Authority and others, help ensure that there is an adequate supply of developable residential land to meet long-term housing needs throughout the Borough, including housing for seniors. Case No. 16-033 Staff Report and Recommendation Ordinances Amending the 2008 Comprehensive Plan By Changing ... CONCLUSION Page 41WV04-EM O.A. PUBLIC HEARING ITEM 7-0 P & Z REGULAR MEETING: JULY 13, 2016 Staff analysis shows that the amendment is consistent with the objectives of the adopted Comprehensive Plan and satisfies the requirements of Title 17 of the Kodiak Island Borough Code for amendments and changes. Staff recommends that the Commission forward this Comprehensive Plan amendment request to the Kodiak Island Borough Assembly with a recommendation for approval. APPROPRIATE MOTION Should the Commission agree with the staff recommendation, the appropriate motion is: Move to recommend that the Kodiak Island Borough Assembly approve the Comprehensive Plan amendment to change the Future Land Use Designation of Lot 5, Block 5, Monashka Bay Subdivision from Public Facilities/Ownership to Rural Residential (KIBC 17.205) and to adopt the findings of fact listed in the staff report entered into the record for this case as "Findings of Fact' for Case No. 16- 033. FINDINGS OF FACT (KIBC 17.205.020.A -C) 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to properties with a Future Land Use Designation of Rural Residential. 3. The subject parcel is of sufficient area and is capable of providing suitable rural residential building sites. 4. The amendment is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 5. The amendment is necessary to allow for a subsequent rezone from PL -Public Use Lands District to RR1-Rural Residential One District. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this Comprehensive Plan amendment. Case No. 16-033 Staff Report and Recommendation Ordinances Amending the 2008 Comprehensive Plan By Changing 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Page 4"VO4-Em O.A. PUBLIC HEARING ITEM 7-Q P & Z REGULAR MEETING: JULY 13, 2016 Introduced by: Borough Assembly Requested by: KIB Lands Committee Drafted by: CDD Introduced: xx/xx/xxxx Public Hearing: xx/xx/xxxx Adopted: xx/xx/xxxx KODIAK ISLAND BOROUGH ORDINANCE NO. FY2017-xx AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING THE 2008 COMPREHENSIVE LAND USE PLAN TO CHANGE THE FUTURE LAND USE DESIGNATION OF LOT 5, BLOCK 5, MONASHKA BAY SUBDIVISION FROM PUBLIC FACILITIES/OWNERSHIP TO RURAL RESIDENTIAL (P&Z CASE NO. 16-033) WHEREAS, as a second class borough, the Kodiak Island Borough exercises planning, platting, and land use regulations on an area wide basis pursuant to Chapter 29.40 Alaska Statutes; and WHEREAS, in accordance with AS 29.40, the Kodiak Island Borough adopted the 2008 Comprehensive Plan update on December 6, 2007 (Ordinance No. FY2008-10) to replace the 1968 Comprehensive Plan; and WHEREAS, the Kodiak Island Borough has adopted KIBC Title 17 (Zoning) in accordance with AS 29.40 to implement the Kodiak Island Borough Comprehensive Plan; and WHEREAS, KIBC 17.205.010 provides that "Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts'; and WHEREAS, The Borough Land Committee recommended and the Borough Assembly initiated an amendment to the 2008 Comprehensive Plan to change the Future Land Use Designation of Lot 5, Block 5, Monashka Bay Subdivision; and WHEREAS, at an advertised public hearing, consistent with Kodiak Island Borough Code 17.205.040, the Planning and Zoning Commission considered the merits of the Comprehensive Plan and amendment request; and WHEREAS, the Commission voted to recommend to the Borough Assembly that the Comprehensive Plan Future Land Use Designation of this lot be changed finding that the public necessity, convenience, general welfare, and good zoning practice would be enhanced by such action; and WHEREAS, the Commission hereby recommends that this amendment be reviewed and approved by the Borough Assembly. Kodiak Island Borough, Alaska Ordinance No. FY2017-xx Case No. 16-033 Staff Report and Recommendation Page 1 of 2 Ordinances Amending the 2008 Comprehensive Plan By Changing ... 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 Page 46GOVO4-EM #9.A - PUBLIC HEARING ITEM 7-G P 8 Z REGULAR MEETING: JULY 13, 2016 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: The 2008 Comprehensive Plan Future Land Use Designation of Lot 5, Block 5, Monashka Bay Subdivision is hereby changed from Public Facilities/Ownership to Rural Residential. Section 3: By this ordinance, the Borough Assembly adopts the following findings of fact in support of their approval of this amendment. 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to properties with a Future Land Use Designation of Rural Residential. 3. The subject parcel is of sufficient area and are capable of providing suitable rural residential building sites. 4. The amendment is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 5. The amendment is necessary to allow for a subsequent rezone from PL -Public Use Lands District to RR1-Rural Residential One District. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this Comprehensive Plan amendment. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2016 KODIAK ISLAND BOROUGH Jerrol Friend, Borough Mayor ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Ordinance No. FY2017-xx Case No. 16-033 Staff Report and Recommendation Page 2 of 2 Ordinances Amending the 2008 Comprehensive Plan By Changing ... Page 4651004 -Em #9.A. PUBLIC HEARING ITEM 7-0 P a Z REGULAR MEETING'. JULY 13, 2016 Page 1 ort Kodiak Island Borough {T �7 OFFICE of the MANAGER 710 Mill Bay Road, Room 101 Kodiak, Alaska 99615 Phone (907) 486-9304 Fax (907) 486-9374 A E-mail: 44IRR In kodiakak_ay To: Planning & Zoning Commission Through: KIB Community Development Department From: Duane Dvorak, Resource Management Officer Date: June 23, 2016 Re: Cases 16-032, 16-033 and 16-034, regarding the comprehensive plan designation, zoning status and request for disposal of Lot 5, Block 5, Monashka Bay Subdivision Lot 5 has been recommended for disposal by the recently empaneled Borough Lands Committee. That recommendation was reviewed and accepted by the assembly, who then authorized staff action to begin making the parcel ready for sale. Lot 5 is currently zoned PL -Public Use Land and designated for public use in the comprehensive plan. It is believed that the lot was originally reserved for some public purpose, but any purpose other than open space has never been made clear. The lot is adjacent to Otmeloi Park which is located at the intersection of Otmeloi Road and Monashka Bay Road. The borough has no plans to develop any recreational or institutional improvements at this site. Lot 5 is moderately slope affected from the south side to the north side where the lot has frontage on Monashka Bay Road. The adjoining property owner has contacted staff with concerns about the possibility of new well and septic systems on the adjoining parcel and where they might be located. The lot is 2.48 acres in area and any new well and septic system on the lot will need to comply with ADEC regulations. This may require an engineered septic system and strict observance of minimum separation distances between wells, wastewater systems and surface water in the area. The proposed zoning designation of RRI-Rural Residential One will allow for single-family residential development which will ensure that the development density is kept low. The surrounding lots are all zoned RRI as well, so that the zoning density and designation will be in keeping with other single-family residential lots in the area. Resource Management staff will plan on attending die packet review and regular meeting for these requests and would be happy to answer any questions at those times. Case No, 16-033 Application Package Ordinances Amending the 2008 Comprehensive Plan By Changing ... Page 4TOW404-Em #s.a. PUBLIC HEARING ITEM 7-0 P & 2 REGULAR MEETING: JULY 13, 2016 Kodiak Island Borough Print Form f Submhby Ema(I Community Development Department III IIIIIIIII IIIIIIIIIII 710 MIII Bay Bd.Rm 205 Kodiak AK 99615 Ph. (907) 486 - 9362 Fax(907)486-9396 httc,Wwwwkodiakak.us 2139D PROP -ID 21390 Application for Comprehensive Plan Amendment KIBC 17.205 I The following following informatbn Is to be supplied by the Applicant Property Owner/Applicant: Kodiak Island Borough/Duane Dvorak Resource Management Officer Mailing Address: 710 MIII Bay Road, Room 101 Kodiak AK 99615 Phone Number. 907-086-9304 Other Contact email) ddvorak@kodiakakus Legal Description: Subdv: Monashka Bay Subdivision Block 5 Lot: 5 Street Address: 3482 Monashka Bay Road Current F.LU.D: Public Use KIBC 17.130 Proposed F.LLi RRI KIBC 17.70 Applicable Comprehensive Plan: A. Kodiak Island Comprehensive Plan Update 2008 Explanation of the need &justification for a change or amendment of the applicable comprehensive plan: The most pressing need of the community In recent years has been for additional residential land to develop. Lot 5 has been held In public ownership as open space for many years. There Is adequate public land area in the area designated for public and recreational use. No documentation has been found that associates Lot 5 with adjoining Lot 6 which is the location of Otmelol Park. Continued on reverse Case No. 16-033 Application Package Ordinances Amending the 2008 Comprehensive Plan By Changing ... Page MW404"EM #s.a. PUBLIC HEARING ITEM 74 P 8 Z REGULAR MEETING: JULY 13, 2016 Explanation of the effect such a change or amendment would have on the objectives of the applicable comprehensive plan: The amendment would be a negligible change to the comprehensive plan as Lot 5 is Indicated for public and recreation, but it has only been used as undeveloped open space. This site has been In public ownership for many years but only adjoining Lot 6 has ever been developed and used for park purposes. The most pressing need of the community, at present, Is a perceived need to provide more land for residential development. The proposed plan change would reduce Public and Recreation by 2.48 acres and increase the Residential designation by 2.47 acres. Date: Jun 2, 2016 signature: CDD Staff Certiflcation Date: U _3_ 1 Lo CDD Staff: Payment Verification Fee Payable in Cashier's Office Roam Y 104- Main floor of Borough Building KIBC 17205.030 Manner of initiation. Changes In this title may be Initiated in the following manner. A. The assembly upon its own motion: Ix Walveroffee B. The commission upon Its own motion: Waiver of fee C By petition: Less than 1.75 acres: $350.00 1.76 to 5.00 acres: $750.00 5.01 to 40.00 acres: $1,000.00 40.01 acres or more: $1500.00 -Note: Only one fee will apply to a comprehensive plan future land use designation change application that is submitted with a related rezone application. Case No. 16-033 Application Package Ordinances Amending the 2008 Comprehensive Plan By Changing ... Page 4S-Wf4,94rEm N.A. PUBLIC HEARING ITEM 7-0 P & Z REGULAR MEETING JULY 13,2016 cn» : ©t ! !#@@#SEES { )# 0/ )r! � \ 0 `§22§|a)@a ; ./ 2 ^ c 0 n i \ - 2\ § 72 -6 ;e /jF- �a#@#!■#a&! � ®| �))!k}7i 2 \kki @ (§ \ n !n)�)))(;£) j% � k f)m52$4®■ i ! 2/) { \f&21K(| ) Case No. 16-033 Application Package Ordinances Ame&,th 2008 Comprehensive Ane Changing ... Page 5@5004Em#:. Ordinances AmGt 2008ay 6_k Any Changing ... PUBLIC HEARING ITEM 7-Q P & Z REGULAR MEETING: JULY 13,2016 � » ; 2/ \ !®§§ § M t 0 \k^) ^ 2 c � 0 n ! �)¥{ ) -�\ �!)§ )( � a!|!§ a| ji / (` ]m �}\/\ � !) # i - a � \ { !® Case No. 16-033 Application Package Ordinances AmGt 2008ay 6_k Any Changing ... Page 500404 -Em #s -A - PUBLIC HEARING ITEM 7-0 P 8 Z REGULAR MEETING. JULY 13, 2016 AGENDA ITEM #13.8.1. Resolution No. FY2016-34 Accepting the Recommendation of the... Page 224 of 334 Case No. 16-033 Application Package Ordinances Amending the 2008 Comprehensive Plan By Changing 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Page ►eµ 4 -Em #9.A. PUBLIC HEARING ITEM 7-G P s Z REGULAR MEETING: JULY 13, 2016 Introduced by Requested by Crafted by Introduced on. Adopted on KODIAK ISLAND BOROUGH RESOLUTION NO. FY2016.34 Borough Mayor Borough Mayor Resource Management Officer 051192016 051192016 A RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY ACCEPTING THE RECOMMENDATION OF THE BOROUGH LANDS COMMITTEE RECOMMENDING THE DISPOSAL OF CERTAIN BOROUGH LANDS AS SURPLUS TO THE PUBLIC'S NEED AND AUTHORIZING STAFF ACTION TO MAKE THE RECOMMENDED PARCELS READY TO BE SOLD AT A FUTURE LAND SALE WHEREAS, Kodiak Island Borough Code (KIBC) Chapter 2.160 provides for the duties and responsibilities of the Borough Lands Committee, to review land and land related issues within the Kodiak Island Borough and make appropriate recommendations to the assembly; and WHEREAS, since its initial meeting on December 16, 2015, the committee has been reviewing borough lands with a priorit of identifying borough lands with residential development potential that may be surplus to the public's need and which may be Included in a future land sale; and, WHEREAS, the committee, on April 20, 2016, adopted Borough Lands Committee Resolution No. FY2016-01 identifying thirteen prospective parcels of land with residential development potential that may be found to be surplus to the public's need; and, WHEREAS, many of the parcels identified for disposal will require additional staff work, Planning and Zoning Commission review, or surveying and platting In order to be made sale ready; and, WHEREAS, in the interest of targeting a land sale for Fall 2016, it is imperative that the assembly acknowledge the recommended parcels for disposal and authorize staff to begin the work of preparing those identified parcels for future disposal and development. WHEREAS, it should be noted that not all the lands identified by the committee resolution for disposal require further disposal approval by the assembly, some having been previously approved for disposal and then withdrawn from sale by the assembly; and, WHEREAS, the committee has re-evaluated those parcels and found adequate potential for residential development that should be sufficient to justify disposal this time around given the need in the community for new residential development. Kodiak Island Borough, Alaska Case No, 16-033 Application Package Ordinances Amending the 2008 Comprehensive Plan By Changing ... Resolution No. FY2016.34 Page 1 of 2 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 91 82 Page 51Wv04-Em #9.A. PUBLIC HEARING ITEM 7-0 P 8 Z REGULAR MEETING: JULY 13, 2016 NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: The Kodiak Island Borough Lands Committee, in accordance with KIBC Chapter 2.160, recommends disposal of the borough's interest in the following thirteen (13) proposed parcels of land comprising about 12.7 acres of property described in the attached exhibit as: 1. East Addition, Block 38, Lot 2 2. East Addition, Block 38, Lot 3 3. Monashka Bay Sub., Black 2, Lot 7A 4. Proposed Lakeside Sub. 3'tl Addition, Lot 1 5. Proposed Lakeside Sub. 3" Addition, Lot 2 6. Proposed Lakeside Sub. 3' Addition, Lot 3 7. Proposed Lakeside Sub. 3itl Addition, Lot 4 8. Raven Hills Sub., Lot 1 9. Raven Hills Sub., Lot 2 10. Lake Orbin Sub., Lot 3 11. Monashka Bay Sub., Block 5, Lot 5 12. Proposed U.S. Survey 3099, Lot 29-1 13. Proposed U.S. Survey 3099, Lot 29-2 Section 2: The assembly acknowledges and accepts the recommended parcels set forth in Section 1 above and authorizes staff to initiate the comprehensive plan amendment and zoning change process under KIBC 17.205, and Initiating any needed survey and platting required under KIBC Title 16, that is necessary to make aforesaid parcels sale ready by ensuring that the parcels conform to regulations that will facilitate residential development. Section 3: The aforementioned parcels, which may require rezoning, survey, and platting to be made ready for disposal, should be offered for disposal to the public in a subsequent land sale. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS NINETEENTH DAY OF MAY 2016 KODIAK ISLAND BOROU H ATTEST: rrol ria , rough Mayor Nova M. Javier, M) C, Borough Clerk Kodiak Island Borough, Alaska Resolution No. FY2016-34 Page 2 of 2 Case No. 16-033 Application Package Ordinances Amending the 2008 Comprehensive Plan By Changing June 10, 2016 Page 5"IV0 -Em O.A. PUBLIC HEARING ITEM 7-G P 8 Z REGULAR MEETING'. JULY 13, 2016 Kodiak Island Borough Comtrntnity Development Department 710 Mill Bay Road Room 205 Kodiak, Alaska 99615 Phone(907)486.9363 Fax(907)486-9396 www.kodiakak.us Duane Dvorak, Borough Resource Management Officer Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Re: Case 16-033. Request a Comprehensive Plan Amendment to change the Future Land Use Designation of Lot 5, Block 5., Monashka Bay Subdivision from Public Facilities/Ownership to Rural Residential (Chapter 17.205 KIBC). The intent of this request is to facilitate a rezone to accommodate listing this parcel in a future Borough land sale. Dear Mr. Dvorak: Please be advised that the Kodiak Island Borough Planning and Zoning Commission has scheduled the case referenced above for Public Hearing at their July 13, 2016 regular meeting. This meeting will begin at 6:30 p.m. in the Assembly Chambers, 710 Mill Bay Road, Kodiak, Alaska. Attendance at this meeting is not mandatory but recommended. One week prior to the regular meeting, on Wednesday, July 6, 2016 at 6:30 p.m. in the Borough Conference Room (#121), the Commission will hold a packet review work session for the purpose of reviewing packet materials and staff summaries of cases scheduled for the regular meeting. The public is welcome to attend the packet review work session; however, the work session is not for the purpose of receiving public testimony. Applicants who wish to present testimony and/or evidence related to their case should appear at the Public Hearing during the Regular Meeting and present such information in person. Please contact the Community Development Department at 486-9363 if we can answer any outstanding questions or provide additional information. In advance, thank you for your cooperation. Sincerely, Sheila Smith, Secretary Community Development Department Case No. 1&033 Public Comment Package Ordinances Amending the 2008 Comprehensive Plan By Changing ... Page 565040jtEm #s.a. PUBLIC HEARING ITEM 74 P 8 Z REGULAR MEETING: JULY 13, 2016 KODIAK ISLAND BOROUGH COMMUNITY DEVELOPMENT DEPARTMENT 710 Mill Bay Road, Kodiak, Alaska 99615 (907) 486-9363 wwnv.kodiakak.us I PUBLIC HEARING NOTICE I A public hearing will be held on Wednesday, July 13, 2016. The meeting will begin at 6:30 p.m. in the Borough Assembly Chambers, 710 Mill Bay Road, Kodiak, Alaska, before the Kodiak Island Borough Planning and Zoning Commission, to hear comments if any, on the following request CASE: 16-033 APPLICANT: Kodiak Island Borough AGENT: KIB Resource Management Officer REQUEST: A Comprehensive Plan Amendment to change the Future Land Use Designation of Lot 5, Block 5., Monashka Bay Subdivision from Public Facilities/Ownership to Rural Residential (Chapter 17.205 KIBC). The intent of this request is to facilitate a rezone to accommodate listing this parcel in a future Borough land sale. LOCATION: 3482 Monashka Bay Road ZONING: PL -Public Use Lands This notice is being sent to you because our records indicate you are a property owner/interested party in the area of the request. If you do not wish to testify verbally, you may provide your comments in the space below or in a letter to the Community Development Department. Written comments must be received by 5 nm.'1'uesday. June 28. 2016 to be considered by the commission. If you would like to fax your comments to us, our fax number is: (907) 486-9396, or you may email your comments to ssmith n.kodiakak.us. If you would like to testify via telephone, please call in your comments during the appropriate public hearing section of the meeting. The local call-in telephone number is 486-3231. The toll free telephone number is I-855492-9202. One week prior to the regular meeting, on Wednesday, July 6, 2016, a work session will be held at 6:30 p,m, in the Kodiak Island Borough Conference Room (# 121), to review the packet material for the case. Kodiak Island Borough Code provides you with specific appeal rights if you disagree with the Commission's decision on this request. If you have any questions about the request or your appeal rights, please feel free to call us at 486-9363. Your Name: Melling Add.,: Your property dmcripaon: Common": Case No. 16-033 Public Comment Package Ordinances Amending the 2008 Comprehensive Plan By Changing Page 56GO404-EM O.A. PUBLIC HEARING ITEM 7-0 P 8 Z REGULAR MEETING: JULY 13, 2016 Case 16-033 Request a Comprehensive Plan Amendment to change Location the Future Land Use Designation of Lot 5, Block 5., 3482 Monashka Bay Rd Monashka Bay Subdivision from Public Applicant Facilities/Ownership to Rural Residential (Chapter Kodiak Island Borough 17.205 KIBC). The intent of this request is to facilitate a rezone to accommodate listing this parcel in a future Borough land sale. 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QmQ 0 0 0 Q Q Q O p WC Y W W in m m O 0u a W 3 !� Q O U 2 0 x x x Y J G� Z Z O O 6 6 Vf �t; Vf W Z C W_ 5 v � EML9 a o S J o a Z} aW Cw w C w } 2 W w 7 u W Z 0 ~O Z 12 W o 0 G a G a W W a 0 a a W x c`x�i—n aoai a¢ vii-3?in vxioFym Ordinances Amending the 2008 Comprehensive Plan By Changing ... Page 44,94 -Em #s.A. CHAIR ARNDT reconvened the meeting at 10:08 p.m Q. CASE 16-033. Request a Comprehensive Plan Amendment to change the Future Land Use Designation of Lot 5, Block 5., Monashka Bay Subdivision from Public Facilities/Ownership to Rural Residential (Chapter 17.205 KIBC). The intent of this request is to facilitate a rezone to accommodate listing this parcel in a future Borough land sale. The applicant is the Kodiak Island Borough and the agent is the KIB Resource Management Officer. The location is 3462 Monashka Bay Road and the zoning is PL -Public Use Lands. COMMISSIONER SPALINGER MOVED to recommend that the Kodiak Island Borough Assembly approve the Comprehensive Plan amendment to change the Future Land Use Designation of Lot 5, Block 5, Monashka Bay Subdivision from Public Facilities/Ownership to Rural Residential (KIBC 17.205) and to adopt the findings of fact listed in the staff report entered into the record for this case as "Findings of Fact" for Case No. 16-033. Mason stated future land use designation change is for the property identified in Case 16-032. It's currently zoned PL -Public Use Lands and is vacant. Otmeloi Park is zoned PL -Public Use Lands but everything else in the general vicinity is zoned RR1 and already has a future land use designation of Rural Residential. All the development in the area has been low density residential and low density residential on this lot would fit in with the character of the area. We are not expecting any adverse traffic impacts. This request is consistent with land use and housing goals in the Comp Plan. Staff recommends approval. Open Public Hearing: Duane Dvorak, Resource Management Officer, stated he concurs with staffs recommendation. Close Public Hearing: FINDINGS OF FACT 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to properties with a Future Land Use Designation of Rural Residential. 3. The subject parcel is of sufficient area and is capable of providing suitable rural residential building sites. 4. The amendment is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 5. The amendment is necessary to allow for a subsequent rezone from PL -Public Use Lands District to RR1-Rural Residential One District, 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this Comprehensive Plan amendment. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY R. CASE 16-034. Request a Rezone of Lot 5, Block 5, Monashka Bay Subdivision from PL- Public Use Lands District to RRi-Rural Residential One District (Chapter 17.205 KIBC). The intent of this request is to rezone this parcel to a zoning district that permits residential construction so the parcel may be listed in a future Borough land sale. COMMISSIONER BALDWIN MOVED to recommend that the Kodiak Island Borough Assembly approve the rezone of Lot 5, Block 5, Monashka Bay Subdivision from PL -Public Use Lands District to RR1-Rural Residential One District (KIBC 17.205) and to adopt the findings of fact Kodiak Island Borough Planning 8 Zoning Commission Minutes July 13, 2016 Page 21 Ordinances Amending the 2008 Comprehensive Plan By Changing July 20, 2016 Page 5@304491tEM O.A. Kodiak Island Borough Community Development Department 710 Mill Bay Road Kodiak, Alaska 99615 Phone(907)486-9363 Fax(907)486-9396 www.kodiakak.us Mr. Duane Dvorak, Resource Management Officer Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Re: Case 16-033. Request for a Comprehensive Plan Amendment to change the Future Land Use Designation of Lot 5, Block 5., Monashka Bay Subdivision from Public Facilities/Ownership to Rural Residential (Chapter 17.205 KIBC). The intent of this request is to facilitate a rezone to accommodate listing this parcel in a future Borough land sale. Dear Mr. Dvorak: The Kodiak Island Borough Planning & Zoning Commission, at their meeting on July 13, 2016, moved to forward the request cited above, recommending approval, to the Borough Assembly. Please contact the Borough Clerk's Office at 486.9310 for information on when your case will be scheduled for a first reading and public hearing before the Assembly. According to KIBC 17.205.055 (Submission to assembly) of the Borough Code states: A. Within thirty days after the planning commission has acted favorably upon a proposed zoning change in accordance with the above provisions, a report with recommendations shall be submitted to the assembly together with the proposed ordinance. Such recommendations of the planning commission shall be advisory only and shall not be binding upon the assembly. When an ordinance has been forwarded to the borough assembly, the assembly shall act in accordance with this chapter and notice shall be Issued as provided in Section 17.205.070, by the borough clerk. B. If the planning commission recommends denial of any proposed amendment, its action shall be final unless the initiating party, within ten days, files a written statement with the clerk requesting that the commission's action be taken up by the borough assembly. The commission adopted the following findings of fact in support of their recommendation to the assembly: FINDINGS OF FACT 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to properties with a Future Land Use Designation of Rural Residential. Ordinances Amending the 2008 Comprehensive Plan By Changing Page 64r1§f40' "EM N.A. 3. The subject parcel is of sufficient area and is capable of providing suitable rural residential building sites. 4. The amendment Is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 5. The amendment is necessary to allow for a subsequent rezone from PL -Public Use Lands District to RR1-Rural Residential One District. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this Comprehensive Plan amendment. Should this Comprehensive Plan Amendment be approved by the Kodiak Island Borough Assembly, you will still need to obtain permits for any construction activities. If you have any questions about the action of the commission, please contact the Community Development Department at 486-9363. Slncerel , Sara Mason, Director Community Development Department CC: Nova Javier, Borough Clerk Planning & Zoning Commission Ordinances Amending the 2008 Comprehensive Plan By Changing ... Page 640004'EM #s.a. KODIAK ISLAND BOROUGH AGENDA STATEMENT SEPTEMBER 15. 2016 ASSEMBLY REGULAR MEETING TITLE: Ordinance No. FY2017-09 Amending The 2008 Comprehensive Plan By Changing The Future Land Use Designation Of A t 20,000 Square Foot Portion Of U.S. Survey 3099 From Public Ownership/Facilities To Urban Residential (P&Z Case No. 16-036). ORIGINATOR: Sara Mason FISCAL IMPACT: No Account Number: FUNDS AVAILABLE: Amount Budgeted: SUMMARY STATEMENT: This Future Land Use Designation change request was recommended by the Borough Lands Committee and initiated by the Borough Assembly in conjunction with P&Z Case No. 16-035 (land disposal) and P&Z Case No. 16-037 (rezone). The Planning and Zoning Commission held a public hearing on this Comprehensive Plan amendment request at their July 13, 2016 regular meeting. The Commission voted unanimously to recommend that the Assembly approve this Future Land Use Designation change. RECOMMENDED MOTION: Kodiak Island Borough Ordinances Amending the 2008 Comprehensive Plan By Changing ... 8 9 10 11 12 13 14 15 16 17 18 19 20 21 97 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Page 62300'tEm #s.A. Introduced by. Borough Assembly Requested by KIB Lands Committee Drafted by: CDD Introduced: 09/01/2016 Public Hearing: 09/09/2016 Adopted: KODIAK ISLAND BOROUGH ORDINANCE NO. FY2017-09 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING THE 2008 COMPREHENSIVE LAND USE PLAN TO CHANGE THE FUTURE LAND USE DESIGNATION OF A ± 20,000 SQUARE FOOT PORTION OF LOT 29, U.S. SURVEY 3099 FROM PUBLIC FACILITIES/OWNERSHIP TO URBAN RESIDENTIAL (P&Z CASE NO. 16-036) WHEREAS, as a second class borough, the Kodiak Island Borough exercises planning, platting, and land use regulations on an area wide basis pursuant to Chapter 29.40 Alaska Statutes; and WHEREAS, in accordance with AS 29.40, the Kodiak Island Borough adopted the 2008 Comprehensive Plan update on December 6, 2007 (Ordinance No. FY2008-10) to replace the 1968 Comprehensive Plan; and WHEREAS, the Kodiak Island Borough has adopted KIBC Title 17 (Zoning) in accordance with AS 29.40 to implement the Kodiak Island Borough Comprehensive Plan; and WHEREAS, KIBC 17.205.010 provides that "Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts": and WHEREAS, The Borough Lands Committee recommended and the Borough Assembly initiated an amendment to the 2008 Comprehensive Plan to change the Future Land Use Designation of a ± 15,000 square foot portion of Lot 29, U.S. Survey 3099; and WHEREAS, at an advertised public hearing, consistent with Kodiak Island Borough Code 17.205.040, the Planning and Zoning Commission considered the merits of the Comprehensive Plan and amendment request; and WHEREAS, the Commission voted to recommend to the Borough Assembly that the Comprehensive Plan Future Land Use Designation of this lot be changed finding that the public necessity, convenience, general welfare, and good zoning practice would be enhanced by such action; and WHEREAS, the Commission hereby recommends that this amendment be reviewed and approved by the Borough Assembly. Kodiak Island Borough, Alaska Ordinance No. FY2017-09 Page 1 of 2 Ordinances Amending the 2008 Comprehensive Plan By Changing 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 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: The 2008 Comprehensive Plan Future Land Use Designation of a t 20,000 square foot portion of Lot 29, U.S. Survey 3099 is hereby changed from Public Facilities/Ownership to Urban Residential. Section 3: This ordinance shall become effective upon the recording of a plat that defines the actual surveyed boundary of the t 20,000 square foot portion that is subject to this Future Land Use Designation change. Section 4: By this ordinance, the Borough Assembly adopts the following findings of fact in support of their approval of this amendment. 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to properties with a Future Land Use Designation of Urban Residential. 3. The subject parcel is of sufficient area and are capable of providing suitable urban residential building sites. 4. The amendment is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 5. The amendment is necessary to allow for a subsequent rezone from PL -Public Use Lands District to R2 -Two -Family Residential District. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this Comprehensive Plan amendment. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2016 ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Ordinances Amending the 2008 Comprehensive Plan By Changing ... KODIAK ISLAND BOROUGH Jerrol Friend, Borough Mayor Ordinance No. FY2017-09 Page 2 of 2 Page 6"VO4-Em N.A. PUBLIC HEARING ITEM 7-T P 8 Z REGULAR MEETING: JULY 13, 2016 ma KIB Location & Zoning Map W s ComprehensiveLocation and Zoning Request: A Case No. 16-036 the Future Land Use .-nt Itl' chan square�:Applicant: Kodiak Island Borough foot portion of Lot 29, U.S. Survey 3099 from Public Facilities/Ownership 17.205 KIBC). Drp s i erl�.r6 .. P u P°1 1¢ 1128 6G' • P � ��i �'p �aC� SIP �p 1p AG \p�0 �p3 M1 '. 26791..,MgS 2 2113 Jd 1831 / `d Mgt ]n9 .2133' 1]50 '1\ 2000 20 G p0 � yP y0 B aN N `1. 1iv L Ilk 'L - "rs ' �� 230 288566951 a4 35... MyUok\n V�e'i41 \ 1�ShJI SWo�(,[` �O /tlnknoWn 8 C, may- 'ydi J°�ra 4P �y v y e` 4uF yb ? d -�;1 f{ ,,e�' Legend \01 Q Subject Parcels n \I \U Zoning Legend IPublic Use Lands Rural Residential 1 Multi Family Residential - Light Industrial 0 Watershed - Rural Residential 2Business 0 Rural Neighborhood Commercial Conservation Single Family Residential I_ Retail Business Urban Neighborhood Commercial n Rural Residential 0 Two Family Residential i j Industrial Natural Use Kodiak Island 6omuah GIs Community Development Department ThK mepN rom dntl kr inmrmo\lonelnmposas —_= Amass Roads hUpalw kodiakak. uslgis (901)486-933] only d is not Uncomtructed Right of ways Case No. 16-036 Introduction Ordinances Amending the 2008 Comprehensive Plan By Changing Page 660004 -EM N.A. PUBLIC HEARING ITEM 7•T P & Z REGULAR MEETING: JULY 13, 2016 Case No. 16-0361naoduclion Ordinances Amending the 2008 Comprehensive Plan By Changing ... Np �q PUBLIC HEARING ITEM 7-T P &Z REGULAR MEETING: JULY 13, 2016 Y 0 x - -i 4LABKA STAFF REPORT AND RECOMMENDATION Case No. 16-036. A Comprehensive Plan amendment to change the Future Land Use Designation of a t 15,000 square foot portion of Lot 29, U.S. Survey 3099 from Public Facilities/Ownership to Urban Residential (KIBC 17.205). DATE: June 28, 2016 TO: Planning and Zoning Commission FROM: Community Development Department SUBJECT: Staff Report and Recommendation CASE: 16-036 APPLICANT: Kodiak Island Borough LOCATION: 2906 Spruce Cape Road LEGAL DSC: Lot 29, U.S. Survey 3099 ZONING: PL -Public Use Lands District FUTURE LAND USE DESIGNATION: Public Facilities/Ownership NOTICE: Twenty (20) public hearing notices were mailed on June 10, 2016. One (1) public hearing notice was returned as of the date this report was prepared. SITE VISIT: None 1. Zoning History: - Zoned Unclassified by the 1968 Metropolitan Zoning Map • Zoned RR -Rural Residential by Ordinance No. 80-9-0 • Zoned PL -Public Use Lands by Ordinance No. 83-30-0 2. Site Size: t 15,000 square feet 3. Existing Land Use: Helicopter landing pad 4. Surrounding Land Use and Zoning: Lots in the area are zoned R2 -Two -Family Residential and R3 -Multi -Family Residential; most having single-family homes. Lot to the north is zoned PL -Public Use Lands and is a water treatment facility. 5. Comprehensive Plan: • Designated Public and Open Space by the 1968 Comprehensive Plan • Designated Public Facilities/Ownership by the 2008 Comprehensive Plan 6. Applicable Comprehensive Plan Future Land Use Designations: Public Facilities: This designation is intended for public facilities such as water or wastewater treatment facilities, police or fire stations and other public facilities, not including parks and recreation facilities. Urban Residential: This designation allows for a variety of urban level residential uses. It is generally applied within incorporated cities and would allow for a mix of single- family and other types of housing including those allowed in the R1, R2, R3, and SRO zones. 7. Applicable Regulations: The following sections of Title 17 (Zoning) of the Borough Code are applicable to this request: Case No. 16-036 Staff Report and Recommendation Ordinances Amending the 2008 Comprehensive Plan By Changing 'a ®py m" Y PL ALASKA 17.10.020 Reference and use (Comprehensive Plan Page 6T0004 -Em O.A. PUBLIC HEARING ITEM 7-T P & Z REGULAR MEETING: JULY 13, 2016 In accordance with Alaska Statutes, zoning decisions shall be based upon the recommendations contained in the comprehensive plan. 17.205.010 Authority (Amendments and changes). Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts. 17.205.020 Reoort from Planning and zoning commission (Amendments and changes) The commission shall report in writing to the assembly on any proposed change or amendment regardless of the manner in which such change is initiated and such report shall find: A. Findings as to need and justification for a change or amendments; B. Findings as to the effect a change or amendment would have on the objectives of the comprehensive plan; and C. Recommendations as to the approval or disapproval of the change or amendment. 17.205.055 Submission to assembly (Amendments and chances) A. Within 30 days after the commission has acted favorably upon a proposed zoning change in accordance with the above provisions; a report with recommendations shall be submitted to the assembly together with the proposed ordinance. Such recommendations of the commission shall be advisory only and shall not be binding upon the assembly. When an ordinance has been forwarded to the assembly, the assembly shall act in accordance with this chapter, and notice shall be issued as provided in KIBC 17.205.070 by the clerk. B. If the commission recommends denial of any proposed amendment; its action shall be final unless the initiating party, within 10 days, files a written statement with the clerk requesting that the commission's action be taken up by the assembly. STAFF ANALYSIS This is the request to change the Comprehensive Plan Future Land Use Designation of a portion of the lot from Public Facilities/Ownership to Urban Residential that is referred to in the land disposal staff report for the same parcel (Case No. 16-035). Please note that the below criteria also apply to the subsequent rezone request for the same parcel (Case No. 16-037). CURRENT USE AND ZONING The subject parcel is zoned PL -Public Use Lands and is the site of an unused helicopter landing pad. RECENT DEVELOPMENT TRENDS IN THE AREA Development in the area over the last several decades has been predominately medium density residential development. COMPATABILITY OF LAND USES The lot is in close proximity to several zones and land uses, which have coexisted in harmony for decades. Directly to the west is land zoned R3 -Multi -Family Residential; the site of Case No. 16-036 Staff Report and Recommendation Ordinances Amending the 2008 Comprehensive Plan By Changing N0 flM 0P Y 0 O + 'L AL49HA Page 6"PO4-Em O.A. PUBLIC HEARING ITEM 7-T P 8 Z REGULAR MEETING: JULY 13, 2016 Jackson's Mobile Home Park. To the north is the City of Kodiak's water treatment facility, zoned PL -Public Use Lands. To the northeast is R2 -Two -Family Residential zoned land occupied by single family dwellings. The remainder of Lot 29 will remain public use and will continue to house a community dumpster. All land in the vicinity not zoned PL -Public Use Lands has a Future Land Use Designation of Urban Residential. LAND SUITABILITY The proposed parcels will meet or exceed the 7,200 square foot minimum lot area requirement for 132 -Two -Family Residential zoning. The parcels will also meet or exceed the minimum lot width of 60 feet. As such, the proposed parcels are capable of supporting urban residential development and accommodating all land use regulations for the proposed zone, as identified in Chapter 17.80 KIBC. TRAFFIC IMPACTS The site is accessed by a major collector (Spruce Cape Road) that has proven capable of accommodating the traffic generated by existing neighborhood uses for several decades. The minimal traffic generated by residential development on this lot should have no adverse impact on neighborhood traffic. COMPREHENSIVE PLAN CONSISTENCY The proposed amendment is consistent with the following goals, policies, and implementation actions of the adopted Comprehensive Plan: • Land Use Goal., Regulate and manage land uses to balance the rights of private property owners with community values and objectives. • Policy., Zone lands to meet future housing, commercial, industrial, and other land needs. o Implementation Action: Identify an adequate supply of land in each community to meet future residential and other land development needs based on future population and employment growth projections, assumptions about the type and land requirements for the projected uses, and conditions or constraints that may affect development. Consider the use of public or private Native -owned lands to helpmeet these needs. • Land Use Goal: Continue to update and improve the effectiveness of Borough policies, plans, regulations, and procedures. • Imolementation Action: Update and enhance the KIB Zoning Ordinance, as well as other planning procedures to meet land use and planning goals cost-effectively and efficiently. • Implementation Action: Periodically update the Comprehensive Plan with maximum public input and review. • Housing Goal., Help ensure that an adequate supply of land for housing and a sufficient stock of housing, including affordable housing, are available for Borough residents. • Policy: In partnership with local communities, Tribal councils, Native Corporations, the Kodiak Island Housing Authority and others, help ensure that there is an adequate supply of developable residential land to meet long-term housing needs throughout the Borough, including housing for seniors. Case No. 16-036 Staff Report and Recommendation Ordinances Amending the 2008 Comprehensive Plan By Changing PNo aogo 9 `Ci Y Y .. cit. L 4L45H4 CONCLUSION Page W004 -EM #s.A. PUBLIC HEARING ITEM 7-T P & Z REGULAR MEETING: JULY 13, 2016 Staff analysis shows that the amendment is consistent with the objectives of the adopted Comprehensive Plan and satisfies the requirements of Title 17 of the Kodiak Island Borough Code for amendments and changes. RECOMMENDATION Staff recommends that the Commission forward this Comprehensive Plan amendment request to the Kodiak Island Borough Assembly with a recommendation for approval. APPROPRIATE MOTION Should the Commission agree with the staff recommendation, the appropriate motion is: Move to recommend that the Kodiak Island Borough Assembly approve the Comprehensive Plan amendment to change the Future Land Use Designation of a f 15,000 square foot portion of Lot 29, U.S. Survey 3099 from Public Facilities/Ownership to Urban Residential (KIBC 17.205) and to adopt the findings of fact listed in the staff report entered into the record for this case as "Findings of Fact" for Case No. 16-036. FINDINGS OF FACT (KIBC 17.205.020.A -C) 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to properties with a Future Land Use Designation of Urban Residential. 3. The subject parcel is of sufficient area and is capable of providing suitable urban residential building sites. 4. The amendment is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 5. The amendment is necessary to allow for a subsequent rezone from PL -Public Use Lands District to R2 -Two -Family Residential District. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this Comprehensive Plan amendment. Case No, 16-036 Staff Report and Recommendation Ordinances Amending the 2008 Comprehensive Plan By Changing 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Page 7"VO4-EM O.A. PUBLIC HEARING ITEM 7-T P &Z REGULAR MEETING: JULY 13, 2016 Introduced by. Borough Assembly Requested by: KIB Lands Committee Drafted by: CDD Introduced: xx/xx/xxxx Public Hearing: xx/xx/xxxx Adopted: xx/xx/xxxx KODIAK ISLAND BOROUGH ORDINANCE NO. FY2017-xx AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING THE 2008 COMPREHENSIVE LAND USE PLAN TO CHANGE THE FUTURE LAND USE DESIGNATION OF A ± 15,000 SQUARE FOOT PORTION OF LOT 29, U.S. SURVEY 3099 FROM PUBLIC FACILITIES/OWNERSHIP TO URBAN RESIDENTIAL (P&Z CASE NO. 16-036) WHEREAS, as a second class borough, the Kodiak Island Borough exercises planning, platting, and land use regulations on an area wide basis pursuant to Chapter 29.40 Alaska Statutes; and WHEREAS, in accordance with AS 29.40, the Kodiak Island Borough adapted the 2008 Comprehensive Plan update on December 6, 2007 (Ordinance No. FY2008-10) to replace the 1968 Comprehensive Plan; and WHEREAS, the Kodiak Island Borough has adopted KIBC Title 17 (Zoning) in accordance with AS 29.40 to implement the Kodiak Island Borough Comprehensive Plan; and WHEREAS, KIBC 17.205.010 provides that "Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts': and WHEREAS, The Borough Lands Committee recommended and the Borough Assembly initiated an amendment to the 2008 Comprehensive Plan to change the Future Land Use Designation of a ± 15,000 square foot portion of Lot 29, U.S. Survey 3099; and WHEREAS, at an advertised public hearing, consistent with Kodiak Island Borough Code 17.205.040, the Planning and Zoning Commission considered the merits of the Comprehensive Plan and amendment request; and WHEREAS, the Commission voted to recommend to the Borough Assembly that the Comprehensive Plan Future Land Use Designation of this lot be changed finding that the public necessity, convenience, general welfare, and good zoning practice would be enhanced by such action; and WHEREAS, the Commission hereby recommends that this amendment be reviewed and approved by the Borough Assembly. Kodiak Island Borough, Alaska Ordinance No. FY2017-xx Case No. 16-036 Staff Report and Recommendation Page 1 of 2 Ordinances Amending the 2008 Comprehensive Plan By Changing ... 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 Page 7A010►494"EM #s.A. PUBLIC HEARING ITEM 7-T P 8 Z REGULAR MEETING'. JULY 13, 2016 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: The 2008 Comprehensive Plan Future Land Use Designation of a t 15,000 square foot portion of Lot 29, U.S. Survey 3099 is hereby changed from Public Facilities/Ownership to Urban Residential. Section 3: This ordinance shall become effective upon the recording of a plat that defines the actual surveyed boundary of the t 15,000 square foot portion that is subject to this Future Land Use Designation change. Section 4: By this ordinance, the Borough Assembly adopts the following findings of fact in support of their approval of this amendment. 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to properties with a Future Land Use Designation of Urban Residential. 3. The subject parcel is of sufficient area and are capable of providing suitable urban residential building sites. 4. The amendment is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 5. The amendment is necessary to allow for a subsequent rezone from PL -Public Use Lands District to R2 -Two -Family Residential District. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this Comprehensive Plan amendment. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2016 KODIAK ISLAND BOROUGH Jerrol Friend, Borough Mayor ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Ordinance No. FY2017-xx Case No. 16-036 Staff Report and Recommendation Page 2 of 2 Ordinances Amending the 2008 Comprehensive Plan By Changing ... Page 1 of 1 Page 7AGOV494-EM O.A. PUBLIC HEARING ITEM 7-T P & Z REGULAR MEETING: JULY 13, 2016 Kodiak Island Borough OFFICE of the MANAGER 710 Mill Bay Road, Room 101 Kodiak, Alaska 99615 Phone (907) 486-9304 Fax (907) 486-9374 E-nwil: dd,nnkn kndiakak w To: Planning & Zoning Commission Through: KIB Community Development Department From: Duane Dvorak, Resource Management Officer/� (�) Date: June 23, 2016 Re: Cases 16-035, 16-036, 16-037, regarding the comprehensive plan designation, zoning status and request for disposal of a portion of Lot 29, U.S. Survey 3100 A portion of Lot 29 has been recommended for disposal by the recently empaneled Borough Lands Committee. That recommendation was reviewed and accepted by the assembly, who then authorized staff action to begin making the parcel ready for sale. Lot 29 is currently zoned PL -Public Use Land and desibmated for public use in the comprehensive plan. This lot has been reserved for public purpose and is currently developed with a heli -pad and dumpster waste collection point. There are also several casements on the property for wastewater and/or stone water outfalls. The portion requested for reclassification and disposal is that area occupied by the heli -pad. It is the only area with enough depth to adequately allow for residential development. The remainder of the site will remain 'as -is". The approximately 15,000 square feet of Lot 29 that is requested for reclassification and disposal is relatively flat with perimeter fencing, lighting and a paved landing pad. The concept drawing shows a maximum of two lots. Care will have to be taken to ensure that each lots has adequate usable area between the 100 foot right-of-way for Spruce Cape Road and the high bank along the tidelands. The maximum area to be developed would be about 15,000 square feet. The size and configuration of a contemplated subdivision will be adjusted as necessary to accommodate the need to produce reasonably developable lots that will not require variances or other extra measures in order to construct a home. This area is served by municipal water and sewer. The request is for 112 -Two-family Residential zoning as the most appropriate zoning in this context. The proposed disposal area is adjacent to R2 zoned lots across the street. Adjoining R3 - Multifamily zoning on the area occupied by Jackson's Mobile Home Park would not be appropriate for lots of minimum lot area and width along the shoreline. A preliminary plat will be presented to the commission in a subdivision case to follow. Resource Management staff will plan on attending the packet review and regular meeting for these requests and would be happy to answer any questions at those times. Case No. 16-036 Application Package Ordinances Amending the 2008 Comprehensive Plan By Changing ... Page 7,MV 'Mm #9 -A - PUBLIC HEARING ITEM 7-T P & Z REGULAR MEETING: JULY 13, 2016 Kodiak Island Borough F Print Form Submit by Ercall Community Development Department III II IIIIIIIIII IIIIII� 710 MIII Bay Rd.Rm 205 Kodiak AK 99615 Ph. (907) 486 - 9362 Fax(907)486-9396 httoV/www.kodiakakus PROP_ID 20913 Application for Comprehensive Plan Amendment KIBC 17.205 The following Information is to be supplied by the Applicant: Property Owner/ Applicant: Kodiak Island Borough/Duane Dvorak, Resource Management Officer Mailing Address: 710 Mill Bay Road, Room 101 Kodiak AK 99615 Phone Number. 907-486-9304 Other Contact email, etc ddvomk@kodiakakus Legal Description: Subdv: US. Survey3099(PTN) Block Lot: 29 Street Address 2906 Spruce Cape Road Current F.LUA: Public Use KIBC 17.130 Proposed FJ -UD-- R2 KIBC 17.80 Applicable Comprehensive Plan: A. Kodiak Island Comprehensive Plan Update 200a Explanation of the need &Justification for a change or amendment of the applicable comprehensive plan: The most pressing need of the community in recent years has been for additional residential land to develop. This portion of tot 29 has been held In public ownership as open space for many years. There is already adequate area In the area designated for public and recreational use. No documentation has been found that associates this Portion of Lot 29, U.S. Survey 3099 with development of other specific public facilities or uses. Continued on reverse Case No, 16-036 Application Package Ordinances Amending the 2008 Comprehensive Plan By Changing Page 7"WitEM #s.a. PUBLIC HEARING ITEM 7-T P & Z REGULAR MEETING, JULY 13, 2016 Explanation of the effect such a change or amendment would have on the objectives of the applicable comprehensive plan: The amendment would be a negligible change to the comprehensive plan as the proposed Porton of Lot 29 would only represent one (1) of the three (3) acres available. This site has been In public ownership for many years and the pattern of development for public and recreation use has been well established over the years. The most pressing need of the community at present Is a perceived need to provide more land for residential development. The proposed plan change would reduce Public and Recreation area by 15,000 square feet and Increase the Residential designation by 15,000 square feet. The current area of Lot 29 Is 67,500 S.F. The ultimate boundaries are to be established by survey and It would be suggested that an approval of this change could be made contingent on the recording of a suitable plat not to exceed 15,000 square feet In total area and subject to an effective date on the day of recording said plat. Date: Jun3,2016 Signature: CDD Staff Certification Date: L -0 -3 -Ko CDD Staff: Payment Verification Fee Payable In Cashler's Office Room 11104 -Main floor of Borough Building KIBC 17205.030 Manner of Initiation. Changes in this title may be Initiated in the following manner. A. The assembly upon its own motion: 0 Waiveroffee B. The commission upon its own motion: Waiveroffee C. By petition: Less than 1.75 acres: $350.00 1.76 to 5.00 acres: $750.00 5.01 to 40.00 acres: $1,000.00 40.01 acres or more: $1,500.00 •Note:Only one fee will apply to a comprehensive plan future land use designation change application that is submitted with a related rezone application. 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PUBLIC HEARING ITEM 7-T P & Z REGULAR MEETING: JULY 13, 2016 AGENDA ITEM #13.6.1. Resolution No. FY2016-34 Accepting the Recommendation of the... Page 225 of 334 Case No. 16-036 Application Package Ordinances Amending the 2008 Comprehensive Plan By Changing ... 1 2 3 4 5 6 7 8 9 1D it 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Page 7S4W4"JrEM #9.A. PUBLIC HEARING ITEM 7-T P & Z REGULAR MEETING: JULY 13, 2016 Introduced by: Borough Mayor Requested by Borough Mayor Drafted by. Resource Management Officer Introduced on. 05/192016 Adopted on 05/192016 KODIAK ISLAND BOROUGH RESOLUTION NO. FY2016.34 A RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY ACCEPTING THE RECOMMENDATION OF THE BOROUGH LANDS COMMITTEE RECOMMENDING THE DISPOSAL OF CERTAIN BOROUGH LANDS AS SURPLUS TO THE PUBLIC'S NEED AND AUTHORIZING STAFF ACTION TO MAKE THE RECOMMENDED PARCELS READY TO BE SOLD AT A FUTURE LAND SALE WHEREAS, Kodiak Island Borough Code (KIBC) Chapter 2.160 provides for the duties and responsibilities of the Borough Lands Committee, to review land and land related issues within the Kodiak Island Borough and make appropriate recommendations to the assembly; and WHEREAS, since its Initial meeting on December 16, 2015, the committee has been reviewing borough lands with a priorit of identifying borough lands with residential development potential that may be surplus to the public's need and which may be included in a future land sale; and, WHEREAS, the committee, on April 20, 2016, adopted Borough Lands Committee Resolution No. FY2016-01 identifying thirteen prospective parcels of land with residential development potential that may be found to be surplus to the public's need; and, WHEREAS, many of the parcels identified for disposal will require additional staff work, Planning and Zoning Commission review, or surveying and platting In order to be made sale ready; and, WHEREAS, in the interest of targeting a land sale for Fall 2016, it is imperative that the assembly acknowledge the recommended parcels for disposal and authorize staff to begin the work of preparing those identified parcels for future disposal and development. WHEREAS, it should be noted that not all the lands identified by the committee resolution for disposal require further disposal approval by the assembly, some having been previously approved for disposal and then withdrawn from sale by the assembly; and, WHEREAS, the committee has re-evaluated those parcels and found adequate potential for residential development that should be sufficient to justify disposal this time around given the need in the community for new residential development. Kodiak Island Borough, Alaska Case No. 16-036 Application Package Ordinances Amending the 2008 Comprehensive Plan By Changing Resolution No. FY201634 Page 1 of 2 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 Page 8QG§jV"4-EM #s.A. PUBLIC HEARING ITEM 7-T P 8 Z REGULAR MEETING: JULY 13, 2016 NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: The Kodiak Island Borough Lands Committee, in accordance with KIBC Chapter 2.160, recommends disposal of the borough's interest in the following thirteen (13) proposed parcels of land comprising about 12.7 acres of property described in the attached exhibit as: 1. East Addition, Block 38, Lot 2 2. East Addition, Block 38, Lot 3 3. Monashka Bay Sub., Black 2, Lot 7A 4. Proposed Lakeside Sub. 3ia Addition, Lot 1 5. Proposed Lakeside Sub. 3i° Addition, Lot 2 6. Proposed Lakeside Sub. 3itl Addition, Lot 3 7. Proposed Lakeside Sub. 3'" Addition, Lot 4 a. Raven Hills Sub., Lot 1 9. Raven Hills Sub., Lot 2 10. Lake Orbin Sub., Lot 3 11. Monashka Bay Sub., Block 5, Lot 5 12. Proposed U.S. Survey 3099, Lot 29-1 13. Proposed U.S. Survey 3099, Lot 29-2 Section 2: The assembly acknowledges and accepts the recommended parcels set forth in Section 1 above and authorizes staff to initiate the comprehensive plan amendment and zoning change process under KIBC 17.205, and Initiating any needed survey and platting required under KIBC Title 16, that is necessary to make aforesaid parcels sale ready by ensuring that the parcels conform to regulations that will facilitate residential development. Section 3: The aforementioned parcels, which may require rezoning, survey, and platting to be made ready for disposal, should be offered for disposal to the public in a subsequent land sale. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS NINETEENTH DAY OF MAY 2016 KODIAK ISLAND BOROU H ATTEST:rrol ria , rough Mayor Nova M. Javier, M! C, Borough Clerk Kodiak Island Borough, Alaska Resolution No. FY2016-34 Page 2 of 2 Case No. 16-036 Application Package Ordinances Amending the 2008 Comprehensive Plan By Changing ... June 10, 2016 Page 8404V ItEm #9.a. PUBLIC HEARING ITEM 7-T P 8 Z REGULAR MEETING: JULY 13, 2016 Kodiak Island Borough Community Development Department 710 Mill Bay Road Room 205 Kodiak, Alaska 99615 Phone (907) 486-9363 Fax (907) 486-9396 www.kodiakak.us Duane Dvorak, Borough Resource Management Officer Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Re: Case 16-036. Request a Comprehensive Plan Amendment to change the Future Land Use Designation of a t 15,000 square foot portion of Lot 29, U.S. Survey 3099 from Public Facilities/Ownership to Urban Residential (Chapter 17.205 KBC). The intent of this request is to facilitate a rezone to accommodate subdividing the portion to create up to Iwo lots for listing in a future Borough land sale. Dear Mr. Dvorak Please be advised that the Kodiak Island Borough Planning and Zoning Commission has scheduled the case referenced above for Public Hearing at their July 13, 2016 regular meeting. This meeting will begin at 6:30 p.m. in the Assembly Chambers, 710 Mill Bay Road, Kodiak, Alaska. Attendance at this meeting is not mandatory but recommended. One week prior to the regular meeting, on Wednesday, July 6, 2016 at 6:30 p.m. in the Borough Conference Room (#121), the Commission will hold a packet review work session for the purpose of reviewing packet materials and staff summaries of cases scheduled for the regular meeting. The public is welcome to attend the packet review work session; however, the work session is not for the purpose of receiving public testimony. Applicants who wish to present testimony and/or evidence related to their case should appear at the Public Hearing during the Regular Meeting and present such information in person. Please contact the Community Development Department at 486-9363 if we can answer any outstanding questions or provide additional information. In advance, thank you for your cooperation. Sincerely, Sheila Smith, Secretary Community Development Department Casa No. 16-036 Public Comment Package Ordinances Amending the 2008 Comprehensive Plan By Changing ... W@T O, 2 i1 A' •eA PUBLIC HEARING ITEM 7-T P 8 Z REGULAR MEETING: JULY 13, 2016 KODIAK ISLAND BOROUGH COMMUNITY DEVELOPMENT DEPARTMENT 710 Mill Bay Road, Kodiak, Alaska 99615 (907)486.9363 "u.kodiakak.us I PUBLIC HEARING NOTICE I A public hearing will be held on Wednesday, July 13, 2016. The meeting will begin at 6:30 p.m. in the Borough Assembly Chambers, 710 Mill Bay Road, Kodiak, Alaska, before the Kodiak Island Borough Planning and Zoning Commission, to hear comments if any, on the following request: CASE: 16-036 APPLICANT: Kodiak Island Borough AGENT: KIB Resource Management Officer REQUEST: A Comprehensive Plan Amendment to change the Future Land Use Designation of a t 15,000 square foot portion of Lot 29, U.S. Survey 3099 from Public Facilities/Ownership to Urban Residential (Chapter 17.205 KIBC). The intent of this request is to facilitate a rezone to accommodate subdividing the portion to create up to two lots for listing in a future Borough land sale. LOCATION: 2906 Spruce Cape Road ZONING: PL -Public Use Lands This notice is being sent to you because our records indicate you are a properly owner/interested party in the area of the request. If you do not wish to testify verbally, you may provide your comments in the space below or in a letter to the Community Development Department. Written comments must be received by 5 nm. Tuesday. June 28. 2016 to be considered by the commission. If you would like to fax your comments to us, our fax number is: (907) 486.9396, or you may email your comments to ssmith(alkodiakak.us. If you would like to testify via telephone, please call in your comments during the appropriate public hearing section of the meeting. The local call-in telephone number is 486-3231. The toll free telephone number is 1-855492-9202. One week prior to the regular meeting, on Wednesday, July 6, 2016, a work session will be held at 6:30 p.m. in the Kodiak Island Borough Conference Room (#121), to review the packet material for the case. Kodiak Island Borough Code provides you with specific appeal rights if you disagree with the Commission's decision on this request. If you have any questions about the request or your appeal rights, please feel free to call us at 486-9363. Your Name: Mailing Addrns: Your property Aneripdon: Comments• Case No. 16-036 Public Comment Package Ordinances Amending the 2008 Comprehensive Plan By Changing ... Page 86GW44J4-EM#9.a. PUBLIC HEARING ITEM 7-T P 8 Z REGULAR MEETING. JULY 13, 2016 Case 16-036 Request a Comprehensive Plan Amendment to change Location the Future Land Use Designation of a ± 15,000 square 2906 Spruce Cape Road foot portion of Lot 29, U.S. Survey 3099 from Public Applicant Facilities/Ownership to Urban Residential (Chapter Kodiak Island Borough 17.205 KIBC). The intent of this request is to facilitate a rezone to accommodate subdividing the portion to creat up to two lots for listing in a future Borough land sale. e P .c- Aeva Ee5eR02aro DING ave or ieee pP Spmc. Cep. 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Page 860004"EM #9.A. PUBLIC HEARING ITEM 7-T P a Z REGULAR MEETING: JULY 13, 2016 KODIAK ISLAND BOROUGH COMMUNITY DEVELOPMENT DEPARTMENT 710 Mill Bay Road, Kodiak, Alaska 99615 (907)486-9363 www.kodiakak.us I PUBLIC HEARING NOTICE I A public hearing will be held on Wednesday, July 13, 2016. The meeting will begin at 6:30 p.m. in the Borough Assembly Chambers, 710 Mill Bay Road, Kodiak, Alaska, before the Kodiak Island Borough Planning and Zoning Commission, to hear comments if any, on the following request: CASE: 16-036 APPLICANT: Kodiak Island Borough AGENT: KIB Resource Management Officer REQUEST: A Comprehensive Plan Amendment to change the Future Land Use Designation of a t 15,000 square foot portion of Lot 29, U.S. Survey 3099 from Public Facilities/Ownership to Urban Residential (Chapter 17,205 KIBC). The intent of this request is to facilitate a rezone to accommodate subdividing the portion to create up to two lots for listing in a future Borough land sale. LOCATION: 2906 Spruce Cape Road ZONING: PL -Public Use Lands This notice is being sent to you because our records indicate you are a property owneriinterested parry in the area of the request. If you do not wish to testify verbally, you may provide your comments in the space below or in a letter la the Community Development Department. Written comments must be received by 5 nm, Tuesday. June 28. 2016 to be considered by the commission. If you would like to fax your comments to us, our fax number is: (907) 496-9396, or you may email your comments to ssmithOkodiakak.us. If you would like to testify via telephone, please call in your comments during the appropriate public hearing section of the meeting. The focal call-in telephone number is 486-3231. The toll free telephone number is 1-855.492-9202. One week prior to the regular meeting, on Wednesday, July 6, 2016, a work session will be held at 6:30 p.m. in the Kodiak Island Borough Conference Roam (N 121), to review the packet material for the case. Kodiak Island Borough Code provides you with specific appeal rights if you disagree with the Commission's decision on this request. If you have any questions about the request or your appeal rights, please feel free to call us at 486.9363. p� Your Name: SL t]E2t alJiina AJJrrn: /I . .V &)/ 4,11 q i \bur property description. LaT I L—��C �C79 f Camaeau' L 2 v ueAJ 'AMCn10 EnIT b-036 1_�AJD 0/5P,95/9f )b-o3s 0 6 9A.G I (o-03-7 pF klywyJE21 bae Ta 6LW_-S772A//j7-,e, ASSoCIn7r--A WrT!! lily /0Z) FT. W(DE S7W7-E eO.k) h,-Jb i e5t�j BAc/t Pe62uraF_mEv73 , AS WS" ,15 -1-74F 4?l uF✓ DA) T1iE C4NN6r_ S�IiE` :1� twiOULA Q 7eCN0e1 E&l_h 77hgf- T BE Sd3D11lI dFb SIPIJ as 6W Id(— o ' M uct-1 eL Fut, — !� T7,rERF_-Fd2C_ Mrn2F 4ALr=ABLe — DPEFTf. Case No. 16-036 Public Comment Package Ordinances Amending the 2008 Comprehensive Plan By Changing .. J Page 8A)r3§fV"4-EM O.A. surveyor looking at this site now and hopefully we will have a preliminary plat coming on your September agenda but until we get that information, he would like to keep the options open. As far as the comment about keeping it one lot, he would suggest looking at the plat first and then decide. Dvorak recommended making that change to all the cases related to this property. Close Public Hearing: COMMISSIONER SPALINGER MOVED TO AMEND the motion to + 20,000 square feet from 15,000 square feet. FINDINGS OF FACT 1. The subject parcel is surplus to the public's need and, as such, is suitable for disposal by the Borough. 2. Developable residential lots are a known need throughout the Borough. This disposal will provide up to two lots that will assist in satisfying that need. 3. This disposal is supported by various land use and housing goals, policies, and implementation actions identified in the adopted Comprehensive Plan. ROLL CALL VOTE ON MOTION TO AMEND CARRIED UNANIMOUSLY ROLL CALL VOTE ON MOTION AS AMENDED CARRIED UNANIMOUSLY T. CASE 16-036. Request a Comprehensive Plan Amendment to change the Future Land Use Designation of a ± 15,000 square foot portion of Lot 29, U.S. Survey 3099 from Public Facilities/Ownership to Urban Residential (Chapter 17.205 KIBC). The intent of this request is to facilitate a rezone to accommodate subdividing the portion to create up to two lots for listing in a future Borough land sale. The applicant is the Kodiak Island Borough and the agent is the KIB Resource Management Officer. The location is 2906 Spruce Cape Road and the zoning is PL -Public Use Lands. COMMISSIONER PAINTER MOVED to recommend that the Kodiak Island Borough Assembly approve the Comprehensive Plan amendment to change the Future Land Use Designation of a t 20,000 square foot portion of Lot 29, U.S. Survey 3099 from Public Facilities/Ownership to Urban Residential (KIBC 17.205) and to adopt the findings of fact listed in the staff report entered into the record for this case as "Findings of Fact" for Case No. 16-036. Mason stated this is the future land use designation change for the property identified in Case 16-035 where the helo pad is and the dumpster at the other end of the lot. Development in the area has predominately medium density residential and several zoning districts and land uses have coexisted well. Given the traffic already in the area, we do not see any adverse impacts. It is consistent with land use and housing goals in the Comp Plan. Staff recommends the commission forward this request to the assembly with a recommendation for approval. Open Public Hearing: Duane Dvorak, Resource Management Officer, stated he concurs with staffs recommendation. Close Public Hearing: FINDINGS OF FACT 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to properties with a Future Land Use Designation of Urban Residential. Kodiak Island Borough Planning & Zoning Commission Minutes July 13, 2016 Page 23 Ordinances Amending the 2008 Comprehensive Plan By Changing ... Page $fQo"ItEM O.A. 3. The subject parcel is of sufficient area and is capable of providing suitable urban residential building sites. 4. The amendment is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 5. The amendment is necessary to allow for a subsequent rezone from PL -Public Use Lands District to 132 -Two -Family Residential District. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this Comprehensive Plan amendment. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY U. CASE 16-037. Request a Rezone of a ± 15,000 square foot portion of Lot 29, U.S. Survey 3099 from PL- Public Use Lands District to 112 -Two -Family Residential District (Chapter 17.205 KIBC). The intent of this request is to rezone this portion to a zoning district that permits residential construction to accommodate subdividing the portion to create up to two lots for listing in a future Borough land sale. The applicant is the Kodiak Island Borough and the agent is the KIB Resource Management Officer. The location is 2906 Spruce Cape Road and the zoning is PL -Public Use Lands. COMMISSIONER PAINTER MOVED to recommend that the Kodiak Island Borough Assembly approve the rezone of a ± 20,000 square foot portion of Lot 29, U.S. Survey 3099 from PL - Public Use Lands to R2 -Two -Family Residential (KIBC 17.205) and to adopt the findings of fact listed in the staff report entered into the record for this case as "Findings of Fact" for Case No. 16-037. Mason stated the staff analysis for Case 16-036 is also applicable to this case. Similarly, we are recommending that the commission forward this rezone request to the assembly with a recommendation for approval. Open Public Hearing: Duane Dvorak, Resource Management Officer, stated he concurs with staffs recommendation. Dvorak stated when the applicant was preparing the application and looking at the concept configuration of two minimal 7200 sq. feet lots, R2 zoning seemed to be the best recommendation in that context but hearing the discussion about possibly making it into a single lot, if that were to happen he thinks R3 would be a better choice. Close Public Hearing: Discussion R3 zoning. FINDINGS OF FACT 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to R2 -Two -Family Residential zoned land and uses. 3. The subject parcel is of sufficient area and is capable of providing suitable urban residential building sites. 4. The rezone is consistent with the adopted 2008 Comprehensive Plan Urban Residential Future Land Use Designation per Case No. 16-036. 5. The rezone is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this rezone. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY Kodiak Island Borough Planning 8 Zoning Commission Minutes July 13, 2016 Page 24 Ordinances Amending the 2008 Comprehensive Plan By Changing ... July 20, 2016 Page MG04SIrEM O.A. Kodiak Island Borough Community Development Department 710 Mill Bay Road Kodiak, Alaska 99615 Phone(907)486.9363 Fax(907)486-9396 www.kodiakak.us Mr. Duane Dvorak, Resource Management Officer Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Re: Case 16-036. Request for a Comprehensive Plan Amendment to change the Future Land Use Designation of a t 15,000 square foot portion of Lot 29, U.S. Survey 3099 from Public Facilities/Ownership to Urban Residential (Chapter 17.205 KIBC). The intent of this request is to facilitate a rezone to accommodate subdividing the portion to create up to two lots for listing in a future Borough land sale. Dear Mr. Dvorak: The Kodiak Island Borough Planning & Zoning Commission, at their meeting on July 13, 2016, moved to recommend that the Kodiak Island Borough Assembly approve the Comprehensive Plan amendment to change the Future Land Use Designation of a t 20,000 square foot portion of Lot 29, U.S. Survey 3099 from Public Facilities/Ownership to Urban Residential (KIBC 17.205) and to adopt the findings of fact listed in the staff report entered into the record for this case as "Findings of Fact" for Case No. 16-036. Please contact the Borough Clerk's Office at 486-9310 for Information on when your case will be scheduled for a first reading and public hearing before the Assembly. According to KIBC 17.205.055 (Submission to assembly) of the Borough Code states: A. Within thirty days after the planning commission has acted favorably upon a proposed zoning change in accordance with the above provisions, a report with recommendations shall be submitted to the assembly together with the proposed ordinance. Such recommendations of the planning commission shall be advisory only and shall not be binding upon the assembly. When an ordinance has been forwarded to the borough assembly, the assembly shall act in accordance with this chapter and notice shall be issued as provided in Section 17.205.070, by the borough clerk. B. If the planning commission recommends denial of any proposed amendment, its action shall be final unless the initiating party, within ten days, files a written statement with the clerk requesting that the commission's action be taken up by the borough assembly. Ordinances Amending the 2008 Comprehensive Plan By Changing ... Page W004 -EM O.A. The commission adopted the following findings of fact in support of [heir recommendation to the assembly: FINDINGS OF FACT 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to properties with a Future Land Use Designation of Urban Residential. 3. The subject parcel Is of sufficient area and is capable of providing suitable urban residential building sites. 4. The amendment is consistent with, and will further implement, various goals, policies, and implementation actions identified In the adopted Comprehensive Plan. 5. The amendment is necessary to allow for a subsequent rezone from PL -Public Use Lands District to R2 -Two -Family Residential District. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this Comprehensive Plan amendment. Should this Comprehensive Plan Amendment be approved by the Kodiak Island Borough Assembly, you will still need to obtain permits for any construction activities. If you have any questions about the action of the commission, please contact the Community Development Department at 486-9363. Sincerely, Sara Mason, Director Community Development Department CC: Nova Javier, Borough Clerk Planning & Zoning Commission Ordinances Amending the 2008 Comprehensive Plan By Changing ... Page 9@136f4047EM O.A. KODIAK ISLAND BOROUGH AGENDA STATEMENT SEPTEMBER 15, 2016 ASSEMBLY REGULAR MEETING TITLE: Ordinance No. FY2017-13 Amending The 2008 Comprehensive Plan By Changing The Future Land Use Designation Of A t 1 Acre Portion of Lot 1A-4, U.S. Survey 3465 From Public Ownership/Facilities To Urban Residential (P&Z Case No. 16-030). ORIGINATOR: Jack Maker FISCAL IMPACT: No Account Number: SUMMARY STATEMENT: FUNDS AVAILABLE: Amount Budgeted: This Future Land Use Designation change request was recommended by the Borough Lands Committee and initiated by the Borough Assembly in conjunction with P&Z Case No. 16-029 (land disposal) and P&Z Case No. 16-0231 (rezone). The Planning and Zoning Commission held a public hearing on this Comprehensive Plan amendment request at their July 13, 2016 regular meeting. The Commission voted unanimously to recommend that the Assembly approve this Future Land Use Designation change. MOTION: Kodiak Island Borough Ordinances Amending the 2008 Comprehensive Plan By Changing 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Page 94004,94 -EM #s.A. Introduced by: Borough Assembly Requested by: KIB Lands Committee Drafted by: CDD Introduced: 09101/2016 Public Hearing. 09/15/2016 Adopted: KODIAK ISLAND BOROUGH ORDINANCE NO. FY2017-13 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING THE 2008 COMPREHENSIVE LAND USE PLAN TO CHANGE THE FUTURE LAND USE DESIGNATION OF A ± 1 ACRE PORTION OF LOT 1A-4, U.S. SURVEY 3465 FROM PUBLIC FACILITIES/OWNERSHIP TO URBAN RESIDENTIAL (P&Z CASE NO. 16-030) WHEREAS, as a second class borough, the Kodiak Island Borough exercises planning, platting, and land use regulations on an area wide basis pursuant to Chapter 29.40 Alaska Statutes; and WHEREAS, in accordance with AS 29.40, the Kodiak Island Borough adopted the 2008 Comprehensive Plan update on December 6, 2007 (Ordinance No. FY2008-10) to replace the 1968 Comprehensive Plan; and WHEREAS, the Kodiak Island Borough has adopted KIBC Title 17 (Zoning) in accordance with AS 29.40 to implement the Kodiak Island Borough Comprehensive Plan; and WHEREAS, KIBC 17.205.010 provides that "Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts"; and WHEREAS, The Borough Lands Committee recommended and the Borough Assembly initiated an amendment to the 2008 Comprehensive Plan to change the Future Land Use Designation of a ± 1 acre portion of Lot 1A-4, U.S. Survey 3465 from Public Facilities/Ownership to Urban Residential; and WHEREAS, at an advertised public hearing, consistent with Kodiak Island Borough Code 17.205.040, the Planning and Zoning Commission considered the merits of the Comprehensive Plan amendment request; and WHEREAS, the Commission voted to recommend to the Borough Assembly that the Comprehensive Plan Future Land Use Designation of this site be changed finding that the public necessity, convenience, general welfare, and good zoning practice would be enhanced by such action; and WHEREAS, the Commission hereby recommends that this amendment be reviewed and approved by the Borough Assembly. Kodiak Island Borough, Alaska Ordinances Amending the 2008 Comprehensive Plan By Changing ... Ordinance No. FY2017-13 Page 1 of 2 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 Page jVO4-EM #s.A. 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: The 2006 Comprehensive Plan Future Land Use Designation of a t 1 acre portion of Lot 1A-4, U.S. Survey 3465 is hereby changed from Public Facilities/Ownership to Urban Residential. Section 3: This ordinance shall become effective upon the recording of a plat that defines the actual surveyed boundary of the t 1 acre portion that is subject to this Future Land Use Designation change. Section 4: By this ordinance, the Borough Assembly adopts the following findings of fact in support of their approval of this amendment. 1. Developable residential lots are a known need throughout the Borough. 2. The site is adjacent to properties with a Future Land Use Designation of Urban Residential. 3. The site is of sufficient area to be subdivided into as many as five lots that would be capable of providing suitable residential building sites. 4. The amendment is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 5. The amendment is necessary to allow for a subsequent rezone from PL -Public Use Lands to R2 -Two-family Residential. 6. The Planning 8 Zoning Commission recommended that the Borough Assembly approve this Comprehensive Plan amendment. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2016 ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Ordinances Amending the 2008 Comprehensive Plan By Changing ... KODIAK ISLAND BOROUGH Jerrol Friend, Borough Mayor Ordinance No. FY2017-13 Page 2 of 2 Page 9@G6f►"4-EM #s.a. PUBLIC HEARING ITEM 7-N P 8 Z REGULAR MEETING: JULY 13, 2016 KIB Location &Zoning MapWB s Location and Zoning Request: X`C�omprehenslve Plan Amendment to change Case No. 16-030 the Future Land Use Designation of a ± I acre n of wner- Applicant: Kodiak Island Borough Lot IA -41, U.S. Survey 3465 from Public .. Agent: KIB Resource Management Officer ship to Urban Residential (Chapter 17.205 KIBC). US Legend real Subject Parcel Ja x ya N� ��J>q q9 3 ^0 ePM1 A ^ Am 7 Portion Subject to N Ir nn w�q aan� t M'1�0 _ / I Amendment Request • tr ratro , M1r'^ A ^T a o � •V }^.e yrs°Jv, S J.q P iJJ •.a «Nova P Way M1 B M1M1 C .P.I. �D 3 ,F 3jad a o U55__ 3463 ,�a? _ _ _ - U 3218 Qfoe�0 a vd � � Pry Geo � Rca �Cwe Drive � s i 3 USS33g6S 46T 4 I d^ �a Zoning Legend 0 Public Use Lands Rural Residential 1 Multi Family Residential Light Industrial Q Watershed ® Rural Residential [_ ] Business Q Rural Neighborhood Commercial L ] Conservation �] Single Family Residential [ Retail Business Urban Neighborhood Commercial 0 Rural Residential = Two Family Residential [_ ] Industrial Natural Use Kodiak Island Borough GIs Community Development Department map isa .dod for nlnrmnll rn,rpoxns =—= Acceas Road, hUpll~v komakak uslgis (907)466.9337This only end is not lrtlondad lar nny bgnl reprmonlutbns Ummnstrueled Right of Ways Case No. 16-030 Introduction Ordinances Amending the 2008 Comprehensive Plan By Changing ... Page yeMjV"4-EM #s.a. PUBLIC HEARING ITEM 7-N P 8 Z REGULAR MEETING: JULY 13, 2016 01 KIB Image Overlay Map Mi J cP:�, o � _ 1 4SubjIma e Overlay Legend Fe ect Parcel 1y. p ms mpN am Portion Subject to Amendment Request q 6otliak Island=ugh GIS community Development Departmen[ hapl/wxw.kodlakak.uNgia (907)46&9337 Tpb"P proWJeO bf lnloTieliunnl puPmns MY and h not lnle br my"n lrnpmmnlelbnr. Case No. 16-030 Introduction Ordinances Amending the 2008 Comprehensive Plan By Changing ... Page gfG§jV"4-EM #s.A. No eoy PUBLIC HEARING ITEM 7-N yam" P & Z REGULAR MEETING: JULY 13, 2016 Y � Yo- g't-ALASKA STAFF REPORT AND RECOMMENDATION Case No. 16-030. A Comprehensive Plan Amendment to change the Future Land Use Designation of a t 1 acre portion of Lot 1A-4, U.S. Survey 3465 from Public Facilities/Owner- ship to Urban Residential (Chapter 17.205 KIBC). DATE: June 29, 2016 TO: Planning and Zoning Commission FROM: Community Development Department SUBJECT: Staff Report and Recommendation CASE: 16-030 APPLICANT: Kodiak Island Borough AGENT: KIB Resource Management Officer LOCATION: 593 Island Lake Road LEGAL DSC: Lot 1A-4, U.S. Survey 3465 ZONING: PL -Public Use Lands District FUTURE LAND USE DESIGNATION: Public Facilities/Ownership NOTICE: Thirty-nine (39) public hearing notices were mailed on June 9, 2016. One (1) public hearing notice was returned as of the date this report was prepared. SITE VISIT: Various 1. Zoning History: • Zoned S/R-Service/Recreation by the adoption of the 1968 Kodiak Metropolitan Zoning Map. • Rezoned to PL -Public Use Lands By Ordinance No. 83-30-0. 2. Lot Size: Lot 1A-4 is 3 acres; portion subject to this review is t 1 acre 3. Existing Land Use: The review area is vacant. Remaining portion has a pocket park and public dumpster site. 4. Surrounding Land Use and Zoning: • PL zoning and uses to the west (Island Lake Park and Elks Lodge building). • R2 zoning and uses to the south (single and two-family residences). • R2 and B zoning and uses to the north and east (single and two- family residences, commercial buildings, outdoor storage, and vacant parcels). 5. Comprehensive Plan: • Designated Public and Open Space by the 1968 Comprehensive • Designated Public Facilities/Ownership by the 2008 Compre- hensive Plan. Case No. 16-030 Staff Report and Recommendation Ordinances Amending the 2008 Comprehensive Plan By Changing yyPNo aogoG Y Y lI� 6 gY ALASKA Page g"VO4-Em O.A. PUBLIC HEARING ITEM 7-N P & Z REGULAR MEETING: JULY 13, 2016 6. Applicable Comprehensive Plan Future Land Use Designations: Public Facilities: This designation is intended for public facilities such as water or wastewater treatment facilities, police or fire stations and other public facilities, not including parks and recreation facilities. Urban Residential: This designation allows for a variety of urban level residential uses. It is generally applied within incorporated cities and would allow for a mix of single-family and other types of housing including those allowed in the R1, R2, R3, and SRO zones. 7. Aoolicable Regulations: The following sections of Title 17 (Zoning) of the Borough Code are applicable to this request: 17.10.020 Reference and use (Comprehensive Plan). In accordance with Alaska Statutes, zoning decisions shall be based upon the recommendations contained in the comprehensive plan. 17.205.010 Authority (Amendments and changes). Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts. 17.205.020 Reoort from olannino and zonina commission (Amendments and chanaes) The commission shall report in writing to the assembly on any proposed change or amendment regardless of the manner in which such change is initiated and such report shall find: A. Findings as to need and justification for a change or amendments; B. Findings as to the effect a change or amendment would have on the objectives of the comprehensive plan; and C. Recommendations as to the approval or disapproval of the change or amendment. 17.205.055 Submission to assembly (Amendments and changes) A. Within 30 days after the commission has acted favorably upon a proposed zoning change in accordance with the above provisions; a report with recommendations shall be submitted to the assembly together with the proposed ordinance. Such recommendations of the commission shall be advisory only and shall not be binding upon the assembly. When an ordinance has been forwarded to the assembly, the assembly shall act in accordance with this chapter, and notice shall be issued as provided in KIBC 17.205.070 by the clerk. B. If the commission recommends denial of any proposed amendment; its action shall be final unless the initiating party, within 10 days, files a written statement with the clerk requesting that the commission's action be taken up by the assembly. STAFF ANALYSIS This is the request to change the Comprehensive Plan Future Land Use Designation of the site from Public Facilities/Ownership to Urban Residential that is referred to in the land disposal staff report for the same site (Case No. 16-029). Please note that the below criteria also apply to the subsequent rezone request (Case No. 16- 031). Case No. 16-030 Staff Report and Recommendation Ordinances Amending the 2008 Comprehensive Plan By Changing %vPNc a0g0 Y i Q 0 tre`- O'� ALASNA CURRENT USE AND ZONING Page 9fQ§fV" _EM O.A. PUBLIC HEARING ITEM 7-N P & Z REGULAR MEETING: JULY 13, 2016 The subject parcel is zoned PL -Public Use Lands. The portion in question is vacant. The remaining portion has a pocket park and public dumpster site. RECENT DEVELOPMENT TRENDS IN THE AREA The site is situated within a mixed medium density residential and commercial area. Development trends consist of the gradual construction of one and two-family residences and commercial buildings. COMPATABILITY OF LAND USES The subject parcel is situated between PL zoning and uses to the west (Island Lake Park and Elks Lodge building), R2 zoning and uses to the south (single and two-family residences), and R2 and B zoning and uses to the north and east (single and two-family residences, commercial buildings, outdoor storage, and vacant parcels). The surrounding parcels are assigned Future Land Use Designations that are consistent with their respective zoning. The established uses in the area have harmoniously coexisted for several years. Accordingly, changing the Future Land Use Designation of the site to Urban Residential to accommodate a rezone to R2 would allow uses that are consistent with the historic character of the neighborhood. LAND SUITABILITY The site is capable of being subdivided into as many as five lots that meet minimum lot size and width requirements for the intended R2 zoning and the lot design requirements of Chapter 16 KIBC (Subdivisions). The subdivision process would ensure created lots are capable of providing adequate residential building sites. TRAFFIC IMPACTS The site is accessed by a minor collector roadway (Island Lake Road) that has proven capable of accommodating the traffic generated by existing neighborhood uses for several years. The minimal traffic generated by residential development of up to five additional lots should have no adverse impact on neighborhood traffic. COMPREHENSIVE PLAN CONSISTENCY The proposed amendment is consistent with the following goals, policies, and implementation actions of the adopted Comprehensive Plan: • Land Use Goal: Regulate and manage land uses to balance the rights of private property owners with community values and objectives. • Policy., Zone lands to meet future housing, commercial, industrial, and other land needs. o Implementation Action: Identify an adequate supply of land in each community to meet future residential and other land development needs based on future population and employment growth projections, assumptions about the type and land requirements for the projected uses, and conditions or constraints that may affect development. Consider the use of public or private Native -owned lands to help meet these needs. • Land Use Goal. Continue to update and improve the effectiveness of Borough policies, plans, regulations, and procedures. Case No. 16-030 Staff Report and Recommendation Ordinances Amending the 2008 Comprehensive Plan By Changing ... PNa eoa r v va 0 0'L ALAA•Fs PUBLIC HEARING ITEM 7•N P & Z REGULAR MEETING: JULY 13, 2016 • Implementation Action: Update and enhance the KIB Zoning Ordinance, as well as other planning procedures to meet land use and planning goals cost-effectively and efficiently. • Implementation Action: Periodically update the Comprehensive Plan with maximum public input and review. • Housing Goal: Help ensure that an adequate supply of land for housing and a sufficient stock of housing, including affordable housing, are available for Borough residents. • Policy., In partnership with local communities, Tribal councils, Native Corporations, the Kodiak Island Housing Authority and others, help ensure that there is an adequate supply of developable residential land to meet long-term housing needs throughout the Borough, including housing for seniors. FINAL SITE BOUNDARY The final boundary of the area subject to this Future Land Use Designation change and subsequent rezone has yet to be determined. Accordingly, should both be approved, a plat that defines the actual surveyed boundary must be recorded. To ensure a plat is recorded, staff included the following language in section 3 of each respective draft ordinance: • This ordinance shall become effective upon the recording of a plat that defines the actual surveyed boundary of the t 1 acre portion that is subject to this Future Land Use Designation change/rezone (applicable action placed respective ordinance). CONCLUSION Staff recommends the amendment is consistent with the objectives of the adopted Comprehensive Plan and satisfies the requirements of Title 17 of the Kodiak Island Borough Code for amendments and changes as set forth in the recommended findings of fact. Anticipating a favorable recommendation to the assembly, a draft Comprehensive Plan amendment ordinance is attached to this report. Case No. 16030 Staff Report and Recommendation Ordinances Amending the 2008 Comprehensive Plan By Changing RECOMMENDATION Page 9@31044,94 -Em N.A. PUBLIC HEARING ITEM 7-N P & Z REGULAR MEETING: JULY 13, 2016 Staff recommends that the Commission forward this Comprehensive Plan amendment request to the Kodiak Island Borough Assembly with a recommendation for approval. APPROPRIATE MOTION Should the Commission agree with the staff recommendation, the appropriate motion is: Move to recommend that the Kodiak Island Borough Assembly approve the Comprehensive Plan amendment to change the Future Land Use Designation of a t 1 acre portion of Lot 1A-4, U.S. Survey 3465 from Public Facilities/Ownership to Urban Residential (KIBC 17.205) and to adopt the findings of fad listed in the staff report entered into the record for this case as "Findings of Fact' for Case No. 16-030. FINDINGS OF FACT (KIBC 17.205.020.A -C) 1. Developable residential lots are a known need throughout the Borough, 2. The site is adjacent to properties with a Future Land Use Designation of Urban Residential. 3. The site is of sufficient area to be subdivided into as many as five lots that would be capable of providing suitable residential building sites. 4. The amendment is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 5. The amendment is necessary to allow for a subsequent rezone from PL -Public Use Lands to R2 -Two-family Residential. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this Comprehensive Plan amendment. Case No, 16-030 Staff Report and Recommendation Ordinances Amending the 2008 Comprehensive Plan By Changing ... 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Page 10CIS044SItEM #9.A. PUBLIC HEARING ITEM 7-N P & Z REGULAR MEETING JULY 13, 2016 Introduced by: Borough Assembly Requested by: KIB Lands Committee Drafted by: CDD Introduced: xx/xx/xmx Public Hearing: xx/xx/xxxx Adopted: xx/xx/xxxx KODIAK ISLAND BOROUGH ORDINANCE NO. FY2017-XX AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING THE 2006 COMPREHENSIVE LAND USE PLAN TO CHANGE THE FUTURE LAND USE DESIGNATION OF A ± 1 ACRE PORTION OF LOT 1A-4, U.S. SURVEY 3465 FROM PUBLIC FACILITIES/OWNERSHIP TO URBAN RESIDENTIAL (PBZ CASE NO. 16-030) WHEREAS, as a second class borough, the Kodiak Island Borough exercises planning, platting, and land use regulations on an area wide basis pursuant to Chapter 29.40 Alaska Statutes; and WHEREAS, in accordance with AS 29.40, the Kodiak Island Borough adopted the 2008 Comprehensive Plan update on December 6, 2007 (Ordinance No. FY2008-10) to replace the 1968 Comprehensive Plan; and WHEREAS, the Kodiak Island Borough has adopted KIBC Title 17 (Zoning) in accordance with AS 29.40 to implement the Kodiak Island Borough Comprehensive Plan; and WHEREAS, KIBC 17.205.010 provides that "Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts": and WHEREAS, The Borough Lands Committee recommended and the Borough Assembly initiated an amendment to the 2008 Comprehensive Plan to change the Future Land Use Designation of a ± 1 acre portion of Lot 1A-4, U.S. Survey 3465 from Public Facilities/Ownership to Urban Residential; and WHEREAS, at an advertised public hearing, consistent with Kodiak Island Borough Code 17.205.040, the Planning and Zoning Commission considered the merits of the Comprehensive Plan amendment request; and WHEREAS, the Commission voted to recommend to the Borough Assembly that the Comprehensive Plan Future Land Use Designation of this site be changed finding that the public necessity, convenience, general welfare, and good zoning practice would be enhanced by such action; and WHEREAS, the Commission hereby recommends that this amendment be reviewed and approved by the Borough Assembly. Kodiak Island Borough, Alaska Ordinance No. FY2017-XX Page 1 of 2 Case No. 16-030 Draft Comprehensive Plan Amendment Ordinance Ordinances Amending the 2008 Comprehensive Plan By Changing ... 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 Pagel Q1G§j4 C -EM #9.A. PUBLIC HEARING ITEM 7-N P & 2 REGULAR MEETING. JULY 13, 2016 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: The 2008 Comprehensive Plan Future Land Use Designation of a t 1 acre portion of Lot 1A-4, U.S. Survey 3465 is hereby changed from Public Facilities/Ownership to Urban Residential. Section 3: This ordinance shall become effective upon the recording of a plat that defines the actual surveyed boundary of the t 1 acre portion that is subject to this Future Land Use Designation change. Section 4: By this ordinance, the Borough Assembly adopts the following findings of fact in support of their approval of this amendment. 1. Developable residential lots are a known need throughout the Borough. 2. The site is adjacent to properties with a Future Land Use Designation of Urban Residential. 3. The site is of sufficient area to be subdivided into as many as five lots that would be capable of providing suitable residential building sites. 4. The amendment is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 5. The amendment is necessary to allow for a subsequent rezone from PL -Public Use Lands to 132 -Two-family Residential. 6. The Planning and Zoning Commission recommended that the Borough Assembly approve this Comprehensive Plan amendment. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2016 ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska KODIAK ISLAND BOROUGH Jerrol Friend, Borough Mayor Ordinance No. FY2017-XX Page 2 of 2 Case No. 16-030 Draft Comprehensive Plan Amendment Ordinance Ordinances Amending the 2008 Comprehensive Plan By Changing ... Page i or 1 Pagel 0EC6f4"47EM #9_A_ PUBLIC HEARING ITEM 7-N P E Z REGULAR MEETING: JULY 13, 2016 Kodiak Island Borough OFFICE of the MANAGER 710 Mill Bay Road, Room lot Kodiak, Alaska 99615 Phone (907) 486.9304 Fax (907) 486-9374 E-mail: ddeomWirkodiakak us To: Planning & Zoning Commission Through: Community Development Department From: Duane Dvorak, Resource Management Officer Date: June 23, 3016 Re: Cases 16-029, 16-030, 16-031, regarding the comprehensive plan designation, zoning status and request for disposal of a portion of Lot IA -4, U.S. Survey 3465 A portion of Lot I A4 has been recommended for disposal by the recently empaneled Borough Lands Committee. That recommendation was reviewed and accepted by the assembly, who then authorized staff action to begin making the parcel ready for sale. Lot I A-4 is currently zoned PL -Public Use Land and designated for public use in the comprehensive plan. This lot has been reserved for public purpose and is currently developed with a "pocket' park and has historically been a location for dumpster waste collection. Over many years it does not appear that the community will need more area for public purposes than what has already been developed. In addition to the "pocket park" additional area is still reserved for wetlands and drainage courses. There are currently no plans to expand the public use or facilities currently existing on this parcel. The portion of Lot I A4 that is requested for disposal has moderate slope and drainage challenges. The land generally slopes down from Island Lake Road on the east side to a point midway between Island Lake Road and Scout Circle. This lower area, past the mid -point, is relatively flat. The maximum area to be developed would be about one (1) acre. The size and configuration of a contemplated subdivision will be adjusted as necessary to accommodate the topography and drainage concerns. A preliminary plat will be presented to the commission in a subdivision case to follow. This area is served by municipal water and sewer. As such, the requested zoning for this disposal area is 112 -Two-family Residential. This is consistent with the adjoining residential lots to the south which will share a substantial boundary with the disposal area. Resource Management staff will plan on attending the packet review and regular meeting for these requests and would be happy to answer any questions at those times. Case No. 16-030 Application Package Ordinances Amending the 2008 Comprehensive Plan By Changing Page 10 4W4047EM #s.A. PUBLIC HEARING ITEM 7-N P & Z REGULAR MEETING: JULY 13, 2016 Kodiak Island Borough Pdnt Form Subm-It by Email Community Development Department III II IIIIII IIIIII IIII 710 MITI Bay Rd. Rm 205 Kodiak AK9%15 Ph. (9071486 - 9362 Fax (9071486. 9396 h"p:11wwwkodiakakus 21390 PROP_ID 21390 Application for Comprehensive Plan Amendment KIBC 17.205 yr -Lr) The following Information Is to be supplied by the Appllant Property Owner /Applicant: Kodiak Island Borough/Duane Dvorak Resource Management Officer Mailing Address: 710 Mill Bay Road, Room 101 Kodiak AK 9%15 Phone Number. 907-486-9304 Other Contact email, etc ddvarak@kodiakakus Legal Description: Subdw.. US. Survey 3465(PTN) Block Lot 1-A Street Address: 593 Island Lake Road Current F.LU.D: Public Use KIBC 17.130 Proposed F.LUD: R2 KIBC 17.80 Applicable Comprehensive Plan: A. Kodiak Island Comprehensive Plan Update 2008 Explanation orthe need &justification fora change or amendment of the applicable comprehensive plan: The most pressing need of the community In recent years has been for additional residential land to develop. This portion of Lot l -A has been held In public ownership as open space for many yearn There Is already adequate area In the area designated for public and recreational use. No documentation has been found that associates this Portion of tot 1-A. US. Survey 3465 with develooment of other specific public facilities or uses. Continued on reverse Case No. 16-030 Application Package Ordinances Amending the 2008 Comprehensive Plan By Changing Page I O"f4 lrEM O.A. PUBLIC HEARING ITEM 7-14 P & Z REGULAR MEETING: JULY 13, 2016 Explanation of the effect such a change or amendment would have on the objectives of the applicable comprehensive plan: The amendment would be a negligible change to the comprehensive plan as the proposed Portion of Lot t -A would only represent one (1) of the three (3) acres available. This site has been in public ownership for many years and the pattem of development for public and recreation use has been well established over the years. The most pressing need of the community at present Is a perceived need to provide more land for residential development. The proposed plan change would reduce Public and Recreation area by one (1) acre and Increase the Residential designation by one (1) acre. It Is Important to note that the development concept developed for the Borough Lands Committee Is substantially less than one (11 acre such that one acre would be the maximum area that would be converted from one use to the other. The ultimate boundaries are to be established by survey and It would be suggested that an approval of this change could be made contingent on the recording of a suitable plat not to exceed one (1) acre in total area and subject to an effective date on the day of recording said plat. CDD Staff Certification Date: L3 -3_ Ise CDDStaff: Ak� Payment Verification Fee Payable In Cashiers Office Room 1104- Main floor of Borough Building RIBC 17.205.030 Manner of initiation. Changes in this title may be Initiated In the following manner. A. The assembly upon its own motion: Ox Waiveroffee B. The commission upon its own motion: C3 Waiver offee C. By petition: Less than 1.75 acres: n $350.00 1.76 to 5.00 acres: n $750.00 5.01 to 40.00 acres: [] $1,000,00 40.01 acres or more: ❑ $1,500.00 *Note: Only one fee will apply to a comprehensive plan future land use designation change application that Is submitted with a related rezone application. Case No. 16-030 Application Package Ordinances Amending the 2008 Comprehensive Plan By Changing ... Page !06G§#",T£M #:. Ordinances AmeAgthe20aamp m_+ Plan By Changing - \\ _/ � �■■■■�4■, - )k \ -j } )7 0� ,;!■8■„■■ (�.!!; . �! � §n { ) i 72!■!�`| � .7|$$$$, ■ )& ) � !! �■);�;�� §§ om •!§§§§■■@ ! \ k {;-)e�-;■ ( 69 • y \# \ A4 \\§§§\(\ ■;■,#ak \ / ! Ordinances AmeAgthe20aamp m_+ Plan By Changing Page 106304WEm N.A. Ordinances AmendGth 2008 Comprehensive Plan By Changing § �� U.1 ( ;■4■ / \ )( 0Ln \k`) CL §n f ,\ \$ \ }( { ` !) 2 ( !■ )� \ ! / ! Ordinances AmendGth 2008 Comprehensive Plan By Changing Pagel QTG§f4047EM #s.a. Ordinances Amending the 2008 Comprehensive Plan By Changing ... Pagel 0613§f4o4-EM #9. A. o AGENDA ITEM #13.8.1. w N W to ^ F_ f7 J `6 I -- ?FE'S � •`� Z DQ: . N W W S "' "s•E ,"}}}r'', by � - �Sl Fz UW 6i E ag W N N Q. Q. -■111 � ^t^n, V! CL /^•O t� C M ` fE o O N U C iSM al G Q V C O U Resolution No. FY2016-34 Accepting the Recommendation of the... Page 220 of 334 Ordinances Amending the 2008 Comprehensive Plan By Changing ... `6 I -- ?FE'S � •`� N "' "s•E ,"}}}r'', by � - �Sl -■111 pG3-3'd�,_.S.ivUl' Ordinances Amending the 2008 Comprehensive Plan By Changing ... June 10, 2016 Page 1095WV4,94-EM N.A. PUBLIC HEARING ITEM 7-N P 8 Z REGULAR MEETING. JULY 13, 2016 Kodiak Island Borough Community Development Department 710 Mill Bay Road Room 205 Kodiak, Alaska 99615 Phone (907) 486-9363 Fax (907) 486-9396 www.kodiakak.us Duane Dvorak, Borough Resource Management Officer Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Re: Case 16030. Request a Comprehensive Plan Amendment to change the Future Land Use Designation of a t 1 acre portion of Lot IAA, U.S. Survey 3465 from Public Facilities/Owner- ship to Urban Residential (Chapter 17.205 KIBC). The intent of this request is to facilitate a rezone to accommodate subdividing the portion to create up to 5 lots for listing in a future Borough land sale. Dear Mr. Dvorak Please be advised that the Kodiak Island Borough Planning and Zoning Commission has scheduled the case referenced above for Public Hearing at their July 13, 2016 regular meeting. This meeting will begin at 6:30 p.m. in the Assembly Chambers, 710 Mill Bay Road, Kodiak, Alaska. Attendance at this meeting is not mandatory but recommended. One week prior to the regular meeting, on Wednesday, July 6, 2016 at 6:30 p.m. in the Borough Conference Room (#121), the Commission will hold a packet review work session for the purpose of reviewing packet materials and staff summaries of cases scheduled for the regular meeting. The public is welcome to attend the packet review work session; however, the work session is not for the purpose of receiving public testimony. Applicants who wish to present testimony and/or evidence related to their case should appear at the Public Hearing during the Regular Meeting and present such information in person. Please contact the Community Development Department at 486-9363 if we can answer any outstanding questions or provide additional information. In advance, thank you for your cooperation. Sincerely, •^--}� v" Sheila Smith, Secretary Community Development Department Case No. 16-030 Public Comment Package Ordinances Amending the 2008 Comprehensive Plan By Changing ... Pagel 1,Q.^ f404 -EM #9.A. PUBLIC HEARING ITEM 7-N P & Z REGULAR MEETING: JULY 13, 2016 KODIAK ISLAND BOROUGH COMMUNITY DEVELOPMENT DEPARTMENT 710 Mill Bay Road, Kodiak, Alaska 99615 (907)486-9363 wim.kodiakak.us Item 7-N I PUBLIC HEARING NOTICE I A public hearing will be held on Wednesday, July 13, 2016. The meeting will begin at 6:30 p.m. in the Borough Assembly Chambers, 710 Mill Bay Road, Kodiak, Alaska, before the Kodiak Island Borough Planning and Zoning Commission, to hear comments if any, on the following request: CASE: 16-030 APPLICANT: Kodiak Island Borough AGENT: KIB Resource Management Officer REQUEST: A Comprehensive Plan Amendment to change the Future Land Use Designation of a f I acre portion of Lot IA4, U.S. Survey 3465 from Public Facilities/Owner-ship to Urban Residential (Chapter 17.205 KIBC). The intent of this request is to facilitate a rezone to accommodate subdividing the portion to create up to 5 lots for listing in a future Borough land sale. LOCATION: 593 Island Lake Road ZONING: PL -Public Use Lands This notice is being sent to you because our records indicate you are a property owner/interested party in the area of the request. If you do not wish to testify verbally, you may provide your comments in the space below or in a letter to the Community Development Department. Written comments must be received by 5 am. Tuesdav, .lune 28, 2016 to be considercd by the commission. If you would like to fax your comments to us, our fax number is: (907) 486-9396, or you may email your comments to ssmithnkodiakak.us. If you would like to testify via telephone, please call in your comments during the appropriate public hearing section of the meeting. The local call-in telephone number is 486-3231. The toll free telephone number is 1-855492-9202. One week prior to the regular meeting, on Wednesday, July 6, 2016, a work session will be held at 6:30 p.m. in the Kodiak Island Borough Conference Room (#121), to review the packet material for the case. Kodiak Island Borough Code provides you with specific appeal rights if you disagree with the Commission's decision on this request. If you have any questions about the request or your appeal rights, please feel free to call us at 486.9363. Your Name: Mailing Address: Your property description: Comments: Case No 16-030 Public Comment Package Ordinances Amending the 2008 Comprehensive Plan By Changing Pagel 14Off4o -EM #9.a. PUBLIC HEARING ITEM 7-N P a Z REGULAR MEETING'. JULY 13, 2016 Case 16-030 Request a Comprehensive Plan Amendment to change the Location Future Land Use Designation of a ± 1 acre portion of Lot 593 Island Lake Road 1A-4, U.S. Survey 3465 from Public Facilities/Owner-ship Applicant to Urban Residential (Chapter 17.205 KIBC). The intent Kodiak Island Borough of this request is to facilitate a rezone to accommodate subdividing the portion to create up to 5 lots for listing in a future Borough land sale. 9 p � azar 4a`y. ".,,Ua pry PQ. 4q r7 �' hrz AV�3p'v� daa � V4e'DP 4 „OP pJ1]oP AP2 .t3B] � : m' azez �C '14 `} o n ^O ^� �O Or ilep P ah � 313 314 3160A F A roximate Location °a6 ^"•P 1" P PP riti nary _ No. We, M lslany ar? 'a 4ag au .P CakaR�tl^sro ss ^ry0 Ad+ � PP Is 9b I M1� � le q "ry 1 P 'PP 5 3 en ao 'S' `ti GI °P Q" Ap _GaR mkv � P zaaa l2 S°e pP Cave Mo. A ff�v, 101 ^P ba 54J j P Legend Feat 0 Subject Parcel w 0 Notification Area Kodlak Island Borough GIS Community Development Department =__= Access Roads he,'//av .dakak. uslgis (W7) 4W.9337 no map is Vended for Informational purposes only and is not Impeded for any legal ropersenlallons. 1 Unconstmdad Right of Ways dj Public Hearing Notice 0 245 490 98g L Case No. 16-030 Public Comment Package Ordinances Amending the 2008 Comprehensive Plan By Changing ... Pagel JAG6f404-EM O.A. Ordinances Amending the 2008 Comprehensive Plan By Changing ... PUBLIC HEARING ITEM 7-N P 8 Z REGULAR MEETING: JULY 13, 2016 Flrst_name last—name Mall_Une_ Mail _City Mail_5tat Mail—Zip WAYNE ABOUSSLEMAN 420 SHAHAFKA CIRCLE KODIAK AK 99615 ALAGNAK INC P.O. BOX 1275 KODIAK AK 99615 BRENT ARNDT P O BOX 1066 KODIAK AK 99615 DONALD ARNDT PO BOX 1066 KODIAK AK 99615 LORNA LEE ARNDT LIVING TRUST P O BOX 2069 KODIAK AK 99615 DANIEL BEEHLER 2376 MISSION RD KODIAK AK 99615 DOUGLAS BUNTING PO BOX 2114 KODIAK AK 99615 KELSEY CHATSKI 20607 CRABTREE ST CHUGIAK AK 99567 JAMES COLE 3946 STJOHNS AVE JACKSONVILLE FL 32205 MELINDA CORTEZ P.O. BOX 8605 KODIAK AK 99615 MARTIN EATON PO BOX 2609 KODIAK AK 99615 ELKS LODGE #1772 PO BOX 846 KODIAK AK 99615 CARL ERICKSON 2943 COVE DR KODIAK AK 99615 DARRIN EVANS EfAL 646 ISLAND LAKE RD KODIAK AK 99615 NATHAN FABER, DMD,PC 413 E. REZANOF DR KODIAK AK 99615 DUNCAN FIELDS PO BOX 25 KODIAK AK 99615 DEREK FOSTER 599 TOMALES RD PETALUMA CA 94952 RONALD FRIED 2020 ECLIPSE ST RAPID CITY SD 57763 AARON GRIFFIN 483 SHAHAFKA CIR KODIAK AK 99615 MICHAEL HERTER 490 SHAHAFKA CIRCLE KODIAK AK. 99615 JDA ENTERPRISES, LLC 3017 RAVEN CIRCLE KODIAK AK 99615 KODIAK BIBLE CHAPEL OF KODIAK P.O. BOX 1245 KODIAK AK 99615 KODIAK ISLAND BOROUGH 710 MILL BAY RD KODIAK AK 99615 KODIAK VENTURES, INC. PO BOX 1066 KODIAK AK 99615 FRANK MILES PO BOX 2744 KODIAK AK 99615 SLIME ONO PO BOX 155 KODIAK AK 99615 FRANK PASTOR P.O. BOX 2873 KODIAK AK 99615 DOUGLAS PAYELLE PO BOX 8902 KODIAK AK 99615 RICHARD POWELL 2540 E HARMON AVE LAS VEGAS NV 89121 ADAM T POWERS P O BOX 8978 KODIAK AK 99615 CHRISTOPHER PRUITT PO BOX 8507 KODIAK AK 99615 BENJAMIN REHMER PO BOX 446 KODIAK AK 99615 TED ROGERS 445 SHAHAFKA CIRCLE KODIAK AK 99615 MARK SCHREITER PO BOX 9006 KODIAK AK 99615 LESLIE SEATON 2920 COVE DR KODIAK AK 99615 GREG SPALINGER 610 ISLAND LAKE RD KODIAK AK 99615 SWANSON FAMILY TRUST P O BOX 2666 KODIAK AK 99615 THOMAS SWEENEY PO BOX 8891 KODIAK AK 99615 MICHAEL WELBORN P.O. BOX 634 KODIAK AK 99615 Case No. 16-030 Public Comment Package Ordinances Amending the 2008 Comprehensive Plan By Changing ... Page 11SW4,94-EM #s.a. PUBLIC HEARING ITEM 7-N P 8 Z REGULAR MEETING'. JULY 13, 2016 Sheila Smith From: JACKIE HERTER <jackie.herter@ak.net> Sent: Tuesday, June 28, 2016 1:22 PM To: Sheila Smith Subject: No Subject June 27. 2016 Kodiak Island Borough Community Development Department Re Cases 16-029,16-030 8 16-031 As a property co-owner of Lot 2A, a major selling point in 1994 was the fact we were near Public Use land. In Case 16-029, 1 request consideration be given to 4 lots instead of 5 to preserve more trees and lot separation on sides and backs of the 3 lots fronting Island Lake Road. Or, if you want to get rid of Public Use, for whatever zoning you choose, just divide the 5 lots as evenly as possible with a stream running through. With larger lots, the property tax revenue would be higher from the type of homes built on the newly -created lots. In Case 16-030, you mention the zoning change to Urban Residential, is that the same as 17.100 UNC? Do the four small lots along Island Lake Road comply with the size and setback requirements of this code section? In Case 16-031, you mention change to R2, is this in lieu of Case 16-030 or just for the largest of the 5lots depicted? In your planning for development of the Island, please remember that trees provide aesthetics, reduced noise, shelter to deer and rabbits, and erosion control needed from previous upstream lot development. Sincerely, Jackie Herter 490 Shahafka Circle 1 Case No. 16-030 Public Comment Package Ordinances Amending the 2008 Comprehensive Plan By Changing ... Page 11"f4047EM N.A. Draft Kodiak Island Borough Planning and Zoning Commission Regular Meeting Minutes Applicable to Case No. 16-030 July 13, 2016 Regular Meeting 6:30 pm -Borough Assembly Chambers CALL TO ORDER CHAIR ARNDT called to order the July 13, 2016 regular meeting of the Planning & Zoning Commission at 6:30 p.m. PLEDGE OF ALLEGIANCE CHAIR ARNDT led the pledge of allegiance. ROLL CALL Commissioners present were Scott Arndt, Jay Baldwin, Barry Altenhof, Maria Painter, Alan Schmitt, and Greg Spalinger. A quorum was established. Community Development Department staff present was Sara Mason, Sheila Smith, Jack Maker, and Bob Pederson. APPROVAL OF AGENDA COMMISSIONER SPALINGER MOVED to approve the agenda. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY APPROVAL OF MINUTES COMMISSIONER BALDWIN MOVED to approve the May 18, 2016 regular meeting minutes. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY CITIZENS' COMMENTS (Limited to three minutes per speaker) Caller on the line but the phone system disconnected the call once answered. PUBLIC HEARINGS Limited to three minutes per speaker. Local telephone number is 486-3231; Toll Free is 1-855- 492-9202. N. CASE 16-030. Request a Comprehensive Plan Amendment to change the Future Land Use Designation of a ± 1 acre portion of Lot 1A-4, U.S. Survey 3465 from Public Facilities/Owner-ship to Urban Residential (Chapter 17.205 KIBC). The intent of this request is to facilitate a rezone to accommodate subdividing the portion to create up to 5 lots for listing in a future Borough land sale. The applicant is the Kodiak Island Borough and the agent is the KIB Resource Management Officer. The location is 593 Island Lake Road and the zoning is PL -Public Use Lands. Kodiak Island Borough Planning & Zoning Commission Minutes July 13, 2016 Page 1 Ordinances Amending the 2008 Comprehensive Plan By Changing ... Page 11,64W4047EM #s -A. COMMISSIONER SPALINGER MOVED to recommend that the Kodiak Island Borough Assembly approve the Comprehensive Plan amendment to change the Future Land Use Designation of a t 1 acre portion of Lot 1A-4, U.S. Survey 3465 from Public Facilities/Ownership to Urban Residential (KIBC 17.205) and to adopt the findings of fad listed in the staff report entered into the record for this case as "Findings of Fad" for Case No. 16-030. Maker stated this request is for the same + one acre portion. The intent is to change the future land use designation to Urban Residential to accommodate a rezone to R2. Staff recommends approval. Open Public Hearing: Duane Dvorak, Resource Management Officer, stated he concurs with staff's recommendation. At looking at the pattern of zoning, R2 seemed like the best option for the application. It allows the possibility of duplex and single-family residential. It was the Lands Committee to not only make land available but to allow for the greatest number of dwelling units to be developed as well. Don Swanson spoke in opposition to R3 and stated R2 is fine. Urban Residential opens that door to the potential of R3. If you want to close that door, restrict it to R2. There was another lot that was restricted to R1 under the same scenario. It's an opportunity to restrict a multi -unit from going in there if someone were to buy two lots, subdivide it into one lot, and now they have one big lot to put an R3 in. Swanson requested someone tell him what SRO means. Duane Dvorak stated SRO is Single Residential Occupancy that would be a building with at least eleven rooming units, minimal parking requirements. This is really a specially zone for low income affordable housing, transient housing, or worker housing type things. It is a residential use as opposed to a hotel or motel. Don Swanson requested the commission limit it to no more than R2 Brief discussion FINDINGS OF FACT 1. Developable residential lots are a known need throughout the Borough. 2. The site is adjacent to properties with a Future Land Use Designation of Urban Residential. 3. The site is of sufficient area to be subdivided into as many as five lots that would be capable of providing suitable residential building sites. 4. The amendment is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 5. The amendment is necessary to allow for a subsequent rezone from PL -Public Use Lands to R2 -Two-family Residential. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this Comprehensive Plan amendment. ROLL CALL VOTE CARRIED UNANIMOUSLY Kodiak Island Borough Planning & Zoning Commission Minutes July 13, 2016 Page 2 Ordinances Amending the 2008 Comprehensive Plan By Changing ... July 20, 2016 Page 11"fV"47Em #s.A. Kodiak Island Borough Community Development Department 710 Mill Bay Road Kodiak, Alaska 99615 Phone(907)486-9363 Fax(907)496-9396 www.kodiakak.us Mr. Duane Dvorak, Resource Management Officer Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Re: Case 16.030. Request for a Comprehensive Plan Amendment to change the Future Land Use Designation of a t 1 acre portion of Lot 1A-4, U.S. Survey 3465 from Public Facilities/Owner-ship to Urban Residential (Chapter 17.205 KIBC). The intent of this request is to facilitate a rezone to accommodate subdividing the portion to create up to 5 lots for listing in a future Borough land sale. Dear Mr. Dvorak: The Kodiak Island Borough Planning & Zoning Commission, at their meeting on July 13, 2016, moved to forward the request cited above, recommending approval, to the Borough Assembly. Please contact the Borough Clerk's Office at 486.9310 for Information on when your case will be scheduled for a first reading and public hearing before the Assembly. According to KIBC 17.205.055 (Submission to assembly) of the Borough Cade slates: A. Within thirty days after the planning commission has acted favorably upon a proposed zoning change in accordance with the above provisions, a report with recommendations shall be submitted to the assembly together with the proposed ordinance. Such recommendations of the planning commission shall be advisory only and shall not be binding upon the assembly. When an ordinance has been forwarded to the borough assembly, the assembly shall act in accordance with this chapter and notice shall be issued as provided in Section 17.205.070, by the borough clerk. B. If the planning commission recommends denial of any proposed amendment, its action shall be final unless the initiating parry, within ten days, files a written statement with the clerk requesting that the commission's action be taken up by the borough assembly. The commission adopted the following findings of fact in support of their recommendation to the assembly: FINDINGS OF FACT 1. Developable residential lots are a known need throughout the Borough. 2. The site is adjacent to properties with a Future Land Use Designation of Urban Residential. Ordinances Amending the 2008 Comprehensive Plan By Changing Page 11413§f4 4 -EM N.A. 3. The site is of sufficient area to be subdivided into as many as five lots that would be capable of providing suitable residential building sites. 4. The amendment is consistent with, and will further Implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 5. The amendment Is necessary to allow for a subsequent rezone from PL -Public Use Lands to R2-Two-famlly Residential. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this Comprehensive Plan amendment. Should this Comprehensive Plan Amendment be approved by the Kodiak Island Borough Assembly, you will still need to obtain permits for any construction activities. If you have any questions about the action of the commission, please contact the Community Development Department at 486-9363. Sincere , Sara Mason, Director Community Development Department CC: Nova Javier, Borough Clerk Planning 8 Zoning Commission Ordinances Amending the 2008 Comprehensive Plan By Changing ... TITLE: Page 11AG§j►"4_EM #s.B. KODIAK ISLAND BOROUGH AGENDA STATEMENT SEPTEMBER 15. 2016 ASSEMBLY REGULAR MEETING `4 K Ordinances Rezoning The Following Borough Owned Lands From PL -Public Use Lands District to R1 -Single -Family Residential District, R2 -Two -Family Residential District, Or RR1-Rural Residential One District: • Ordinance No. FY2017-06, Lot 7A, Block 2, Monashka Bay Subdivision From PL -Public Use Lands District To RR1-Rural Residential One District (P&Z Case No. 16-025). • Ordinance No. FY2017-08, Lot 5, Block 5, Monashka Bay Subdivision From PL -Public Use Lands District To RR1-Rural Residential One District (P&Z Case No. 16-034). • Ordinance No. FY2017-10, Rezoning A t 20,000 Square Foot Portion Of Lot 29, U.S. Survey 3099 From PL -Public Use Lands District To R2 -Two - Family Residential District (P&Z Case No. 16-037). • Ordinance No. FY2017-14, A t 1 Acre Portion of Lot 1A-4, U.S. Survey 3465 From PL -Public Use Lands District To 132 -Two-family Residential District (P&Z Case No. 16-031). ORIGINATOR: Jack Maker FISCAL IMPACT: Account Number: SUMMARY STATEMENT: FUNDS AVAILABLE: Amount Budgeted: For efficiency, Ordinance Nos. FY2017-06, FY2017-08, FY2017-10, And FY2017-14 were lumped together as one item. Several parcels identified by resolution as surplus to the public's need do not currently have zoning designations that allow for residential development. Rezoning these parcels from PL - Public Use Lands to a residential zoning district appropriate to the area where each parcel is located will ensure that future site development is consistent with the character of the surrounding neighborhood. Staff will be presenting one staff report and there will be one recommended motion. The Assembly will have the flexibility to process each ordinance as a stand alone item by using the incidental motion DIVISION OF QUESTION. RECOMMENDED MOTION: Move to adopt Ordinance Nos. FY2017-06, FY2017-08, FY2017-10, And FY2017-14. After discussion, the Assembly may divide the question (motion). The process to divide the question is as follows: Recommended motion: Move that the motion be divided and consider (each ordinance or Ordinance No. FY2017-XX separately). Kodiak Island Borough Ordinances Rezoning The Following Borough Owned Lands From P Page 11AQ§fV01tEM O.B. KODIAK ISLAND BOROUGH AGENDA STATEMENT SEPTEMBER 15, 2016 ASSEMBLY REGULAR MEETING �61f The Chair will restate the motion and ask for any objection. • If the question is divided, the "separated" ordinance is treated as a separate motion, discuss, and vote. The chair will state that the second motion is on the floor (the remaining ordinances), discuss, and vote. Kodiak Island Borough Ordinances Rezoning The Following Borough Owned Lands From P... Page 12"WitEm #s.a. KODIAK ISLAND BOROUGH AGENDA STATEMENT SEPTEMBER 15. 2016 ,., ASSEMBLY REGULAR MEETING TITLE: Ordinance No. FY2017-06 Rezoning Lot 7A, Block 2, Monashka Bay Subdivision From PL -Public Use Lands District To RR1-Rural Residential One District (P&Z Case No. 16-025). ORIGINATOR: Sara Mason FISCAL IMPACT: No Account Number: SUMMARY STATEMENT: FUNDS AVAILABLE: Amount Budgeted: This rezone request was recommended by the Borough Lands Committee and initiated by the Borough Assembly in conjunction with P&Z Case No. 16-023 (land disposal) and P&Z Case No. 16-024 (comprehensive plan amendment). On September 2, 2016 the Clerk's office mailed out 18 public hearing notices. The Planning and Zoning Commission held a public hearing on this rezone request at their July 13, 2016 regular meeting. The Commission voted unanimously to recommend that the Assembly approve this rezone. RECOMMENDED MOTION: Kodiak Island Borough Ordinances Rezoning The Following Borough Owned Lands From P... 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Page 12,10W404 -Em #s.a. Introduced by: Borough Assembly Requested by: KIB Lands Committee Drafted by: CDD Introduced: 0910112016 Public Hearing: 0911512016 Adopted: KODIAK ISLAND BOROUGH ORDINANCE NO. FY2017-06 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH REZONING LOT 7A, BLOCK 2, MONASHKA BAY SUBDIVISION FROM PL -PUBLIC USE LANDS DISTRICT TO RR1- RURAL RESIDENTIAL ONE DISTRICT (PBZ CASE NO. 16-026) WHEREAS, as a second class borough, the Kodiak Island Borough exercises planning, platting, and land use regulations on an area wide basis pursuant to Chapter 29.40 Alaska Statutes; and WHEREAS, in accordance with AS 29.40, the Kodiak Island Borough adopted the 2008 Comprehensive Plan update on December 6, 2007 (Ordinance No. FY2008-10) to replace the 1968 Comprehensive Plan; and WHEREAS, the Kodiak Island Borough has adopted KIBC Title 17 (Zoning) in accordance with AS 29.40 to implement the Kodiak Island Borough Comprehensive Plan; and WHEREAS, KIBC 17.205.010 provides that "Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts"; and WHEREAS, The Borough Lands Committee recommended and the Borough Assembly initiated a rezone of Lot 7A, Block 2, Monashka Bay Subdivision from PL -Public Use Lands District to RR1-Rural Residential One District; and WHEREAS, at an advertised public hearing, consistent with Kodiak Island Borough Code 17.205.040, the Planning and Zoning Commission considered the merits of the rezone request; and WHEREAS, the Commission voted to recommend to the Borough Assembly that the site be rezoned from PL -Public Use Lands District to RR1-Rural Residential One District finding that the public necessity, convenience, general welfare, and good zoning practice would be enhanced by such action; and WHEREAS, the Commission hereby recommends that this rezone be reviewed and approved by the Borough Assembly. Kodiak Island Borough, Alaska Ordinance No. FY2017-06 Page 1 of 2 Ordinances Rezoning The Following Borough Owned Lands From P... 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 Page 12RG§I►494-EM O.B. 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: Lot 7A, Block 2, Monashka Bay Subdivision is hereby rezoned from PL - Public Use Lands District to RR1-Rural Residential One District. Section 3: By this ordinance, the Borough Assembly adopts the following findings of fact in support of their approval of this rezone. 1. Developable residential lots are a known need throughough the Borough. 2. The subject parcel is adjacent to RR1-Rural Residential One zoned land and uses. 3. The subject parcel is of sufficient area and is capable of providing suitable rural residential building sites. 4. The rezone is consistent with the adopted 2008 Comprehensive Plan Rural Residential Future Land Use Designation per Case No. 16-024. 5. The rezone is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this rezone. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2016 ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Ordinances Rezoning The Following Borough Owned Lands From P... KODIAK ISLAND BOROUGH Jerrol Friend, Borough Mayor Ordinance No. FY2017-06 Page 2 of 2 Page 12AW404-EM N.B. Kodiak Island Borough u{yt+ u Office of the Borough Clerk 710 Mill Bay Road Kodiak, Alaska 99615 ' Plione (907) 486-9310 Fax(907)486-9391 clerksnkodiakak.us ki WIi0113e7 7�1 [ala _1 T(kLH A public hearing will be held on Thursday. September 15. 2016, at 6:30 p.m. in the Borough Assembly Chambers, 710 Mill Bay Road, Kodiak, Alaska before the Kodiak Island Borough Assembly to hear comments on: Ordinance No. FY2017-06, Lot 7A, Block 2, Monashka Bay Subdivision From PL -Public Use Lands District To RR1-Rural Residential One District (P&Z Case No. 16-025). If you do not wish to testify verbally, you may provide your comments on the attached public hearing form and fax it to (907) 486-9391, email to clerksCcDkodiakak.us, or hand deliver to the Borough Clerk's Office, 710 Mill Bay Road, Room 234, Kodiak, AK 99615 prior to 3 p.m. on September 15, 2016. Comments favoring and opposing are encouraged. If you have any questions, please call 486-9310. Attachments: • Map • Public hearing form • Ordinance No. FY2017-06 Ordinances Rezoning The Following Borough Owned Lands From P Page 124000 "Em O.B. Ordinance No. FY2017-06, Lot 7A, Block 2, Monashka Bay Subdivision From PL -Public Use Lands District To RR1-Rural Residential One District (P&Z Case No. 16-025). llri r � p6� , r a a ' • a �, � , - � w Baaver{y�, J � I'S• I P w D 0 �•� Legend Subject Parcel i Zoning Legend 0 Public Use Lands Q Rural Residential 1 0 Mold Family Residential - Light Industrial © watershed ® Rural Residential 2 Business Rural Neighborhood Commercial 0 Conservation 0 Single Family Residential 0 Retail Business - Urban Neighborhood Commercial 0 Rural Residential Q Two Family Residential Industrial Q Natural Use Ordinances Rezoning The Following Borough Owned Lands From P... Page 12RW4047Em #9. B. PUBLIC HEARING FORM Ordinance No. FY2017-06, Lot 7A, Block 2, Monashka Bay Subdivision From PL -Public Use Lands District To RR1-Rural Residential One District (P&Z Case No. 16-025). ❑ This is in support of changing the future land use designation. ❑ This is in opposition of changing the future land use designation. ❑ Other comments. Name: Residence Address: Mailing Address: Comments: Written comments may be submitted by email to clerks(o kodiakak.us, faxed to 907-486-9391, mailed or hand delivered to the Borough Clerk's Office, 710 Mill Bay Road, Room 234, Kodiak, AK 99615 prior to 3 p.m. on Thursday. September 15, 2016. Ordinances Rezoning The Following Borough Owned Lands From P... 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Page 12b3004 -Em #9.a. Introduced by: Borough Assembly Requested by: KIB Lands Committee Drafted by: CDD Introduced: 09101/2016 Public Hearing: 09/15/2016 Adopted: KODIAK ISLAND BOROUGH ORDINANCE NO. FY2017-06 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH REZONING LOT 7A, BLOCK 2, MONASHKA BAY SUBDIVISION FROM PL -PUBLIC USE LANDS DISTRICT TO RR1- RURAL RESIDENTIAL ONE DISTRICT (PBZ CASE NO. 16-025) WHEREAS, as a second class borough, the Kodiak Island Borough exercises planning, platting, and land use regulations on an area wide basis pursuant to Chapter 29.40 Alaska Statutes; and WHEREAS, in accordance with AS 29.40, the Kodiak Island Borough adopted the 2008 Comprehensive Plan update on December 6, 2007 (Ordinance No. FY2008-10) to replace the 1968 Comprehensive Plan; and WHEREAS, the Kodiak Island Borough has adopted KIBC Tittle 17 (Zoning) in accordance with AS 29.40 to implement the Kodiak Island Borough Comprehensive Plan; and WHEREAS, KIBC 17.205.010 provides that "Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts"; and WHEREAS, The Borough Lands Committee recommended and the Borough Assembly initiated a rezone of Lot 7A, Block 2, Monashka Bay Subdivision from PL -Public Use Lands District to RR1-Rural Residential One District; and WHEREAS, at an advertised public hearing, consistent with Kodiak Island Borough Code 17.205.040, the Planning and Zoning Commission considered the merits of the rezone request; and WHEREAS, the Commission voted to recommend to the Borough Assembly that the site be rezoned from PL -Public Use Lands District to RR1-Rural Residential One District finding that the public necessity, convenience, general welfare, and good zoning practice would be enhanced by such action; and WHEREAS, the Commission hereby recommends that this rezone be reviewed and approved by the Borough Assembly. Kodiak Island Borough, Alaska Ordinance No. FY2017-06 Page 1 of 2 Ordinances Rezoning The Following Borough Owned Lands From P 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 Page 12460404 -Em O.B. 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: Lot 7A, Block 2, Monashka Bay Subdivision is hereby rezoned from PL - Public Use Lands District to RR1-Rural Residential One District. Section 3: By this ordinance, the Borough Assembly adopts the following findings of fact in support of their approval of this rezone. 1. Developable residential lots are a known need throughough the Borough. 2. The subject parcel is adjacent to RR1-Rural Residential One zoned land and uses. 3. The subject parcel is of sufficient area and is capable of providing suitable rural residential building sites. 4. The rezone is consistent with the adopted 2008 Comprehensive Plan Rural Residential Future Land Use Designation per Case No. 16-024. 5. The rezone is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this rezone. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2016 ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Ordinances Rezoning The Following Borough Owned Lands From P... KODIAK ISLAND BOROUGH Jerrol Friend, Borough Mayor Ordinance No. FY2017-06 Page 2 of 2 first—name JOSEPH RONALD STEPHEN C BRAXTON THOMAS WILLIAM HENRY MARY GUILAS ERIC SEAN SHANNA RICHARD BARRY & ERICKA JAMES WILLIAM H SHAWN LESLIE last—name BLACK CHASE COEN ETAL CUMMINGS LIVINGTRUST DEW ETAL FINN FULTON HAGEMEYER ETAL HAWVER KODIAK ISLAND BOROUGH MUNK RAUWOLF ROCKENBACH SALTONSTALL SCHAUFF STREET UNANGST VAINIO ZELOOF Mail_Une_ PO BOX 1912 P.O. BOX 416 P.O. BOX 3269 3265 BAY VIEW DR 3233 BAY VIEW DR PO BOX 8506 PO BOX 8837 PO BOX 187 PO BOX 2018 710 MILL BAY RD P.O. BOX 2940 3571 PATRICK COURT PO BOX 325 1637 THREE SISTERS WAY 316 CENTER STREET P.O. BOX 8881 182 LEVEL ROAD PO BOX 8508 P O BOX 2728 Ordinances Rezoning The Following Borough Owned Lands From P... Page 12AP00 -Em #s.e. Mall _City KODIAK KODIAK KODIAK KODIAK KODIAK KODIAK KODIAK NOME KODIAK KODIAK KODIAK KODIAK KODIAK KODIAK KODIAK KODIAK COLLEGEVILLE KODIAK KODIAK Mall—Stat Mail_ZIp AK 99615 AK 99615 AK 99615 AK 99615 AK 99615 AK 99615 AK 99615 AK 99762 AK 99615 AK 99615 AK 99615 AK 99615 AK 99615 AK 99615 AK 99615 AK 99615 PA 19426 AK 99615 AK 99615 Page 12S -4N"4 -EM #9. B. PUBLIC HEARING ITEM 7.1 P & Z REGULAR MEETING: JULY 13, 2016 N KIB Location & Zoning Map I W L S \I Legend QSubject Parcel Zoning Legend F -' Public Use Lands 0 Rural Residential 1 0 Multi Family Residential Light Industrial watershed Rural Residential 2 0 Business Rural Neighborhood Commercial Conservation Single Family Residential 0 Retail Business Urban Neighborhood Commercial Rural Residential [- ] Two Family Residential Industrial Natural Use Kodiak island Borough GIS Community Development Department guess Roads htip:Hvnsw.kodiakak.us/gis (9071 486-9337 Tae meg is po drd lar hon.,11onal pumosos anly end is nouNontlod for bpelraprasenlNiaa.. Unwnstrutlad Right of Waya Case No. 16-0251ntroluclion Ordinances Rezoning The Following Borough Owned Lands From P... Image Overl one of Lot 7A, Block 2, Monashka Case No. 16-025 Bay Subdivision from PL -Public Use Lands District Applicant: Kodiak Island Borough to RR1-Rural Residential One District (Chapter 17.205 KIBC). j r .41 2 N. aj ' z /. © % ' Y D a f l Vl '14W Page 13104WitEm O.B. o PUBLIC HEARING ITEM 7.1 P & 2 REGULAR MEETING: JULY 13, 2016 Y Vl t " O + i ALASKA STAFF REPORT AND RECOMMENDATION DATE: June 28, 2016 TO: Planning and Zoning Commission FROM: Community Development Department SUBJECT: Staff Report and Recommendation CASE: 16-025 APPLICANT: Kodiak Island Borough LOCATION: 3116 Bay View Drive LEGAL DSC: Lot 7A, Block 2, Monashka Bay Subdivision ZONING: PL -Public Use Lands District FUTURE LAND USE DESIGNATION: Public Facilities/Ownership NOTICE: Nineteen (19) public hearing notices were mailed on June 9, 2016. Zero (0) public hearing notices were returned as of the date this report was prepared. SITE VISIT: None 1. Zoning History: + Zoned Service Recreation by the 1968 Metropolitan Zoning Map • Zoned PL -Public Use Lands by Ordinance No. 83-30-0 2. Site Size: 3.25 acres 3. Existing Land Use: Vacant 4. Surrounding Land Use and Zoning: All other lots in the area are zoned RR1-Rural Residential One and most are occupied with single family homes 5. Comprehensive Plan: + Designated Public and Open Space by the 1968 Comprehensive Plan • Designated Public Facilities/Ownership by the 2008 Comprehensive Plan 6. Aoolicable Comprehensive Plan Future Land Use Designations: Public Facilities: This designation is intended for public facilities such as water or wastewater treatment facilities, police or fire stations and other public facilities, not including parks and recreation facilities. Rural Residential: This designation allows for residential development at rural densities where municipal water and sewer treatment facilities are not available. Such development must occur on larger lots and would include uses allowed in the RR, RR1, and RR2 zones. 7. Aoolicable Regulations: The following sections of Title 17 (Zoning) of the Borough Code are applicable to this request: 17.10.020 Reference and use (Comprehensive Plan). In accordance with Alaska Statutes, zoning decisions shall be based upon the recommendations contained in the comprehensive plan. Case No. 16-025 Staff Report and Recommendation Ordinances Rezoning The Following Borough Owned Lands From P 17.205.010 Authority (Amendments and chances). Page 131404 -Em O.B. PUBLIC HEARING ITEM 7-1 P & Z REGULAR MEETING: JULY 13, 2016 Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts. 17.205.020_ Report from planning and zoning commission (Amendments and chances) The commission shall report in writing to the assembly on any proposed change or amendment regardless of the manner in which such change is initiated and such report shall find: A. Findings as to need and justification for a change or amendments; B. Findings as to the effect a change or amendment would have on the objectives of the comprehensive plan; and C. Recommendations as to the approval or disapproval of the change or amendment. 17.205.055 Submission to assembly (Amendments and chances) A. Within 30 days after the commission has acted favorably upon a proposed zoning change in accordance with the above provisions; a report with recommendations shall be submitted to the assembly together with the proposed ordinance. Such recommendations of the commission shall be advisory only and shall not be binding upon the assembly. When an ordinance has been forwarded to the assembly, the assembly shall act in accordance with this chapter, and notice shall be issued as provided in KIBC 17.205.070 by the clerk. B. If the commission recommends denial of any proposed amendment; its action shall be final unless the initiating party, within 10 days, files a written statement with the clerk requesting that the commission's action be taken up by the assembly. STAFF ANALYSIS This is the request to rezone the lot from PL -Public Use Lands to RR1-Rural Residential One that is referred to in the land disposal staff report for the same parcel. The criteria provided in the preceding Comprehensive Plan Amendment staff analysis (Case No. 16-024) also apply to this rezone request. 'ierkN7fltllmT.1 Staff analysis shows that the rezone is consistent with the objectives of the adopted Comprehensive Plan and satisfies the requirements of Title 17 of the Kodiak Island Borough Code for amendments and changes. RECOMMENDATION Staff recommends that the Commission forward this rezone request to the Kodiak Island Borough Assembly with a recommendation for approval. APPROPRIATE MOTION Should the Commission agree with the staff recommendation, the appropriate motion is: Move to recommend that the Kodiak Island Borough Assembly approve the rezone of Lot 7A, Block 2, Monashka Bay Subdivision from PL -Public Use Lands to RR1-Rural Residential One (KIBC 17.205) and to adopt the findings of fact listed in the staff report entered into the record for this case as "Findings of Fact" for Case No. 16-025. Case No. 16025 Staff Report and Recommendation Ordinances Rezoning The Following Borough Owned Lands From P... Page 13@r4f449JteM #s.e. yPN0 ,eogg6PUBLIC HEARING ITEM 7-1 P & Z REGULAR MEETING: JULY 13, 2016 0'i 4LASKA FINDINGS OF FACT (KIBC 17.205.020.A -C) 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to RR1-Rural Residential One zoned land and uses. 3. The subject parcel is of sufficient area and is capable of providing suitable rural residential building sites. 4. The rezone is consistent with the adopted 2008 Comprehensive Plan Rural Residential Future Land Use Designation per Case No. 16-024. 5. The rezone is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this rezone. Case No. 16-025 Staff Report and Recommendation Ordinances Rezoning The Following Borough Owned Lands From P... 7 8 9 10 Il 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Page 131WV04-EM O.B. PUBLIC HEARING ITEM 7-1 P & Z REGULAR MEETING: JULY 13, 2016 Introduced by: Borough Assembly Requested by: KIB Lands Committee Drafted by: CDD Introduced: xx/xx/xxxx Public Hearing: xx/xx/xxxx Adopted: xx/xx/xxxx KODIAK ISLAND BOROUGH ORDINANCE NO. FY2017-xx AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH REZONING LOT 7A, BLOCK 2, MONASHKA BAY SUBDIVISION FROM PL -PUBLIC USE LANDS DISTRICT TO RR1- RURAL RESIDENTIAL ONE DISTRICT (P&Z CASE NO. 16-025) WHEREAS, as a second class borough, the Kodiak Island Borough exercises planning, platting, and land use regulations on an area wide basis pursuant to Chapter 29.40 Alaska Statutes; and WHEREAS, in accordance with AS 29.40, the Kodiak Island Borough adopted the 2008 Comprehensive Plan update on December 6, 2007 (Ordinance No. FY2008-10) to replace the 1968 Comprehensive Plan; and WHEREAS, the Kodiak Island Borough has adopted KIBC Title 17 (Zoning) in accordance with AS 29.40 to implement the Kodiak Island Borough Comprehensive Plan; and WHEREAS, KIBC 17.205.010 provides that "Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts"; and WHEREAS, The Borough Lands Committee recommended and the Borough Assembly initiated a rezone of Lot 7A, Block 2, Monashka Bay Subdivision from PL -Public Use Lands District to RR1-Rural Residential One District; and WHEREAS, at an advertised public hearing, consistent with Kodiak Island Borough Code 17.205.040, the Planning and Zoning Commission considered the merits of the rezone request; and WHEREAS, the Commission voted to recommend to the Borough Assembly that the site be rezoned from PL -Public Use Lands District to RR1-Rural Residential One District finding that the public necessity, convenience, general welfare, and good zoning practice would be enhanced by such action; and WHEREAS, the Commission hereby recommends that this rezone be reviewed and approved by the Borough Assembly. Kodiak Island Borough, Alaska Ordinance No. FY2017-xx Case No. 16-025 Staff Report and Recommendation Page 1 of 2 Ordinances Rezoning The Following Borough Owned Lands From P... 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 Page 13604fVO4-Em O.B. PUBLIC HEARING ITEM 7-1 P 8 Z REGULAR MEETING: JULY 13, 2016 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 Cade of Ordinances. Section 2: Lot 7A, Block 2, Monashka Bay Subdivision is hereby rezoned from PL - Public Use Lands District to RR1-Rural Residential One District. Section 3: By this ordinance, the Borough Assembly adopts the following findings of fact in support of their approval of this rezone. 1. Developable residential lots are a known need throughough the Borough. 2. The subject parcel is adjacent to RR1-Rural Residential One zoned land and uses. 3. The subject parcel is of sufficient area and is capable of providing suitable rural residential building sites. 4. The rezone is consistent with the adopted 2008 Comprehensive Plan Rural Residential Future Land Use Designation per Case No. 16-024. 5. The rezone is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this rezone. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2016 KODIAK ISLAND BOROUGH Jerrol Friend, Borough Mayor ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Ordinance No. FY2017-xx Case No, 16-025 Staff Report and Recommendation Page 2 of 2 Ordinances Rezoning The Following Borough Owned Lands From P... Page I of 1 Page 13630404 -EM #aB- PUBLIC HEARING ITEM 7-1 P & 2 REGULAR MEETING'. JULY 13, 2016 Kodiak Island Borough OFFICE of the MANAGER 710 Mill Bay Road, Room 101 Kodiak, Alaska 99615 Phone (907) 486-9304 Fax (907) 486-9374 E-mail: dd,ml, o kodiakat 0 To: Planning & Zoning Commission Through: Community Development Department rn From: Duane Dvorak, Resource Management Officer � Date: June 23, 2016 ��1��/// Re: Cases 16-023, 16-024, 16-025, regarding the comprehensive plan designation, zoning status and request for disposal of Lot 7A, Block 2, Monashka Bay Subdivision Lot 7A has been recommended for disposal by the recently empancled Borough Lands Committee. That recommendation was reviewed and accepted by the assembly, who then authorized staff action to begin making the parcel ready for sale. Lot 7A is currently zoned PL -Public Use Land and designated for public use in the comprehensive plan. It is believed that the lot was originally reserved for some public purpose, but that purpose has never been made clear. At present the lot serves only as open space. The borough has no plans to make any recreation or institutional improvements at this site. Lot 7A is constrained by steep topography along the road frontage which may require substantial investment to gain vehicular access to a proper building site on the lot. In addition, the lower elevations show signs of being wetlands affected. Given that this is an area not served by municipal water and sewer, physical circumstances such as wet soils and steep slopes can be challenging matters to address. That said, the lot is 335 acres in size which should provide adequate compensation for its perceived challenges. The proposed zoning designation of RR I -Rural Residential One will allow for single-family residential development which will ensure that the development density is kept low. The surrounding lots are all zoned RRI as well, so that the zoning density and designation will be in keeping with other single-family residential lots in the area. Resource Management staff will plan on attending the packet review and regular meeting for these requests and would be happy to answer any questions at those limes. Casa No. 16-025 Application Package Ordinances Rezoning The Following Borough Owned Lands From P Page 13T00404 -EM O.B. PUBLIC HEARING ITEM 7-1 P & Z REGULAR MEETING'. JULY 13. 2016 Kodiak bland Borough Print Form Su6mh by Email CommDevelopment Department 710 IIIIIIIIIIIIIIII III III 710 Mill Bay Rd.Rm 205 Kodiak AK 99615 Ph. (907) 486 - 9362 Fax(907)486-9396 httoWwwwAodlakalLus PROP—ID 22104 Application for Rezone KIBC 17.205 i to -023 The following information is to be supplied by the Applicant - Property Owner/ Applicant: Kodiak Island Borough/Duane Dvorak Resource Management Officer Mailing Address: 710 Mill Bay Road, Room 101 Kodiak AK99615 Phone Number. 907-486.9304 Other Contact email, etc_ ddvorak@kodlakak.us Legal Description: Subdv: Monashka Bay Subdivision Block 2 Lot- 7A Street Address: 3116 Bay View Drive Current Zoning: Public Use K1BC 17.130 Proposed Zoning: RRl KIBC 17.70 Applicable Comprehensive Plan: A.Kodlak Island Comprehensive Plan Update2008 Explanation of the need &Justification for a change or amendment of zoning: There is a perceived need for additional land to be made available for development In the community. In particular, the recently formed Borough Lands Committee has been focused on identifying borough lands which are not currently needed for public purposes and which are not Identified in future plans for public use. Lot 5 as Identified in this request Is vacant land currently used for open space and which Is located adjacent to existing Rill -Rural Residential One zoned land. Continued on reverse Case No. 16-025 Application Package Ordinances Rezoning The Following Borough Owned Lands From P... Page 13@30404-£m O.B. Ordinances Rezoning The Following Borough OwGomm. PUBLIC HEARING ITEM 7-1 P & Z REGULAR MEETING: JULY 13. 2016 rt �/ \ 41 Lhz �ms#aa■asa 0 ! )■■mnn \§ ^ � � 2 • 0 n ! \ - �)«0Lj 9 :}%\f r}| SO H � ƒ! aL59 J% §m �k)))(!■� } ( 6 cS MWI �4)\k\\\\\Case \} { No. 16-025 Application Package Ordinances Rezoning The Following Borough OwGomm. Page 1394 -#4,94 -Em N.B. Ordinances Rezoning The Following acro ands FromE. PUBLIC HEARING ITEM 7-1 P & Z REGULAR MEETING JULY 13,2016 LLI ILA | 5 2 ) 0 2 2En 7 c � 0 n ! / { 2*; ) -�ƒ ;5 ! / }� Multi !}! )( / 2` \, m )( § b � !} } . Case No. 16-025 Application Package Ordinances Rezoning The Following acro ands FromE. Page 14t@cWv 4 -EM #9.6. PUBLIC HEARING ITEM 7-I P 8 Z REGULAR MEETING: JULY 13. 2016 AGENDA ITEM #13.19.1. Resolution No. FY2016-34 Accepting the Recommendation of the... Page 219 of 334 Case No. 16-025 Application Package Ordinances Rezoning The Following Borough Owned Lands From P... aa m4 La <!C 8 3F Y It Z mE pi� C110 E! ac z -ery c s ZZ Ua � i Q r €£ Z g o LL •� c A,. y iY N a<. Resolution No. FY2016-34 Accepting the Recommendation of the... Page 219 of 334 Case No. 16-025 Application Package Ordinances Rezoning The Following Borough Owned Lands From P... 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Page 141GOVOIrEM O.B. PUBLIC HEARING ITEM 7-1 P a Z REGULAR MEETING: JULY 13, 2016 Introduced by. Requested by Drafted by Introduced on. Adopted on KODIAK ISLAND BOROUGH RESOLUTION NO. FY2016.34 Borough Mayor Borough Mayor Resource Management Officer 05/192016 0511912016 A RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY ACCEPTING THE RECOMMENDATION OF THE BOROUGH LANDS COMMITTEE RECOMMENDING THE DISPOSAL OF CERTAIN BOROUGH LANDS AS SURPLUS TO THE PUBLIC'S NEED AND AUTHORIZING STAFF ACTION TO MAKE THE RECOMMENDED PARCELS READY TO BE SOLD AT A FUTURE LAND SALE WHEREAS, Kodiak Island Borough Code (KIBC) Chapter 2.160 provides for the duties and responsibilities of the Borough Lands Committee, to review land and land related issues within the Kodiak Island Borough and make appropriate recommendations to the assembly; and WHEREAS, since Its Initial meeting on December 16, 2015, the committee has been reviewing borough lands with a priorit of identifying borough lands with residential development potential that may be surplus to the public's need and which may be included in a future land sale; and, WHEREAS, the committee, on April 20, 2016, adopted Borough Lands Committee Resolution No. FY2016-01 identifying thirteen prospective parcels of land with residential development potential that may be found to be surplus to the public's need; and, WHEREAS, many of the parcels identified for disposal will require additional staff work, Planning and Zoning Commission review, or surveying and platting in order to be made sale ready; and, WHEREAS, in the interest of targeting a land sale for Fall 2016, it is imperative that the assembly acknowledge the recommended parcels for disposal and authorize staff to begin the work of preparing those identified parcels for future disposal and development. WHEREAS, it should be noted that not all the lands identified by the committee resolution for disposal require further disposal approval by the assembly, some having been previously approved for disposal and then withdrawn from sale by the assembly; and, WHEREAS, the committee has re-evaluated those parcels and found adequate potential for residential development that should be sufficient to justify disposal this time around given the need in the community for new residential development. Kodiak Island Borough, Alaska Case No. 16-025 Application Package Ordinances Rezoning The Following Borough Owned Lands From P... Resolution No. FY2016.34 Page 1 of 2 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 Page 14fcff4O -Em O.B. PUBLIC HEARING ITEM 7-1 P 8 Z REGULAR MEETING: JULY 13, 2016 NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: The Kodiak Island Borough Lands Committee, in accordance with KIBC Chapter 2.160, recommends disposal of the borough's interest in the following thirteen (13) proposed parcels of land comprising about 12.7 acres of property described in the attached exhibit as: 1. East Addition, Block 38, Lot 2 2. East Addition, Block 38, Lot 3 3. Monashka Bay Sub., Block 2, Lot 7A 4. Proposed Lakeside Sub. 3'tl Addition, Lot 1 5. Proposed Lakeside Sub. 3" Addition, Lot 2 6. Proposed Lakeside Sub. 3' Addition, Lot 3 7. Proposed Lakeside Sub. 3' Addition, Lot 4 a. Raven Hills Sub., Lot 1 9. Raven Hills Sub., Lot 2 10, Lake Orbin Sub., Lot 3 11. Monashka Bay Sub., Block 5, Lot 5 12. Proposed U.S. Survey 3099, Lot 29-1 13. Proposed U.S. Survey 3099, Lot 29-2 Section 2: The assembly acknowledges and accepts the recommended parcels set forth in Section 1 above and authorizes staff to initiate the comprehensive plan amendment and zoning change process under KIBC 17.205, and Initiating any needed survey and platting required under KIBC Title 16, that is necessary to make aforesaid parcels sale ready by ensuring that the parcels conform to regulations that will facilitate residential development. Section 3: The aforementioned parcels, which may require rezoning, survey, and platting to be made ready for disposal, should be offered for disposal to the public in a subsequent land sale. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS NINETEENTH DAY OF MAY 2016 KODIAK ISLAND BOROU91H 1 lrajvllg� ATTEST:mol ri , rough Mayor Nova M. Javier, NWC, Borough Clerk Kodiak Island Borough, Alaska Resolution No. FY2016-34 Page 2 of 2 Case No. 16-025 Application Package Ordinances Rezoning The Following Borough Owned Lands From P June 10, 2016 Page 1405W404 -Em O.B. PUBLIC HEARING ITEM 7-1 P & Z REGULAR MEETING'. JULY 13, 2016 Kodiak Island Borough Community Development Department 710 Mill Bay Road Room 205 Kodiak, Alaska 99615 Phone(907)486-9363 Fax(907)486-9396 www.kodiakak.us Duane Dvorak, Borough Resource Management Officer Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Re: Case 16-025. Request a Rezone of Lot 7A, Block 2, Monashka Bay Subdivision from PL- Public Use Lands District to RRI-Ruml Residential One District (Chapter 17.205 KIBC). The intent of this request is to rezone this parcel to a zoning district that permits residential construction so the parcel may be listed in a future Borough land sale. Dear Mr. Dvorak: Please be advised that the Kodiak Island Borough Planning and Zoning Commission has scheduled the case referenced above for Public Hearing at their July 13, 2016 regular meeting. This meeting will begin at 6:30 p.m. in the Assembly Chambers, 710 Mill Bay Road, Kodiak, Alaska. Attendance at this meeting is not mandatory but recommended. One week prior to the regular meeting, on Wednesday, July 6, 2016 at 6:30 p.m. in the Borough Conference Room (#121), the Commission will hold a packet review work session for the purpose of reviewing packet materials and staff summaries of cases scheduled for the regular meeting. The public is welcome to attend the packet review work session; however, the work session is not for the purpose of receiving public testimony. Applicants who wish to present testimony and/or evidence related to their case should appear at the Public Hearing during the Regular Meeting and present such information in person. Please contact the Community Development Department at 486.9363 if we can answer any outstanding questions or provide additional information. In advance, thank you for your cooperation. Sincerely, Sheila Smith, Secretary Community Development Department Case No. 16-025 Public Comment Package Ordinances Rezoning The Following Borough Owned Lands From P... Page 14jMV04-Em #9.a. PUBLIC HEARING ITEM 7.1 P 8 Z REGULAR MEETING: JULY 13, 2016 KODIAK ISLAND BOROUGH COMMUNITY DEVELOPMENT DEPARTMENT 710 Mill Bay Road, Kodiak, Alaska 99615 (907)486-9363 a v.kodiaksk.us PUBLIC HEARING NOTICE I A public hearing will be held on Wednesday, July 13, 2016. The meeting will begin at 6:30 p.m. in the Borough Assembly Chambers, 710 Mill Bay Road, Kodiak, Alaska, before the Kodiak Island Borough Planning and Zoning Commission, to hear comments if any, on the following request: CASE: 16-025 APPLICANT: Kodiak Island Borough AGENT: KIB Resource Management Officer REQUEST: A Rezone of Lot 7A, Block 2, Monashka Bay Subdivision from PL- Public Use Lands District to RRI-Rural Residential One District (Chapter 17.205 KIBC). The intent of this request is to rezone this parcel to a zoning district that permits residential construction so the parcel may be listed in a future Borough land sale. LOCATION: 3116 Bay View Drive ZONING: PL -Public Use Lands This notice is being sent to you because our records indicate you are a property owner/interested party in the area of the request. If you do not wish to testify verbally, you may provide your comments in the space below or in a letter to the Community Development Department. Written comments must he recelsed by 5 nm. Tuesdov, June28, 2016 to be considered by the commission. If you would like to fax your comments to us, our fax number is: (907) 486-9396, or you may email your comments to ssmith0l.kodiakak.us. If you would like to testify via telephone, please call in your comments during the appropriate public hearing section of the meeting. The local call-in telephone number is 486-3231. The toll free telephone number is I-855492-9202. One week prior to the regular meeting, on Wednesday, July 6, 2016, a work session will be held at 6:30 p.m. in the Kodiak Island Borough Conference Room (#121), to review the packet material for the case. Kodiak Island Borough Code provides you with specific appeal rights if you disagree with the Commission's decision on this request. If you have any questions about the request or your appeal rights, please feel free to call us at 486-9363. Your Name: Mailing Address: Your pmperty descripasn: Commenb' Case No. 16-025 Public Comment Package Ordinances Rezoning The Following Borough Owned Lands From P... Page 14RW4"ItEM O.B. PUBLIC HEARING ITEM 7-1 P a Z REGULAR MEETING: JULY 13, 2016 Case 16-025 Request a Rezone of Lot 7A, Block 2, Monashka Bay Location Subdivision from PL- Public Use Lands District to RR1-Rural 3116 Bay View Drive Residential One District (Chapter 17.205 KIBC). The intent o Applicant this request is to rezone this parcel to a zoning district that Kodiak Island Borough permits residential construction so the parcel may be listed in a future Boroueh land sale. r P A )lo\ ]I]] vF5 ])t) ]v5] Say View Drive Jam] u ]15tl ]]IB AP oP c ,� rc P qsi 2, r n P n 1 ,OP 1 P 2 > 3 I u Monashka Read r'l Public Hearing Notice Feel 0 2fi25 52525 1,050 i , o° Kodiak Island Borough GI5 Community Develol Mlp:/IWww.kodlekak.u9gis (99])4afi 933] T map Is ,wiled la onq saru Is nm I..rd.d for Legend oSubject Parcel w e 0 Notification Area Accass Roods Ilnconstructod Right of Ways Case No. 16-025 Public Comment Package Ordinances Rezoning The Following Borough Owned Lands From P... Public Hearing Notice Feel 0 2fi25 52525 1,050 i Kodiak Island Borough GI5 Community Develol Mlp:/IWww.kodlekak.u9gis (99])4afi 933] T map Is ,wiled la onq saru Is nm I..rd.d for Legend oSubject Parcel w e 0 Notification Area Accass Roods Ilnconstructod Right of Ways Case No. 16-025 Public Comment Package Ordinances Rezoning The Following Borough Owned Lands From P... first_name JOSEPH RONALD STEPHEN C BRAXTON THOMAS WILLIAM HENRY MARY GUILAS ERIC SEAN SHANNA RICHARD BARRY & ERICKA JAMES WILLIAM H SHAWN LESLIE last—name BLACK CHASE COEN ETAL CUMMINGS LIVING TRUST DEW ETAL FINN FULTON HAGEMEYER ETAL HAWVER KODIAK ISLAND BOROUGH MUNK RAUWOLF ROCKENBACH SALTONSTALL SCHAUFF STREET UNANGST VAINIO ZELOOF Mail— Line-PO BOX 1912 P.O. BOX 416 P.O. BOX 3269 3265 BAY VIEW DR 3233 BAY VIEW DR PO BOX 8506 PO BOX 8837 PO BOX 187 PO BOX 2018 710 MILL BAY RD P.O. BOX 2940 3571 PATRICK COURT PO BOX 325 1637 THREE SISTERS WAY 316 CENTER STREET P.O. BOX 8881 182 LEVEL ROAD PO BOX 8508 P 0 BOX 2728 Page 14RG004-Em O.B. PUBLIC HEARING ITEM 7-1 P & Z REGULAR MEETING: JULY 13, 2016 Mail _City KODIAK KODIAK KODIAK KODIAK KODIAK KODIAK KODIAK NOME KODIAK KODIAK KODIAK KODIAK KODIAK KODIAK KODIAK KODIAK COLLEGEVILLE KODIAK KODIAK Case No. 16-025 Public Comment Package Ordinances Rezoning The Following Borough Owned Lands From R.. Mall Stat Mall _Zip AK 99615 AK 99615 AK 99615 AK 99615 AK 99615 AK 99615 AK 99615 AK 99762 AK 99615 AK 99615 AK 99615 AK 99615 AK 99615 AK 99615 AK 99615 AK 99615 PA 19426 AK 99615 AK 99615 Page 14TW44,94-EM #s.a. FINDINGS OF FACT 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to properties with a Future Land Use Designation of Rural Residential. 3. The subject parcel is of sufficient area and is capable of providing suitable rural residential building sites. 4. The amendment is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 5. The amendment is necessary to allow for a subsequent rezone from PL -Public Use Lands to RR1-Rural Residential One. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this Comprehensive Plan amendment. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY I. CASE 16-025. Request a Rezone of Lot 7A, Block 2, Monashka Bay Subdivision from PL- Public Use Lands District to RR1-Rural Residential One District (Chapter 17.205 KIBC). The intent of this request is to rezone this parcel to a zoning district that permits residential construction so the parcel may be listed in a future Borough land sale. The applicant is the Kodiak Island Borough and the agent is the KIB Resource Management Officer. The location is 3116 Bay View Drive and the zoning is PL -Public Use Lands. COMMISSIONER BALDWIN MOVED to recommend that the Kodiak Island Borough Assembly approve the rezone of Lot 7A, Block 2, Monashka Bay Subdivision from PL -Public Use Lands to RR1-Rural Residential One (KIBC 17.205) and to adopt the findings of fact listed in the staff report entered into the record for this case as "Findings of Fact" for Case No. 16-025. Mason reported the staff analysis for the previous Case 16-024 also applies to this case. Staff recommends you forward this request to the assembly with a recommendation for approval. Open public hearing: Duane Dvorak, Borough Resource Management Officer and agent, stated he concurs with staff's recommendation. Close public hearing: During discussion, CHAIR ARNDT said he would like to see that there is no further subdividing of this parcel as a condition of the land sale until there is public sewer and water. FINDINGS OF FACT 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to RR1-Rural Residential One zoned land and uses. 3. The subject parcel is of sufficient area and is capable of providing suitable rural residential building sites. 4. The rezone is consistent with the adopted 2008 Comprehensive Plan Rural Residential Future Land Use Designation per Case No, 16-024. 5. The rezone is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this rezone. Kodiak Island Borough Planning & Zoning Commission Minutes July 13, 2016 Page 11 Ordinances Rezoning The Following Borough Owned Lands From P... Page 14)G6f404-EM #s.B. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY CHAIR ARNDT called a five minute recess at 8:15 p.m. CHAIR ARNDT reconvened the meeting at 8:20 p.m. J. 16-026 (Two cases that follow apply to the same parcels. Request a Title 18 Land Disposal review to consider disposal of Lots 2 and 3, Block 38, East Addition Subdivision (Chapter 18.20 KIBC). The intent of this request is to offer these parcels for sale to the public at a future Borough land sale. The applicant is the Kodiak Island Borough and the agent is the KIB Resource Management Officer. The location is 1121 and 1123 Baranof Street and the zoning is PL -Public Use Lands. COMMISSIONER BALDWIN MOVED to adopt Planning and Zoning Commission Resolution No. FY2017-02, recommending disposal of Lots 2 and 3, Block 38, East Addition Subdivision (Chapter 18.20 KIBC) and to adopt the findings of fad listed in the staff report entered into the record for this case as "Findings of Fact" for Case No. 16-026. Maker stated these two lots are identified by the Lands Committee as land potentially surplus to the borough's needs. The lots have not been developed and have only served as open space since platted in 1958. Staff recommends approval. Open public hearing: Duane Dvorak, Borough Resource Management Officer and agent, stated this particular request was one of the cases that the commission requested the topo for at the work session. He concurs with staff's recommendation. These lots do seem steeper than the lots across the street or other lots in the area. If the commission wants to see these lots combined together or reconfigured now would be the time. We have other cases on tonight's agenda that are in the process of being surveyed and if we wait until later, it could throw us out of our tempo. He thinks that is something the commission brought up last week that maybe it needs to be considered tonight and if you wish to make some recommendation on it staff is prepared to do whatever needs to be done. CHAIR ARNDT asked what the intervals are, Dvorak stated it looks like 2' intervals CHAIR ARNDT said it has a 20 -foot elevation change from one corner to a diagonal corner in the back, from the front to the back. That is drastic, 50' wide and 100' long, so he would concur that it should be combined into one lot. Dvorak asked if the commission would have any problem if we did it as an abbreviated plat or would the commission want to see it come back as a preliminary plat. CHAIR ARNDT said the problem with abbreviated plats is the borough is approving their own plat without any commission review. He suggested bringing it back somewhere when the property at Island Lake comes back too. Dvorak said he was just looking for the commission's preference. CHAIR ARNDT asked as a Title 18 Land Disposal Review tell you here that we want to see it combined. Dvorak said we are looking for the disposal approval at a minimum but like the other guidance you offered in the other case he thinks there is enough administrative discretion that we can Kodiak Island Borough Planning & Zoning Commission Minutes July 13, 2016 Page 12 Ordinances Rezoning The Following Borough Owned Lands From P... July 20, 2016 Page 146G6f40J "Em O.B. Kodiak Island Borough Community Development Department 710 Mill Bay Road Kodiak, Alaska 99615 Phone(907)486-9363 Fax(907)486-9396 www.kodiakak.us Mr. Duane Dvorak, Resource Management Officer Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Re: Case 16-025. Request for a rezone of Lot 7A, Block 2, Monashka Bay Subdivision from PL- Public Use Lands District to RR1-Rural Residential One District (Chapter 17.205 KIBC). The intent of this request is to rezone this parcel to a zoning district that permits residential construction so the parcel may be listed in a future Borough land sale. Dear Mr. Dvorak: The Kodiak Island Borough Planning & Zoning Commission, at their meeting on July 13, 2016, moved to forward the request cited above, recommending approval, to the Borough Assembly. Please contact the Borough Clerk's Office at 4B6-9310 for information on when your case will be scheduled for a first reading and public hearing before the Assembly. According to KIBC 17.205.055 (Submission to assembly) of the Borough Code states: A. Within thirty days after the planning commission has acted favorably upon a proposed zoning change in accordance with the above provisions, a report with recommendations shall be submitted to the assembly together with the proposed ordinance. Such recommendations of the planning commission shall be advisory only and shall not be binding upon the assembly. When an ordinance has been forwarded to the borough assembly, the assembly shall act in accordance with this chapter and notice shall be issued as provided in Section 17.205.070, by the borough clerk. B. If the planning commission recommends denial of any proposed amendment, its action shall be final unless the initiating party, within ten days, files a written statement with the clerk requesting that the commission's action be taken up by the borough assembly. Ordinances Rezoning The Following Borough Owned Lands From P... Page 15@3040'tEM N.B. The commission adopted the following findings of fact in support of their recommendation to the assembly: FINDINGS OF FACT 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to RR1-Rural Residential One zoned land and uses. 3. The subject parcel is of sufficient area and is capable of providing suitable rural residential building sites. 4. The rezone is consistent with the adopted 2008 Comprehensive Plan Rural Residential Future Land Use Designation per Case No. 16-024. 5. The rezone is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan, 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this rezone. Should this rezone be approved by the Kodiak Island Borough Assembly, you will still need to obtain permits for any construction activities. If you have any questions about the action of the commission, please contact the Community Development Department at 486-9363. Sincerely, Sara Mason, Director Community Development Department CC: Nova Javier, Borough Clerk Planning & Zoning Commission Ordinances Rezoning The Following Borough Owned Lands From P... Page 15104fV 4 -EM O.B. KODIAK ISLAND BOROUGH AGENDA STATEMENT SEPTEMBER 15, 2016 ,l ASSEMBLY REGULAR MEETING TITLE: Ordinance No. FY2017-08 Rezoning Lot 5, Block 5, Monashka Bay Subdivision From PL -Public Use Lands District To RR1-Rural Residential One District (P&Z Case No. 16-034). ORIGINATOR: Sara Mason FISCAL IMPACT: No Account Number: FUNDS AVAILABLE: Amount Budgeted: SUMMARY STATEMENT: This rezone request was recommended by the Borough Lands Committee and initiated by the Borough Assembly in conjunction with P&Z Case No. 16-032 (land disposal) and P&Z Case No. 16-033 (comprehensive plan amendment). On September 2, 2016 the Clerk's office mailed out 21 public hearing notices. The Planning and Zoning Commission held a public hearing on this rezone request at their July 13, 2016 regular meeting. The Commission voted unanimously to recommend that the Assembly approve this rezone. RECOMMENDED MOTION: Kodiak Island Borough Ordinances Rezoning The Following Borough Owned Lands From P. 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Pagel 52G§fV047Em #9.B. Introduced by: Borough Assembly Requested by: KIB Lands Committee Drafted by: CDD Introduced: 09101/2016 Public Hearing: 09115/2016 Adopted: KODIAK ISLAND BOROUGH ORDINANCE NO. FY2017-08 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH REZONING LOT 5, BLOCK 5, MONASHKA BAY SUBDIVISION FROM PL -PUBLIC USE LANDS DISTRICT TO RR1- RURAL RESIDENTIAL ONE DISTRICT (PBZ CASE NO. 16-034) WHEREAS, as a second class borough, the Kodiak Island Borough exercises planning, platting, and land use regulations on an area wide basis pursuant to Chapter 29.40 Alaska Statutes; and WHEREAS, in accordance with AS 29.40, the Kodiak Island Borough adopted the 2008 Comprehensive Plan update on December 6, 2007 (Ordinance No. FY2008-10) to replace the 1968 Comprehensive Plan; and WHEREAS, the Kodiak Island Borough has adopted KIBC Title 17 (Zoning) in accordance with AS 29.40 to implement the Kodiak Island Borough Comprehensive Plan; and WHEREAS, KIBC 17.205.010 provides that "Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts"; and WHEREAS, The Borough Lands Committee recommended and the Borough Assembly initiated a rezone of Lot 5, Block 5, Monashka Bay Subdivision from PL -Public Use Lands District to RR1-Rural Residential One District; and WHEREAS, at an advertised public hearing, consistent with Kodiak Island Borough Code 17.205.040, the Planning and Zoning Commission considered the merits of the rezone request; and WHEREAS, the Commission voted to recommend to the Borough Assembly that the site be rezoned from PL -Public Use Lands District to RR1-Rural Residential One District finding that the public necessity, convenience, general welfare, and good zoning practice would be enhanced by such action; and WHEREAS, the Commission hereby recommends that this rezone be reviewed and approved by the Borough Assembly. Kodiak Island Borough, Alaska Ordinances Rezoning The Following Borough Owned Lands From P... Ordinance No. FY2017-08 Page 1 of 2 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 Page 15630449,TEm #s.a. 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: Lot 5, Block 5, Monashka Bay Subdivision is hereby rezoned from PL - Public Use Lands District to RR1-Rural Residential One District. Section 3: By this ordinance, the Borough Assembly adopts the following findings of fact in support of their approval of this rezone. 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to RR1-Rural Residential One zoned land and uses. 3. The subject parcel is of sufficient area and is capable of providing suitable rural residential building sites. 4. The rezone is consistent with the adopted 2008 Comprehensive Plan Rural Residential Future Land Use Designation per Case No. 16-033. 5. The rezone is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adapted Comprehensive Plan. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this rezone. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2016 ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Ordinances Rezoning The Following Borough Owned Lands From P. KODIAK ISLAND BOROUGH Jerrol Friend, Borough Mayor Ordinance No. FY2017-08 Page 2 of 2 Page 151MV0 #-EM #9.B. Kodiak Island Borough Office of the Borough Clerk 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486-9310 Fax (907) 486-9391 clerksnkodiakak.us NOTICE OF PUBLIC HEARING A public hearing will be held on Thursday. September 15. 2016, at 6:30 p,m. in the Borough Assembly Chambers, 710 Mill Bay Road, Kodiak, Alaska before the Kodiak Island Borough Assembly to hear comments on: Ordinance No. FY2017-08, Lot 5, Block 5, Monashka Bay Subdivision From PL -Public Use Lands District To RR1-Rural Residential One District (P&z Case No. 16-034). If you do not wish to testify verbally, you may provide your comments on the attached public hearing form and fax it to (907) 486-9391, email to clerksankodiakak.us, or hand deliver to the Borough Clerk's Office, 710 Mill Bay Road, Room 234, Kodiak, AK 99615 prior to 3 p.m. on September 15, 2016. Comments favoring and opposing are encouraged. If you have any questions, please call 486-9310. Attachments: • Map • Public hearing form • Ordinance No. FY2017-08 Ordinances Rezoning The Following Borough Owned Lands From P... Page 1563,6fVO4-Em #s.a. Ordinance No. FY2017-06, Lot 5, Block 5, Monashka Bay Subdivision From PL -Public Use Lands District To RR1-Rural Residential One District (P&Z Case No. 16-034). d � Y y»w Y I � ♦ Dim, di • •r • f �bytr>aip5nxas''I r � e �xBr VFa ♦ x' "N� • t� .r Gf^�'y F, ♦ 8 ♦lull♦ tf y�{�' — t 1 � 6 4 � 6� J J f. • n. • ♦ �,yWeY • 1p t Legend �+ r Subject Parcel ♦ Zoning Legend 0 Public Use Lands 0 Rural Residential 1 0 Multi Family Residential Light Industnal Q Watershed Q Rural Residental ? 0 Business Rural Neighborhood Commercial = Conseiwaton 0 Single Family Residential 0 Retail Business Urban Neighborhood Commercial =Rural Residential =Two Family Residential =Industrial 0 Natural Use Ordinances Rezoning The Following Borough Owned Lands From R.. Page 156GO40 -Em O.B. PUBLIC HEARING FORM Ordinance No. FY2017-08, Lot 5, Block 5, Monashka Bay Subdivision From PL -Public Use Lands District To RR1-Rural Residential One District (P&Z Case No. 16-034). ❑ This is in support of changing the future land use designation. ❑ This is in opposition of changing the future land use designation. ❑ Other comments. Name: Residence Address: Mailing Address: Comments: Written comments may be submitted by email to clerks(a)kodiakak.us, faxed to 907-486-9391, mailed or hand delivered to the Borough Clerk's Office, 710 Mill Bay Road, Room 234, Kodiak, AK 99615 prior to 3 p.m. on Thursday. September 15, 2016. Ordinances Rezoning The Following Borough Owned Lands From P Pagel 5IF06f4oItEM #9. B. Introduced by Requested by I Drafted by: Introduced: 2 Public Hearing 3 Adopted: 4 5 KODIAK ISLAND BOROUGH 6 ORDINANCE NO. FY2017-08 8 9 10 11 12 13 14 15 16 17 18 19 20 21 99 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Borough Assembly KIB Lands Committee CDD 09/01/2016 09/15/2016 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH REZONING LOT 5, BLOCK 5, MONASHKA BAY SUBDIVISION FROM PL -PUBLIC USE LANDS DISTRICT TO RR1- RURAL RESIDENTIAL ONE DISTRICT (P&Z CASE NO. 16-034) WHEREAS, as a second class borough, the Kodiak Island Borough exercises planning, platting, and land use regulations on an area wide basis pursuant to Chapter 29.40 Alaska Statutes; and WHEREAS, in accordance with AS 29.40, the Kodiak Island Borough adopted the 2008 Comprehensive Plan update on December 6, 2007 (Ordinance No. FY2008-10) to replace the 1968 Comprehensive Plan; and WHEREAS, the Kodiak Island Borough has adopted KIBC Title 17 (Zoning) in accordance with AS 29.40 to implement the Kodiak Island Borough Comprehensive Plan; and WHEREAS, KIBC 17.205.010 provides that "Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts"; and WHEREAS, The Borough Lands Committee recommended and the Borough Assembly initiated a rezone of Lot 5, Block 5, Monashka Bay Subdivision from PL -Public Use Lands District to RR1-Rural Residential One District; and WHEREAS, at an advertised public hearing, consistent with Kodiak Island Borough Code 17.205.040, the Planning and Zoning Commission considered the merits of the rezone request; and WHEREAS, the Commission voted to recommend to the Borough Assembly that the site be rezoned from PL -Public Use Lands District to RR1-Rural Residential One District finding that the public necessity, convenience, general welfare, and good zoning practice would be enhanced by such action; and WHEREAS, the Commission hereby recommends that this rezone be reviewed and approved by the Borough Assembly. Kodiak Island Borough, Alaska Ordinances Rezoning The Following Borough Owned Lands From P... Ordinance No. FY2017-08 Page 1 of 2 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 Page 15@G6fV 'rEm #s.e. 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: Lot 5, Block 5, Monashka Bay Subdivision is hereby rezoned from PL - Public Use Lands District to RR1-Rural Residential One District. Section 3: By this ordinance, the Borough Assembly adopts the following findings of fact in support of their approval of this rezone. 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to RR1-Rural Residential One zoned land and uses. 3. The subject parcel is of sufficient area and is capable of providing suitable rural residential building sites. 4. The rezone is consistent with the adopted 2008 Comprehensive Plan Rural Residential Future Land Use Designation per Case No. 16-033. 5. The rezone is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this rezone. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2016 ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Ordinances Rezoning The Following Borough Owned Lands From P... 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Page 1603040'Mm #s.a. PUBLIC HEARING ITEM 7-R P 8 Z REGULAR MEETING'. JULY 13, 2016 & Zoning Map ar t;S JidIA6=KIEBI'Location 1 u 4vr. 4 ,r u v :rl- e pAonvsnke8ay�Ip o art — I� o �a %a; ..tnetmla Wai I I /r t If fi;, to/��,y. q r, i Legend u O Subject Parcel Zoning Legend 0 Public Use Lands Rural Residential 1 Multi Family Residential _ Light Industrial Q watershed Rural Residential 2 0 Business Rural Neighborhood Commercial Conservation Single Family Residential 0 Retail Business Urban Neighborhood Commercial Rural Residential Two Family Residential [ Industrial Natural Use Kadl.k Island Borough GIs Community Development Department "mlmmionelnmposas =__= Access Roads mtp:/lwww.kodiakak.us/Bis (90])486-933] T^ad la nose moneoJ for., onynn eget rvprasanlelions_ IUnmmtmded Rig or Ways Case No. 16-034 Introduction Ordinances Rezoning The Following Borough Owned Lands From P... Image Overlay Case No. 16-034 Applicant: Kodiak Island Borough one of Lot 5, Block 5, Monashka Bay. sion from PL -Public Use Lands Dist to RR1-Rural Residential One District (Chapter 17.205 KIBC). r. i N0 2s9 A Y Q iw D O A _ ALASKA Page 162c,0404 -EM #s.a. PUBLIC HEARING ITEM 7-R P & Z REGULAR MEETING: JULY 13, 2016 STAFF REPORT AND RECOMMENDATION Case No. 16-034. A Rezone of Lot 5, Block 5, Monashka Bay Subdivision from PL -Public Use Lands District to R1 -Rural Residential One District (KIBC 17.205). DATE: June 28, 2016 TO: Planning and Zoning Commission FROM: Community Development Department SUBJECT: Staff Report and Recommendation CASE: 16-034 APPLICANT: Kodiak Island Borough LOCATION: 3482 Monashka Bay Road LEGAL DSC: Lot 5, Block 5, Monashka Bay Subdivision ZONING: PL -Public Use Lands District FUTURE LAND USE DESIGNATION: Public Facilities/Ownership NOTICE: Twenty-two (22) public hearing notices were mailed on June 9, 2016. Zero (0) public hearing notices were returned as of the date this report was prepared. SITE VISIT: None 1. Zoning History: • Zoned Service Recreation by the 1968 Metropolitan Zoning Map • Zoned PL -Public Use Lands by Ordinance No. 83-30-0 2. Site Size: 2.48 acres 3. Existing Land Use: Vacant 4. Surrounding Land Use and Zoning: Other lots in the area are zoned RR1-Rural Residential One and most are occupied with single family homes. Easterly adjacent lot is zoned PL -Public Use Lands and is a park space. 5. Comprehensive Plan: • Designated Public and Open Space by the 1968 Comprehensive Plan • Designated Public Facilities/Ownership by the 2008 Comprehensive Plan 6. Applicable Comprehensive Plan Future Land Use Designation Public Facilities: This designation is intended for public facilities such as water or wastewater treatment facilities, police or fire stations and other public facilities, not including parks and recreation facilities. Rural Residential: This designation allows for residential development at rural densities where municipal water and sewer treatment facilities are not available. Such development must occur on larger lots and would include uses allowed in the RR, RR1, and RR2 zones. 7. Applicable Regulations: The following sections of Title 17 (Zoning) of the Borough Code are applicable to this request: 17.10.020 Reference and use (Comprehensive Plan). In accordance with Alaska Statutes, zoning decisions shall be based upon the Case No. 16-034 Staff Report and Recommendation Ordinances Rezoning The Following Borough Owned Lands From P... recommendations contained in the comprehensive plan. 17.205.010 Authority (Amendments and changes). o PUBLIC HEARING ITEM 7-R P & Z REGULAR MEETING: JULY 13, 2016 Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts. 17.205.020 Report from planning and zoning commission (Amendments and changes) The commission shall report in writing to the assembly on any proposed change or amendment regardless of the manner in which such change is initiated and such report shall find: A. Findings as to need and justification for a change or amendments; B. Findings as to the effect a change or amendment would have on the objectives of the comprehensive plan; and C. Recommendations as to the approval or disapproval of the change or amendment. 17.205.055 Submission to assembly (Amendments and changes) A. Within 30 days after the commission has acted favorably upon a proposed zoning change in accordance with the above provisions; a report with recommendations shall be submitted to the assembly together with the proposed ordinance. Such recommendations of the commission shall be advisory only and shall not be binding upon the assembly. When an ordinance has been forwarded to the assembly, the assembly shall act in accordance with this chapter, and notice shall be issued as provided in KIBC 17.205.070 by the clerk. B. If the commission recommends denial of any proposed amendment; its action shall be final unless the initiating party, within 10 days, files a written statement with the clerk requesting that the commission's action be taken up by the assembly. STAFF ANALYSIS This is the request to rezone the lot from PL -Public Use Lands to RR1-Rural Residential One that is referred to in the land disposal staff report for the same parcel. The criteria provided in the preceding Comprehensive Plan Amendment staff analysis (Case No. 16-033) also apply to this rezone request. CONCLUSION Staff analysis shows that the rezone is consistent with the objectives of the adopted Comprehensive Plan and satisfies the requirements of Title 17 of the Kodiak Island Borough Code for amendments and changes. Staff recommends that the Commission forward this rezone request to the Kodiak Island Borough Assembly with a recommendation for approval. APPROPRIATE MOTION Should the Commission agree with the staff recommendation, the appropriate motion is: Move to recommend that the Kodiak Island Borough Assembly approve the rezone of Lot 5, Block 5, Monashka Bay Subdivision from PL -Public Use Lands District to RR1-Rural Residential One District (KIBC 17.205) and to adopt the Case No. 16-034 Staff Report and Recommendation Ordinances Rezoning The Following Borough Owned Lands From P P„10 6pgp 9 `0 Y O'j 4L45KA Page 164GW►494-Em O.B. PUBLIC HEARING ITEM 7-R P & Z REGULAR MEETING: JULY 13, 2016 findings of fact listed in the staff report entered into the record for this case as "Findings of Fact"for Case No. 16-034. FINDINGS OF FACT (KIBC 17.205.020.A -C) 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to RR1-Rural Residential One zoned land and uses. 3. The subject parcel is of sufficient area and is capable of providing suitable rural residential building sites. 4. The rezone is consistent with the adopted 2008 Comprehensive Plan Rural Residential Future Land Use Designation per Case No. 16-033. 5. The rezone is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this rezone. Case No. 16-034 Staff Report and Recommendation Ordinances Rezoning The Following Borough Owned Lands From P. 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Page 166GW404-EM #s.e. Introduced by: Borough Assembly Requested by: KIB Lands Committee Drafted by: CDD Introduced: xx/xx/xxxx Public Hearing: xx/xx/xxxx Adopted. xx/xx/xxxx KODIAK ISLAND BOROUGH ORDINANCE NO. FY2017-xx AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH REZONING LOT 5, BLOCK 5, MONASHKA BAY SUBDIVISION FROM PL -PUBLIC USE LANDS DISTRICT TO RR1- RURAL RESIDENTIAL ONE DISTRICT (P&Z CASE NO. 16-034) WHEREAS, as a second class borough, the Kodiak Island Borough exercises planning, platting, and land use regulations on an area wide basis pursuant to Chapter 29.40 Alaska Statutes; and WHEREAS, in accordance with AS 29.40, the Kodiak Island Borough adopted the 2008 Comprehensive Plan update on December 6, 2007 (Ordinance No. FY2008-10) to replace the 1968 Comprehensive Plan; and WHEREAS, the Kodiak Island Borough has adopted KIBC Title 17 (Zoning) in accordance with AS 29.40 to implement the Kodiak Island Borough Comprehensive Plan; and WHEREAS, KIBC 17.205.010 provides that "Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts': and WHEREAS, The Borough Lands Committee recommended and the Borough Assembly initiated a rezone of Lot 5, Block 5, Monashka Bay Subdivision from PL -Public Use Lands District to RR1-Rural Residential One District; and WHEREAS, at an advertised public hearing, consistent with Kodiak Island Borough Code 17.205.040, the Planning and Zoning Commission considered the merits of the rezone request; and WHEREAS, the Commission voted to recommend to the Borough Assembly that the site be rezoned from PL -Public Use Lands District to RR1-Rural Residential One District finding that the public necessity, convenience, general welfare, and good zoning practice would be enhanced by such action; and WHEREAS, the Commission hereby recommends that this rezone be reviewed and approved by the Borough Assembly. Kodiak Island Borough, Alaska Ordinances Rezoning The Following Borough Owned Lands From P... Ordinance No. FY2017-xx Page 1 of 2 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 Page 16WW404"EM O.B. 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: Lot 5, Block 5, Monashka Bay Subdivision is hereby rezoned from PL - Public Use Lands District to RR1-Rural Residential One District. Section 3: By this ordinance, the Borough Assembly adopts the following findings of fact in support of their approval of this rezone. 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to RR1-Rural Residential One zoned land and uses. 3. The subject parcel is of sufficient area and is capable of providing suitable rural residential building sites. 4. The rezone is consistent with the adopted 2008 Comprehensive Plan Rural Residential Future Land Use Designation per Case No. 16-033. 5. The rezone is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this rezone. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2016 ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Ordinances Rezoning The Following Borough Owned Lands From R.. KODIAK ISLAND BOROUGH Jerrcl Friend, Borough Mayor Ordinance No. FY2017-xx Page 2 of 2 Page 16TOW4 4 -Em O.B. PUBLIC HEARING ITEM 7-R P & Z REGULAR MEETING: JULY 13, 2016 Page 1 ort `x Kodiak Island Borough tr{x OFFICE of the MANAGER w�+ 710 Mill Bay Road, Room 101 Kodiak, Alaska 99615 Phone (907) 486-9304 Fax (907) 486-9374 E-mail: ddwrakin krxlrakaA_ac To: Planning & Zoning Commission Through: KIB Community Development Department From: Duane Dvorak, Resource Management Officer Date: June 23, 2016 Re: Cases 16-032, 16-033 and 16-034, regarding the comprehensive plan designation, zoning status and request for disposal of Lot 5, Block 5, Monashka Bay Subdivision Lot 5 has been recommended for disposal by the recently empaneled Borough Lands Committee That recommendation was reviewed and accepted by the assembly, who then authorized staff action to begin making the parcel ready for sale. Lot 5 is currently zoned PL -Public Use Land and designated for public use in the comprehensive plan. It is believed that the lot was originally reserved for some public purpose, but any purpose other than open space has never been made clear. The lot is adjacent to Otmeloi Park which is located at the intersection of Otmeloi Road and Monashka Bay Road. The borough has no plans to develop any recreational or institutional improvements at this site. Lot 5 is moderately slope affected from the south side to the north side where the lot has frontage on Monashka Bay Road. The adjoining property owner has contacted staff with concerns about the possibility of new well and septic systems on the adjoining parcel and where they might be located. The lot is 2.48 acres in area and any new well and septic system on the lot will need to comply with ADEC regulations. This may require an engineered septic system and strict observance of minimum separation distances between wells, wastewater systems and surface water in the area. The proposed zoning designation of RRl-Rural Residential One will allow for single-family residential development which will ensure that the development density is kept low. The surrounding lots are all zoned RR I as well, so that the zoning density and designation will be in keeping with other single-family residential lots in the area. Resource Management staff will plan on attending the packet review and regular meeting for these requests and would be happy to answer any questions at those times. Case No. 16-034 Application Package Ordinances Rezoning The Following Borough Owned Lands From P... Page 1665004 -Em #9.a. PUBLIC HEARING ITEM 7-R P & 2 REGULAR MEETING: JULY 13, 2016 Kodiak Island Borough F Print Form F Submilthy Email Community Development Department I IIIIIIIIIIIIIIIII III 7111 MIII Bay Rd.Rm 205 Kodiak AK 99615 Ph. (907) 486 - 9362 Fax(907)486-9396 httoWwwwAusilakakus 13 9 PROP_ID 21390 Application for Rezone KIBC 17.205 The followingInformation is to be supplied bythe Appilcant: Property Owner Applicant: Kodiak Island Borough/Duane Dvorak Resource Management Officer Malling Address: 710 Mill Bay Road, Room 101 Kodiak AK 99615 Phone Number. 907-086-9304 Other Contact email, etc_ ddvorak@kodlakakus Legal Description: Subdv: Monashka Bay Road Block 5 Lob 5 Street Address: 3482 Monashka Bay Road Current Zoning: Public Use KIBC 17.130 Proposed Zoning: RR1 KIBC 17.70 Applicable Comprehensive Plan: A. Kodiak Island Comprehensive Plan Update 2008 Explanation of the need &justification for a change or amendment of zoning: There Is a perceived need for additional land to be made avallable for development In the community. In particular, the recently formed Borough Lands Committee has been focused on identifying borough lands which are not currently needed for public purposes and which are not Identified In future plans for public use. Lot 5, as Identified in this request, Is vacant land currently used for open space. With the exception of Otmeloi Park on adjoining Lot 6, the subject parcel Is located adjacent to Rln-Rural Residential One zoned properties on two other sides. Lot 5 has some topographical constraints, however It is believed that the 2.47 acre lot area is adequate to provide adequate development opportunity for single-family residential development. Continued on reverse Case No. 16-034 Application Package Ordinances Rezoning The Following Borough Owned Lands From P... Page 16@500jtEM #9.6. PUBLIC HEARING ITEM 7-R P 8 Z REGULAR MEETING: JULY 13. 2016 Explanation of the effect such a change or amendment would have on the objectives oFthe applicable comprehensive plan: The land has been designated for Public and Recreational for many years. Currently, there are no plans to develop recreation facilities on this site. While the conversion of public use land to residential use would reduce the amount of recreational land In the area, it is also true that the borough has not plans for park expansion in this area. There will be adequate recreational opportunities in the Otmelai Park located on adjoining Lot 6, as well as the 325 acres of land in the Russian Ridge area and another 35 acres located near Abercrombie State Historical Park Additional recreational and open space lands in borough ownership are located farther out Monashka Bay Road past the landfill. r Date: Jun3,2016 Signature: CDD Staff Certification Date: �— �_ CDD Staff. Payment Verification Fee Payable In Cashler's Office Room# 104- Main Boor of Borough Building RIBC 17.205.030 Manner of Initiation. Changes in this title may be initiated In the fallowing manner. A.The assembly upon its own motion: Walver of fee B. The commission upon its own motion: Waiver of fee C. By petition: Less than 1.75 acres: $350.00 1.76 to 5.00 acres: $750.00 5.01 to 40.00 acres: $1,000.00 40.01 acres or more: $1500.00 Case No. 16-034 Application Package Ordinances Rezoning The Following Borough Owned Lands From P... Page 17AMWIt£m#ga PUBLIC HEARING ITEM 7-R P & Z REGULAR MEETING JULY 13, 2016 cm L. ! -,a@@aea&. ; .0 , ) ) a§ / � ®_ � \ { \ �z 0 2 )@NNN@ -g -g f-\ � a c • o f n ! \ - !� ) {2"£|777 i )\\�}/ Gel & ayy \eea (/#@# r k +a \k}kk\}7 k k l:fkki w® b £ !) ; ® om 1§§§§§§!N k f�se2§4®■ ( ' ! \/ E G)(2C!C4 ■�&JK2(}}}2 k Case No. 16-034 Application Package Ordinances Rezoning The Following Borough OwLands From m. Page 17 GOVOit£m#.a Ordinances RezonG peFollowing Borh Owned ands FromR PUBLIC HEARING ITEM 7-R P & Z REGULAR MEETING JULY 13, 2016 cm : ®`.6| Lu / 5- � \ ] \ 0 \k`§ 2 ` E � 0 n ! .22{ �\ ) k! ) ) || § ) { : { }$/ of . )i / � ® 22 ! !I ! 2 &@ ! | y Z ! Case NOL 16-034 Application Package Ordinances RezonG peFollowing Borh Owned ands FromR Page 17Rr4fvO4-EM #s.a. PUBLIC HEARING ITEM 7-R P & Z REGULAR MEETING', JULY 13, 2016 AGENDA ITEM #13.8.1. to ,S v 4- Q� IL Resolution No. FY2016.34 Accepting the Recommendation of the... Page 224 of 334 Case No. 16-034 Application Package Z Z Ordinances Rezoning The Following Borough Owned Lands From P... — CY � U D Q A Q B�t a 4 5 d 0 LLg N Ordinances Rezoning The Following Borough Owned Lands From P... 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Page 17AJGV►f9JtEm O.B. PUBLIC HEARING ITEM 7-R P 8 Z REGULAR MEETING: JULY 13, 2016 Introduced by: Requested by Drafted by Introduced on. Adopted on KODIAK ISLAND BOROUGH RESOLUTION NO. FY201634 Borough Mayor Borough Mayor Resource Management Officer 051192016 051192016 A RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY ACCEPTING THE RECOMMENDATION OF THE BOROUGH LANDS COMMITTEE RECOMMENDING THE DISPOSAL OF CERTAIN BOROUGH LANDS AS SURPLUS TO THE PUBLIC'S NEED AND AUTHORIZING STAFF ACTION TO MAKE THE RECOMMENDED PARCELS READY TO BE SOLD AT A FUTURE LAND SALE WHEREAS, Kodiak Island Borough Code (KIBC) Chapter 2.160 provides for the duties and responsibilities of the Borough Lands Committee, to review land and land related issues within the Kodiak Island Borough and make appropriate recommendations to the assembly; and WHEREAS, since its initial meeting on December 16, 2015, the committee has been reviewing borough lands with a priorit of identifying borough lands with residential development potential that may be surplus to the public's need and which may be Included in a future land sale; and, WHEREAS, the committee, on April 20, 2016, adopted Borough Lands Committee Resolution No. FY2016-01 identifying thirteen prospective parcels of land with residential development potential that may be found to be surplus to the public's need; and, WHEREAS, many of the parcels identified for disposal will require additional staff work, Planning and Zoning Commission review, or surveying and platting In order to be made sale ready; and, WHEREAS, in the interest of targeting a land sale for Fall 2016, it is imperative that the assembly acknowledge the recommended parcels for disposal and authorize staff to begin the work of preparing those identified parcels for future disposal and development. WHEREAS, it should be noted that not all the lands identified by the committee resolution for disposal require further disposal approval by the assembly, some having been previously approved for disposal and then withdrawn from sale by the assembly; and, WHEREAS, the committee has re-evaluated those parcels and found adequate potential for residential development that should be sufficient to justify disposal this time around given the need in the community for new residential development. Kodiak Island Borough, Alaska Case No. 16-034 Application Package Ordinances Rezoning The Following Borough Owned Lands From P... Resolution No. FY2016-34 Page 1 of 2 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 fib 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 Page 171404 -Em N.B. PUBLIC HEARING ITEM 7-R P & Z REGULAR MEETING'. JULY 13, 2016 NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: The Kodiak Island Borough Lands Committee, in accordance with KIBC Chapter 2.160, recommends disposal of the borough's interest in the following thirteen (13) proposed parcels of land comprising about 12.7 acres of property described in the attached exhibit as: 1. East Addition, Block 38, Lot 2 2. East Addition, Block 38, Lot 3 3. Monashka Bay Sub., Black 2, Lot 7A 4. Proposed Lakeside Sub. 3b Addition, Lot 1 5. Proposed Lakeside Sub. 3i° Addition, Lot 2 6. Proposed Lakeside Sub. 3'" Addition, Lot 3 7. Proposed Lakeside Sub. 3'd Addition, Lot 4 8. Raven Hills Sub., Lot 1 9. Raven Hills Sub., Lot 2 10. Lake Orbin Sub., Lot 3 11. Moneshka Bay Sub., Block 5, Lot 5 12. Proposed U.S. Survey 3099, Lot 29-1 13. Proposed U.S. Survey 3099, Lot 29-2 Section 2: The assembly acknowledges and accepts the recommended parcels set forth in Section 1 above and authorizes staff to initiate the comprehensive plan amendment and zoning change process under KIBC 17.205, and Initiating any needed survey and platting required under KIBC Title 16, that is necessary to make aforesaid parcels sale ready by ensuring that the parcels conform to regulations that will facilitate residential development. Section 3: The aforementioned parcels, which may require rezoning, survey, and platting to be made ready for disposal, should be offered for disposal to the public in a subsequent land sale. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS NINETEENTH DAY OF MAY 2016 KODIAK ISLAND BOROU H ATTEST:rrol ria , rough Mayor Nova M. Javier, WC, Borough Clerk Kodiak Island Borough, Alaska Resolution No. FY2016-34 Page 2 of 2 Case No. 16-034 Application Package Ordinances Rezoning The Following Borough Owned Lands From P... Page 17SW404-EM #9.a. PUBLIC HEARING ITEM 7-R P & Z REGULAR MEETING'. JULY 13, 2016 Kodiak Island Borough s n Community Development Department . j 710 Mill Bay Road Roam 205 Kodiak, Alaska 99615 ati Phone(907)486-9363 Fax(907)486-9396 www.kadiakak.us June 10, 2016 Duane Dvorak, Borough Resource Management Officer Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Re: Case 16-034. Request a Rezone of Lot 5, Block 5, Monashka Bay Subdivision from PL- Public Use Lands District to RRI-Rural Residential One District (Chapter 17.205 KIBC). The intent of this request is to rezone this parcel to a zoning district that permits residential construction so the parcel may be listed in a future Borough land sale. Dear Mr. Dvorak: Please be advised that the Kodiak Island Borough Planning and Zoning Commission has scheduled the case referenced above for Public Hearing at their July 13, 2016 regular meeting. This meeting will begin at 6:30 p.m. in the Assembly Chambers, 710 Mill Bay Road, Kodiak, Alaska. Attendance at this meeting is not mandatory but recommended. One week prior to the regular meeting, on Wednesday, July 6, 2016 at 6:30 p.m. in the Borough Conference Room (#121), the Commission will hold a packet review work session for the purpose of reviewing packet materials and staff summaries of cases scheduled for the regular meeting. The public is welcome to attend the packet review work session; however, the work session is not for the purpose of receiving public testimony. Applicants who wish to present testimony and/or evidence related to their case should appear at the Public Hearing during the Regular Meeting and present such information in person. Please contact the Community Development Department at 486-9363 if we can answer any outstanding questions or provide ' ' al information. In advance, thank you for your cooperation. Sincerely, Sheila Smith, Secretary Community Development Department Case No. 16-034 Public Comment Package Ordinances Rezoning The Following Borough Owned Lands From P... Page 17AFG004-Em #9.B. PUBLIC HEARING ITEM 7-R P B Z REGULAR MEETING: JULY 13, 2015 KODIAK ISLAND BOROUGH COMMUNITY DEVELOPMENT DEPARTMENT 710 Mill Bay Road, Kodiak, Alaska 99615 (907)486-9363 umiv.kodinkak.us I PUBLIC HEARING NOTICE I A public hearing will be held on Wednesday, July 13, 2016. The meeting will begin at 6:30 p.m. in the Borough Assembly Chambers, 710 Mill Bay Road, Kodiak, Alaska, before the Kodiak Island Borough Planning and Zoning Commission, to hear comments if any, on the following request: CASE: 16-034 APPLICANT: Kodiak Island Borough AGENT: KIB Resource Management Officer REQUEST: A Rezone of Lot 5, Block 5, Monashka Bay Subdivision from PL- Public Use Lands District to RRl-Rural Residential One District (Chapter 17.205 KIBC). The intent of this request is to rezone this parcel to a zoning district that permits residential construction so the parcel may be listed in a future Borough land sale. LOCATION: 3482 Monashka Bay Road ZONING: PL -Public Use Lands This notice is being sent to you because our records indicate you are a property, owner/interested party in the area of the request. If you do not wish to testify verbally, you may provide your comments in the space below or in a letter to the Community Development Department. Written comments must be received by 5 nm. Tuesday. June 28. 2016 to be considered by the commission. If you would like to fax your comments to us, our fax number is: (907) 486-9396, or you may email your comments to smith Rkodiokak.us. If you would like to testify via telephone, please call in your comments during the appropriate public hearing section of the meeting. The local call-in telephone number is 486-3231. The toll free telephone number is 1-855492-9202. One week prior to the regular meeting, on Wednesday, July 6, 2016, a work session will be held at 6:30 p.m. in the Kodiak Island Borough Conference Room (#121), to review the packet material for the case, Kodiak Island Borough Code provides you with specific appeal rights if you disagree with the Commission's decision on this request. If you have any questions about the request or your appeal rights, please feel Gee to call us at 486-9363. Your No.: Melling AJdrery Your property description: Cnmmenb- Case No. 16-034 Public Comment Package Ordinances Rezoning The Following Borough Owned Lands From R Page 17413040,tEM O.B. PUBLIC HEARING ITEM 7-R P 8 Z REGULAR MEETING'. JULY 13. 2016 Case 16-034 Request a Rezone of Lot 5, Block 5, Monashka Bay Location Subdivision from PL- Public Use Lands District to 3482 Monashka Bay Rd RR1-Rural Residential One District (Chapter Applicant 17.205 KIBC). The intent of this request is to rezone Kodiak Island Borough this parcel to a zoning district that permits residential construction so the parcel may be listed in a future Borough land sale. 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CHAIR ARNDT reconvened the meeting at 10:08 p.m Q. CASE 16-033. Request a Comprehensive Plan Amendment to change the Future Land Use Designation of Lot 5, Block 5., Monashka Bay Subdivision from Public Facilities/Ownership to Rural Residential (Chapter 17.205 KIBC. The intent of this request is to facilitate a rezone to accommodate listing this parcel in a future Borough land sale. The applicant is the Kodiak Island Borough and the agent is the KIB Resource Management Officer. The location is 3482 Monashka Bay Road and the zoning is PL -Public Use Lands. COMMISSIONER SPALINGER MOVED to recommend that the Kodiak Island Borough Assembly approve the Comprehensive Plan amendment to change the Future Land Use Designation of Lot 5, Block 5, Monashka Bay Subdivision from Public Facilities/Ownership to Rural Residential (KIBC 17.205) and to adopt the findings of fact listed in the staff report entered into the record for this case as "Findings of Fad" for Case No. 16-033. Mason stated future land use designation change is for the property identified in Case 16-032. It's currently zoned PL -Public Use Lands and is vacant. Otmeloi Park is zoned PL -Public Use Lands but everything else in the general vicinity is zoned RR1 and already has a future land use designation of Rural Residential. All the development in the area has been low density residential and low density residential on this lot would fit in with the character of the area. We are not expecting any adverse traffic impacts. This request is consistent with land use and housing goals in the Comp Plan. Staff recommends approval. Open Public Hearing: Duane Dvorak, Resource Management Officer, stated he concurs with staffs recommendation. Close Public Hearing: FINDINGS OF FACT 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to properties with a Future Land Use Designation of Rural Residential. 3. The subject parcel is of sufficient area and is capable of providing suitable rural residential building sites. 4. The amendment is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 5. The amendment is necessary to allow for a subsequent rezone from PL -Public Use Lands District to RR1-Rural Residential One District. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this Comprehensive Plan amendment. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY R. CASE 16-034. Request a Rezone of Lot 5, Block 5, Monashka Bay Subdivision from PL- Public Use Lands District to RR1-Rural Residential One District (Chapter 17.205 KIBC). The intent of this request is to rezone this parcel to a zoning district that permits residential construction so the parcel may be listed in a future Borough land sale. COMMISSIONER BALDWIN MOVED to recommend that the Kodiak Island Borough Assembly approve the rezone of Lot 5, Block 5, Monashka Bay Subdivision from PL -Public Use Lands District to RR1-Rural Residential One District (KIBC 17.205) and to adopt the findings of fact Kodiak Island Borough Planning & Zoning Commission Minutes July 13, 2016 Page 21 Ordinances Rezoning The Following Borough Owned Lands From P Page 18CGOVO4-EM O.B. listed in the staff report entered into the record for this case as "Findings of Fact" for Case No. 16-034. Mason stated staff's analysis for Case 16-033 is applicable to this rezone. Staff recommends approval and to forward to the assembly with a recommendation for approval. Open Public Hearing: Duane Dvorak, Resource Management Officer, stated he concurs with staffs recommendation. Close Public Hearing: FINDINGS OF FACT 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to RR1-Rural Residential One zoned land and uses. 3. The subject parcel is of sufficient area and is capable of providing suitable rural residential building sites. 4. The rezone is consistent with the adopted 2008 Comprehensive Plan Rural Residential Future Land Use Designation per Case No. 16-033. 5. The rezone is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this rezone. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY S. CASE 16-035 (Two cases that follow apply to the same parcel). Request a Title 18 Land Disposal review to consider disposal of a ± 15,000 square foot portion of Lot 29, U.S. Survey 3099 (Chapter 18.20 KIBC). The intent of this request is to subdivide the disposal area to create up to two lots to be offered for sale to the public at a future Borough land sale. The applicant is the Kodiak Island Borough and the agent is the KIB Resource Management Officer. The location is 2906 Spruce Cape Road and the zoning is PL -Public Use Lands. COMMISSIONER SPALINGER MOVED to adopt Planning and Zoning Commission Resolution No. FY 2017-05, recommending disposal of a ± 15,000 square foot portion of Lot 29, U.S. Survey 3099 and to adopt the findings of fact listed in the staff report entered into the record for this case as "Findings of Fact" for Case No. 16-035. Mason reported this proposed land disposal is conceptual as well. There are two conceptual lots shown on the maps provided that are not platted lots. This section of Lot 29 was identified by the Lands Committee as surplus to public needs and they recommended disposal, Comp Plan Amendment, and a rezone. This section is currently the helo pas site and it is no longer used. There are no other plans to develop this site. The Lands Committee identified this as potential for alleviating some of the need for residential land in the area. It is consistent with the land use and housing goals in the Comp Plan. Staff recommends approval with a recommendation to the assembly for approval. Open Public Hearing: Duane Dvorak, Resource Management Officer, stated he concurs with staffs recommendation. At last week's packet review, it was mentioned about bringing the lots lines all the way out to the meander line along the shore, for that reason the applicant would like to recommend an amendment to make it + 20.000 so. feet. That will add additional square footage. He has a Kodiak Island Borough Planning & Zoning Commission Minutes July 13, 2016 Page 22 Ordinances Rezoning The Following Borough Owned Lands From P... July 20, 2016 Page 1840004 -EM O.B. Kodiak Island Borough Community Development Deportment 710 Mill Bay Road Kodiak, Alaska 99615 Phone(907)486-9363 Fax(907)486.9396 Mr. Duane Dvorak, Resource Management Officer Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 www.kadiakak.us Re: Case 16-034. Request for a rezone of Lot 5, Block 5, Monashka Bay Subdivision from PL- Public Use Lands District to RR1-Rural Residential One District (Chapter 17.205 KIBC), The Intent of this request is to rezone this parcel to a zoning district that permits residential construction so the parcel may be listed in a future Borough land sale. Dear Mr. Dvorak: The Kodiak Island Borough Planning & Zoning Commission, at their meeting on July 13, 2016, moved to forward the request cited above, recommending approval, to the Borough Assembly. Please contact the Borough Clerk's Office at 486.9310 for information on when your case will be scheduled for a first reading and public hearing before the Assembly. According to KIBC 17.205.055 (Submission to assembly) of the Borough Code states: A. Within thirty days after the planning commission has acted favorably upon a proposed zoning change in accordance with the above provisions, a report with recommendations shall be submitted to the assembly together with the proposed ordinance. Such recommendations of the planning commission shall be advisory only and shall not be binding upon the assembly. When an ordinance has been forwarded to the borough assembly, the assembly shall act in accordance with this chapter and notice shall be issued as provided in Section 17.205.070, by the borough clerk. B. If the planning commission recommends denial of any proposed amendment, its action shall be final unless the initiating party, within ten days, files a written statement with the clerk requesting that the commission's action he taken up by the borough assembly. The commission adopted the following findings of fact in support of their recommendation to the assembly: FINDINGS OF FACT 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to RR1-Rural Residential One zoned land and uses. Ordinances Rezoning The Following Borough Owned Lands From P... 3. The subject parcel is of sufficient area and Is capable of providing suitable rural residential building sites. 4. The rezone is consistent with the adopted 2008 Comprehensive Plan Rural Residential Future Land Use Designation per Case No. 16.033. 5. The rezone is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this rezone. Should this rezone be approved by the Kodiak Island Borough Assembly, you will still need to obtain permits for any construction activities. If you have any questions about the action of the commission, please contact the Community Development Department at 486.9363. Sincerel%L Sara Mason, Director Community Development Department CC: Nova Javier, Borough Clerk Planning & Zoning Commission Ordinances Rezoning The Following Borough Owned Lands From P Page 1 �►r�Em #s.B. PUBLIC HEARING FORM Ordinance No. FY2017-08, Lot 5, Block 5, Monashka Bay Subdivision From PL -Public Use Lands District To RR1-Rural Residential One District (P&Z Case No. 16-034). ❑ This is in support of changing the future land use designation. n__�This is in opposition of changing the future land use designation. D W M j2]/hI wOther comments. � I Name: _ PrO fi J !2 n A c�-� 7U Residence Address: , a --i ( /"n1L_ Mailing Address: �! 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KODIAK ISLAND BOROUGH AGENDA STATEMENT SEPTEMBER 15. 2016 ASSEMBLY REGULAR MEETING OY ' TITLE: Ordinance No. FY2017-10 Rezoning A t 20,000 Square Foot Portion Of Lot 29, U.S. Survey 3099 From PL -Public Use Lands District To R2 -Two -Family Residential District (P&Z Case No. 16-037). ORIGINATOR: Sara Mason FISCAL IMPACT: No FUNDS AVAILABLE: Account Number: Amount Budgeted: SUMMARY STATEMENT: This rezone request was recommended by the Borough Lands Committee and initiated by the Borough Assembly in conjunction with P&Z Case No. 16-035 (land disposal) and P&Z Case No. 16-036 (comprehensive plan amendment). On September 2, 2016 the Clerk's office mailed out 19 public hearing notices. The Planning and Zoning Commission held a public hearing on this rezone request at their July 13, 2016 regular meeting. The Commission voted unanimously to recommend that the Assembly approve this rezone. RECOMMENDED MOTION: Kodiak Island Borough Ordinances Rezoning The Following Borough Owned Lands From P... 7 8 9 10 I 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Page 18fc6f4OLtEm O.B. Introduced by: Borough Assembly Requested by: KIB Lands Committee Drafted by: CDD Introduced: 09/01/2016 Public Hearing: 09/15/2016 Adopted: KODIAK ISLAND BOROUGH ORDINANCE NO. FY2017-10 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH REZONING A ± 20,000 SQUARE FOOT PORTION OF LOT 29, U.S. SURVEY 3099 FROM PL -PUBLIC USE LANDS DISTRICT TO R2 -TWO-FAMILY RESIDENTIAL DISTRICT (P&Z CASE NO. 16-037) WHEREAS, as a second class borough, the Kodiak Island Borough exercises planning, platting, and land use regulations on an area wide basis pursuant to Chapter 29.40 Alaska Statutes; and WHEREAS, in accordance with AS 29.40, the Kodiak Island Borough adopted the 2008 Comprehensive Plan update on December 6, 2007 (Ordinance No. FY2008-10) to replace the 1968 Comprehensive Plan; and WHEREAS, the Kodiak Island Borough has adopted KIBC Title 17 (Zoning) in accordance with AS 29.40 to implement the Kodiak Island Borough Comprehensive Plan; and WHEREAS, KIBC 17.205.010 provides that "Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts'; and WHEREAS, The Borough Lands Committee recommended and the Borough Assembly initiated the rezone of a ± 15,000 square foot portion of Lot 29, U.S. Survey 3099 from PL - Public Use Lands District to R2 -Two -Family Residential District; and WHEREAS, at an advertised public hearing, consistent with Kodiak Island Borough Code 17.205.040, the Planning and Zoning Commission considered the merits of the rezone request; and WHEREAS, the Commission voted to recommend to the Borough Assembly that the site be rezoned from PL -Public Use Lands District to R2 -Two -Family Residential District finding that the public necessity, convenience, general welfare, and good zoning practice would be enhanced by such action; and WHEREAS, the Commission hereby recommends that this rezone be reviewed and approved by the Borough Assembly. Kodiak Island Borough, Alaska Ordinance No. FY2017-10 Page 1 of 2 Ordinances Rezoning The Following Borough Owned Lands From P... 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 Page 18 -3§fV" -EM O.B. 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: A t 20,000 square foot portion of Lot 29, U.S. Survey 3099 is hereby rezoned from PL -Public Use Lands District to 132 -Two -Family Residential District. Section 3: This ordinance shall become effective upon the recording of a plat that defines the actual surveyed boundary of the t 20,000 square foot portion that is subject to this rezone. Section 4: By this ordinance, the Borough Assembly adopts the following findings of fact in support of their approval of this rezone. 1. The subject parcel is adjacent to R2 -Two -Family Residential zoned land and uses. 2. The subject parcel is of sufficient area and is capable of providing suitable urban residential building sites. 3. The rezone is consistent with the adopted 2008 Comprehensive Plan Rural Residential Future Land Use Designation per Case No. 16-036. 4. The rezone is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 5. The Planning and Zoning Commission recommends that the Borough Assembly approve this rezone. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2016 ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Ordinances Rezoning The Following Borough Owned Lands From P... KODIAK ISLAND BOROUGH Jerrol Friend, Borough Mayor Ordinance No. FY2017-10 Page 2 of 2 Pagel WG§f4047EM N.B. Kodiak Island Borough Office of the Borough Clerk 710 Mill Bay Road Kodiak, Alaska 99615 Phone(907)486-9310 Fax(907)486-9391 clerks c- kodiakak.us A public hearing will be held on Thursday. September 15. 2016, at 6:30 p.m. in the Borough Assembly Chambers, 710 Mill Bay Road, Kodiak, Alaska before the Kodiak Island Borough Assembly to hear comments on: Ordinance No. FY2017-10, Rezoning A±20,000 Square Foot Portion Of Lot 29, U.S. Survey 3099 From PL -Public Use Lands District To R2 -Two -Family Residential District (P&Z Case No. 16-037). If you do not wish to testify verbally, you may provide your comments on the attached public hearing form and fax it to (907) 486-9391, email to clerks(o)kodiakak.us, or hand deliver to the Borough Clerk's Office, 710 Mill Bay Road, Room 234, Kodiak, AK 99615 prior to 3 p.m. on September 15, 2016. Comments favoring and opposing are encouraged. If you have any questions, please call 486-9310. Attachments: • Map • Public hearing form • Ordinance No. FY2017-10 Ordinances Rezoning The Following Borough Owned Lands From P... Page 18@5004 -Em N.B. Ordinance No. FY2017-10, Rezoning A± 20,000 Square Foot Portion Of Lot 29, U.S. Survey 3099 From PL -Public Use Lands District To R2 -Two -Family Residential District (P&Z Case No. 16-037). p b 0, e M1 R p � A EcKRe1�� 1�`, s��e♦ �ry ^hp � hP 926 10C an hYit� rt] yl21 ry� via Ilse i n ^em M1� ,tih N 10 %Ip 138 � VIM 11n UnkrOM 4vmJ G�� esX P p �p.K`ee I k♦ a p1 •♦ L0 ,. I e Legend , OSubject Parcels Zoning Legend 0 Public Use Lands Q Rural Residential 1 0 Muhl Family Residential - Light Industrial /® watershed Rural Residential 2 Business Rural Neighborhood Commercial Q Conservatim Q Single Family Residential 0 Retail Business - Urban Neighborhood Commercial 0 Rural Residential Two Family Residential ® Industrial Q Natural Use Ordinances Rezoning The Following Borough Owned Lands From P. Pagel W4f4 47EM O.B. PUBLIC HEARING FORM Ordinance No. FY2017-10, Rezoning A±20,000 Square Foot Portion Of Lot 29, U.S. Survey 3099 From PL -Public Use Lands District To R2 -Two -Family Residential District (P&Z Case No. 16-037). ❑ This is in support of changing the future land use designation. ❑ This is in opposition of changing the future land use designation. ❑ Other comments. Name: Residence Address: Mailing Address: Comments: Written comments may be submitted by email to clerksCcDkodiakak.us, faxed to 907-486-9391, mailed or hand delivered to the Borough Clerk's Office, 710 Mill Bay Road, Room 234, Kodiak, AK 99615 prior to 3 p.m. on Thursday. September 16, 2016. Ordinances Rezoning The Following Borough Owned Lands From P... 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Page 19CG6f4"47EM #s.B. Introduced by: Borough Assembly Requested by: KIB Lands Committee Drafted by: CDD Introduced: 09101/2016 Public Hearing: 09/15/2016 Adopted: KODIAK ISLAND BOROUGH ORDINANCE NO. FY2017-10 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH REZONING A ± 20,000 SQUARE FOOT PORTION OF LOT 29, U.S. SURVEY 3099 FROM PL -PUBLIC USE LANDS DISTRICT TO R2 -TWO-FAMILY RESIDENTIAL DISTRICT (P&Z CASE NO. 16-037) WHEREAS, as a second class borough, the Kodiak Island Borough exercises planning, platting, and land use regulations on an area wide basis pursuant to Chapter 29.40 Alaska Statutes; and WHEREAS, in accordance with AS 29.40, the Kodiak Island Borough adopted the 2008 Comprehensive Plan update on December 6, 2007 (Ordinance No. FY2008-10) to replace the 1968 Comprehensive Plan; and WHEREAS, the Kodiak Island Borough has adopted KIBC Title 17 (Zoning) in accordance with AS 29.40 to implement the Kodiak Island Borough Comprehensive Plan; and WHEREAS, KIBC 17.205.010 provides that "Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts"; and WHEREAS, The Borough Lands Committee recommended and the Borough Assembly initiated the rezone of a ± 15,000 square foot portion of Lot 29, U.S. Survey 3099 from PL - Public Use Lands District to R2 -Two -Family Residential District; and WHEREAS, at an advertised public hearing, consistent with Kodiak Island Borough Code 17.205.040, the Planning and Zoning Commission considered the merits of the rezone request; and WHEREAS, the Commission voted to recommend to the Borough Assembly that the site be rezoned from PL -Public Use Lands District to R2 -Two -Family Residential District finding that the public necessity, convenience, general welfare, and good zoning practice would be enhanced by such action; and WHEREAS, the Commission hereby recommends that this rezone be reviewed and approved by the Borough Assembly. Kodiak Island Borough, Alaska Ordinance No. FY2017-10 Page 1 of 2 Ordinances Rezoning The Following Borough Owned Lands From P... 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 Pagel 94(3§f4"JrEM #s. B. 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: A t 20,000 square foot portion of Lot 29, U.S. Survey 3099 is hereby rezoned from PL -Public Use Lands District to R2 -Two -Family Residential District. Section 3: This ordinance shall become effective upon the recording of a plat that defines the actual surveyed boundary of the t 20,000 square foot portion that is subject to this rezone. Section 4: By this ordinance, the Borough Assembly adopts the following findings of fact in support of their approval of this rezone. 1. The subject parcel is adjacent to R2 -Two -Family Residential zoned land and uses. 2. The subject parcel is of sufficient area and is capable of providing suitable urban residential building sites. 3. The rezone is consistent with the adopted 2008 Comprehensive Plan Rural Residential Future Land Use Designation per Case No. 16-036. 4. The rezone is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 5. The Planning and Zoning Commission recommends that the Borough Assembly approve this rezone. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2016 ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Ordinances Rezoning The Following Borough Owned Lands From P... 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Page 196GO►OLtEM O.B. PUBLIC HEARING ITEM 7-1.) P 8 Z REGULAR MEETING: JULY 13, 2016 0 KIB Location & Zoning Map I .,JW&E 6 r 1 10. '1 N 01 2879 2695. 2705 2713 .Au 2692 1! 2]]2' VIFI 2]56 v iesJ m Y 35a'( 15 Zoning Legend Legend OSubject Parcels r Public Use Lands Rural Residential 1 0 Multi Family Residential= Light Industrial watershed Rural Residential 2 Q Business F-71 Rural Neighborhood Commercial Conservation Single Family Residential Retail Business Urban Neighborhood Commercial Rural Residential 0 Two Family Residential Q Industrial 0 Natural Use Kodiak Island Borough OIs Community Development Department —_= Amass Roads hlip' .IM^.w�kotliakakus/Bis (9a7) 486.9337 This rnap zpo o mmnoneiparna- only and is no,[ leered for any Nal mpmsealallnns. " Ilmmnalruded RIBht of WaYa Case No. 16.037 Introduction Ordinances Rezoning The Following Borough Owned Lands From P... Page 19"N04 -Em #s.a. PUBLIC HEARING ITEM 7-U P 8 Z REGULAR MEETING: JULY 13, 2016 Case No. 16-037 Introduction Ordinances Rezoning The Following Borough Owned Lands From P... *ALASKA Page 19600404 -Em O.B. PUBLIC HEARING ITEM 7-U P & Z REGULAR MEETING: JULY 13, 2016 STAFF REPORT AND RECOMMENDATION Case No. 16-037. A Rezone of a t 15,000 square foot portion of Lot 29, U.S. Survey 3099 from PL -Public Use Lands District to R2 -Two -Family Residential District (KIBC 17.205). DATE: June 28, 2016 TO: Planning and Zoning Commission FROM: Community Development Department SUBJECT: Staff Report and Recommendation CASE: 16-037 APPLICANT: Kodiak Island Borough LOCATION: 2906 Spruce Cape Road LEGAL DSC: Lot 29, U.S. Survey 3099 ZONING: PL -Public Use Lands District FUTURE LAND USE DESIGNATION: Public Facilities/Ownership NOTICE: Twenty (20) public hearing notices were mailed on June 10, 2016. One (1) public hearing notice was returned as of the date this report was prepared. SITE VISIT: None 1. Zoning History: • Zoned Unclassified by the 1968 Metropolitan Zoning Map • Zoned RR -Rural Residential by Ordinance No. 80-9-0 • Zoned PL -Public Use Lands by Ordinance No. 83-30-0 2. Site Size: t 15,000 square feet 3. Existing Land Use: Helicopter landing pad 4. Surrounding Land Use and Zoning: Lots in the area are zoned R2 -Two -Family Residential and R3 -Multi -Family Residential; most having single-family homes. Lot to the north is zoned PL -Public Use Lands and is a water treatment facility. 5. Comprehensive Plan: • Designated Public and Open Space by the 1968 Comprehensive Plan • Designated Public Facilities/Ownership by the 2008 Comprehensive Plan 6. Applicable Comprehensive Plan Future Land Use Designation Public Facilities: This designation is intended for public facilities such as water or wastewater treatment facilities, police or fire stations and other public facilities, not including parks and recreation facilities. Urban Residential: This designation allows for a variety of urban level residential uses. It is generally applied within incorporated cities and would allow for a mix of single- family and other types of housing including those allowed in the R1, R2, R3, and SRO zones. 7. Applicable Regulations: The following sections of Title 17 (Zoning) of the Borough Code are applicable to this request: Case No. 16-037 Staff Report and Recommendation Ordinances Rezoning The Following Borough Owned Lands From R.. Pagel 9@3IffJV"4-EM O.B. PUBLIC HEARING ITEM 7-1.1 P & Z REGULAR MEETING: JULY 13, 2016 17.10.020 Reference and use (Comorehensive Plan). In accordance with Alaska Statutes, zoning decisions shall be based upon the recommendations contained in the comprehensive plan. 17.205.010 Authority (Amendments and changes). Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts. 17.205.020 Reoort from planning and zoning commission (Amendments and changes) The commission shall report in writing to the assembly on any proposed change or amendment regardless of the manner in which such change is initiated and such report shall find: A. Findings as to need and justification for a change or amendments; B. Findings as to the effect a change or amendment would have on the objectives of the comprehensive plan; and C. Recommendations as to the approval or disapproval of the change or amendment. 17.205.055 Submission to assembly (Amendments and changes) A. Within 30 days after the commission has acted favorably upon a proposed zoning change in accordance with the above provisions; a report with recommendations shall be submitted to the assembly together with the proposed ordinance. Such recommendations of the commission shall be advisory only and shall not be binding upon the assembly. When an ordinance has been forwarded to the assembly, the assembly shall act in accordance with this chapter, and notice shall be issued as provided in KIBC 17.205.070 by the clerk. B. If the commission recommends denial of any proposed amendment; its action shall be final unless the initiating party, within 10 days, files a written statement with the clerk requesting that the commission's action be taken up by the assembly. STAFF ANALYSIS This is the request to rezone the lot from PL -Public Use Lands to R2 -Two -Family Residential that is referred to in the land disposal staff report for the same parcel. The criteria provided in the preceding Comprehensive Plan Amendment staff analysis (Case No. 16-036) also apply to this rezone request. CONCLUSION Staff analysis shows that the rezone is consistent with the objectives of the adopted Comprehensive Plan and satisfies the requirements of Title 17 of the Kodiak Island Borough Code for amendments and changes. RECOMMENDATION Staff recommends that the Commission forward this rezone request to the Kodiak Island Borough Assembly with a recommendation for approval. APPROPRIATE MOTION Should the Commission agree with the staff recommendation, the appropriate motion is: Case No. 16-037 Staff Report and Recommendation Ordinances Rezoning The Following Borough Owned Lands From P... yyPNo epAO`C Y S Q �- 0 Y�=i O'j 4LASH4 Pagel 9TQ§f40J "EM #s. B. PUBLIC HEARING ITEM 7-U P & Z REGULAR MEETING: JULY 13, 2016 Move to recommend that the Kodiak Island Borough Assembly approve the rezone of a i 15,000 square foot portion of Lot 29, U.S. Survey 3099 from PL - Public Use Lands to R2 -Two -Family Residential (KIBC 17.205) and to adopt the findings of fact listed in the staff report entered into the record for this case as "Findings of Fact" for Case No. 16-037. FINDINGS OF FACT (KIBC 17.205.020.A -C) 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to R2 -Two -Family Residential zoned land and uses. 3. The subject parcel is of sufficient area and is capable of providing suitable urban residential building sites. 4. The rezone is consistent with the adopted 2008 Comprehensive Plan Urban Residential Future Land Use Designation per Case No. 16-036. 5. The rezone is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adapted Comprehensive Plan. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this rezone. Case No. 16-037 Staff Report and Recommendation Ordinances Rezoning The Following Borough Owned Lands From P... 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 PUBLIC HEARING ITEM 7-U P 6 Z REGULAR MEETING: JULY 13, 2016 Introduced by: Requested by: Drafted by: Introduced: Public Heating: Adopted: KODIAK ISLAND BOROUGH ORDINANCE NO. FY2017-xx Borough Assembly KIB Lands Committee CDD AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH REZONING A t 15,000 SQUARE FOOT PORTION OF LOT 29, U.S. SURVEY 3099 FROM PL -PUBLIC USE LANDS DISTRICT TO R2 -TWO-FAMILY RESIDENTIAL DISTRICT (P&Z CASE NO. 16-037) WHEREAS, as a second class borough, the Kodiak Island Borough exercises planning, platting, and land use regulations on an area wide basis pursuant to Chapter 29.40 Alaska Statutes; and WHEREAS, in accordance with AS 29.40, the Kodiak Island Borough adopted the 2008 Comprehensive Plan update on December 6, 2007 (Ordinance No. FY2008-10) to replace the 1968 Comprehensive Plan; and WHEREAS, the Kodiak Island Borough has adopted KIBC Title 17 (Zoning) in accordance with AS 29.40 to implement the Kodiak Island Borough Comprehensive Plan; and WHEREAS, KIBC 17.205.010 provides that "Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts"; and WHEREAS, The Borough Lands Committee recommended and the Borough Assembly initiated the rezone of a is 15,000 square foot portion of Lot 29, U.S. Survey 3099 from PL - Public Use Lands District to R2 -Two -Family Residential District; and WHEREAS, at an advertised public hearing, consistent with Kodiak Island Borough Code 17.205.040, the Planning and Zoning Commission considered the merits of the rezone request; and WHEREAS, the Commission voted to recommend to the Borough Assembly that the site be rezoned from PL -Public Use Lands District to 132 -Two -Family Residential District finding that the public necessity, convenience, general welfare, and good zoning practice would be enhanced by such action; and WHEREAS, the Commission hereby recommends that this rezone be reviewed and approved by the Borough Assembly. Kodiak Island Borough, Alaska Ordinance No. FY2017-xx Case No. 16-037 Staff Report and Recommendation Page 1 of 2 Ordinances Rezoning The Following Borough Owned Lands From P... 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 Pagel 96134fV"J "Em O.B. PUBLIC HEARING ITEM 7-1.1 P 8 Z REGULAR MEETING: JULY 13, 2016 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: A t 15,000 square foot portion of Lot 29, U.S. Survey 3099 is hereby rezoned from PL -Public Use Lands District to R2 -Two -Family Residential District. Section 3: This ordinance shall become effective upon the recording of a plat that defines the actual surveyed boundary of the t 15,000 square foot portion that is subject to this rezone. Section 4: By this ordinance, the Borough Assembly adopts the following findings of fact in support of their approval of this rezone. 1. The subject parcel is adjacent to 132 -Two -Family Residential zoned land and uses. 2. The subject parcel is of sufficient area and is capable of providing suitable urban residential building sites. 3. The rezone is consistent with the adopted 2008 Comprehensive Plan Rural Residential Future Land Use Designation per Case No. 16-036. 4. The rezone is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 5. The Planning and Zoning Commission recommends that the Borough Assembly approve this rezone. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2016 KODIAK ISLAND BOROUGH Jerrol Friend, Borough Mayor ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Ordinance No. FY2017-xx Case No. 16-037 Staff Report and Recommendation Page 2 of 2 Ordinances Rezoning The Following Borough Owned Lands From P... Page 1 of 1 Page 20"VO4-Em O.B. PUBLIC HEARING ITEM 7-U P a Z REGULAR MEETING'. JULY 13,2a16 Kodiak Island Borough OFFICE of the Af"AGER 710 Mill Bay Road, Room 101 Kodiak, Alaska 99615 Phone (907) 486-9304 Fax (907) 486-9374 E-mail: d&2mWAinkahm To: Planning & Zoning Commission Through: KIB Community Development Department /1 / From: Duane Dvorak, Resource Management Officer, ) Date: June 23, 2016 �l�/ Re: Cases 16-035, 16-036, 16-037, regarding the comprehensive plan designation, zoning status and request for disposal of a portion of Lot 29, U.S. Survey 3100 A portion of Lot 29 has been recommended for disposal by the recently empaneled Borough Lands Committee. That recommendation was reviewed and accepted by the assembly, who then authorized staff action to begin making the parcel ready for sale. Lot 29 is currently zoned PL -Public Use Land and designated for public use in the comprehensive plan. This lot has been reserved for public purpose and is currently developed with a heli -pad and dumpster waste collection point. There are also several easements on the property for wastewater and/or storm water outfalls. The portion requested for reclassification and disposal is that area occupied by the heli -pad. It is the only area with enough depth to adequately allow for residential development. The remainder of the site will remain 'as -is". The approximately 15,000 square feet of Lot 29 that is requested for reclassification and disposal is relatively flat with perimeter fencing, lighting and a paved landing pad. The concept drawing shows a maximum of two lots. Care will have to be taken to ensure that each lots has adequate usable area between the 100 foot right-of-way for Spruce Cape Road and the high bank along the tidelands. The maximum area to be developed would be about 15,000 square feet. The size and configuration of a contemplated subdivision will be adjusted as necessary to accommodate the need to produce reasonably developable lots that will not require variances or other extra measures in order to construct a home. This area is served by municipal water and sewer. The request is for 112 -Two-family Residential zoning as the most appropriate zoning in this context. The proposed disposal area is adjacent to R2 zoned lots across the street. Adjoining R3 - Multifamily zoning on the area occupied by Jackson's Mobile Home Park would not be appropriate for lots of minimum lot area and width along the shoreline. A preliminary plat will be presented to the commission in a subdivision case to follow. Resource Management staff will plan on attending the packet review and regular meeting for these requests and would be happy to answer any questions at those times. Case. No. 16-037 Application Package Ordinances Rezoning The Following Borough Owned Lands From P... Page 204G§f40JTEM O.B. PUBLIC HEARING ITEM 7-U P & Z REGULAR MEETING: JULY 13, 2016 Kodiak Island Borough F Pdnt Form- Submit by Email Community Development Department IIIIIIIIIII ILII IIIIII 710 MIII Bay Rd.Rm 205 Kodiak AK 99615 Ph. (907) 4B6 - 9362 Fax 1907)486-9396 htto•W/ ,kodlakakus 2r'Q1' PROP_ID 20913 Application for Rezone KIBC 17.205 I o-r)?5'7 The following information is to be supplied by the Applicant Property Omer Applicant: Kodiak Island Borough/Duane Dvorak Resource Management Officer Mailing Address: 710 MIII Bay Road, Room 101 Kodiak AK 99615 Phone Number. 907-486.9304 Other Contact email, etc.: ddvorak@kodiakakus Legal Description: Subdv: US. Survey 3099 (PTN) Rd Cn Bloc • Lot, 29 g51512 Street Address: 3RTMWRWd'Zq p U �t ice- ape.. Current Zoning: Public Use KIBC 17.130 `t" Proposed Zoning: R2 KIBC 17.80 Applicable Comprehensive Plan: A. Kodlak Island Comprehensive Plan Update 2008 Explanation of the need & Justification for a change or amendment of zoning: There is a perceived need for additional land to be made available for development in the community. In particular, the recently formed Borough Lands Committee has been focused on identifying borough lands which are not currently needed for public Purposes and which are not identified In future plans for public use. The portion of Lot 29 Identified in this request Is vacant land currently used for open space and which is located adjacent to existing R2 -Two-family Residential and R3-Multi-famlly Residential. This rezone request Is speculative In that the boundaries of the rezone area have not yet been fixed by survey which will be undertaken concurrently with this request, but which is expected to take more time to be completed. It is requested that a decision be made to rezone approximately 15,000 square feet of the 67,500 squre foot parcel with the final boundaries to be fixed by survey. It is further suggested that the approval ofa rezone should be made contingent on the recording of a survey plat such that the proposed R2-Two-famlly Residential zoning will only become effective upon said plat recording. Continued on reverse Case No. 16-037 Application Package Ordinances Rezoning The Following Borough Owned Lands From R.. PUBLIC HEARING ITEM 7-U P & Z REGULAR MEETING: JULY 13, 2016 Explanation of the effect such a change or amendment would have on the objectives of the applicable comprehensive plan: The land has been designated for Public and Recreational for many years. Currently, there are no plans to develop additional recreation facilities on this site beyond the unused helipad located on the site. Lot 29, U.S. Survey 30991s 67,500 square feet in area, of which approximately 15,000 square feet one (1) acre is proposed for rezoning to 112 -Two-family Residential, subject to the final boundaries being set by survey to be completed later. Because the area designated for disposal Is located on vacant open space land and because there is sufficient public and recreation land remaining in the immediate area, the effect of the proposed zoning change on the objectives of the applicable comprehensive plan would be negligible. Date: Jun 3, 2016 Signature: Z4&— CDD Staff Certification Date: LD — 3— lu CDD StafF. Payment Verification Fee Payable In Cashler's Office Room M 104 -Main Boor of Borough Building KIBC 17.205.030 Manner of initiation. Changes In this title may be Initiated In the following manner. A The assembly upon Its own motion: Waiver of fee B.The commission upon Its own motion: Waiver of fee C. By petition: Less than 1.75 acres: $350.00 1.76 to SAO acres $750.00 5.01 to 40.00 acres: $1,000.00 40,01 acres or more: $1,500.00 Case No, 16-037 Application Package Ordinances Rezoning The Following Borough Owned Lands From P Page 20@rWv0'tEM #9-B. Ordinances Rezoning The Following Borough Owned Lands From P-.. PUBLIC HEARING ITEM 7-1-1 P & Z REGULAR MEETING: JULY 13, 2016 C �' 8 S 8 S S 8888 LIJ 'o a' 'J m cn A 8 8 8 8 8 8$88 b �.9 9!A 5i 9 s a 2i M M L r'1 5 E z d 8 � avo F 9 m m 0 C a m DLr F. F. F Fi783a9 �<9 9�� m�m 5 m�m£'=�maugaa U 'ar-2F- mC 02 0o 30 c ad yyI :I LLA i bd i y€ � a Lph u 0 rl ER J $ A3 v o 0 � o i `O N N N N j v e Sc ! N b b b b d b b p g4 _ 299 6O ___ a h7 L p N R Case No. 16-037 Application Package Ordinances Rezoning The Following Borough Owned Lands From P-.. Page 20"VO4Em#.a Ordinances Rez+s The Following Borough OwLands From P.. PUBLIC HEARING ITEM 7-U P & Z REGULAR MEETING JULY 13,2016 � > ; LLJ . »��§ , . ED \ \ 4j �Ln ! � c � 0 n ! § e a22/ �{ ) k!( S )$ ) ) E !{ e\~)!|!§ )\ $ 2 \! )\ \ ! k § !§ 4 k J■ § 2 )e ! / ©� 222S ® ■Case !, { No. 16-037 Application Package Ordinances Rez+s The Following Borough OwLands From P.. Page 206GO404"EM N.B. PUBLIC HEARING ITEM 7-U P 8 Z REGULAR MEETING: JULY 13, 2016 AGENDA ITEM W.B.I. W J. Resolution No. FY2016-34 Accepting the Recommendation of the... Page 225 of 334 Case No. 16-037 Application Package Ordinances Rezoning The Following Borough Owned Lands From P... ' W y Ordinances Rezoning The Following Borough Owned Lands From P... Page 20fG0404-EM O.B. PUBLIC HEARING ITEM 7-U P 8 Z REGULAR MEETING: JULY 13, 2016 Introduced by Requested by Drafted by Introduced on. Adopted on KODIAK ISLAND BOROUGH RESOLUTION NO. FY2016.34 Borough Mayor Borough Mayor Resource Management Officer 051192016 051192016 A RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY 10 ACCEPTING THE RECOMMENDATION OF THE BOROUGH LANDS 11 COMMITTEE RECOMMENDING THE DISPOSAL OF CERTAIN 12 BOROUGH LANDS AS SURPLUS TO THE PUBLIC'S NEED AND 13 AUTHORIZING STAFF ACTION TO MAKE THE RECOMMENDED 14 PARCELS READY TO BE SOLD AT A FUTURE LAND SALE 15 16 WHEREAS, Kodiak Island Borough Code (KIBC) Chapter 2.160 provides for the duties 17 and responsibilities of the Borough Lands Committee, to review land and land related 18 issues within the Kodiak Island Borough and make appropriate recommendations to the 19 assembly; and 20 21 WHEREAS, since its initial meeting on December 16, 2015, the committee has been 22 reviewing borough lands with a priorit of identifying borough lands with residential 23 development potential that may be surplus to the public's need and which may be included 24 in a future land sale; and, 25 26 WHEREAS, the committee, on April 20, 2016, adopted Borough Lands Committee 27 Resolution No. FY2016-01 identifying thirteen prospective parcels of land with residential 28 development potential that may be found to be surplus to the public's need; and, 29 30 WHEREAS, many of the parcels identified for disposal will require additional staff work, 31 Planning and Zoning Commission review, or surveying and platting in order to be made 32 sale ready; and, 33 34 WHEREAS, in the interest of targeting a land sale for Fall 2016, it is imperative that the 35 assembly acknowledge the recommended parcels for disposal and authorize staff to begin 36 the work of preparing those identified parcels for future disposal and development. 37 38 WHEREAS, it should be noted that not all the lands identified by the committee 39 resolution for disposal require further disposal approval by the assembly, some having 40 been previously approved for disposal and then withdrawn from sale by the assembly; and, 41 42 WHEREAS, the committee has re-evaluated those parcels and found adequate potential 43 for residential development that should be sufficient to justify disposal this time around 44 given the need in the community for new residential development. 45 Kodiak Island Borough, Alaska Resolution No. FY2016-34 Page 1 of 2 Case No. 16-037 Application Package Ordinances Rezoning The Following Borough Owned Lands From P... 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 Page 20WW►04-Em #9.a. PUBLIC HEARING ITEM 7-U P & Z REGULAR MEETING: JULY 13, 2016 NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: The Kodiak Island Borough Lands Committee, in accordance with KIBC Chapter 2.160, recommends disposal of the borough's interest in the following thirteen (13) proposed parcels of land comprising about 12.7 acres of property described in the attached exhibit as: 1. East Addition, Block 38, Lot 2 2. East Addition, Block 38, Lot 3 3. Monashka Bay Sub., Block 2, Lot 7A 4. Proposed Lakeside Sub. 3itl Addition, Lot 1 5. Proposed Lakeside Sub. 3" Addition, Lot 2 6. Proposed Lakeside Sub. 3' Addition, Lot 3 7. Proposed Lakeside Sub. 3'" Addition, Lot 4 8. Raven Hills Sub., Lot 1 9. Raven Hills Sub., Lot 2 10. Lake Orbin Sub., Lot 3 11. Monashka Bay Sub., Block 5, Lot 5 12. Proposed U.S. Survey 3099, Lot 29-1 13. Proposed U.S. Survey 3099, Lot 29-2 Section 2: The assembly acknowledges and accepts the recommended parcels set forth in Section 1 above and authorizes staff to initiate the comprehensive plan amendment and zoning change process under KIBC 17.205, and Initiating any needed survey and platting required under KIBC Title 16, that is necessary to make aforesaid parcels sale ready by ensuring that the parcels conform to regulations that will facilitate residential development. Section 3: The aforementioned parcels, which may require rezoning, survey, and platting to be made ready for disposal, should be offered for disposal to the public in a subsequent land sale. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS NINETEENTH DAY OF MAY 2016 KODIAK ISLAND BOROU H ATTEST: root rie , rough Mayor Nova M. Javier, II Borough Clerk Kodiak Island Borough, Alaska Resolution No. FY2016-34 Page 2 of 2 Case No. 16-037 Application Package Ordinances Rezoning The Following Borough Owned Lands From P... June 10, 2016 Page 20"PO4—EM #9.B. PUBLIC HEARING ITEM 7-1-1 P & Z REGULAR MEETING'. JULY 13. 2016 Kodiak Island Borough Community Development Department 710 Mill Bay Road Room 205 Kodiak, Alaska 99615 Phone(907)486-9363 Fax(907)486-9396 www.kodiakak.us Duane Dvorak, Borough Resource Management Officer Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Re: Case 16-037. Request a Rezone of a t 15,000 square foot portion of Lot 29, U.S. Survey 3099 from PL- Public Use Lands District to 112 -Two -Family Residential District (Chapter 17.205 KIBC). The intent of this request is to rezone this portion to a zoning district that permits residential construction to accommodate subdividing the portion to create up to two lots for listing in a future Borough land sale. Dear Mr. Dvorak Please be advised that the Kodiak Island Borough Planning and Zoning Commission has scheduled the case referenced above for Public Hearing at their July 13, 2016 regular meeting. This meeting will begin at 6:30 p.m. in the Assembly Chambers, 710 Mill Bay Road, Kodiak, Alaska. Attendance at this meeting is not mandatory but recommended. One week prior to the regular meeting, on Wednesday, July 6, 2016 at 6:30 p.m. in the Borough Conference Room (#121), the Commission will hold a packet review work session for the purpose of reviewing packet materials and staff summaries of cases scheduled for the regular meeting. The public is welcome to attend the packet review work session; however, the work session is not for the purpose of receiving public testimony. Applicants who wish to present testimony and/or evidence related to their case should appear at the Public Hearing during the Regular Meeting and present such information in person. Please contact the Community Development Department at 486-9363 if we can answer any outstanding questions or provide additional information. In advance, thank you for your cooperation. Sincerely, Sheila Smith, Secretary Community Development Department Case No. 16-037 Public Comment Package Ordinances Rezoning The Following Borough Owned Lands From P... Page 21"004 -Em #9.a. PUBLIC HEARING ITEM 7-U P 8 Z REGULAR MEETING: JULY 13, 2016 KODIAK ISLAND BOROUGH COMMUNITY DEVELOPMENT DEPARTMENT 710 Mill Bay Road, Kodiak, Alaska 99615 (907)486-9363 w%w.kodiakak.us I PUBLIC HEARING NOTICE I A public hearing will be held on Wednesday, July 13, 2016. The meeting will begin at 6:30 p.m. in the Borough Assembly Chambers, 710 Mill Bay Road, Kodiak, Alaska, before the Kodiak Island Borough Planning and Zoning Commission, to hear comments if any, on the following request: CASE: 16-037 APPLICANT: Kodiak Island Borough AGENT: KIB Resource Management Officer REQUEST: A Rezone of a t 15,000 square foot portion of Lot 29, U.S. Survey 3099 from PL - Public Use Lands District to R2 -Two -Family Residential District (Chapter 17.205 KIBC). The intent of this request is to rezone this portion to a zoning district that permits residential construction to accommodate subdividing the portion to create up to two lots for listing in a future Borough land sale. LOCATION: 2906 Spruce Cape Road ZONING: PL -Public Use Lands This notice is being sent to you because our records indicate you are a property owner/interested party in the area of the request. If you do not wish to testify verbally, you may provide your comments in the space below or in a letter to the Community Development Department. Written comments must be reecked by 5 nm. Tuesday. June 28. 2016 to be considered by the commission. If you would like to fax your comments to us, our fax number is: (907) 486-9396, or you may email your comments to ssmitIQkodiakak.us. If you would like to testify via telephone, please call in your comments during the appropriate public hearing section of the meeting. The local call-in telephone number is 486-3231. The toll free telephone number is 1-855492-9202. One week prior to the regular meeting, on Wednesday, July 6, 2016, a work session will be held at 6:30 p.m. in the Kodiak Island Borough Conference Room (X121), to review the packet material for the case. Kodiak Island Borough Code provides you with specific appeal rights if you disagree with the Commission's decision on this request. If you have any questions about the request or your appeal rights, please feel free to call us at 486-9363. Your Name: Mailing Address: Your property description: Comment.: Case No. 16-037 Public Comment Package Ordinances Rezoning The Following Borough Owned Lands From P... Page 2140004"Em #93 - PUBLIC HEARING ITEM 7-U P & Z REGULAR MEETING: JULY 13, 2016 Request a Rezone of a ± 15,000 square foot portion of Location Case Lot 29, U.S. Survey 3099 from PL- Public Use Lands Location 2906 Spruce Cape Road District to 132 -Two -Family Residential District (Chapter Applicant 17.205 KIBC). The intent of this request is to rezone this Kodiak Island Borough portion to a zoning district that permits residential construction to accommodate subdividing the portion to create up to two lots for listing in a future Borough land sale. ]tar n P " P e]Lay �yc me P 1� rq Y p 6 0 u d e / h 4QU ,t L^ Re / s A , �anol OtNe fad' ti ,�' l EagR �e P ` _- s� nm lac �P vae° �P na Np 'i P ie+P q Ben , O P �0e Spruce Cape Road is o � ryyC h v X16 .SAP NP SM1 h0 Agan f '0 aa� M1ry ^^r \i fN Hae ne ire v 2. t1Ua7s ys�"p< j aMs°aV l 411 `;1 '14& o y G 1e l 1p i4 y I G y'i eT Aga b� Public Hearing Notice= Legend Foot `1"r Q Subject Parcel 0 µ, E Q Noti6caGon Area Kodiak Island Borough GIS Community Cevelopmenl0epartmenl ---- Accoss Roods hnpllwww.kodiakak.uslgis (9071496.933] Th. map 1, faonadd l« earn halpvpmcs _.. only and is ret Mended for any legal repesema0ons. .., .'; Unconsvucmd Right ar Ways Case No. 1fi-037 Public 1 295 590 1.180 Comment Package Ordinances Rezoning The Following Borough Owned Lands From P... Page 21R -W404 -EM #s.a. _6 NI Ill Ill Ill Ill 111 VI n N Ill VI Ul VI VI VI 111 111 I!1 Yf 1!1 VI •plc In In elneo W to to to to to loeeto lc lc lc f m m m m m m m m m m m m m m m m m m m m w m H I 3<< a a< a a a a a a a a ❑ O Vy Y Y Y y y 3 Y Y Y Y Y Y Y Y Y Y Y Y m Q Q Q Q Q Q QQ Q Q Q Q Q Q Q Q Q Q Q Q a -cD ❑ ❑ ❑ ❑ ❑ Z Y ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ 0 0 L Y Y Y Y Y Y J vl Y Y Y Y Y Y Y Y Y Y Y Y E E U ❑ ❑ `a ❑ N ❑ O O a' W 3 a a s ¢ mw n N N❑ w Y tp w w pl Ill N W ul Z M N U M O" 2 Q l0 U Q Ip M U U N M N 1!1 N L M❑ M W M H Z M❑ m O IO M 7 N W M O O _ L' rl M N O Z W C j '1 m W W N W W N W A N❑ W m f Cl lL a a m m m m m m n O o 0 0 0 N o 0 o ti O O m o 0 0 O O O f ti a m a n a v .i a m n a a m M a a a a a J x J D• 0 Z H w � Z ~ m W H Y W Z H J J OIJi_l IJai g W C ¢ O Z n E W W Y< ZC Y J W W~ 0 C Z ?. O R G J Z W Z Q Q 1' 0 O W 0 0 fU/1 -I5 g O i c¢ 3 f z❑❑ Q Q !2 Q W M U W W S S a Y Y Y d C K IUiI I'il 7 Ordinances Rezoning The Following Borough Owned Lands From P... Q } 2 c Y F Q CQ G a Q w w vl J Z a< p w Z K Q Q O U w O W W i _ W x Z C 0 In Z U Q¢ LL Z cx�x yWj ❑HUS Ja 06=;aZQ Ordinances Rezoning The Following Borough Owned Lands From P... Page 21SW401-EM #9.a. PUBLIC HEARING ITEM 7-U P 8 Z REGULAR MEETING: JULY 13, 2016 KODIAK ISLAND BOROUGH COMMUNITY DEVELOPMENT DEPARTMENT 710 Mill Bay Road, Kodiak, Alaskn 99615 (907)486.9363 www.kodiakak.us I PUBLIC HEARING NOTICE I on Wednesday, July 13, 2016. The meeting will begin at 6:30 p.m. , 710 Mill Bay Road, Kodiak, Alaska, before the Kodiak Island B( CASE: 16.037 APPLICANT: Kodiak Island Borough AGENT: KIB Resource Management Officer REQUEST: A Rezone of a f 15,000 square foot portion of Lot 29, U.S. Survey 3099 from PL - Public Use Lands District to R2 -Two -Family Residential District (Chapter 17.205 KIBC). The intent of this request is to rezone this portion to a zoning district that permits residential construction to accommodate subdividing the portion to create up to two lots for listing in a future Borough land sale. LOCATION: 2906 Spruce Cape Road ZONING: PL -Public Use Lands This notice is being sent to you because our records indicate you are a property owner/interested party in the area of the request. If you do not wish to testify verbally, you may provide your comments in the space below or in a letter to the Community Development Department. Written comments must be received by 5 nm, Tuesday June 28 2016 to be considered by the commission. If you would like to fax your comments to us, our fax number is: (907) 486.9396, or you may email your comments to ssmiihna kodiakak.us. If you would like to testify via telephone, please call in your comments during the appropriate public hearing section of the meeting. The local call-in telephone number is 486-3231. The toll free telephone number is I-855492-9202. One week prior to the regular meeting, on Wednesday, July 6, 2016, a work session will be held at 6:30 p.m. in the Kodiak Island Borough Conference Room (#121), to review the packet material for the case. Kodiak Island Borough Code provides you with specific appeal rights if you disagree with the Commission's decision on this request. If you have any questions about the request or your appeal rights, please feel free to call us at 486.9363. Iour Nam: 17l� Z _ZF ataalne Address:{77p Yourpropemydexriplion: �_Q� %�L—� (1S 20?4 Cammenu: 7-747 A, PUC/271- FIJ AIJE St U — t7 (o � I rJ5PrL Cr3sfl 57)I? r9 /1V 73 ,O [ J /i--eA LJrTN % E/F 't77) U91 AF !� 7>+7•e 9-0-L,) /�ri3 /� ��e s4TE✓� RF-Oufaj2m&ur� A,, 57EF P RL -W Owl ZIrC, ehWAJN1'1_ <D� I �lJOul_A 17— J*Re SuBDJJI a/ I- i 1 V i u7au uc tWe //z u u m Sa,-r= Aer-e-- PR A06ery- — �k yovt Case No. 16-037 Public Comment Package Ordinances Rezoning The Following Borough Owned Lands From P... Page 21400404 -Em #9-B- 3. The subject parcel is of sufficient area and is capable of providing suitable urban residential building sites. 4. The amendment is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 5. The amendment is necessary to allow for a subsequent rezone from PL -Public Use Lands District to R2 -Two -Family Residential District. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this Comprehensive Plan amendment. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY U. CASE 16-037. Request a Rezone of a ± 15,000 square foot portion of Lot 29, U.S. Survey 3099 from PL- Public Use Lands District to R2 -Two -Family Residential District (Chapter 17.205 KIBC). The intent of this request is to rezone this portion to a zoning district that permits residential construction to accommodate subdividing the portion to create up to two lots for listing in a future Borough land sale. The applicant is the Kodiak Island Borough and the agent is the KIB Resource Management Officer. The location is 2906 Spruce Cape Road and the zoning is PL -Public Use Lands. COMMISSIONER PAINTER MOVED to recommend that the Kodiak Island Borough Assembly approve the rezone of a ± 20,000 square foot portion of Lot 29, U.S. Survey 3099 from PL - Public Use Lands to R2 -Two -Family Residential (KIBC 17.205) and to adopt the findings of fact listed in the staff report entered into the record for this case as "Findings of Fact" for Case No. 16-037. Mason stated the staff analysis for Case 16-036 is also applicable to this case. Similarly, we are recommending that the commission forward this rezone request to the assembly with a recommendation for approval. Open Public Hearing: Duane Dvorak, Resource Management Officer, stated he concurs with staffs recommendation. Dvorak stated when the applicant was preparing the application and looking at the concept configuration of two minimal 7200 sq. feet lots, R2 zoning seemed to be the best recommendation in that context but hearing the discussion about possibly making it into a single lot, if that were to happen he thinks R3 would be a better choice. Close Public Hearing: Discussion R3 zoning. FINDINGS OF FACT 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to R2 -Two -Family Residential zoned land and uses. 3. The subject parcel is of sufficient area and is capable of providing suitable urban residential building sites. 4. The rezone is consistent with the adopted 2008 Comprehensive Plan Urban Residential Future Land Use Designation per Case No. 16-036. 5. The rezone is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this rezone. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY Kodiak Island Borough Planning & Zoning Commission Minutes July 13, 2016 Page 24 Ordinances Rezoning The Following Borough Owned Lands From P... July 20, 2016 Page 21bG§f40, "EM #91A Kodiak Island Borough Community Development Department 710 Mill Bay Road Kodiak, Alaska 99615 Phone(907)486.9363 Fax(907)486-9396 www.kodiakak.us Mr. Duane Dvorak, Resource Management Officer Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Re: Case 16-037. Request for a rezone of a t 15,000 square foot portion of Lot 29, U.S. Survey 3099 from PL- Public Use Lands District to R2-Two-Famlly Residential District (Chapter 17.205 KIBC). The intent of this request is to rezone this portion to a zoning district that permits residential construction to accommodate subdividing the portion to create up to two lots for listing in a future Borough land sale. Dear Mr. Dvorak: The Kodiak Island Borough Planning & Zoning Commission, at their meeting on July 13, 2016, moved to recommend that the Kodiak Island Borough Assembly approve the rezone of a t 20,000 square foot portion of Lot 29, U.S. Survey 3099 from PL -Public Use Lands to R2 -Two - Family Residential (KIBC 17.205) and to adopt the findings of fact listed in the staff report entered into the record for this case as "Findings of Fact" for Case No. 16.037. Please contact the Borough Clerk's Office at 486-9310 for information on when your case will be scheduled for a first reading and public hearing before the Assembly. According to KIBC 17.205.055 (Submission to assembly) of the Borough Code states A. Within thirty days after the planning commission has acted favorably upon a proposed zoning change in accordance with the above provisions, a report with recommendations shall be submitted to the assembly together with the proposed ordinance. Such recommendations of the planning commission shall be advisory only and shall not be binding upon the assembly. When an ordinance has been forwarded to the borough assembly, the assembly shall act in accordance with this chapter and notice shall be issued as provided in Section 17.205.070, by the borough clerk. B. If the planning commission recommends denial of any proposed amendment, its action shall be final unless the initiating parry, within ten days, files a written statement with the clerk requesting that the commission's action be taken up by the borough assembly. Ordinances Rezoning The Following Borough Owned Lands From P... Page 21ASG690,TEM #s.a. The commission adopted the following findings of fact in support of their recommendation to the assembly: FINDINGS OF FACT 1. Developable residential lots are a known need throughout the Borough. 2. The subject parcel is adjacent to R2 -Two -Family Residential zoned land and uses. 3. The subject parcel Is of sufficient area and is capable of providing suitable urban residential building sites. 4. The rezone is consistent with the adopted 2008 Comprehensive Plan Urban Residential Future Land Use Designation per Case No. 16-036. 5. The rezone is consistent with, and will further implement, various goals, policies, and Implementation actions identified in the adopted Comprehensive Plan. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this rezone. Should this rezone be approved by the Kodiak Island Borough Assembly, you will still need to obtain permits for any construction activities. If you have any questions about the action of the commission, please contact the Community Development Department at 486-9363. Sincerely, ora Mason. Dir ctor Community Development Department CC: Nova Javier, Borough Clerk Planning & Zoning Commission Ordinances Rezoning The Following Borough Owned Lands From P... Page 21460404 -EM O.B. KODIAK ISLAND BOROUGH AGENDA STATEMENT SEPTEMBER 15, 2016 ASSEMBLY REGULAR MEETING TITLE: Ordinance No. FY2017-14 Rezoning A t 1 Acre Portion of Lot 1A-4, U.S. Survey 3465 From PL -Public Use Lands District To R2 -Two-family Residential District (P&Z Case No. 16-031). ORIGINATOR: Jack Maker FISCAL IMPACT: No Account Number: SUMMARY STATEMENT: FUNDS AVAILABLE: Amount Budgeted: This rezone request was recommended by the Borough Lands Committee and initiated by the Borough Assembly in conjunction with P&Z Case No. 16-029 (land disposal) and P&Z Case No. 16-030 (Comprehensive Plan amendment). On September 2, 2016 the Clerk's office mailed out 38 public hearing notices. The Planning and Zoning Commission held a public hearing on this rezone request at their July 13, 2016 regular meeting. The Commission voted unanimously to recommend that the Assembly approve this rezone. RECOMMENDED MOTION: Kodiak Island Borough Ordinances Rezoning The Following Borough Owned Lands From P... 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Page 21AGW4494-Em O.B. Introduced by: Borough Assembly Requested by: KIB Lands Committee Drafted by: CDD Introduced: 09/01/2016 Public Hearing: 0911512016 Adopted: KODIAK ISLAND BOROUGH ORDINANCE NO. FY2017-14 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH REZONING A ± 1 ACRE PORTION OF LOT 1A-4, U.S. SURVEY 3465 FROM PL -PUBLIC USE LANDS DISTRICT TO R2 -TWO- FAMILY RESIDENTIAL DISTRICT (P&Z CASE NO. 16-031) WHEREAS, as a second class borough, the Kodiak Island Borough exercises planning, platting, and land use regulations on an area wide basis pursuant to Chapter 29.40 Alaska Statutes; and WHEREAS, in accordance with AS 29.40, the Kodiak Island Borough adopted the 2008 Comprehensive Plan update on December 6, 2007 (Ordinance No. FY2008-10) to replace the 1968 Comprehensive Plan; and WHEREAS, the Kodiak Island Borough has adopted KIBC Title 17 (Zoning) in accordance with AS 29.40 to implement the Kodiak Island Borough Comprehensive Plan; and WHEREAS, KIBC 17.205.010 provides that "Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts': and WHEREAS, The Borough Lands Committee recommended and the Borough Assembly initiated a rezone of a ± 1 acre portion of Lot 1A-4, U.S. Survey 3465 from PL -Public Use Lands District to R2 -Two -Family Residential District; and WHEREAS, at an advertised public hearing, consistent with Kodiak Island Borough Code 17.205.040, the Planning and Zoning Commission considered the merits of the rezone request; and WHEREAS, the Commission voted to recommend to the Borough Assembly that the site be rezoned from PL -Public Use Lands District to R2 -Two-family Residential District finding that the public necessity, convenience, general welfare, and good zoning practice would be enhanced by such action; and WHEREAS, the Commission hereby recommends that this rezone be reviewed and approved by the Borough Assembly. Kodiak Island Borough, Alaska Ordinance No. FY2017-14 Page 1 of 2 Ordinances Rezoning The Following Borough Owned Lands From P... 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 Page 21AI304494-Em #9.a. 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 Cade of Ordinances. Section 2: A t 1 acre portion of Lot 1A-4, U.S. Survey 3465 is hereby rezoned from PL -Public Use Lands District to R2 -Two-family Residential District. Section 3: This ordinance shall become effective upon the recording of a plat that defines the actual surveyed boundary of the t 1 acre portion that is subject to this rezone. Section 4: By this ordinance, the Borough Assembly adopts the following findings of fact in support of their approval of this rezone. 1. Developable residential lots are a known need throughout the Borough. 2. The site is adjacent to R2 -Two-family Residential zoned land and uses. 3. The site is of sufficient area to be subdivided into as many as five lots that would be capable of providing suitable residential building sites. 4. The rezone is consistent with the Comprehensive Plan Urban Residential Future Land Use Designation per Case No. 16-030. 5. The rezone is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adapted Comprehensive Plan. 6. The Planning 8 Zoning Commission recommends that the Borough Assembly approve this rezone. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2016 KODIAK ISLAND BOROUGH Jerrol Friend, Borough Mayor ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Ordinance No. FY2017-14 Page 2 of 2 Ordinances Rezoning The Following Borough Owned Lands From P... Page 22VWV04-Em O.B. Kodiak Island Borough Office of the Borough Clerk 710 Mill Bay Road Kodiak, Alaska 99615 Plione (907) 486-9310 Fax (907) 486-9391 clerks a kodiakak.us NOTICE OF PUBLIC HEARING A public hearing will be held on Thursday. September 15, 2016, at 6:30 p.m. in the Borough Assembly Chambers, 710 Mill Bay Road, Kodiak, Alaska before the Kodiak Island Borough Assembly to hear comments on: Ordinance No. FY2017-14, A± 1 Acre Portion of Lot 1A-4, U.S. Survey 3465 From PL -Public Use Lands District To R2 -Two-family Residential District (P&Z Case No. 16-031). If you do not wish to testify verbally, you may provide your comments on the attached public hearing form and fax it to (907) 486-9391, email to clerks(a),kodiakak.us, or hand deliver to the Borough Clerk's Office, 710 Mill Bay Road, Room 234, Kodiak, AK 99615 prior to 3 p.m. on September 15, 2016. Comments favoring and opposing are encouraged. If you have any questions, please call 486-9310. Attachments: • Map • Public hearing form • Ordinance No. FY2017-14 Ordinances Rezoning The Following Borough Owned Lands From P... Page 22A010►04-EM O.B. Ordinance No. FY2017-14, A ± 1 Acre Portion of Lot 1A-4, U.S. Survey 3465 From PL -Public Use Lands District To R2 -Two-family Residential District (P&Z Case No. 16-031). usg 1 W 1� •i' •p + � y \t Legend M1 M1 M1• • o e s ? a• s M1 i e s OSubject Paoel Zaned PL • M M1 �,� R� ; ^• Portion Subject to ♦ s , µt s d Reran Request 47 y, F vby a... I Ir 3463 n � 3216 t o M1 ,p `may • a' a ,` ✓ Et. �Cae R're � e .r' .. -T 3' a J� 4h USS 2 S 39ru > 13 0 S Zoning Legend Q Pubic Use Lands Q Rural Residential 1 0 Mtiti Fansly Residential _ Light Industrial ® Watershed ® Rural Residential 2 ® Business Rural Neighborhood Commercial 0 Conservation 0 Single Family Residential 0 Retail Business Urban Neighborhood Commercial Rural Residential 0 Two Family Residential RM Industrial 0 Natural Use Ordinances Rezoning The Following Borough Owned Lands From P... Page 22S14047EM #s.a. PUBLIC HEARING FORM Ordinance No. FY2017-14, A± 1 Acre Portion of Lot 1A-4, U.S. Survey 3465 From PL -Public Use Lands District To R2 -Two-family Residential District (P&Z Case No. 16-031). ❑ This is in support of changing the future land use designation. ❑ This is in opposition of changing the future land use designation. ❑ Other comments. Name: Residence Address: Mailing Address: Comments: Written comments may be submitted by email to clerks(cDkodiakak.us, faxed to 907-486-9391, mailed or hand delivered to the Borough Clerk's Office, 710 Mill Bay Road, Room 234, Kodiak, AK 99615 prior to 3 p.m. on Thursday. September 15, 2016. Ordinances Rezoning The Following Borough Owned Lands From P... 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Page 22S4-1VOLtEM O.B. Introduced by: Borough Assembly Requested by: KIB Lands Committee Drafted by: CDD Introduced: 09/0112016 Public Hearing: 09/15/2016 Adopted: KODIAK ISLAND BOROUGH ORDINANCE NO. FY2017-14 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH REZONING A ± 1 ACRE PORTION OF LOT 1A-4, U.S. SURVEY 3465 FROM PL -PUBLIC USE LANDS DISTRICT TO R2 -TWO- FAMILY RESIDENTIAL DISTRICT (P&Z CASE NO. 16-031) WHEREAS, as a second class borough, the Kodiak Island Borough exercises planning, platting, and land use regulations on an area wide basis pursuant to Chapter 29.40 Alaska Statutes; and WHEREAS, in accordance with AS 29.40, the Kodiak Island Borough adopted the 2008 Comprehensive Plan update on December 6, 2007 (Ordinance No. FY2008-10) to replace the 1968 Comprehensive Plan; and WHEREAS, the Kodiak Island Borough has adopted KIBC Title 17 (Zoning) in accordance with AS 29.40 to implement the Kodiak Island Borough Comprehensive Plan; and WHEREAS, KIBC 17.205.010 provides that "Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts'; and WHEREAS, The Borough Lands Committee recommended and the Borough Assembly initiated a rezone of a ± 1 acre portion of Lot 1A-4, U.S. Survey 3465 from PL -Public Use Lands District to R2 -Two -Family Residential District; and WHEREAS, at an advertised public hearing, consistent with Kodiak Island Borough Code 17.205.040, the Planning and Zoning Commission considered the merits of the rezone request; and WHEREAS, the Commission voted to recommend to the Borough Assembly that the site be rezoned from PL -Public Use Lands District to R2 -Two-family Residential District finding that the public necessity, convenience, general welfare, and good zoning practice would be enhanced by such action; and WHEREAS, the Commission hereby recommends that this rezone be reviewed and approved by the Borough Assembly. Kodiak Island Borough, Alaska Ordinances Rezoning The Following Borough Owned Lands From P... Ordinance No. FY2017-14 Page 1 of 2 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 Page 2243044,94 -Em #9-B- 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: A t 1 acre portion of Lot 1A-4, U.S. Survey 3465 is hereby rezoned from PL -Public Use Lands District to R2 -Two-family Residential District. Section 3: This ordinance shall become effective upon the recording of a plat that defines the actual surveyed boundary of the t 1 acre portion that is subject to this rezone. Section 4: By this ordinance, the Borough Assembly adopts the following findings of fact in support of their approval of this rezone. 1. Developable residential lots are a known need throughout the Borough. 2. The site is adjacent to 132 -Two-family Residential zoned land and uses. 3. The site is of sufficient area to be subdivided into as many as five lots that would be capable of providing suitable residential building sites. 4. The rezone is consistent with the Comprehensive Plan Urban Residential Future Land Use Designation per Case No. 16-030. 5. The rezone is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 6. The Planning & Zoning Commission recommends that the Borough Assembly approve this rezone. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2016 KODIAK ISLAND BOROUGH ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Ordinances Rezoning The Following Borough Owned Lands From P. Jerrol Friend, Borough Mayor Ordinance No. FY2017-14 Page 2 of 2 Page 22SW404-Em #9.a. first_name last—name Mail—Line— Mail—City Mall Stat Mall Zip WAYNE ABOUSSLEMAN 420 SHAHAFKA CIRCLE KODIAK AK 99615 ALAGNAK INC P.O. BOX 1275 KODIAK AK 99615 BRENT ARNDT P O BOX 1066 KODIAK AK 99615 DONALD ARNDT PO BOX 1066 KODIAK AK 99615 LORNA LEE ARNDT LIVING TRUST P 0 BOX 2069 KODIAK AK 99615 DANIEL BEEHLER 2376 MISSION RD KODIAK AK 99615 DOUGLAS BUNTING PO BOX 2114 KODIAK AK 99615 KELSEY CHATSKI 20607 CRABTREE ST CHUGIAK AK 99567 JAMES COLE 3946 STJOHNS AVE JACKSONVILLE FL 32205 MELINDA CORTEZ P.O. BOX 8605 KODIAK AK 99615 MARTIN EATON PO BOX 2609 KODIAK AK 99615 ELKS LODGE #1772 PO BOX 846 KODIAK AK 99615 CARL ERICKSON 2943 COVE OR KODIAK AK 99615 DARRIN EVANS ETAL 646 ISLAND LAKE RD KODIAK AK 99615 NATHAN FABER, DMD,PC 413 E. REZANOF DR KODIAK AK 99615 DUNCAN FIELDS PO BOX 25 KODIAK AK 99615 DEREK FOSTER 599 TOMALES RD PETALUMA CA 94952 RONALD FRIED 2020 ECLIPSE ST RAPID CITY SD 57763 AARON GRIFFIN 483 SHAHAFKA CIR KODIAK AK 99615 MICHAEL HERTER 490 SHAHAFKA CIRCLE KODIAK AK 99615 JDA ENTERPRISES, LLC 3017 RAVEN CIRCLE KODIAK AK 99615 KODIAK BIBLE CHAPEL OF KODIAK P.O. BOX 1245 KODIAK AK 99615 KODIAK ISLAND BOROUGH 710 MILL BAY RD KODIAK AK 99615 KODIAK VENTURES, INC. PO BOX 1066 KODIAK AK 99615 FRANK MILES PO BOX 2744 KODIAK AK 99615 SUMIE ONO PO BOX 155 KODIAK AK 99615 FRANK PASTOR P.O. BOX 2873 KODIAK AK 99615 DOUGLAS PAYELLE PO BOX 8902 KODIAK AK 99615 RICHARD POWELL 2540 E HARMON AVE LAS VEGAS NV 89121 ADAM T POWERS P O BOX 8978 KODIAK AK 99615 CHRISTOPHER PRUITT PO BOX 8507 KODIAK AK 99615 BENJAMIN REHMER PO BOX 446 KODIAK AK 99615 TED ROGERS 445 SHAHAFKA CIRCLE KODIAK AK 99615 MARK SCHREITER PO BOX 9006 KODIAK AK 99615 LESLIE SEATON 2920 COVE DR KODIAK AK 99615 GREG SPALINGER 610 ISLAND LAKE RD KODIAK AK 99615 SWANSON FAMILY TRUST P 0 BOX 2666 KODIAK AK 99615 THOMAS SWEENEY PO BOX 8891 KODIAK AK 99615 MICHAEL WELBORN P.O. BOX 634 KODIAK AK 99615 Ordinances Rezoning The Following Borough Owned Lands From R.. Page 22-ABW4494-EM #9.B - PUBLIC HEARING ITEM 7-0 P & Z REGULAR MEETING: JULY 13, 2016 N 9 p R, E KIB Location & Zoning Ma 7\\/��/ 6 Location and Zoning Request. A Rezone of a t 1 acre portion of Lot IA -4, Case No. 16-031 U.S. Survey 3465 from PL- Public Use Lands District to Applicant: Kodiak Island Borough R2-Two-Famlly Residential District (Chapter 17.205 KIBC-* Agent: KIB Resource Management Officer Usk p A Cyd ai Legend Subject Parcel Zoned PL e b r °j t"tenw.w m.n "P be l-�-e� Is OPortion Subject to Rexons R. ovalass 2 Neva Way S a int ry �0 ry o < 4'o USS 3463 3216 . o e of\\e+ �O � � r L G� :gym .✓' ..S d ry "�" Covc D I c lB4o / [� USs.z.. ,. / a ` e` Uss 386(,- 4, a� C v y 4 0A e" r� Zoning Legend 0 Public Use Lands I Rural Residential 1 Multi Family Residential Light Industrial Q Watershed Rural Residential 2 L ] Business ® Rural Neighborhood Commercial J Conservation 0 Single Family Residential [ j Retail Business Urban Neighborhood Commercial 0 Rural Residential =Two Family Residential =Industrial 0 Natural Use Kodiak Island Borough 015 Community Development Department The mop lclrvNdod br inlnmationulpurpme =__= Access Road. hltpY/www kodlakdk.usl b WW)46&g33] g only aM Is not eyended cur any local rePesenlaclons. 0 Ummralncctsd Righl or Ways Case No. 16-031 Introduction Ordinances Rezoning The Following Borough Owned Lands From P... Image Overlay Request: A Rezone of a ± 1 acre portion of Lot 1A-4, Case No. 16.031 U.S. Survey 3465 from PL- Public Use Lands District to Applicant: Kodiak Island Borough R2 -Two -Family Residential District (Chapter 17.205 KIBC). Agent: KIB Resource Management Officer i dla� w.q i +a. Apr �Q 490 F y ] to gyPNO 8040" Y � Q �- p'i 4LASK4 Page 22AGOVOItEm N.B. PUBLIC HEARING ITEM 7-0 P & Z REGULAR MEETING: JULY 13, 2016 STAFF REPORT AND RECOMMENDATION Case No. 16-031. A Rezone of a t 1 acre portion of Lot 1A-4, U.S. Survey 3465 from PL - Public Use Lands District to R2 -Two -Family Residential District (Chapter 17.205 KIBC). DATE: June 29, 2016 TO: Planning and Zoning Commission FROM: Community Development Department SUBJECT: Staff Report and Recommendation CASE: 16-031 APPLICANT: Kodiak Island Borough AGENT: KIB Resource Management Officer LOCATION: 593 Island Lake Road LEGAL DSC: Lot 1A-4, U.S. Survey 3465 ZONING: PL -Public Use Lands District FUTURE LAND USE DESIGNATION: Public Facilities/Ownership NOTICE: Thirty-nine (39) public hearing notices were mailed on June 9, 2016. One (1) public hearing notice was returned as of the date this report was prepared. SITE VISIT: Various 1. Zoning History: • Zoned S/R-Service/Recreation by the adoption of the 1968 Kodiak Metropolitan Zoning Map. • Rezoned to PL -Public Use Lands By Ordinance No. 83-30-0. 2. Lot Size: Lot 1A-4 is 3 acres; portion subject to this review is t 1 acre 3. Existing Land Use: The review area is vacant. Remaining portion has a pocket park and public dumpster site. 4. Surrounding Land Use and Zoning: • PL zoning and uses to the west (Island Lake Park and Elks Lodge building). • R2 zoning and uses to the south (single and two-family residences). • R2 and B zoning and uses to the north and east (single and two- family residences, commercial buildings, outdoor storage, and vacant parcels). 5. Comprehensive Plan: • Designated Public and Open Space by the 1968 Comprehensive • Designated Public Facilities/Ownership by the 2008 Compre- hensive Plan. 6. Applicable Comprehensive Plan Future Land Use Designations: Public Facilities: This designation is intended for public facilities such as water or wastewater treatment facilities, police or fire stations and other public facilities, not including parks and recreation facilities. Case No, 16-031 Staff Report and Recommendation Ordinances Rezoning The Following Borough Owned Lands From P... Page 22AQ10404-EM O.B. PUBLIC HEARING ITEM 7-0 P & Z REGULAR MEETING: JULY 13, 2010 Urban Residential: This designation allows for a variety of urban level residential uses. It is generally applied within incorporated cities and would allow for a mix of single-family and other types of housing including those allowed in the R1, R2, R,3 and SRO zones. 7. Apolicable Regulations: The following sections of Title 17 (Zoning) of the Borough Code are applicable to this request: 17.10.020 Reference and use (Comprehensive Plan). In accordance with Alaska Statutes, zoning decisions shall be based upon the recommendations contained in the comprehensive plan. 17.205.010 Authority (Amendments and changes). Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts. 17.205.020 Report from planning and zoning commission (Amendments and changes) The commission shall report in writing to the assembly on any proposed change or amendment regardless of the manner in which such change is initiated and such report shall find: A. Findings as to need and justification for a change or amendments; B. Findings as to the effect a change or amendment would have on the objectives of the comprehensive plan; and C. Recommendations as to the approval or disapproval of the change or amendment. 17.205.055 Submission to assembly (Amendments and changes) A. Within 30 days after the commission has acted favorably upon a proposed zoning change in accordance with the above provisions; a report with recommendations shall be submitted to the assembly together with the proposed ordinance. Such recommendations of the commission shall be advisory only and shall not be binding upon the assembly. When an ordinance has been forwarded to the assembly, the assembly shall act in accordance with this chapter, and notice shall be issued as provided in KIBC 17.205.070 by the clerk. B. If the commission recommends denial of any proposed amendment; its action shall be final unless the initiating party, within 10 days, files a written statement with the clerk requesting that the commission's action be taken up by the assembly. STAFF ANALYSIS This is the request to rezone the site from PL -Public Use Lands to R2 Two-family Residential that is referred to in the land disposal staff report for the same parcels (Case No. 16-029). The criteria provided in the preceding Comprehensive Plan Amendment staff analysis (Case No. 16- 030) also apply to this rezone request. CONCLUSION Staff recommends the rezone is consistent with the objectives of the adopted Comprehensive Plan and satisfies the requirements of Title 17 of the Kodiak Island Borough Code for amendments and changes as set forth in the recommended findings of fact. Anticipating a favorable recommendation to the assembly, a draft rezone ordinance is attached to this report. Case No. 1&031 Staff Report and Recommendation Ordinances Rezoning The Following Borough Owned Lands From P... PND so" g" s Y OL ALASKA RECOMMENDATION Page 23QQ0►04-Em #s.a. PUBLIC HEARING ITEM 7-0 P & Z REGULAR MEETING: JULY 13, 2016 Staff recommends that the Commission forward this rezone request to the Kodiak Island Borough Assembly with a recommendation for approval. APPROPRIATE MOTION Should the Commission agree with the staff recommendation, the appropriate motion is: Move to recommend that the Kodiak Island Borough Assembly approve the rezone of a t 1 acre portion of Lot 1A-4, U.S. Survey 3465 from PL- Public Use Lands District to R2 -Two -Family Residential District (Chapter 17.205 KIBC) and to adopt the findings of fact listed in the staff report entered into the record for this case as "Findings of Fact" for Case No. 16-031. FINDINGS OF FACT (KIBC 17.205.020.A -C) 1. Developable residential lots are a known need throughout the Borough. 2. The site is adjacent to R2 -Two-family Residential zoned land and uses. 3. The site is of sufficient area to be subdivided into as many as five lots that would be capable of providing suitable residential building sites. 4. The rezone is consistent with the Comprehensive Plan Urban Residential Future Land Use Designation per Case No. 16-030. 5. The rezone is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this rezone. Case No. 16-031 Staff Report and Rewmmendation Ordinances Rezoning The Following Borough Owned Lands From P... 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Page 23i401040jtEM O.B. PUBLIC HEARING ITEM 7-0 P & Z REGULAR MEETING: JULY 13, 2016 Introduced by: Borough Assembly Requested by: KIB Lands Committee Drafted by: CDD Introduced: xx/xx/xxxx Public Hearing: xx/xx/xxxx Adopted: xx/xx/xxxx KODIAK ISLAND BOROUGH ORDINANCE NO. FY2017-X) AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH REZONING A ± 1 ACRE PORTION OF LOT 1A-4, U.S. SURVEY 3465 FROM PL -PUBLIC USE LANDS DISTRICT TO R2 -TWO- FAMILY RESIDENTIAL DISTRICT (P&Z CASE NO. 16-031) WHEREAS, as a second class borough, the Kodiak Island Borough exercises planning, platting, and land use regulations on an area wide basis pursuant to Chapter 29.40 Alaska Statutes; and WHEREAS, in accordance with AS 29.40, the Kodiak Island Borough adopted the 2008 Comprehensive Plan update on December 6, 2007 (Ordinance No. FY2008-10) to replace the 1968 Comprehensive Plan; and WHEREAS, the Kodiak Island Borough has adopted KIBC Title 17 (Zoning) in accordance with AS 29.40 to implement the Kodiak Island Borough Comprehensive Plan; and WHEREAS, KIBC 17.205.010 provides that "Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts"; and WHEREAS, The Borough Lands Committee recommended and the Borough Assembly initiated a rezone of a ± 1 acre portion of Lot 1A-4, U.S. Survey 3465 from PL -Public Use Lands District to R2 -Two -Family Residential District; and WHEREAS, at an advertised public hearing, consistent with Kodiak Island Borough Code 17.205.040, the Planning and Zoning Commission considered the merits of the rezone request; and WHEREAS, the Commission voted to recommend to the Borough Assembly that the site be rezoned from PL -Public Use Lands to R2 -Two-family Residential finding that the public necessity, convenience, general welfare, and good zoning practice would be enhanced by such action; and WHEREAS, the Commission hereby recommends that this rezone be reviewed and approved by the Borough Assembly. Kodiak Island Borough, Alaska Ordinance No. FY2017-XX Case No. 16-031 Draft Rezone Ordinance Page 1 of 2 Ordinances Rezoning The Following Borough Owned Lands From P... 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 Page 2321O01tEM #9.B. PUBLIC HEARING ITEM 7-0 P & Z REGULAR MEETING: JULY 13, 2016 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: A t 1 acre portion of Lot 1A-4, U.S. Survey 3465 is hereby rezoned from PL -Public Use Lands District to R2 -Two-family Residential District. Section 3: This ordinance shall became effective upon the recording of a plat that defines the actual surveyed boundary of the t 1 acre portion that is subject to this rezone. Section 4: By this ordinance, the Borough Assembly adopts the following findings of fact in support of their approval of this rezone. 1. Developable residential lots are a known need throughout the Borough. 2. The site is adjacent to R2 -Two-family Residential zoned land and uses. 3. The site is of sufficient area to be subdivided into as many as five lots that would be capable of providing suitable residential building sites. 4. The rezone is consistent with the Comprehensive Plan Urban Residential Future Land Use Designation per Case No. 16-030. 5. The rezone is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this rezone. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2016 KODIAK ISLAND BOROUGH Jerrcl Friend, Borough Mayor ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Ordinance No. FY2017-XX Case No. 16-031 Draft Rezone Ordinance Page 2 of 2 Ordinances Rezoning The Following Borough Owned Lands From P... Page I or I Page 231r4VOItEM O.B. PUBLIC HEARING ITEM 7-0 P S Z REGULAR MEETING; JULY 13, 2016 Kodiak Island Borough OFFICE of the MANAGER 710 Mill Bay Road, Room 101 Kodiak, Alaska 99615 Phone (907) 486-9304 Pax (907) 4869374 Email: ltd�yal.Aglialak us To: Planning t Zoning Commission Through: Community Development Department From: Duane Dvorak, Resource Management Officer Date: June 23, 2016 Re: Cases 16-029, 16-030,16-031, regarding the comprehensive plan designation, zoning status and request for disposal of a portion of Lot IA -4, U.S. Survey 3465 A portion of Lot I AA has been recommended for disposal by the recently empaneled Borough Lands Committee. That recommendation was reviewed and accepted by the assembly, who then authorized staff action to begin making the parcel ready for sale. Lot I A-4 is currently zoned PL -Public Use Land and designated for public use in the comprehensive plan. This lot has been reserved for public purpose and is currently developed with a "pocket" park and has historically been a location for dumpster waste collection. Over many years it does not appear that the community will need more area for public purposes than what has already been developed. In addition to the "pocket park" additional area is still reserved for wetlands and drainage courses. There are currently no plans to expand the public use or facilities currently existing on this parcel. The portion of Lot IA -4 that is requested for disposal has moderate slope and drainage challenges. The land generally slopes down from Island Lake Road on the east side to a point midway between Island Lake Road and Scout Circle. This lower area, past the mid -point, is relatively flat. The maximum area to be developed would be about one (1) acre. The size and configuration of a contemplated subdivision will be adjusted as necessary to accommodate the topography and drainage concerns. A preliminary plat will be presented to the commission in a subdivision use to follow. This area is served by municipal water and sewer. As such, the requested zoning for this disposal area is 112 -Two-family Residential. This is consistent with the adjoining residential lots to the south which will share a substantial boundary with the disposal area. Resource Management staff will plan on attending the packet review and regular meeting for these requests and would be happy to answer any questions at those limes. Case No. 16-031 Application Package Ordinances Rezoning The Following Borough Owned Lands From P... Page 234010►4,94-Em O.B. PUBLIC HEARING ITEM 7-0 P 8 Z REGULAR MEETING: JULY 13, 2016 Kodiak Island Borough Pdnt Form Submit by En CommunityDevelopment Department I II III VIII III III 71010 MITI Bay Rd. flm 205 Kodiak AK 99615 Ph. (907) 4B6 - 9362 Fax(907)486-9396 httol/www.kodlakakus `139. PROP ID 21390 Application for Rezone KIBC 17.205 Property Owner / Applkanl: Mailing Address: Phone Number. Other Contact email, etc Legal Description Street Address: 1(D The following Information is to be supplied by the Applicant Kodiak Island Borough/Duane Dvorak Resource Management Officer 710 Mill Bay Road, Room 101 Kodiak AK 99615 907386-9304 ddvomk@kodiakakus 5ubdv: US. Survey 3465 FTN) 593 Island Lake Road Block Lob 1•A Current Zoning: Public Use MBC 17.130 Proposed Zoning; R2 KIBC 17.80 Applicable Comprehensive Plan: A. Kodiak Island Comprehensive Plan Update 2000 Explanation of the need &justlficatlon fora change or amendment orzoning: There Is a perceived need for additional land to be made available for development in the community. In particular, the recently formed Borough Lands Committee has been focused on Identifying borough lands which are not currently needed for public purposes and which are not Identified In future plans for public use. The portion of Lot 1-A Identified In this request Is vacant land currently used for open space and which Is located adjacent to existing R2 -Two-family Residential. This rezone request Is speculative In that the boundaries of the remne area have not yet been fixed by survey which will be undertaken concurrently with this request, but which Is expected to take more time to be completed. It Is requested that a decision be made to rezone approximately one (1) acre of this three (3) acre parcel with the final boundaries to be fixed by survey. In addition, It is suggested that the approval of a rezone should be made contingent on the recording of a plat survey such that the proposed 112 -Two-family Residential zoning will only become effective upon said plat recording. (ContMued pct reverse Case No. 16-031 Application Package Ordinances Rezoning The Following Borough Owned Lands From P... Page 23fQW4 cteM #s.s. PUBLIC HEARING ITEM 7-0 P & Z REGULAR MEETINGJULY 13, 2016 Explanatlon of the effect such a change or amendment would have on the objectives of the applicable comprehensive plan: The land has been designated for Public and Recreational for many years. Currently, there are no plans to develop additional recreation facilities on this site beyond the small park already located on the site. Across Scout Circle and along Island Lake Is a 13 acre borough park Lot 1-A, U.S. Survey 3465 Is three acres In area, of which approximately one (1) acre is proposed for rezoning to 132-Twafamlly Residential, subject to the final boundaries being set by surveyto be completed later. Becausethearea designated for disposal Is located on vacant open space land and because there Is sufficient public and recreation land remaining In the immediate area, the effect of the proposed zoning change on the objectives of the applicable comprehensive plan would be CDD Staff Certification Date: LJ -3- ILD CDD Staff. Payment Verification Fee Payable In Cashlees Office Room M 104- Main Boa o(Borough Building KIBC 17.205.030 Manner of Initiation. Changes In this title may be Initiated in the following manner. A. The assembly upon Its own motion: B. The commission upon Its own motion: C. By petition: Less than 1.75 acres: 1.76 to 5.60 acres: 5.01 to 40.00 acres 40.01 acres or more: Case No. 16-031 Application Package Ordinances Rezoning The Following Borough Owned Lands From P... ❑x Walveroffee ❑ Waiver of fee ❑ S350.00 ❑ $750.00 ❑ $1,000.00 ❑ $1,500.00 Page 223"IV04-Em#.a Ordinances Rezoning The Following Borough Owned LandsFrom E. m» Z/ \\ } /a@■■a(■)| . �( t ° ! {■ !% o� ■ ■ . ■�.. CL _ /n / §n ) ) _ !! � ) ■ }) t $7$/ ��~� ® ■ . §■|i\)77� ! i 31 ) pig ! ƒ }/ k � #! 4a i 2 § � M fl! � ko ! !k .■];,a;; _ \ J§ k !�l��a•�! » ;,2.!§B! | �as2�2 M ' /\§M (((( ) . i C Ordinances Rezoning The Following Borough Owned LandsFrom E. Page 23TW404-£g g.a Ordinances Rezoning The Following Borough OwLands From E. \\ § / ( F , \ ) §m(§ - ; $Ln 0 )\`| � � § , § n ! ) IR �•�§ \ Ib j( ) k! ! §§ m ,. \7 ] k | i§ ■ a ! , \ f Ordinances Rezoning The Following Borough OwLands From E. Page 23@30404 -Em #s.a. Ordinances Rezoning The Following Borough Owned Lands From P. Page 236GOVOItEM O.B. R AGENDA ITEM W.B.I. s - w �+ r� Z M Z 1 QK . W � 2 F U m W � ag KW ` N r /l a C O O CL C C a L VW d Z Q U c� C W U C O U Resolution No, FY2016-34 Accepting the Recommendation of the... Page 220 of 334 Ordinances F� I e: i L .j'= -zYy •� Rezoning The Following Borough Owned Lands From P... June 10, 2016 Page 24CGOVO4-Em O.B. PUBLIC HEARING ITEM 7-0 P & Z REGULAR MEETING. JULY 13, 2016 Kodiak Island Borough Community Development Department 710 Mill Bay Road Room 205 Kodiak, Alaska 99615 Phone (907) 486-9363 Fax (907) 486-9396 www.kodiakak.us Duane Dvorak, Borough Resource Management Officer Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Re: Case 16-031. Request a Rezone of a t I acre portion of Lot IA4, U.S. Survey 3465 from PL - Public Use Lands District to R2 -Two -Family Residential District (Chapter 17.205 KIBC). The intent of this request is to rezone this portion to a zoning district that permits residential construction to accommodate subdividing the portion to create up to 5 lots for listing in a future Borough land sale. Dear Mr. Dvorak Please be advised that the Kodiak Island Bomugh Planning and Zoning Commission has scheduled the case referenced above for Public Hearing at their July 13, 2016 regular meeting. This meeting will begin at 6:30 p.m. in the Assembly Chambers, 710 Mill Bay Road, Kodiak, Alaska. Attendance at this meeting is not mandatory but recommended. One week prior to the regular meeting, on Wednesday, July 6, 2016 at 6:30 p,m. in the Borough Conference Room (#121), the Commission will hold a packet review work session for the purpose of reviewing packet materials and staff summaries of cases scheduled Far the regular meeting. The public is welcome to attend the packet review work session: however, the work session Is not for the purpose of receiving public testimony. Applicants who wish to present testimony and/or evidence related to their case should appear at the Public Hearing during the Regular Meeting and present such information in person. Please contact the Community Development Department at 486-9363 if we can answer any outstanding questions or provide additional information. In advance, thank you for your cooperation. Sincerely, 6c —^ ' Sheila Smith, Secretary Community Development Department Case No. 16-031 Public Comment Package Ordinances Rezoning The Following Borough Owned Lands From P... Page 241(3004 -EM #s.B. PUBLIC HEARING ITEM 7.0 P 8 Z REGULAR MEETING: JULY 13, 2016 KODIAK ISLAND BOROUGH COMMUNITY DEVELOPMENT DEPARTMENT 710 Mill Bay Road, Kodiak, Alaska 99615 (907)486.9363 wmv.kodiakak.us 2016 I PUBLIC HEARING NOTICE I A public hearing will be held on Wednesday, duly 13, 2016. The meeting will begin at 6:30 p.m. in the Borough Assembly Chambers, 710 Mill Bay Road, Kodiak, Alaska, before the Kodiak Island Borough Planning and Zoning Commission, to hear comments if any, on the following request: CASE: 16-031 APPLICANT: Kodiak Island Borough AGENT: KIB Resource Management Officer REQUEST: A Rezone of a t 1 acre portion of Lot IA4, U.S. Survey 3465 from PL- Public Use Lands District to R2 -Two -Family Residential District (Chapter 17.205 KIBC). The intent of this request is to rezone this portion to a zoning district that permits residential construction to accommodate subdividing the portion to create up to 5 lots for listing in a future Borough land sale. LOCATION: 593 Island Lake Road ZONING: PL -Public Use Lands This notice is being sent to you because our records indicate you are a property owner/interested party in the area of the request. If you do not wish to testify verbally, you may provide your comments in the space below or in a letter to the Community Development Department. Written comments must he received by 5 nm. Tuesday. June 28. 2016 to be considered by the ru in mission. Ifyou would like to fax your comments to us, our fax number is: (907) 486-9396, or you may email your comments to ssmilhn:kodiakak.m. If you would like to testify via telephone, please call in your comments during the appropriate public hearing section of the meeting. The loan cull -in telephone number is 486-3231. The toll free telephone number is 1.855-492-9202. One week prior to the regular meeting, on Wednesday, July 6, 2016, a work session will be held at 6:30 p.m. in the Kodiak Island Borough Conference Room (412 1), to review the packet material for the case. Kodiak Island Borough Code provides you with specific appeal rights if you disagree with the Commission's decision on this request. If you have any questions about the request or your appeal rights, please feel free to call us at 486.9363. Your Nam: Mailing Address: Your property description: Co...": Case No. 16-031 Public Comment Package Ordinances Rezoning The Following Borough Owned Lands From P... Page 24EPW44 rEm O.B. PUBLIC HEARING ITEM 7-0 P 8 Z REGULAR MEETING: JULY 13. 2016 Case 16-031 Request a Rezone of a ± 1 acre portion of Lot 1A-4, Location U.S. Survey 3465 from PL- Public Use Lands District 593 Island Lake Road to 112 -Two -Family Residential District (Chapter 17.205 Applicant KIBC). The intent of this request is to rezone this portion Kodiak Island Borough to a zoning district that permits residential construction to accommodate subdividing the portion to create up to 5 lots for listing in a future Borough land sale. `ti 9z>a 47 ^I 4P 5P h0 � 3 ]159 � ^ 3 314 s P a231 eery P']2<s dry Ppi 4q-0 zje;P ] P � ]re ]rea aBgt r�X ma al> r 6 ^ � m 4bzc 'S� ,,� � ^p 'L o ^G `� 31< Amb piP ]119h h0 ar] ]ke 4y ^p 34609 ry m �0 ^P lP 3r4 426 F Approximate Location �`1� ^L0 raa ,b rs�a,a 3'" Neva Way P lslany(akerq�y^ery n ,,P , 3' u9 m P Sg ^ry0 'f8 � P P� N cJP� 9 PG Yc Yy w an Its ke 0'y 3e3 ie`+vo PP ry 0' S 0 `.P' zae3 1993 Cove DON. 0� ^P v n a IRa q ^p GG,z loo ry Ap'o •�, one V'1£ g 2 w e a¢ nN V ry Inas „ JIM_d� o ry A P P % i P Public Hearin Notice Legend Feet 0 Subject Parcel w E 0 Notification Area Kodiak Island Borough 015 Community Development Department ---- Access Roads Mid .!/µ kodiakak us/pis (907) 486-9337 This men is poMdostir stirm lnlomponel purposes _ _. only ami is not lnlmxlml lurnny lu9el,ntscanhn ns. ,..j Unconetmtled Right of Ways Y � 0 245 490 980 I Case No. 16 -031 Public Comment Package Ordinances Rezoning The Following Borough Owned Lands From P... Page 24SW4047Em #s.a. PUBLIC HEARING ITEM 7-0 P 8 Z REGULAR MEETING: JULY 13, 2016 first—name last—name Mail_Une_ Mail—City Mail—Stat Mail—ZIP WAYNE ABOUSSLEMAN 420 SHAHAFKA CIRCLE KODIAK AK 99615 ALAGNAK INC P.O. BOX 1275 KODIAK AK 99615 BRENT ARNDT PO BOX 1066 KODIAK AK 99615 DONALD ARNDT PO BOX 1066 KODIAK AK 99615 LORNA LEE ARNDT LIVING TRUST P O BOX 2069 KODIAK AK 99615 DANIEL BEEHLER 2376 MISSION RD KODIAK AK 99615 DOUGLAS BUNTING PO BOX 2114 KODIAK AK 99615 KELSEY CHATSKI 20607 CRABTREE ST CHUGIAK AK 99567 JAMES COLE 3946 STJOHNS AVE JACKSONVILLE FL 32205 MELINDA CORTEZ P.O. BOX 8605 KODIAK AK 99615 MARTIN EATON PO BOX 2609 KODIAK AK 99615 ELKS LODGE #1772 PO BOX 846 KODIAK AK 99615 CARL ERICKSON 2943 COVE DR KODIAK AK 99615 DARRIN EVANS ETAL 646 ISLAND LAKE RD KODIAK AK 99615 NATHAN FABER, DMD,PC 413 E. REZANOF DR KODIAK AK 99615 DUNCAN FIELDS PO BOX 25 KODIAK AK 99615 DEREK FOSTER 599 TOMALES RD PETALUMA CA 94952 RONALD FRIED 2020 ECLIPSE ST RAPID CITY SD 57763 AARON GRIFFIN 483 SHAHAFKA CIR KODIAK AK 99615 MICHAEL HERTER 490 SHAHAFKA CIRCLE KODIAK AK 99615 JDA ENTERPRISES, LLC 3017 RAVEN CIRCLE KODIAK AK 99615 KODIAK BIBLE CHAPEL OF KODIAK P.O. BOX 1245 KODIAK AK 99615 KODIAK ISLAND BOROUGH 710 MILL BAY RD KODIAK AK 99615 KODIAK VENTURES, INC. PO BOX 1066 KODIAK AK 99615 FRANK MILES PO BOX 2744 KODIAK AK 99615 SUMIE ONO PO BOX 155 KODIAK AK 99615 FRANK PASTOR P.O. BOX 2873 KODIAK AK 99615 DOUGLAS PAYELLE PO BOX 8902 KODIAK AK 99615 RICHARD POWELL 2540 E HARMON AVE LAS VEGAS NV 89121 ADAM T POWERS P 0 BOX 8978 KODIAK AK 99615 CHRISTOPHER PRUITT PO BOX 8507 KODIAK AK 99615 BENJAMIN REHMER PO BOX 446 KODIAK AK 99615 TED ROGERS 445 SHAHAFKA CIRCLE KODIAK AK 99615 MARK SCHREITER PO BOX 9006 KODIAK AK 99615 LESLIE SEATON 2920 COVE DR KODIAK AK 99615 GREG SPALINGER 610 ISLAND LAKE RD KODIAK AK 99615 SWANSON FAMILY TRUST P O BOX 2666 KODIAK AK 99615 THOMAS SWEENEY PO BOX 8891 KODIAK AK 99615 MICHAEL WELBORN P.O. BOX 634 KODIAK AK 99615 Case No. 16-031 Public Comment Package Ordinances Rezoning The Following Borough Owned Lands From P... Page 244G,0404 -Em O.B. PUBLIC HEARING ITEM 7-0 P & Z REGULAR MEETING: JULY 13, 2016 Sheila Smith From: JACKIE HERTER <jackie.herter@ak.net> Sent: Tuesday, June 28, 2016 1:22 PM To: Sheila Smith Subject: No Subject June 27, 2016 Kodiak Island Borough Community Development Department Re Cases 16-029,16-030 & 16-031 As a property co-owner of Lot 2A, a major selling point in 1994 was the fact we were near Public Use land. In Case 16-029, 1 request consideration be given to 4 lots instead of 5 to preserve more trees and lot separation on sides and backs of the 3 lots fronting Island Lake Road. Or, if you want to get rid of Public Use, for whatever zoning you choose, just divide the 5 lots as evenly as possible with a stream running through. With larger lots, the property tax revenue would be higher from the type of homes built on the newly -created lots. In Case 16-030, you mention the zoning change to Urban Residential, is that the same as 17.100 UNC? Do the four small lots along Island Lake Road comply with the size and setback requirements of this code section? In Case 16-031, you mention change to R2, is this in lieu of Case 16-030 or just for the largest of the 5 lots depicted? In your planning for development of the Island, please remember that trees provide aesthetics, reduced noise, shelter to deer and rabbits, and erosion control needed from previous upstream lot development. sincerely, Jackie Herter 490 Shahafka Circle Cam No. 16-031 Public Comment Package Ordinances Rezoning The Following Borough Owned Lands From P Page 2465104491tEm #s -B - Draft Kodiak Island Borough Planning and Zoning Commission Regular Meeting Minutes Applicable to Case No. 16-031 July 13, 2016 Regular Meeting 6:30 pm -Borough Assembly Chambers CALL TO ORDER CHAIR ARNDT called to order the July 13, 2016 regular meeting of the Planning & Zoning Commission at 6:30 p.m. PLEDGE OF ALLEGIANCE CHAIR ARNDT led the pledge of allegiance. ROLL CALL Commissioners present were Scott Arndt, Jay Baldwin, Barry Altenhof, Maria Painter, Alan Schmitt, and Greg Spalinger. A quorum was established. Community Development Department staff present was Sara Mason, Sheila Smith, Jack Maker, and Bob Pederson. APPROVAL OF AGENDA COMMISSIONER SPALINGER MOVED to approve the agenda. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY APPROVAL OF MINUTES COMMISSIONER BALDWIN MOVED to approve the May 18, 2016 regular meeting minutes. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY CITIZENS' COMMENTS (Limited to three minutes per speaker) Caller on the line but the phone system disconnected the call once answered. PUBLIC HEARINGS Limited to three minutes per speaker. Local telephone number is 486-3231; Toll Free is 1-855- 492-9202. O. CASE 16-031. Request a Rezone of a ± 1 acre portion of Lot 1A-4, U.S. Survey 3465 from PL- Public Use Lands District to R2 -Two -Family Residential District (Chapter 17.205 KIBC). The intent of this request is to rezone this portion to a zoning district that permits residential construction to accommodate subdividing the portion to create up to 5 lots for listing in a future Borough land sale. The applicant is the Kodiak Island Borough Planning & Zoning Commission Minutes July 13, 2016 Page 1 Ordinances Rezoning The Following Borough Owned Lands From P... Page 24630494 -EM #s.a. Kodiak Island Borough and the agent is the KIB Resource Management Officer. The location is 593 Island Lake Road and the zoning is PL -Public Use Lands. COMMISSIONER BALDWIN MOVED to recommend that the Kodiak Island Borough Assembly approve the rezone of a i 1 acre portion of Lot 1A-4, U.S. Survey 3465 from PL- Public Use Lands District to R2 -Two -Family Residential District (Chapter 17.205 KIBC) and to adopt the findings of fact listed in the staff report entered into the record for this case as "Findings of Fact' for Case No. 16-031. Maker stated the rezone to R2 is consistant with surrounding residential zoning and uses allowed. The roads are capable of accommodating any traffic generated by development. The subdivision process will ensure the newly created lots are capable of providing suitable building sites. Staff recommends approval. Open Public Hearing: Duane Dvorak stated he consurs with staffs recommendation. He thinks R2 is the best recommendation. Close Public Hearing Brief discussion. FINDINGS OF FACT 1. Developable residential lots are a known need throughout the Borough. 2. The site is adjacent to R2 -Two-family Residential zoned land and uses. 3. The site is of sufficient area to be subdivided into as many as five lots that would be capable of providing suitable residential building sites. 4. The rezone is consistent with the Comprehensive Plan Urban Residential Future Land Use Designation per Case No. 16-030. 5. The rezone is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this rezone. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY Kodiak Island Borough Planning & Zoning Commission Minutes July 13, 2016 Page 2 Ordinances Rezoning The Following Borough Owned Lands From P... July 20, 2016 Page 24 -T0104494 -Em O.B. Kodiak Island Borough Community Development Department 710 Mill Bay Road Kodiak, Alaska 99615 Phone(907)486-9363 Fax(907)486-9396 www.kodiakak.us Mr. Duane Dvorak, Resource Management Officer Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Re: Case 16-031. Request for a rezone of a t 1 acre portion of Lot 1A-4, U.S. Survey 3465 from PL- Public Use Lands District to R2 -Two -Family Residential District (Chapter 17.205 KIBC). The intent of this request Is to rezone this portion to a zoning district that permits residential construction to accommodate subdividing the portion to create up to 5 lots for listing in a future Borough land sale. Dear Mr. Dvorak: The Kodiak Island Borough Planning & Zoning Commission, at their meeting on July 13, 2016, moved to forward the request cited above, recommending approval, to the Borough Assembly. Please contact the Borough Clerk's Office at 486-9310 for information on when your case will be scheduled for a first reading and public hearing before the Assembly. According to KIBC 17.205.055 (Submission to assembly) of the Borough Code states: A. Within thirty days after the planning commission has acted favorably upon a proposed zoning change in accordance with the above provisions, a report with recommendations shall be submitted to the assembly together with the proposed ordinance. Such recommendations of the planning commission shall be advisory only and shall not be binding upon the assembly. When an ordinance has been forwarded to the borough assembly, the assembly shall act in accordance with this chapter and notice shall be Issued as provided in Section 17.205.070, by the borough clerk. B. If the planning commission recommends denial of any proposed amendment, its action shall be final unless the Initiating party, within ten days, files a written statement with the clerk requesting that the commission's action be taken up by the borough assembly. The commission adopted the following findings of fact in support of their recommendation to the assembly: FINDINGS OF FACT 1. Developable residential lots are a known need throughout the Borough. 2. The site is adjacent to R2 -Two-family Residential zoned land and uses. Ordinances Rezoning The Following Borough Owned Lands From P... Page 24 WW404-EM #s.a. 3. The site is of sufficient area to be subdivided into as many as five lots that would be capable of providing suitable residential building sites. 4. The rezone is consistent with the Comprehensive Plan Urban Residential Future Land Use Designation per Case No. 16-030. 5. The rezone is consistent with, and will further implement, various goals, policies, and implementation actions identified in the adopted Comprehensive Plan. 6. The Planning and Zoning Commission recommends that the Borough Assembly approve this rezone. Should this rezone be approved by the Kodiak Island Borough Assembly, you will still need to obtain permits for any construction activities. If you have any questions about the action of the commission, please contact the Community Development Department at 486-9363. Sincer , Sara Mason, Director Community Development Department CC: Nova Javier, Borough Clerk Planning & Zoning Commission Ordinances Rezoning The Following Borough Owned Lands From P... Page 24940"911M #12.a. KODIAK ISLAND BOROUGH AGENDA STATEMENT SEPTEMBER 15, 2016 ,-t ASSEMBLY REGULAR MEETING W TITLE: Contract No. FY2016-45A Amending Contract No. FY2016-45 Twin Creeks Fire Salvage Timber Sale Contract, Between A-1 Timber Consultants, Inc. And The Kodiak Island Borough, To Provide An Exception To Section 11 Timber Operations, Subsection "C", Slash Operations. ORIGINATOR: Duane Dvorak FISCAL IMPACT: No FUNDS AVAILABLE: No Account Number: Amount Budgeted: SUMMARY STATEMENT: This item was postponed at the regular meeting of September 1. Private property owners adjoining borough land have been considering the need to remove both fire damaged and live trees on their respective properties to be salvaged by the borough timber contractor A-1 Timber. While this constitutes a separate arrangement between the property owners and A-1, the best way to remove the timber, with the least amount of disruption to other private property owners, is by bringing the harvested timber out over borough land. This will require limbing and topping to occur on borough land thereby creating additional slash piles. The creation of slash piles within 500 feet of residential properties is not permitted under KIB Contract No. FY2016-45, Section 11.C. For this reason staff is recommending that an exception to the standard be allowed by the assembly so that the clearing of neighboring lots may proceed without undue cost to the property owner or the borough for moving slash beyond 500 feet that is generated from outside the designated borough salvage logging area. It is expected that the slash generated from this activity will still be located well more than 200 feet away from the salvage logging boundary and much further from actual residential structures. Staff recommends that a written request form be required from each property owner acknowledging that slash from logging activities on their lot may be stacked within 500 feet of their respective properties. A map depicting the potential lots in question is attached. Note: The initial submittal for this agenda item was prepared on information relayed through the borough's forest management consultant. Staff put the information together for the original agenda item and copied it to A-1 Timber. A-1 Timber requested to have further input to clarify the implications of the contract language in order to facilitate a reasonable compromise. Staff has modified the motion below to recommend adoption of the Substitute Version 2 contract amendment. RECOMMENDED MOTION: Move to amend Contract FY2016-45 Twin Creeks Fire Salvage Timber Sale Contract Section 11, Timber Operations, Subsection "C" Slash Operations, between A-1 Timber Consultants, Inc. and the Kodiak Island Borough Contract No. FY2016-45AAmending Contract No. FY2016-45 Twin... Page 29Ar99WM #12.a. KODIAK ISLAND BOROUGH AGENDA STATEMENT SEPTEMBER 15, 2016 i ASSEMBLY REGULAR MEETING Kodiak Island Borough, by adopting the contract amendment identified as Substitute Version 2 of KIB Contract FY2016-45A. Kodiak Island Borough Contract No. FY2016-45AAmending Contract No. FY2016-45 Twin... Page 28(PE9 4Mm #12.A. Kodiak Island Borough OFFICE of the MANAGER 710 Dldl Day Road, Room 101 Kodiak, Alaska 99615 Phone (907) 486-9304 Fax (907) 486-9374 E-nuil'. ddcorak4ikndiakak.us Date: August 29, 2016 To: Jerrol Friend, Mayor Members of the Assembly Through: Michael Powers, Manager From: Duane Dvorak, Resource Management Officer RE: Substitute Version 2 of an amendment of Contract FY2016-45, regarding a 500' buffer for slash piles. Contract FY2016-45 has a provision that addresses concerns about the disposition of slash waste produced as a by-product of the salvage timber harvest process. Section 11.0 of the contract reads as follows: Section 11. Timber Operations... ... C. Slash Disposal. All accumulations of forest products that do not meet the definition of Merchantable Timber shall be either well scattered or piled so to minimize occupation of reforestable ground. A-1 must comply with all applicable AFRPA laws and regulations, including 11 AAC 95.370, relating to the disposal or accumulation of slash. A-1 will take reasonable measures to reduce slash in the Timber Sale Area. Reasonable measures to reduce slash include removing logs that do not meet the definition of Merchantable Timber to the sort yard at Bruhn Point, stacking logs that may be suitable for firewood in the Timber Sale Area, concentrating slash piles within the Timber Sale Area, and not creating slash piles within 500' of identified residential properties, the tsunami sheltedlibrary lot, or the unit cutting lines. (Emphasis Added) A previously mentioned in the original agenda statement for this request, A-1 Timber has been requested to do salvage logging for adjoining residential property owners whose properties were substantially affected by the fire. It would be more efficient and neighborly to bring the timber out through borough land where the roads and infrastructure are already established. This would involve having the timber limbed and topped on borough land behind the lots in question and create slash piles within 500 feet of those same residential properties. In the original version of the proposed amendment, staff suggested that a modification of the slash pile buffer could be considered as an exception to the provision as originally set forth. In discussing this matter further with A-1 and after re-evaluating the original contract language, it appears that it might be easier and simpler to simply change the setback from 500 feet to 200 feet Contract No. FY2016-45AAmending Contract No. FY2016-45 Twin... Page 252rx94m #12.a. Page 2 or2 and eliminating references to the tsunami shelter/library lot or the unit cutting lines. The tsunami shelter/library lot is within the harvest area and the cutting lines other than the area adjoining the affected residential properties are largely adjoining the Leisnoi lands that have already been harvested. As staff has shown in the revised map for Version 2 substitute of the proposed amendment, a 200 foot setback from residential properties would still provide a setback of nearly double that minimum distance from the actual location of the residential structures themselves. Staff believes that assisting the property owners to get their properties cleared and made safe, while A-1 is mobilized to do so, serves a substantial public purpose that argues for some reasonableness and flexibility from the strict contract standard. Staff has highlighted the contract language in the first and last sentences of the Section 11.C. In the first sentence, A-1 has the option to "well scatter" slash material as an alternative to slash piles. A-1 has indicated they would go to this option of handling the slash before they would consider additional handling and transporting this slash material to a location beyond 500 feet of the residential property boundaries. Having scattered slash could have a negative effect on reforestation efforts and could raise the costs to be borne by the borough in this regard. It would also make the land less attractive and useful for recreation purposes. In the alternative, if slash generated from the clearing of adjoining residential lots were to be left on the same site where it is generated, it would require processing the timber on site and bringing the logs out through the King Crab Way flag stem to borough land. Staff does not recommend this alternative and has received considerable public input from residents discouraging King Crab Way flag stem from being opened for public access to the area after the salvage harvest is complete. Contract No. FY2016-45AAmending Contract No. FY2016-45 Twin... Page 290F0 #9AFM #92.a. Substitute Version 2 KIB Contract Amendment FY2016-45A First Amendment of Contract FY2016-45, Twin Creeks Fire Salvage Timber Sale Contract between A-1 Timber Consultants, Inc. and the Kodiak Island Borough First AMENDMENT, dated September 1, 2016, (the "Amendment') to Contract FY201645 for Salvage Timber Sale (the "contract') between A-1 Timber Consultants, Inc. ("A-1") and the Kodiak Island Borough ("KIB"), executed on May 10, 2016. WHEREAS, Section 11.0 Slash Disposal of the contract restricts the creation of slash piles within 500 feet of identified residential properties, the tsunami shelter/library lot, or the unit cutting lines; and WHEREAS, neighboring residential landowners have expressed interest in having fire damaged trees and trees vulnerable to wind throw removed from their properties; and WHEREAS, the bulk of damaged timber is located alongside the abutting borough land, it would be more efficient to remove the timber over and through the adjoining borough land where the necessary roads and infrastructure have already been created; and WHEREAS, removing this timber under a separate arrangement between A-1 and the respective private property owners, which is outside the scope of this contract, will result in slash piles within 275 feet of identified residential property boundaries or harvest unit boundaries; and WHEREAS, the KIB would like to make an opportunity available to the affected residential owners to make their properties safe from fire damaged and wind vulnerable timber so long as it does not place an additional cost upon the KIB for strict compliance with the existing salvage timber sale contract provisions with regards to Section 11.C, Slash Disposal; NOW, THEREFORE, in consideration of the premises and the mutual covenants herein, the parties agree as follows: Terms of Section 11.0 are amended to read as follows: Section 11. Timber Operations... ... C. Slash Disposal. All accumulations of forest products that do not meet the definition of Merchantable Timber shall be either well scattered or piled so to minimize occupation of reforestable ground. A-1 must comply with all applicable AFRPA laws and regulations, including 11 AAC 95.370, relating to the disposal or accumulation of slash. A-1 will take reasonable measures to reduce slash in the Timber Sale Area. Reasonable measures to reduce slash include removing logs that do not meet the definition of Merchantable Timber to the sort yard at Bruhn Point, stacking logs that may Contract No. FY2016-45AAmending Contract No. FY2016-45 Twin... Page 284rzN 4944 #12.a. KIB Contract Amendment FY2016-45A be suitable for firewood in the Timber Sale Area, concentrating slash piles within the Timber Sale Area, and not creating slash piles within 200'5G9 of identified residential properties, the tsunami shelter/library lei e. the nit Gutting ines. An a ..t'.. is made GR he.e ueh land ..I .. 1......1fi e.....est dis'ably All other terms and provisions of KIB Contract FY2016-45, between A-1 Timber Consultants, Inc. and the Kodiak Island Borough effective May 10, 2016, shall remain unchanged. Dated this day of 2016 Kodiak Island Borough Michael Powers Title: Borough Manager STATE OF ALASKA THIRD JUDICIAL DISTRICT ss. The Foregoing Instrument was acknowledged before me of and on behalf of the Kodiak Island Borough on this _ day of 2016. SUBSCRIBED AND SWORN TO this day of 2016. Notary in and for the State of Alaska My commission expires: Dated this day of , 2016 Contract No. FY2016-45AAmending Contract No. FY2016-45 Twin... Page 296EM 4 94w #12.a. KIB Contract Amendment FY2016-45A A-1 Timber Consultants Tom Loushin Title: President STATE OF ALASKA THIRD JUDICIAL DISTRICT ss. The Foregoing Instrument was acknowledged before me of and on behalf of the Corporation on this day of , 2016. SUBSCRIBED AND SWORN TO this day of 2016. Notary in and for the State of Alaska My commission expires: Contract No. FY2016-45AAmending Contract No. FY2016-45 Twin... ; - ' -N -y T T I Page 281P914FM #12.a. KIB Contract Amendment FY2016-45A First Amendment of Contract FY2016-45, Twin Creeks Fire Salvage Timber Sale Contract between A-1 Timber Consultants, Inc. and the Kodiak Island Borough First AMENDMENT, dated September 1, 2016, (the "Amendment") to Contract FY201645 for Salvage Timber Sale (the "contract") between A-1 Timber Consultants, Inc. ("A-1") and the Kodiak Island Borough ("KIB"), executed on May 10, 2016. WHEREAS, Section 11.0 Slash Disposal of the contract restricts the creation of slash piles within 500 feet of identified residential properties, the tsunami shelter/library lot, or the unit cutting lines; and WHEREAS, neighboring residential landowners have expressed interest in having fire damaged trees and trees vulnerable to wind throw removed from their properties; and WHEREAS, the bulk of damaged timber is located alongside the abutting borough land, it would be more efficient to remove the timber over and through the adjoining borough land where the necessary roads and infrastructure have already been created; and WHEREAS, removing this timber under a separate arrangement between A-1 and the respective private property owners, which is outside the scope of this contract, will result in slash piles within 275 feet of identified residential property boundaries or harvest unit boundaries; and WHEREAS, the KIB would like to make an opportunity available to the affected residential owners to make their properties safe from fire damaged and wind vulnerable timber so long as it does not place an additional cost upon the KIB for strict compliance with the existing salvage timber sale contract provisions with regards to Section 11.C, Slash Disposal; NOW, THEREFORE, in consideration of the premises and the mutual covenants herein, the parties agree as follows: Terms of Section 11.0 are amended to read as follows: Section 11. Timber Operations... ... C. Slash Disposal. All accumulations of forest products that do not meet the definition of Merchantable Timber shall be either well scattered or piled so to minimize occupation of reforestable ground. A-1 must comply with all applicable AFRPA laws and regulations, including 11 AAC 95.370, relating to the disposal or accumulation of slash. A-1 will take reasonable measures to reduce slash in the Timber Sale Area. Reasonable measures to reduce slash include removing logs that do not meet the definition of Merchantable Timber to the sort yard at Bruhn Point, stacking logs that may Contract No. FY2016-45A Amending Contract No. FY2016-45 Twin... Page 286EM49WM #12.a. KIB Contract Amendment FY2016-45A be suitable for firewood in the Timber Sale Area, concentrating slash piles within the Timber Sale Area, and not creating slash piles within 500' of identified residential properties, the tsunami shelter/library lot, or the unit cutting lines. An exception is made for the slash produced by logging activities on adjoining private land which may be piled on borough land at a location most distant from the residential properties as reasonably possible without additional handling or transport, but not less than 200'. All other terms and provisions of KIB Contract FY2016-45, between A-1 Timber Consultants, Inc. and the Kodiak Island Borough effective May 10, 2016, shall remain unchanged. Dated this day of 2016 Kodiak Island Borough Michael Powers Title: Borough Manager STATE OF ALASKA THIRD JUDICIAL DISTRICT >R] The Foregoing Instrument was acknowledged before me of and on behalf of the Kodiak Island Borough on this _ day of 2016. SUBSCRIBED AND SWORN TO this day of Notary in and for the State of Alaska My commission expires: Dated this day of , 2016 Contract No. FY2016-45AAmending Contract No. FY2016-45 Twin... 2016. Page 259E94MM #12.a. KIB Contract Amendment FY2016-45A A-1 Timber Consultants Tom Loushin Title: President STATE OF ALASKA THIRD JUDICIAL DISTRICT 1-.14 The Foregoing Instrument was acknowledged before me of and on behalf of the Corporation on this day of , 2016. SUBSCRIBED AND SWORN TO this day of 2016. Notary in and for the State of Alaska My commission expires: Contract No. FY2016-45A Amending Contract No. FY2016-45 Twin... Page 261tA@A4XSh #13.8.1. TITLE: Resolution No. FY2017-10 Authorizing The Borough To Issue A General Obligation School Refunding Bond To Refund Certain Principal Installments Of An Outstanding General Obligation School Bond Of The Borough And To Pay Costs Of Issuing The Bond, Fixing Certain Details Of Such Bond, Authorizing Its Sale, And Providing For Related Matters. ORIGINATOR: Dora Cross FISCAL IMPACT: Yes Reduction of FUNDS AVAILABLE: $323,362 FY2017 Account Number: Amount Budgeted: $497,480 SUMMARY STATEMENT: This resolution will authorize Kodiak Island Borough's participation in the Alaska Municipal Bond Bank's (AMBB) refunding (or refinancing) of the Borough's 2008 Series One bond issue. In light of the recent historic decline in interest rates, the AMBB has identified the Borough's 2008 One issue as advantageous to refund based on current rates. These bonds are currently reimbursable by the State of Alaska at 60%, provided the Alaska State Legislature appropriates funds for the reimbursement program. If the savings generated by refunding this bond are taken at the beginning of a new payment schedule, unreimbursed savings to the Borough for FY2017 would be $323,362 (($370,000 principal + $127,480 interest) @ 65% (40% Borough rate plus 25% reimbursement reduction due to Governor Vetoes)). The borough's first principal payment would be in FY2019 according to the following schedule. FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 Current Principal Pavment Schedule $350,000 $370,000 $380,000 $400,000 $415,000 $430,000 $450,000 $470,000 $490,000 $515,000 $540,000 $565,000 $595,000 RECOMMENDED MOTION: Move to adopt Resolution No. FY2017-10. Kodiak Island Borough Proposed Principal Pavment Schedule $ 0 $ 0 $ 0 $110,000 $415,000 $430,000 $450,000 $470,000 $490,000 $515,000 $540,000 $565,000 $595,000 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... KODIAK ISLAND BOROUGH AGENDA STATEMENT SEPTEMBER 15, 2016 ASSEMBLY REGULAR MEETING 0 —1` Page 261tA@A4XSh #13.8.1. TITLE: Resolution No. FY2017-10 Authorizing The Borough To Issue A General Obligation School Refunding Bond To Refund Certain Principal Installments Of An Outstanding General Obligation School Bond Of The Borough And To Pay Costs Of Issuing The Bond, Fixing Certain Details Of Such Bond, Authorizing Its Sale, And Providing For Related Matters. ORIGINATOR: Dora Cross FISCAL IMPACT: Yes Reduction of FUNDS AVAILABLE: $323,362 FY2017 Account Number: Amount Budgeted: $497,480 SUMMARY STATEMENT: This resolution will authorize Kodiak Island Borough's participation in the Alaska Municipal Bond Bank's (AMBB) refunding (or refinancing) of the Borough's 2008 Series One bond issue. In light of the recent historic decline in interest rates, the AMBB has identified the Borough's 2008 One issue as advantageous to refund based on current rates. These bonds are currently reimbursable by the State of Alaska at 60%, provided the Alaska State Legislature appropriates funds for the reimbursement program. If the savings generated by refunding this bond are taken at the beginning of a new payment schedule, unreimbursed savings to the Borough for FY2017 would be $323,362 (($370,000 principal + $127,480 interest) @ 65% (40% Borough rate plus 25% reimbursement reduction due to Governor Vetoes)). The borough's first principal payment would be in FY2019 according to the following schedule. FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 Current Principal Pavment Schedule $350,000 $370,000 $380,000 $400,000 $415,000 $430,000 $450,000 $470,000 $490,000 $515,000 $540,000 $565,000 $595,000 RECOMMENDED MOTION: Move to adopt Resolution No. FY2017-10. Kodiak Island Borough Proposed Principal Pavment Schedule $ 0 $ 0 $ 0 $110,000 $415,000 $430,000 $450,000 $470,000 $490,000 $515,000 $540,000 $565,000 $595,000 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... CERTIFICATE OF CLERK I, NOVA JAVIER, Clerk of the Kodiak Island Borough (the "Borough"), HEREBY CERTIFY that the document attached hereto is an accurate and complete copy of Resolution FY2017-10 of the Borough adopted by the Borough Assembly at a meeting duly called and held , 2016, and that Resolution FY2017-10 has not been modified, amended, repealed, or rescinded, but is In full force and effect on the date hereof. IN WITNESS WHEREOF, I have executed this certificate this _ day of 2016. NOVA JAVIER, MMC Borough Clerk Kodiak Island Borough 3154M 2 Resolution No. FY2017-10 Authorizing The Borough To Issue A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 Introduced by: Borough Manager Requested by: Finance Director Drafted by: Bond Counsel Introduced on: 09115/2016 Adopted on: KODIAK ISLAND BOROUGH RESOLUTION NO. FY2017-10 A RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY AUTHORIZING THE BOROUGH TO ISSUE A GENERAL OBLIGATION SCHOOL REFUNDING BOND TO REFUND CERTAIN PRINCIPAL INSTALLMENTS OF AN OUTSTANDING GENERAL OBLIGATION SCHOOL BOND OF THE BOROUGH AND TO PAY COSTS OF ISSUING THE BOND, FIXING CERTAIN DETAILS OF SUCH BOND, AUTHORIZING ITS SALE, AND PROVIDING FOR RELATED MATTERS WHEREAS, pursuant to Ordinance No. FY2007-05 of the Kodiak Island Borough, Alaska (the "Borough"), adopted on August 17, 2006, approved by a majority of the qualified voters voting on the proposition at the regular Borough election held on October 3, 2006, and Resolution No. FY2008-12, adopted December 6, 2007 (the "Bond Resolution"), the Borough issued its General Obligation School Bond, 2008 Series A (the "2008 Bond") In the original principal amount of $8,000,000, of which $5,620,000 is now outstanding; and WHEREAS, under AS 29.47.300, if the Borough has outstanding general obligation bonds and the Assembly determines it would be financially advantageous to refund those bonds, the Borough may provide by resolution for the issuance of general obligation refunding bonds, and under AS 29.47.320, no election is required to authorize the issuance and sale of refunding bonds;and WHEREAS, under AS 29.47.340, refunding bonds may be exchanged for the bonds being refunded; and WHEREAS, the Borough sold the 2008 Bond to the Alaska Municipal Bond Bank Authority (the "Bond Bank"), as authorized by the Bond Resolution, on the terms and conditions set forth In the Bond Resolution and in the loan agreement between the Borough and the Bond Bank dated as of April 1, 2008 (the "2008 Loan Agreement"); and WHEREAS, the Bond Bank issued its General Obligation Bonds, 2008 Series One (the "2008 Bond Bank Bonds"), among other purposes, to provide funds to purchase the 2008 Bond, as provided In the 2008 Loan Agreement; and WHEREAS, the Bond Bank has expressed its intent to issue refunding bonds (the "Bond Bank Refunding Bonds") for the purpose of refunding a portion of the 2008 Bond Bank Bonds and achieving a debt service savings; and WHEREAS, Section 6 of the 2008 Loan Agreement provides that payments of principal of and Interest on the 2008 Bond may be adjusted to reduce debt service on the 2008 Bond if the Bond Bank is able to achieve debt service savings by refunding the 2008 Bond Bank Bonds; and WHEREAS, the Bond Bank has offered to enter into an Amendatory Loan Agreement (the "Amendatory Loan Agreement") to effect a reduction in debt service on all or a portion of the principal Installments of the 2008 Bond payable on or after April 1, 28182017 (the "Refundable Principal Installments"); and WHEREAS, the Assembly wishes to effect a reduction in debt service on all or a portion of the Refundable Principal Installments by entering into the Amendatory Loan Agreement, issuing the Kodiak Island Borough, Alaska Resolution No. FY2017-10 Page 1 of 8 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... 59 Bond (and a replacement 2008 Bond) In exchange for the 2008 Bond and participating In the 60 refunding of a portion of the 2008 Band Bank Bonds; and 61 62 WHEREAS, the Assembly finds that it is necessary and appropriate to delegate to each of the 63 Borough Manager and Borough Finance Director authority to determine the maturity amounts, 64 interest rates, and other details of the bonds, and to determine other matters that are not provided 65 for in this Resolution; 66 67 NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND 68 BOROUGH THAT: 69 70 Section 1: Definitions. In addition to terms which are defined in the recitals above, the 71 following terms shall have the following meanings in this Resolution: 72 73 (a) "Assembly" means the Assembly of the Kodiak Island Borough, as the 74 general legislative authority of the Kodiak Island Borough, as the same shall be 75 duly and regularly constituted from time to time. 76 77 (b) "Bond" means the "General Obligation School Refunding Bond" of the 78 Kodiak Island Borough, the Issuance and sale of which are authorized herein. 79 80 (c) "Bond Bank Bonds" means the series of general obligation bonds issued 81 by the Bond Bank, all or part of the proceeds of which are used to purchase the 82 Bond. 83 84 (d) "Bond Register" means the registration books maintained by the 85 Registrar, which include the names and addresses of the Registered Owners of 86 the Bond or their nominees. 87 88 (e) "Borough" means the Kodiak Island Borough, a municipal corporation of 89 the State of Alaska, organized as a second class borough under Title 29 of the 90 Alaska Statutes. 91 92 (f) "Borough Manager means the Manager or Administrative Official of the 93 Borough. 94 95 (g) "Code" means the Internal Revenue Code of 1986, as amended from 96 time to time, together with all regulations applicable thereto. 97 98 (h) "Government Obligations" means obligations that are either (i) direct 99 obligations of the United States of America or (ii) obligations of an agency or 100 instrumentality of the United States of America the timely payment of the 101 principal of and interest on which are unconditionally guaranteed by the United 102 States of America. 103 104 (1) "Registered Owner" means the person named as the registered owner of 105 a Bond in the Bond Register. 106 107 0) "Registrar means the Borough Finance Director, or any successor that 108 the Borough may appoint by resolution. 109 110 (k) "Resolution" means this Resolution No. FY2017-10 of the Borough. 111 112 Section 2: Authorization of Bond and Purpose of Issuance. The Assembly hereby 113 determines it would be financially advantageous to refund all or a portion of the 114 Refundable Principal Installments by issuing the Bond (and a replacement 2008 115 Bond) on the terms and conditions provided In this Resolution. For the purpose of 116 providing the funds required to refund all or a portion of the Refundable Principal 117 Installments and to pay all costs incidental thereto and to the issuance of the 118 Bond, the Borough hereby authorizes and determines to issue and sell the Bond Kodiak Island Borough, Alaska Resolution No. FY2017-10 Page 2 of 8 Resolution No. FY2017-10 Authorizing The Borough To Issue A 1119 in the principal amount of not to exceed $F=j:S6 000 000. The Bond shall be 120 designated "Kodiak Island Borough General Obligation School Refunding Bond," 121 with such additional series and year designation as the Borough Manager or the 122 Borough Finance Director may fix and determine. 123 124 The Borough Manager and/or the Borough Finance Director are hereby 125 authorized to fix and determine which of the Refundable Principal Installments 126 are to be refunded by issuing the Bond (and a replacement 2008 Band) in 127 exchange therefor. 128 129 Section 3: Obligation of Bond. The Bond shall be a direct and general obligation of the 130 Borough, and the full faith and credit of the Borough are hereby pledged to the 131 payment of the principal of and interest on the Bond. The Borough hereby 132 irrevocably pledges and covenants that it will levy and collect taxes upon all 133 taxable property within the Borough without limitation as to rate or amount, in 134 amounts sufficient together with other funds legally available therefor, to pay the 135 principal of and interest on the Bond as the same become due and payable. 136 137 Section 4: Designation, Maturities, Interest Rates. and Other Details of Bond. The Bond 138 shall be designated "Kodiak Island Borough, Alaska, General Obligation School 139 Refunding Bond." Each principal installment of the Bond shall be In the 140 denomination of $5,000 or any integral multiple thereof, shall be numbered in the 141 manner and with such additional designation as the Registrar deems necessary 142 for purposes of identification, and may have endorsed thereon such legends or 143 text as may be necessary or appropriate to conform to the rules and regulations 144 of any governmental authority or any usage or requirement of law with respect 145 thereto. 146 147 The Bond shall bear interest payable semi-annually on the dates and shall 148 mature on the date and each principal installment shall be payable annually in 149 the amount and on the dates, all as shall be set forth in the Amendatory Loan 150 Agreement. Interest will be computed on the basis of a 360 -day year consisting 151 of twelve 30 -day months. 152 153 Subject to Section 2 and the remainder of this Section, the dated date, the 154 principal installment and Interest payment dates, the record dates for interest 155 payments, the aggregate principal amount, the amount of each principal 156 installment, and the interest rate on each principal installment shall be 157 determined at the time of execution of the Amendatory Loan Agreement under 158 Section 15, provided that (i) no rate of Interest on any principal installment shall 159 exceed the rate of Interest on the corresponding maturity of the Bond Bank 160 Refunding Bonds; and (Ii) the net present value of the savings to the Borough 161 effected by issuing the Bond (and a replacement 2008 Bond) and refunding the 162 Refundable Principal installments that are refunded shall be at least 3 percent of 163 the aggregate principal amount of the Refundable Principal Installments that are 164 refunded; and (iii) the Bond shall mature on or before six months after the date 165 on which the last Refundable Principal Installment that is refunded is payable. 166 167 Section 5: Optional Prepayment. The principal installments of the Bond shall be subject to 168 prepayment, at the Borough's option, on the dates and at the prices to be set 169 forth in the Amendatory Loan Agreement. If fewer than all of the principal 170 installments of the Bond are to be prepaid, the principal installments to be 171 prepaid shall be determined by the Borough. Notice of any such prepayment 172 shall be sent by the Borough not less than 50 days prior to the date fixed for 173 prepayment by first class mail to the Registered Owner at the Registered 174 Owners address as it then appears on the Bond Register. Notice of prepayment 175 having been duly given and the prepayment having been duly effected, interest 176 on the principal installments to be prepaid shall cease to accrue on the dale fixed 177 for prepayment. 178 Kodiak Island Borough, Alaska Resolution No. FY2017-10 Authorizing The Borough To Issue A Resolution No. FY2017-10 Page 3 of 6 179 Section 6: Form of Bond. Each Bond shall be in substantially the following form, subject to 180 the provisions of the Amendatory Loan Agreement and with such variations, 181 omissions, and insertions as may be required or permitted by this Resolution: 182 183 UNITED STATES OF AMERICA 184 185 KODIAK ISLAND BOROUGH, ALASKA 186 187 NO. $ 188 189 GENERAL OBLIGATION SCHOOL REFUNDING BOND 190 191 REGISTERED OWNER: ALASKA MUNICIPAL BOND BANK AUTHORITY 192 193 PRINCIPAL AMOUNT: 194 195 The Kodiak Island Borough (the "Borough"), a municipal corporation of 196 the State of Alaska, hereby acknowledges Itself to owe and for value received 197 promises to pay to the Registered Owner identified above, or its registered 198 assigns, the principal amount identified above in the following installments on 199 each of the following years, and to pay interest on such installments from the 200 date hereof, payable on _ 1, 20_, and semiannually thereafter on _ 1, 201 and _ 1, of each year, at the rates per annum as follows: 202 203 Maturity Principal Interest 204 Date Amount Rate 205 206 207 208 For so long as the Alaska Municipal Bond Bank Authority (the "Bond 209 Bank") is the Registered Owner, payment of principal and Interest shall be made 210 as provided in the Loan Agreement between the Bond Bank and the Borough, as 211 amended (the "Amended Loan Agreement"). When and if this Bond is not owned 212 by the Bond Bank, installments of principal of and interest on this Bond shall be 213 paid by check or draft mailed by first class mail to the Registered Owner as of the 214 close of business on the 15th day of the month before each installment payment 215 date; provided, that the final Installment of principal of and Interest on this Bond 216 shall be payable upon presentation and surrender of this Bond by the Registered 217 Owner at the office of the Registrar. Interest will be computed on the basis of a 218 360 -day year consisting of twelve 30 -day months. Both principal of and Interest 219 on this Bond are payable in lawful money of the United States of America which, 220 on the respective dates of payment thereof, shall be legal tender for the payment 221 of public and private debts. 222 223 This Bond is the General Obligation School Refunding Bond of the 224 Kodiak Island Borough, Alaska, and is authorized for the purpose of refunding 225 certain principal installments of an outstanding general obligation bond of the 226 Borough under Resolution No. FY2017-10 of the Borough entitled: 227 228 A RESOLUTION OF THE KODIAK ISLAND BOROUGH 229 ASSEMBLY AUTHORIZING THE BOROUGH TO ISSUE A 230 GENERAL OBLIGATION SCHOOL REFUNDING BOND TO 231 REFUND CERTAIN PRINCIPAL INSTALLMENTS OF AN 232 OUTSTANDING GENERAL OBLIGATION SCHOOL BOND OF 233 THE BOROUGH AND TO PAY COSTS OF ISSUING THE BOND, 234 FIXING CERTAIN DETAILS OF SUCH BOND, AUTHORIZING 235 ITS SALE, AND PROVIDING FOR RELATED MATTERS 236 237 (the "Resolution"). 238 Kodiak Island Borough, Alaska Resolution No. FY2017-10 Page 4 of 8 Resolution No. FY2017-10 Authorizing The Borough To Issue A 239 Installments of principal of this Bond maturing on and after _ 1, 240 20_, shall be subject to prepayment on and after_ 1, 20_, at the option of 241 the Borough (subject to any applicable provisions of the Amended Loan 242 Agreement), in such principal amounts and from such maturities as the Borough 243 may determine, and by lot within a maturity, at a redemption price equal to the 244 principal amount to be prepaid, plus accrued interest to the date of prepayment. 245 246 This Bond is transferable as provided in the Bond Resolution, (i) only 247 upon the Bond Register of the Borough, and (it) upon surrender of this Bond 248 together with a written instrument of transfer duly executed by the Registered 249 Owner or the duly authorized attorney of the Registered Owner, and thereupon a 250 new fully registered Bond in the same aggregate principal amount and maturity 251 shall be issued to the transferee In exchange therefor as provided in the Bond 252 Resolution and upon the payment of charges, if any, as therein prescribed. The 253 Borough may treat and consider the person in whose name this Bond is 254 registered as the absolute owner hereof for the purpose of receiving payment of, 255 or on account of, the principal or redemption price, if any, hereof and interest due 256 hereon and for all other purposes whatsoever. 257 258 This Bond Is a general obligation of the Kodiak Island Borough, and the 259 full faith and credit of the Borough are pledged for the payment of the principal of 260 and interest on this Bond as the same shall become due. 261 262 IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts or 263 things required by the constitution or statutes of the State of Alaska to exist, to 264 have happened or to have been performed precedent to or in the Issuance of this 265 Band exist, have happened and have been performed, and that this Bond, 266 together with all other indebtedness of the Borough, is within every debt and 267 other limit prescribed by such constitution or statutes. 268 269 IN WITNESS WHEREOF, THE KODIAK ISLAND BOROUGH, ALASKA, 270 has caused this Bond to be signed in its name and on its behalf by the manual or 271 facsimile signature of its Mayor and its corporate seal (or a facsimile thereof) to 272 be impressed or otherwise reproduced hereon and attested by the manual or 273 facsimile signature of its Clerk, all as of the _ day of , 274 275 KODIAK ISLAND BOROUGH 276 277 /specimen/ 278 Borough Mayor 279 280 ATTEST: 281 282 /specimen/ 283 Borough Clerk 284 285 Section 7: Execution, The Bond shall be executed in the name of the Borough by the 286 manual or facsimile signature of the Mayor, and its corporate seal (or a facsimile 287 thereof) shall be impressed or otherwise reproduced thereon and attested by the 288 manual or facsimile signature of the Borough Clerk. The execution of a Bond on 289 behalf of the Borough by persons who at the time of the execution are duly 290 authorized to hold the proper offices shall be valid and sufficient for all purposes, 291 although any such person shall have ceased to hold office at the time of delivery 292 of the Band or shall not have held office on the date of the Bond. 293 294 Section 8: Payment of Principal Installments and Interest. The Bond shall be payable in 295 lawful money of the United States of America which at the time of payment is 296 legal tender for the payment of public and private debts. For so long as the Bond 297 Bank Is the Registered Owner of the Bond, payment of principal installments of 298 and Interest on the Bond shall be made as provided in the Loan Agreement, as Kodiak Island Borough, Alaska Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Resolution No. FY2017-10 Page 5 of a 299 amended by the Amendatory Loan Agreement. When and if the Bond Bank is not 300 the Registered Owner of the Bond, Installments of principal of and interest on the 301 Bond shall be paid by check mailed by first class mail to the Registered Owner 302 as of the record date for the installment payment at the address appearing on the 303 Bond Register; provided, that the final installment of principal and interest on the 304 Bond shall be payable upon presentation and surrender of the Bond by the 305 Registered Owner at the office of the Registrar. 306 307 Section 9: Registration. The Bond shall be issued only in registered form as to both 308 principal and Interest. The Borough designates the Borough Finance Director as 309 Registrar for the Bond. The Registrar shall keep, or cause to be kept, the Bond 310 Register at the principal office of the Borough. The Borough covenants that, until 311 the Bond has been surrendered and canceled, it will maintain a system for 312 recording the ownership of the Bond that complies with the provisions of Section 313 149 of the Code. The Borough and the Registrar may treat the person in whose 314 name the Bond shall be registered as the absolute owner of such Bond for all 315 purposes, whether or not the Bond shall be overdue, and all payments of 316 principal of and interest on the Bond made to the Registered Owner thereof or 317 upon its order shall be valid and effectual to satisfy and discharge the liability 318 upon such Bond to the extent of the sum or sums so paid, and neither the 319 Borough nor the Registrar shall be affected by any notice to the contrary. 320 321 Section 10: Transfer and Exchange. The Bond shall be transferred only upon the Bond 322 Register. Upon surrender for transfer or exchange of the Bond at the office of the 323 Registrar, together with a written instrument of transfer or authorization for 324 exchange in form and with guaranty of signature satisfactory to the Registrar, 325 duly executed by the Registered Owner or the duly authorized attorney of the 326 Registered Owner, the Borough shall execute and deliver a Bond In equal 327 aggregate principal amount, subject to such reasonable regulations as the 328 Borough may prescribe and upon payment sufficient to reimburse it for any tax, 329 fee or other governmental charge required to be paid in connection with such 330 transfer or exchange. If the Bond is surrendered for transfer or exchange it shall 331 be canceled by the Registrar. 332 333 Section 11: Bond Mutilated. Destroyed. Stolen. or Lost. Upon surrender to the Registrar of a 334 mutilated Bond, the Borough shall execute and deliver a new Bond of like 335 maturity and principal amount. Upon filing with the Registrar of evidence 336 satisfactory to the Borough that a Bond has been destroyed, stolen, or lost and of 337 the ownership thereof, and upon furnishing the Borough with indemnity 338 satisfactory to it, the Borough shall execute and deliver a new Bond of like 339 maturity and principal amount. The person requesting the execution and delivery 340 of a new Bond under this Section shall comply with such other reasonable 341 regulations as the Borough may prescribe and shall pay such expenses as the 342 Borough may Incur in connection therewith. 343 344 Section 12: Tax Covenants. The Borough covenants to comply with any and all applicable 345 requirements set forth in the Code in effect from time to time to the extent that 346 such compliance shall be necessary for the exclusion of the interest an the Bond 347 from gross income for federal income tax purposes. The Borough covenants that 348 it will make no use of the proceeds of the Bond which will cause the Bond to be 349 an "arbitrage bond" subject to federal income taxation by reason of Section 148 350 of the Code. The Borough covenants that it will not take or permit any action that 351 would cause the Bond to be a "private activity bond" as defined in Section 141 of 352 the Code. 353 354 Section 13: Amendatory and Suoolemental Resolutions. 355 356 (a) The Assembly from time to time and at any time may adopt a resolution 357 or resolutions supplemental hereto, which resolution or resolutions thereafter Kodiak Island Borough, Alaska Resolution No. FY2017-10 Page 6 of 8 Resolution No. FY2017-10 Authorizing The Borough To Issue A 0 r .Tr"A 358 shall become a part of this Resolution, for any one or more of the following 359 purposes: 360 361 (1) To add to the covenants and agreements of the Borough in this 362 Resolution, other covenants and agreements thereafter to be observed 363 or to surrender any right or power herein reserved to or conferred upon 364 the Borough. 365 366 (2) To make such provisions for the purpose of curing any 367 ambiguities or of curing, correcting or supplementing any defective 368 provision contained in this Resolution or in regard to matters or questions 369 arising under this Resolution as the Assembly may deem necessary or 370 desirable and not inconsistent with this Resolution and which shall not 371 adversely affect the interests of the Registered Owner of the Band. 372 373 Any such supplemental resolution may be adopted without the consent of the 374 Registered Owner of the Bond at any time outstanding, notwithstanding any of 375 the provisions of subsection (b) of this Section. 376 377 (b) With the consent of the Registered Owner, the Assembly may adopt a 378 resolution or resolutions supplemental hereto for the purpose of adding any 379 provisions to or changing in any manner or eliminating any of the provisions of 380 this Resolution or of any supplemental resolution. 381 382 It shall not be necessary for the consent of the Registered Owner of the Bond 383 under this subsection to approve the particular form of any proposed 384 supplemental resolution, but it shall be sufficient if such consent approves the 385 substance thereof. 386 387 (c) Upon the adoption of any supplemental resolution under this Section, 388 this Resolution shall be deemed to be modified and amended in accordance 389 therewith, and the respective rights, duties, and obligations under this Resolution 390 of the Borough and the Registered Owner shall thereafter be subject in all 391 respects to such modification and amendment, and all the terms and conditions 392 of the supplemental resolution shall be deemed to be part of the terms and 393 conditions of this Resolution for any and all purposes. 394 395 (d) Bonds executed and delivered after the adoption of any supplemental 396 resolution under this Section may bear a notation as to any matter provided for in 397 such supplemental resolution, and if such supplemental resolution shall so 398 provide, a new Bond modified so as to conform, in the opinion of the Borough, to 399 any modification of this Resolution contained in any such supplemental resolution 400 may be prepared by the Borough and delivered without cost to the Registered 401 Owner of the Bond, upon surrender for cancellation of such Bond in an equal 402 aggregate principal amount. 403 404 Section 14: Defeasance. In the event money and/or non -callable Government Obligations 405 maturing at such times and bearing interest to be earned thereon in amounts 406 sufficient to redeem and retire the Bond in accordance with its terms are set 407 aside In a special trust account to effect such redemption or retirement and such 408 moneys and the principal of and interest on such Government Obligations are 409 irrevocably set aside and pledged for such purpose, then no further payments 410 need be made to pay or secure the payment of the principal of and interest on 411 the Bond and the Bond shall be deemed not to be outstanding. 412 413 Section 15: Exchange of the Bond: Amendatory Loan Agreement: Continuing Disclosure 414 Certificate. The exchange of the Bond for all the Refundable Principal 415 Installments that are refunded (and the issuance of a replacement 2008 Bond), 416 as provided in the Amendatory Loan Agreement and this Resolutlon, is hereby 417 authorized and approved. The Amendatory Loan Agreement and the Continuing Kodiak Island Borough, Alaska Resolution No. FY2017-10 Page 7 of 8 Resolution No. FY2017-10 Authorizing The Borough To Issue A... 418 Disclosure Certificate in substantially the form filed with this Resolution are 419 hereby approved. The Mayor and the Borough Manager are each hereby 420 authorized to execute and deliver the Amendatory Loan Agreement and the 421 Continuing Disclosure Certificate in such forms, together with such changes not 422 inconsistent herewith as may be approved by the Mayor or the Borough Manager 423 (such approval to be conclusively evidenced by such official's execution and 424 delivery of such document). 425 426 Section 16: Authority of Officers. The Mayor, the Borough Manager, the Borough Finance 427 Director, and the Borough Clerk each is authorized and directed to do and 428 perform all things and determine all matters not determined by this Resolution, to 429 the end that the Borough may carry out its obligations under the Bond and this 430 Resolution. 431 432 Section 17: Ongoing Disclosure. The Borough acknowledges that under Rule 15c2-12 of the 433 Securhies and Exchange Commission (the "Rule") the Borough may now or In 434 the future be an "obligated person." In accordance with the Rule, and as the 435 Bond Bank may require, the Borough shall undertake to provide certain annual 436 financial information and operating data as shall be set forth in the Amendatory 437 Loan Agreement. 438 439 Section 18: Miscellaneous. No recourse shall be had for the payment of the principal of or 440 the interest on the Bond or for any claim based thereon or on this Resolution 441 against any member of the Assembly or officer of the Borough or any person 442 executing the Bond. The Bond is not and shall not be in any way a debt or liability 443 of the State of Alaska or of any political subdivision thereof, except the Borough, 444 and does not and shall not create or constitute an indebtedness or obligation, 445 either legal, moral, or otherwise, of such state or of any political subdivision 446 thereof, except the Borough. 447 448 Section 19: Severabllity. If any one or more of the provisions of this Resolution shall be 449 declared by any court of competent jurisdiction to be contrary to law, then such 450 provision shall be null and void and shall be deemed separable from the 451 remaining provisions of this Resolution and shall in no way affect the validity of 452 the other provisions of this Resolution or of the Bond. 453 454 Section 20: Effective Dale. This Resolution shall become effective upon passage and 455 approval. 456 457 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 458 THIS _ DAY OF _, 2016 459 460 KODIAK ISLAND BOROUGH 461 462 463 464 465 Jerrol Friend, Borough Mayor 466 467 ATTEST: 468 469 470 471 472 Nova M. 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Aug 10, 2016 5:14 pm Prepared by RBC Capital Markets TABLE OF CONTENTS AMBB GO Bonds 2016 Series Three & Four Alaska Municipal Bond Bank GO Bonds 2016 Series Three & Four Market Conditions as of August 10, 2016 Report Page AMBB GO Bonds 2016 Series Three & Four Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . I Summary of Refunding Results . . . . . . . . . . . . . . . . . . . . . . . . . 4 City of Petersburg — Refund GO 2007-1 Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . 9 Summary of Refunding Results . . . . . . . . . . . . . . . . . . . . . . . 10 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Unrefunded Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . 13 City of Nome — Refund GO 2007-1 Sources and Uses of Funds . . . . . . . . . . . . . . . 14 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Summary of Refunding Results . . . . . . . . . . . . . . . . . 17 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Unrefunded Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Northwest Arctic Borough — Refund GO 2007-1 Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Summary of Refunding Results . . . . . . . . . . . . . . 24 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Unrefunded Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . 27 City of Seward — Refund GO 2007-1 Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . 28 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Summary of Refunding Results . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Unrefunded Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . 34 City of Wasilla — Refund GO 2007-1 Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Summary of Refunding Results . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Unrefunded Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . 41 City and Borough of Sitka — Refund GO 2007-1 Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Aug 10, 2016 5:14 pm Prepared by RBC Capital Markets TABLE OF CONTENTS AMBB GO Bonds 2016 Series Three & Four Alaska Municipal Bond Bank GO Bonds 2016 Series Three & Four Market Conditions as of August 10, 2016 Report Page City and Borough of Sitka — Refund GO 2007-1 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Summary of Refunding Results . . . . . . . . . . . . . . . . . . . . . . . . . 45 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Unrefunded Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . 48 Aleutians East Borough — Refund GO 2007.2 Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . 49 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Summary of Refunding Results . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Savings. . . . . . . . . . . . . . . . . . . . . . . . . . 53 Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Unrefunded Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Kenai Peninsula Borough — Refund GO 2007.2 Sources and Uses of Funds . . . . . . . . . . . . . . . . 56 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Bond Debt Service . . . . . . . . . . . . . . . . . 58 Summary of Refunding Results . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Unrefunded Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . 62 City of Bethel — Refund GO 2007-3 Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Summary of Refunding Results . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Unrefunded Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . 69 City of Kodiak — Refund GO 2007-5 (Harbor) Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . 70 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . 72 Summary of Refunding Results . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Summary of Bands Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Unrefunded Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . 77 City of Kodiak — Refund GO 2007-5 (Lift) Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Summary of Refunding Results . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Aug 10, 2016 5:14 pm Prepared by RBC Capital Markets TABLE OF CONTENTS AMBB GO Bonds 2016 Series Three & Four Alaska Municipal Bond Bank GO Bonds 2016 Series Three & Four Market Conditions as of August 10, 2016 Report Page City of Kodiak— Refund GO 2007.5 (Lift) Unfunded Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . 85 City of Dillingham — Refund GO 2008.1 Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . 86 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Summary of Refunding Results . . . . . . . . . . . . . . . . . . . . . . . . . 89 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 Unrefunded Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . 92 City of Kodiak — Refund GO 2008-1 Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . 95 Summary of Refunding Results . . . . . . . . . . . . . . . . . . . . . . . . . . 96 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 Kodiak Island Borough — Refund GO 2008-1 Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . 103 Summary of Refunding Results . . . . . . . . . . . . . . . . . . . . . . . . . . 104 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . 106 .ipality, of Skagsvay — Refund GO 2008-2 Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 Summary of Refunding Results . . . . . . . . . . . . . . . . . . . . . . . . . . 110 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . III Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . 112 Unrefunded Bond Debt Service . . . . . . . . . . . . . . . . . . . . . 113 City of Kodiak — Refund GO 2009-1 Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . 115 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 Summary of Refunding Results . . . . . . . . . . . . . . . . . . . . . . . . . 117 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . 120 Unrefunded Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . 121 City and Borough of Juneau — Refund CB120G6B Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . 122 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Aug 10, 2016 5:14 pm Prepared by RBC Capital Markets TABLE OF CONTENTS AMBB GO Bonds 2016 Series Three & Four Alaska Municipal Bond Bank GO Bonds 2016 Series Three & Four Market Conditions as of August 10, 2016 Report Page City and Borough of Juneau — Refund CB12006B Summary of Refunding Results . . . . . . . . . . . . . . . . . . . . . . . 125 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . 126 Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 City and Borough ofluneau— New Money Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130 Bond Bank Reserve — Refund GO 2007-1 (1) . . . . . . . . . . . . . . 138 Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132 Band Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 Summary of Refunding Results . . . . . . . . . . . . . . . . . . . . . . . . . . 134 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 Unrefunded Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . 137 Bond Bank Reserve — Refund GO 2007-1 (11) Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 Summary of Refunding Results . . . . . . . . . . . . . . . . . . . . . . . . . . 141 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . 142 Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 Bond Bank Reserve — Refund GO 2007-2 Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . 146 Summary of Refunding Results . . . . . . . . . . . . . . . . . . . . . . . . . 147 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . 148 Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . 149 Bond Bank Reserve — Refund GO 2008.1 Sources and Uses of Funds . . . . . . . . . . . . . . . . . . 150 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151 Bond Debt Service . . . . . . . . . . . . . 152 Summary of Refunding Results . . . . . . . . . . . . . . . . . . . . . . 153 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . 154 Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . 155 Unrefunded Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . 156 Bond Bank Reserve -- Refund GO 2008-2 Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . 159 Summary of Refunding Results . . . . . . . . . . . . . . . . . . . . . . . . . . 160 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . 161 Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . 162 Resolution No. FY2017-10 Authorizing The Borough To Issue A Aug 10, 2016 5:14 pm Prepared by RBC Capital Markets TABLE OF CONTENTS AMBB GO Bonds 2016 Series Three & Four Alaska Municipal Bond Bank GO Bonds 2016 Series Three & Four Markel Conditions as of August 10, 2016 Report Page Bond Bank Reserve — Refund GO 2008-2 Unrefunded Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . 163 Bond Bank Reserve — Refund GO 2009-1 . . . . . . . . . . . . . . 181 Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . 166 Summary of Refunding Results . . . . . . . . . . 167 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 Unrefunded Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . 170 City of Ketchikan — Refund GO 2006-2 (AMT) . . . . . . . . . . . . . . 181 Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . 171 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . 173 Summary of Refunding Results . . . . . . . . 174 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . 176 Unrefunded Bond Debt Service . . . . 177 City of Kethikan — New Money Harbor (AMT) Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . 178 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180 Bond Bank Reserve — Refund GO 2006-2 (AMT) Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . 183 Summary of Refunding Results . . . . . . . . . . . . . . . . . . . . . . . . 184 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . 185 Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . 186 Resolution No. FY2017-10 Authorizing The Borough To Issue A v a is qy 8R$ y^ !�5^5- 8-' 8 IIC$RF-opR, R $ n^y 313_ _lg3d �kk-..F p$^ $�� 8 9 � �$^ s8s 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Sy s {�j P yyT, ,C� y` CCC � NC rS NNH ri n' 7 id N" m0 � O W�9 yy�pp Ta q; 4 � IN2 84-1 �ryy IRE 0 {7 ¢-eNC nN p�pNa Yy gAn UQmu =E N a 90e JIM 1 '11 Xa!HC 8 -eNR .11 ., !H� Resolution No. FY2017-10 Authorizing The Borough To Issue A Aug 10, 2016 5:14 pm Prepared by RBC Capital Markets Page 101 SOURCES AND USES OF FUNDS Kodiak Island Borough — Refund GO 2008-1 Alaska Municipal Bond Bank GO Bonds 2016 Series Three & Four Market Conditions as of August 10, 2016 Dated Date 11/032016 Delivery Date 11/032016 Sources: Bond Proceeds: Par Amount 4,800,000.00 Premium 918,658.60 5,718,658.60 Other Sources of Funds, Prior Bond Proceeds 272,000.00 5,990,658.60 Uses: Refunding Escrow Deposits: Cash Deposit 0.61 SLGS Purchases 5,941.214.00 5,941-114.61 Cost of Issuance: Fitch Rating 1,349.33 S&P Rating 1,349.33 AMBB Costs 899.55 Miscellaneous Printing, etc. 337.33 Tnsstee/Escmw Agent 125.94 AMBB FA 1,536.89 AMBB BC 7,377.05 Verification Agent 234.34 Borrower Costs of Issuance 15,000.00 28 209.76 Delivery Date Expenses: Underwriter's Discount 16,800.00 Other Uses of Funds: Additional Proceeds 4,434.23 5,990,658.60 Resolution No. FY2017-10 Authorizing The Borough To Issue A Aug 10, 2016 5:14 pm Prepared by RBC Capital Markets Page 102 BOND PRICING Kodiak Island Borough — Refund GO 2009-1 Alaska Municipal Bond Bank GO Bonds 2016 Series Three & Four Market Conditions as of August 10, 2016 Maturity Yieldto Call Cell Premum Bond Component Date Amount Rete Yield Price Maturity Date Price (-Discount) 2016-3 Send Bonds (Non -AMT): 12/012018 290,000 3000% 0.840% 104.439 12,873.10 12/012019 415,000 4.000% 0.990% 109.101 37,769.15 12/012020 430,000 4.000% 1.170% 111.236 48,314.80 12/012021 450,000 4.000% 1.370% 112.857 57,856.50 12/012022 470,000 5.000% 1.570% 119.807 93,092.90 12/012023 495,000 5.000% 1.720% 121.768 107,751.60 12/012024 520,000 5.000% 1.850% 123.532 122,366.40 12/012025 550,000 5.000% 1.980% 124.978 137,379.00 12/012026 575,000 5,000% 2.110% 126.111 150,138.25 12/012027 605,000 5.000% 2.220% 124.978 C 2.416% 12/012026 100.000 151,116.90 4,600,000 916,658.60 Dated Date 11/032016 Delivery Date 111032016 First Coupon 12/012016 Pm Amount 4,800,000.00 Pmndum 918,658.60 Production 5,718,658.60 119.138721% Under ritefs Discount -16,800.00 -0.350000% Purchase Price 5,701,858.60 118,788121% Accrued Interest Net Proceeds 5,701,858.60 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Aug 10, 2016 5:14 pro Prepared by RBC Capital Markets Page 103 BOND DEBT SERVICE Kodiak Island Borough — Refund GO 2008-1 Alaska Municipal Bond Bank GO Bonds 2016 Series Three & Four Market Conditions as of August 10, 2016 Dated Date 11/0312-016 Delivery Date 11/032016 Period Annual Ending Principal Coupon Interest Debt Service Debt Service 121012016 17,208.33 17-108.33 06/012017 110,625.00 110,625.00 06/302017 127,833.33 121012017 110,625.00 110,625.00 06/012018 110,625.00 110,625.00 06202018 221-150.00 12/012018 290,000 3.000% 110,625.00 400,625.00 06/012019 106-175.00 106-175.00 06202019 506,900.00 121012019 415,000 4.000°/6 106-175.00 521-175.00 06/012020 97,975.00 97,975.00 06/302020 619,250.00 121012020 430,000 4.000°/6 97,975.00 527,975.00 06/01/2021 89,375.00 89,375.00 06/302021 617,350.00 12/01/2021 450,000 4.0006/ 89,375.00 539,375.00 06/012022 80,375.00 80,375.00 06/30/2022 619,750.00 121012022 470,000 5.000% 80,375.00 550,375.00 06/01/2023 68,625.00 68,625.00 06/302023 619,000.00 121012023 495,000 5.000% 68,625.00 563,625.00 06/012024 56,250.00 56-150.00 06/302024 619,875.00 12/012024 520,000 5.000% 56,250.00 576,250.00 06/01=5 43,250.00 43-150.00 06/302025 619,500.00 17/012025 550,000 5.000% 43,250.00 593-150.00 06/012026 29,500.00 29,500.00 06/302026 622,750.00 12/012026 575,000 5,000Y6 29,500.00 604,500.00 06/012027 15,125.00 15,125.00 06/302027 619,625.00 12/012027 605,000 5.000Y6 15,125.00 620,125.00 06/30/2028 620,125.00 4,800,000 1,633-108.33 6,433,208.33 6,433,208.33 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Iw�:Tis ►,c,'� , d"'i/ : s Aug 10, 2016 5, 14 pm Prepared by RBC Capital Markets Page 104 SUMMARY OF REFUNDING RESULTS Kodiak Island Borough -- Refund GO 2008-1 Alaska Municipal Bond Bank GO Bonds 2016 Series Three & Four Market Conditions as of August 10, 2016 Dated Date 11/032016 Delivery Date 11/032016 Arbitrage yield 2.113017% Escrow yield 0.591552% Value of Negative Arbitrage 117,073.55 Bond Par Amount 4,800,000.00 True Interest Cost 1.919696% Net Interest Cost 2.153034% Average Coupon 4.808032% Average Life 7.077 Par amount of refunded bonds 5,620,000.00 Average coupon of refunded bonds 4.733479% Average life of refunded bonds 6.429 PVofpriordebtto 11/032016@1.919696% 6,576,415.48 Net PV Savings 606,991.11 Percentage savings of refunded bonds 10.800554% Percentage savings of refunding bonds 12.645648% Resolution No. FY2017-10 Authorizing The Borough To Issue A ... 70 4 3 i- 4. Mrd Aug 10, 2016 5.14 pm Prepared by RBC Capital Markets Page 105 SAVINGS Kodiak Island Borough — Refund GO 2008-1 Alaska Municipal Bond Bank GO Bonds 2016 Series Three & Four Market Conditions as of August 10, 2016 Pmeu V" Pm, Wa , A.[ 011,07016 Due Deb, Servke Deb, Servm s.iw s.iw a 1919695914 1=1016 1)]0633 .17108.33 -17,112]8 0001017 4'17,460.00 497,41000 49),5616) a UM7 110.625W -110.62500 -109,41aM M17M017 )69,646.67 IMMO 7 120,01000 120,00 W II3.W7.84 IMM017 114625.00 -110,62500 -IM.3M37 OWID011 500,0000 5W,0" J16,T6M 0u111D01s 1111.625.W -110,62500 -107,340M IN✓10/2011 30,91000 IIMI018 112.4WW 112.430W ID1,M7.14 INIV2016 4W.0sm -)00625.00 -315,0299 0611/209 312.41000 312.43DW 489,40.00 (Vd114019 IM,375W -IM175W -101,1670 I.WOMO19 111,00000 IWI/MI9 IW,410W MAN 98.82768 119=9 521.275 W 421175 W 491,5W.67 WBIIOM 51MON 519.48aW 486,00 n m1mm 97,975W -97,975W .9131 69 11!✓SMOM 4.710W 1"Im" 95661.25 950115 98.77565 Imimm 527.975W -527.97500 481,4031 WNIM21 525661.25 5251"135 481.175.% 0001021 89,77500 -89.375M 416W.]I 06'36'2021 7.972,50 IONI021 "32575 ".52275 70T4 M IMII4021 539,375W -539,775M 4893064 04MInOn 576.523.75 576,52775 467,92192 wmla022 W,275M d ,375.M -721511.77 K M M 31970 HIA)[ n2 76.680W 76.6WW 68,49130 IMn02O 5M,175W -550,375M 490,037.25 WNID1123 544681100 546.60000 493,65775 IIWIV20M 6k625W 411,425.00 60,52072 IWOM013 4,00.. IMIVW13 ",105W ",105.00 57,92627 11111027 "3.62500 -"5,625 W 492,777.90 0 00(24 556,10500 556,10500 41a.69525 LYA)MC24 56150p1 .567.30.00 41MB.38 (WAM024 2,335M IMM024 54,590W 54390.W 46,932.21 1,01112024 576a%M -576XOM 49),"O.M 00,01/2025 569.59000 569.59000 485,034,03 1"112025 431M.W 43150W 46.71242 1M01n.25 4.690.. Inm1n.25 421MW 42130M 35619.W 12,01/205 391.2511.00 -39)1M.W 498,7160 M0116026 582,23600 582.230 W 4",415.11 100,01/200 29,5111W -29,30000 -24,5".92 W 0121126 1.710W M in026 29... 29,00000 27.997.27 12NIn0M 600.5.. 6M3WW 498,62362 MNIM27 594.W0o0 5".. m J".857.14 M,01027 15,115W 45,125W -11.35741 M/3M027 3,375W IMI M27 14.875 MI 14,875 W 12,07601 IMIW27 620.125W 420,125M -506337W Umiatu1 "9,97500 M9.975W 4W.409.I4 O"3MMs J 625. 7,752.8'NIM 4337.20943 119,68167 vD.68167 .74.556.88 Savings Summary Pv of miryarmmorh naw 974356.88 Le¢PriorruMa on MM -272,WO.W Plug Rerumwgru an Mm 1.47423 Na PV5o., 60,991.11 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Aug 10, 2016 5:14 pm Prepared by RBC Capital Markets Page 106 SUMMARY OF BONDS REFUNDED Kodiak Island Borough— Refund GO 2008-1 Alaska Municipal Bond Bank GO Bonds 2016 Series Three & Four Market Conditions as of August 10, 2016 Maturity Interest Par Call Call Bond Date Rate Amount Date Price GO 2000-1 (Kodiak Island Borough), OB_I KB: SER 04/012017 4.000% 370,000.00 04/012018 4.000% 380,000.00 04/012019 4.000% 400,000.00 04/012018 100.000 04/012020 4.250% 415,000.00 04/012018 100.000 04/012021 4.250% 430,000.00 04/012018 100.000 04/012022 4.375% 450,000.00 04/012018 100.000 04/012023 4.500% 470,000.00 04/012018 100.000 04/012024 4.700% 490,000.00 04/012018 100.000 041012025 4.800% 515,000.00 04/012018 100.000 041012026 4.900% 540,000.00 04/012018 100.000 04/012027 5.000% 565,000.00 04/012018 100.000 04/012028 5.000% 595,000.00 04/012018 100.000 5,620,000.00 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... � =F J t 4.J Resolution No. FY2017-10 Authorizing The Borough To Issue A KODIAK ISLAND BOROUGH GENERAL OBLIGATION BOND, 2008 SERIES A RETIREMENT SCHEDULE June 30, 2015 2008 A BOND ISSUE This issue, dated April 15, 2008, was issued under a book entry system registered in the name of Cede & Company, as Nominee of the Depository Trust Company, New York, New York, the securities depository for the 2008 Series A Bond. This issue was marketed by the Alaska Municipal Bond Bank Legal opinion was rendered by bond council, Birch, Horton, Bitmer and Cherot of Anchorage, Alaska This bond was issued to fund the acquisition and improvements in the Borough, including a new school pool. construction of school capital Interest due Principal due Interest due Fiscal year Interest rate October 01 April 01 April 01 Total 2016 5.00% S 136,230 S 350,000 S 136,230 S 622,460 2017 4.00% 127,480 370,000 127,480 624,960 2018 4.00% 120,080 380,000 120,080 620,160 2019 4.00% 112,480 400,000 112,480 624,960 2020 4.25% 104,480 415,000 104,480 623,960 2021 4.25% 95,661 430,000 95,661 621,322 2022 4.38% 86,524 450,000 86,524 623,048 _ 2023 4.50% 76,680 470,000 76,680 623,360 2024 4.70% 66,105 490,000 66,105 622,210 2025 4.80% 54,590 515,000 54,590 624,180 - 2026 4.90% 42,230 540,000 42,230 624,460 2027 5.00% 29,000 565,000 29,000 623,000 2028 5.00% 14.875 595,000 14.875 624.750 S 1,066,415 S 5,970,000 S 1.066.415 S 8�102.830 122 I Resolution No. FY2017-10 Authorizing The Borough To Issue A Page 2®ftN@A4 #13.6.1. ALASKA MUNICIPAL BOND BANK RESOLUTION NO. 2016-05 A SERIES RESOLUTION AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION AND REFUNDING BONDS, 2016 SERIES THREE AND 2016 SERIES FOUR OF THE ALASKA MUNICIPAL BOND BANK ADOPTED ON SEPTEMBER 6, 2016 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... TABLE OF CONTENTS Parc Article I AUTHORITY AND DEFINITIONS I Section 101 -Series Resolution....... 1 Section 102. Definitions.. 1 Article II AUTHORIZATION OF 2016 SERIES THREE AND FOUR BONDS 92 Section 201 - Principal Amount, Designation and Series.. 92 Section 202 - Purposes of the 2016 Series Three and Four Bonds. 9 Section 203 - Date, Maturities and Interest Rates. qw Section 204 - Interest Payments.... 10 Section 205 - Denominations, Numbers and Other Designation. 10 Section 206 - Securities Depository. 10 Section 207 - Places and Manner of Payment. 12 Section 208 - Optional Redemption. 12 Section 209 - Mandatory Redemption. +313 Section 210 - Sale of 2016 Series Three and Four Bonds; Bond Purchase Agreements. 13 Section 211 - Preliminary Official Statement and Official Statement. 431A Article III DISPOSITION OF BOND PROCEEDS 14 Section 301 - Disposition of Proceeds for Loan and Refunding Purposes. 14 Section 302 - Reserve Fund Deposit; Bond Insurance.. 4411 Section 303 - Disposition of Remainder of Bond Proceeds. 43 Section 304 - Designation of Refunded Bonds. 16 Section 305 — Escrow Agreement. 46 Section 306 —Election for Redemption of Refunded Bonds. 17 Article IV EXECUTION AND FORM OF 2016 SERIES THREE AND FOUR BONDS 17 Section 401 - Execution and Form of 2016 Series Three and Four Bonds. 17 Article V MISCELLANEOUS 23 Section 501 - Paying Agent 23 Section 502—Arbitrage Rebate, 23 Section 503 - 2016 Series Three and Four Debt Service Accounts. .23 Section 504 - Tax Exemption and General Tax Covenant 23 Section 505 - Arbitrage Covenant 23 Section 506 - Resolution Clarification. .24 Section 507 - Loan Agreements and 2016 Amendatory Loan Agreements. .. _24 Section 508 - Continuing Disclosure. __ _ _24 Section 509- Chairman and Executive Director. _ _ _.._. 24 Section 510 - Effective Dale... _25 Appendix A — Blanket Issuer Letter of Representations.... ....... ......................... ...... ............ A-1 Appendix B — Form of Continuing Disclosure Certificate ..... ............ .................................. B-1 Appendix C — Forms of Loan Agreement and Amendatory Loan Agreement..............................0-1 Appendix D—Form of Issue Price Certificate...................................................................D-1 AMBB12016 Series Three and Four Bonds Series Resolution No. 2016.05 Resolution No. FY2017-10 Authorizing The Borough To Issue A .. ! r 7 Ute', ALASKA MUNICIPAL BOND BANK RESOLUTION NO. 2016-05 A SERIES RESOLUTION AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION AND REFUNDING BONDS, 2016 SERIES THREE AND 2016 SERIES FOUR OF THE ALASKA MUNICIPAL BOND BANK WHEREAS, the Board of Directors of the Alaska Municipal Bond Bank (the "Bank") by Resolution entitled "A Resolution Creating And Establishing An Issue Of Bonds Of The Alaska Municipal Bond Bank; Providing For The Issuance From Time To Time Of Said Bonds; Providing For The Payment Of Principal Of And Interest On Said Bonds; And Providing For The Rights Of The Holders Thereof," adopted July 13, 2005, as amended (as further defined in Section 102 hereof, the "Resolution"), has created and established an issue of Bonds of the Bank; and WHEREAS, the Resolution authorizes the issuance of said Bonds in one or more series pursuant to a Series Resolution authorizing each such series; and WHEREAS, the Board of Directors of the Bank has determined that it is necessary and desirable that the Bank issue at this time a Series of Bonds in an aggregate principal amount not to exceed $95,000,000, to be designated "Alaska Municipal Bond Bank General Obligation and Refunding Bonds, 2016 Series Three" and a Series of Bonds in an aggregate principal amount pLnot to exceed $36,000,000, to be designated "Alaska Municipal Bond Bank General Obligation and Refunding Bonds, 2016 Series Four" (or otherwise as provided in Section 201 hereof), to provide moneys to carry out the purposes of the Bank; BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE ALASKA MUNICIPAL BOND BANK AS FOLLOWS: ARTICLE I AUTHORITY AND DEFINITIONS Section 1I - This Series Resolution (the "2016 Series Three and Four Resolution") is adopted in accordance with the provisions of the Resolution and pursuant to the authority contained in the Act. Section L02- Definitions. In this 2016 Series Three and Four Resolution and with respect to the 2016 Series Three and Four Bonds: (1) Unless otherwise defined in Article I herein, all capitalized terms herein shall have the meanings given to such terms in Article 1 of the Resolution. AMBB/1016 Series Three and Four Bondr Series Resolution No. 2016.05 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... . .. .. ._. .. _ .. .•. .. .. .. ... .. . .... .. .. .. .. .. . _ . ._ M . _ _ _ ...... • _ ._ .. _ ... .. r e .. .... _ _. ._ ..... .. a.. .. .... ... _ .._UMn M.. ... ._ _ .. _ _ .. ... .. .. _ .. .... ... _ .. .... ... __ .. ... .. .. .. . . . ... . .. .. It- . .. .. .. .. .._ . . ... .. . _. .._ ... _. ...... _.. . .. . .. .... ... .. .. .. . .. .. .. .. _ .. . .. .... .. ... .. . .� ....._ .. ._. ._.. .. ... .. .. . ...... .. . .. . .. ;;_ PON:. e . ........ M�Ym . e- .. ..... ._ ;. .... .. ._ ..' _ _.. ;.. dMBB12016 Series Three and Four Banda Series Resolution No. 2016-05 Page 2 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... rr. ....._ .. rr . . .. .. 512, .. . . ... _.. .. ... _ . ...... _ r.. ._. _ •r .. . . . . .. .. ..... r .....eridin. ee.4.,i., ie....s a fthe le..... gpLement ewe -ed into by t1... ponies dated an e.- 2009i ��ZfR!''15.�!SR!!!!!R!R'ta!RrSl1).RTlflA r_...own. 5KW t!�!_l0_.SIIIiT.T.. (2) (3}`, a , shall mean the Alaska Municipal Bond Bank (in the Act also referred to as the "Alaska Municipal Bond Bank Authority"). (3) (W'Beneficial Owner' shall mean the person in whose name a 2016 Series Three aadgE Four Bond, as ao licn able. is recorded as the beneficial owner of such 2016 Series Three andQE Four Bond by the respective systems of The Depository Trust Company and Depository AMBB2016 Series Three and Four Bonds series Resolution No. 2016-05 Page 3 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Trust Company Participants or the Holder of the 2016 Series Three andaE Four Bond if such 2016 Series Three ander Four Bond is not then held in book -entry form pursuant to Section 206. (4) (5)—"Bond Purchase Agreement" shall mean one or more bond purchase agreements entered into among one or more Underwriters and the Bank, providing for the purchase and the terms of the 2016 Series Three and Four Bonds of one or more series. (5) (('Bond Year" shall mean each one-year period that ends on an anniversary of the date of issue of the 2016 Series Three and Four Bonds. (6) W"Chairmap" shall mean the chairman of the Board of Directors of the Alaska 9aok. (7) (S) "QQ&" shall mean the Internal Revenue Code of 1986, together with all regulations applicable thereto. (8) (9) "Continuing Disclosure Certificate" shall mean the Continuing Disclosure Certificate executed by the Bank and dated the date of issuance and delivery of the 2016 Series Three and Four Bonds, as originally executed and as it may be amended from time to time in accordance with the terms thereof. (9) (49) "Depository Trust Company" or "DTC" shall mean The Depository Trust Company, a limited purpose trust company organized under the laws of the State of New York, and its successors and assigns. (10) �'De osn itoU Trust Company Participant' or "DTC Participant" shall mean a trust company, bank, broker, dealer, clearing corporation and any other organization that is a participant of Depository Trust Company. (11) (4W'Escrow Agent" shall mean the Trustee- stge currently The Bank of New York Mellon Trust Company, N.A.- as escrow agent. (I2) 03}"Escrow Agreement" shall mean the agreement entered into by and between the Bank and the Escrow Agent, dated the date of issuance of the 2016 Series Three and Four Bonds, securing payment for the Refunded Bonds. (13) (W}'Excess investment Eamina' shall mean the amount of investment earnings on gross proceeds of the 2016 Series Three and Four Bonds determined by the Bank to be required to be rebated to the United States of America under the Code. (14) 4 "Financial Advisor' shall mean Western Financial Group, LLC. (15) E46}`Juneau'shall mean the City and Borough of Juneau, Alaska. AMBB12016 Series Three and Four Bonds Series Resolution No. 2016-05 Page 4 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... (16) 04)—"Letter of Representations" shall mean the Blanket Issuer Letter of Representations dated May 2, 1995, from the Bank to DTC, a copy of which is attached hereto as Appendix A, and the operational arrangements referred to therein. (17) (4-W'Loan Agreement' shall mean, collectively, each of the following pertaining to the. repayment of a Loan or Loans to the Governmental-,lgiuls _provided for,-bgrcip; (a) the agreement by and between the Bank and Juneau for the purpose of financing costs of certain capital improvements; (b) the agreement by and between the Bank and Juneau for the purpose of refunding all or a portion of the 2006B Bonds; and (c) the agreement by and between the Bank and the City of Ketchikan, Alaska, aaeti P ffWHiH,- W the _.. . of a Loan . 1 ,...,. to 11w crtain capital improvements to the City of Ketchikan's harbor facilities. (18) (WWatjonal" shall mean National Public Finance Guarantee Corporation, a monoline insurance company. (19) (2-W New -Money Portion" shall mean the 2016 Series Three and Four Bonds and the proceeds thereof other than the Refunding Portion. (20) (2-}"Official Statement" shall have the meaning assigned thereto in Section 211 hereof. (21) (221)-"Preliminary Official Statement" shall have the meaning assigned thereto in Section 211 hereof. (22) R "Record Date" shall mean the date fifteen calendar days preceding each interest payment date with respect to the 2016 Series Three and Four Bonds. (23) (W'Refunded Bonds" shall mean, in each case, all or a portion of the following Outstanding Bonds that the Chairman or the Executive Director designates to be refunded pursuant to Section 304 hereof: (i) at the request of: (a) the City of Ketchikan, Alaska, $30,845,000 aggregate principal amount of the outstanding 2006 Series Two Bonds, maturing on December 1, 2017 through 2035; (b) the-ity-e€Petersburg juLQ"h. Alaska $1,270,000 aggregate principal amount of the outstanding 2007 Series One Bonds, maturing on December 1 of 2017 through 2026; AMBE12016 Series Arae and Four Bonds series Resolution No. 2016-05 Page 5 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... (c) the City of Nome, Alaska $665,000 aggregate principal amount of the outstanding 2007 Series One Bonds, maturing on December 1 of 2017 through 2020; (d) the Northwest Arctic Borough, Alaska $4,595,000 aggregate principal amount of the outstanding 2007 Series One Bonds, maturing on December 1 of 2017 through 2020; (e) the City of Seward, Alaska $1,075,000 aggregate principal amount of the outstanding 2007 Series One Bonds, maturing on December 1 of 2017 through 2021; (f) the City of Wasilla, Alaska $810,000 aggregate principal amount of the outstanding 2007 Series One Bonds, maturing on December 1 of 2017 through 2018; (g) the City and Borough of Sitka, Alaska $1,625,000 aggregate principal amount of the outstanding 2007 Series One Bonds, maturing on December I of 2017 through 2018; (h) the Aleutians East Borough, Alaska $19,445,000 aggregate principal amount of the outstanding 2007 Series Two Bonds, maturing on December 1 of 2017 through 2028; (i) the Kenai Peninsula Borough, Alaska, $2,945,000 aggregate principal amount of the outstanding 2007 Series Two Bonds, maturing on December 1 of 2017 through 2023; 0) the City of Bethel, Alaska the. $2 9.5.000 aggregate rn incinal amount of the outstanding 2007 Series Three Bonds. maturing on September 1 of 2018throug 027; (k) the City of Kodiak, Alaska—the. 515.060.0001 aggLg.te principal amount of the outstanding 2007 Series Five Bonds, maturing on Sentember I of 2018 through 20 2. inclusive. and 2037; (1) the City of Dillingham, Alaska $9,190,000 aggregate principal amount of the outstanding 2008 Series One Bonds, maturing on April 1 of 2019 through 2028; (m) the City of Kodiak, Alaska $6,280,000 aggregate principal amount of the outstanding 2008 Series One Bonds, maturing on April 1 of 2019 through 2038; AMBB/10/6 Series Three and Four Bond, Series Resolution No. 2016.05 Page 6 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... � . • � i r 7 ,� � a �.r.l (n) the Kodiak Island Borough, Alaska $5,620,000 aggregate principal amount of the outstanding 2008 Series One Bonds, maturing on April I of 2017 through 2028; (o) the Municipality of Skagway, Alaska theS3.060.000 aCe erase rp incinal amount of the outstanding 2008 Series Two Bonds. maturing on June 1 of2019 through 2028; and (p) the City of Kodiak, Alaska theS800.000 aggregate principal amount of the outstanding 2009 Series One Bonds. maturing on September I of 2019 throunh 037; (ii) the 2006 Series Two Bonds, the 2007 Series One Bonds, the 2007 Series Two Bonds, the 2008 Series One Bonds, the 2008 Series Two Bonds and the 2009 Series One Bonds that constitute Reserve Obligations, to be redeemed, as determined by the Chairman or the Executive Director pursuant to Section 304 hereof. (24) (W'Refunding Portion" shall mean (i) the portion of 2016 Series Three and Four Bonds and the proceeds thereof allocable to the refunding of the Refunded Bonds; and (ii) if so determined by the Chairman or the Executive Director pursuant to Section 304 hereof, the portion, if any, of 2016 Series Three and Four Bonds that are issued as Reserve Obligations. (25) (2b}"Resolution" shall mean the General Bond Resolution adopted by the Board of Directors on July 13, 2005, as amended by a Supplemental Resolution, Resolution No. 2009-03, adopted by the Board of Directors on May 28, 2009 and effective on August 19, 2009; and by a First Supplemental Resolution, Resolution No. 2013-02, adopted by the Board of Directors on February 19, 2013, the amendments in which are effective after all Bonds issued prior to February 19, 2013 are no longer outstanding and the requirements of such First Supplemental Resolution are satisfied. (26) (W'Surety Bond Issuer" shall mean the Credit Enhancement Agency, if any, selected by the Chairman or the Executive Director to provide Credit Enhancement for a portion of the Reserve Fund Requirement. (27) (W'2006 Series Two Bonds' shall mean the Alaska Municipal Bond Rank General Obligation Bonds, 2006 Series Two, which are currently outstanding in the principal amount of $30;545;000,33.540.000. (28) (ZW 20066 Bonds' shall mean the City and Borough of Juneau, Alaska General Obligation School Bond, 2006B, issued by Juneau and currently outstanding in the principal amount of $18,560,000. AMBE12016 Series Three and Four Bonds Series Resolution No. 2016.05 Page 7 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... WITIEWTSEL"177711 2t= (29) (30)-"2007 Series One Bonds" shall mean the Alaska Municipal Bond Bank General Obligation Bonds, 2007 Series One, which are currently outstanding in the principal amount of $' ° ^rte 80;000 14285.000. (30) (3.1}"2007 Series Two Bonds" shall mean the Alaska Municipal Bond Bank General Obligation Bonds, 2007 Series Two, which are currently outstanding in the principal amount of $23,170,000. (31) (3--')-"2007 Series Three Bonds" shall mean the Alaska Municipal Bond Bank General Obligation Bonds, 2007 Series Three, which are currently outstanding in the principal amount of $4,479;000.t 'tD Uj (32) (3W'2007 Series Five Bonds" shall mean the Alaska Municipal Bond Bank General Obligation Bonds, 2007 Series Five, which are currently outstanding in the principal amount of $5,190,000. (33) (34)-"2008 Series One Bonds" shall mean the Alaska Municipal Bond Bank General Obligation Bonds, 2008 Series One, which are currently outstanding in the principal amount of $26,'� 185,000.28.040.000. (34) (33W"2008 Series Two Bonds" shall mean the Alaska Municipal Bond Bank General Obligation Bonds, 2008 Series Two, which are currently outstanding in the principal amount of (35) (-3W'2009 Series One Bonds" shall mean the Alaska Municipal Bond Bank General Obligation Bonds, 2009 Series One, which are currently outstanding in the principal amount of $4 4IA;00&'+ 040 000 I .:u,. .. .: -M -. (a) the agreement by bett ween the ank and tit its QLK t�hikan. Alaska to hcslawd. the date of sale of the 2016 Series Three and Four Bonds- amending certain terms of 11>e-IRan agrcytnent�cuteictl 1nto.b) the patties, dtajcdJ.nly-l,,2Dl& ....- .- .-... . •.M.- IT .. AMB8120/6 Serres Three and Four Bands Series Resolution No. 2016-05 Page 8 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... j a i . . J mg, (c) the agrecmenl [ill and bemcen the Flmil, and the (ily of Nonce_ AIa,1ui, b 41S1L4�Ct1h411i11f .4il1.CS"Llflr, 3010 SerieSSY7Ls7%1lSl_�LALI�� onwii img cellmil Terni, otthe I'mn agreerncnl enterod into h} the parties, dated N,,xenil,cr I;, 20011, as amended b)the antendel,m loam agrcellIcnt entered into by the (r.irtIQs, dated Taman I, 2007. (d) the ;rgrecmenl ho and bct„ccn the lian1, and (lie NortIme,l Arclic Borounh. Alli,1,a, he dated the slate c)C sale of (he 201-6 Series Three and.FQtir Bands, ;unending ecil;dn terms (0 (he lona agreement entered info by the parlion, dated Aufltict 1, 20111, ;Is amended h} the anicndatorr loan o rcemenl cntemd colo by the porde., dated kunuln 1, 2007, (c) the agreement by and beh%een the Ilam: and tlt jly p� $e�17I5L1�lilsl4a. j2� dated the date of sale of the 2016 Series Three and Four Roods._ tett-4_tiltle'_cStaAjn lel7ns. of the ea(�abteetns4l.entets�l intt b} tlte.pilrties sou€ irt7 ceut¢€ r..l,,�QQG, as,ameuded-by the auteJidatuJ'.lettaFagt_eeuieJxsenterctj jute by ehe,parties,.dated la4ltaJ_! 'SlQZ; L]_Itie�3glee�gJt( ha'.atid betthee tl .Butk and the_.Qit}�aud�ar agh_al' �Iklh Alaska. be dated the date of sale of the 2016 Series Three and Four BondL-jitlelldilig,. ceftaut�Isran�.oQ.tlt�_lua4.FtbJea;ttae4�eutl;J:eslJJtt+zlza�ths._partics,.dated.�priU,..1922, as atue4ded_b}_tlte_ante4dataty_.lean-agreetne4t_entered_i4la the.P.attics.datcd_.lauuarywl, 2QQ7. Is).. the- he— dated the date of sale of the 2016 Seriec_ Threw and Four Bonds_-, imending l;ertain terms. oCthc.leaJt_wigtecment_entered_rota-by_Ihe Rariics._d.(ta,.d April- 1. 192$, as ataended-by.the. ammdals y 'luagrskment etits red into by tl>s� uli s _shtt�siL�nu q 12491: (h).th, e aereement by and between the Bank and the Aleutians East Bnmugh Alaska. be dated the date of sale of the 2016 Series Three and Four Bonds. amgnding, certain terms of the loan agreement between the patties, dated September L 200;—as_ amended by the amendatory logo agreement entered into by the parties, dated April 1 2007: (0) the agreement by and between the Bank and the Kenai Peninsula Borough- Alaska- orouh-Alaska. be dated the date of sale of the 2016 Series Three and Four Bonds. amendinL certain terms of the loan aLreement entered into by the parties. dated September L 2001 as amended by the amendatory loan agreement entered into by the parties. dated April iI ?007. and as amended further by the amendatory loan agreement entered into by the 1L7rties, dated September 1.2011, (11—f11S�1gr5;5�41eRL>}`lJld_I1CL1LR1l1Cilllk�911d�11' City of Bethel. Alaska, be dated the date of sale of the 2016 Series Three and Four Bonds. amending certain terms ofthe Ivan agtccntent entered inu,hp the parlic, (fated July I, 20Q; dd7B112016 Series 77,,e and Fimr Hun.& Series Resolution No. 2016-05 Page 9 Resolution No. FY2017-10 Authorizing The Borough To Issue A LklSilths�UrsemendY autsLbkt�Ysvlt_tfts�3;u, .. 11 1 be dated the date of sale of the 2016 Series Three and Four Bonds, ., hf.the.halt_agreettlenllllarbo[_J�oject).,�ntered_irto,,,b,.,the piirii,_, u, , 202Z_(ihtis_j mQttL.by_and_,betµcct>_the_Bank _a0d lhe_City oLl (Awls v1 be dated the date of sale of the 2016 Series Three and Four Bondcame�tjijng 4, of the loan agreement (C)optLil]_)'rpject].e0lered tnl�_b}'_1115�R'ilst�.S11Lc'd L)�mb�I L. 2007. (iii) the agrcement by-and_4ettacen the_BankLand-the.,��t�LLLI%tlhtla_t�Ll ti1,17� dnt€d�lle�iaLe 9L gal€ of the 2016 Series Three and Four Bonds. lmellditlg-Sierlaiu.leau5. of.the lc.tn agreement enteredin0._by thc,plrties,..dated,Aprii�l?48_aud.,Liyl�ltt. acrecmem by and between the Rank_ i the City of Kodiak. Al. a. to be dated NOCenlhelI, 2016, amending ccnaie1'ms of the loan agreement entered into by the particsi111s5Ldid[luilt�'.1..',QSl2: Ul-"mt iwnt by and between the Bank and the City of Dillineham Alaska. be dated the date of sale of the 2016 Series Three and Four Bonds. 2=jIl tlttg certain =2_ ofllw loan agreement entered into by the arties. dated Aoril 1. _1008: (u1) thy_, agieemem by' and behceen the lliink. and IhC1iLt(hilltlahin Borou Aln,l,: ,) e�Ile51.111esitL L iLQf111e.241St S iLea.Thr�e and Four Bonds. ammdia. cCltoin tens, of the agreement ente d,jnto bJ-the parties, (IalesiARul1..2008, anst (n) the ugiecment b} ,ind hetwcen the B4uk._atld_t1lc.._Mnaicipahty_of..Skagtyg.._ Aln�l:a, h� d;d d,tlte__dttls�sale of the 2016 Series ry;gnMt[yytr Dcmcts, amending. 4cnainlernl�ol (bc_lo,lndated 1.01) 1,.2008; (37) "2016 Bond Credit Enhancement" shall mean thea Credit Enhancement, if any, issued by thea 2016 Bond lssueFtnc�trt;r_ on the date of issuance of the 2016 Series Three and Four Bonds for the purpose of further securing the payment of the principal of and interest on all or a portion of one or more series of the 2016 Series Three and Four Bonds. (38) "2016 Bond Insurer" shall mean thea monoline insurance company, if any, selected by the Chairman or the Executive Director to provide a_2016 Bond Credit Enhancement to further secure the payment of the principal of and interest on all or a portion of one or more series of the 2016 Series Thee and Four Bonds. (39) "2016 Series Four Bonds" shall mean the Alaska Municipal Bond Bank General Obligation and Refunding Bonds, 2016 Series 4 hFeeE= authorized in Article II hereof. (40) "2016 Series Three Bonds" shall mean the Alaska Municipal Bond Bank General Obligation and Refunding Bonds, 2016 Series Three authorized in Article II hereof. (41) "2016 Series Three and Four Bonds" shall mean, collectively, the 2016 Series Three Bonds, the 2016 Series Four Bonds and any additional series of Bonds authorized in Article II hereof. AMBB/2016 Series Three and Four Bonds Series Resolution No. 2016-05 Page 10 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... (42) "2016 Reserve Fund Credit Enhancement' shall mean the Credit Enhancement, if any, issued by the Surety Bond Issuer on the date of issuance of the 2016 Series Three and Four Bonds for the purpose of satisfying a portion of the Reserve Fund Requirement. (43) "2016 Reserve Fund Credit Enhancement Agreement" shall mean (i) if National is the Surety Bond Issuer, the Financial Guaranty Agreement, dated March 1, 2016, between the Bank and National or (ii) if another pFevide rok eider is selected as the Surety Bond Issuer, a letter of credit, a policy from a monoline insurance company or an agreement with the State or with any department, political subdivision or agency thereof, credited to the Reserve Fund to satisfy all or a portion of the Reserve Fund Requirement, approved by the Authorized Officer in accordance with the provisions of Section 302 hereof. (44) "Underwriters" shall mean RBC Capital Markets, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Goldman, Sachs & Co., the underwriters of the 2016 Series Three and Four Bonds. ARTICLE II AUTHORIZATION OF 2016 SERIES THREE AND FOUR BONDS .�t , :u•., o •,, ,,.,, Pursuant to the provisions of the Resolution, a Series of Bonds designated as "Alaska Municipal Bond Bank General Obligation and Refunding Bonds, 2016 Series Three" is hereby authorized to be issued in an aggregate principal amount not to exceed $95,000,000,.aad a Series of Bonds designated as "Alaska Municipal Bond Bank General Obligation and Refunding Bonds, 2016 Series Four" is hereby authorized to be issued in an aggregate principal amount not to exceed $36,000,000. The Chairman or the Executive Director—,MR, in consultation with the Bank's Financial Advisor, shall determine the number of series and the series names and designations of each series of 2016 Series Three and Four Bonds, provided that the aggregate principal amount of all Series of Bonds issued pursuant to this 2016 Series Three and Four Resolution does not exceed $131,000,000. The Chairman or the Executive Director is authorized hereby to change the designation of the 2016 Series Three and Four Bonds, and/or to establish additional series, or to consolidate into a sing/ seri "sand determine designations thereof, ,.".. T - (i) i`PFeeee"S Of 2016 ce_:ehFee aHEI .. c.. o.....,.. ROt Used ., Fe f _d _ y o..a._,,p Rends, r.:) ....,u..... c .. the sale ,.f the 2016 Resolution BREI BPPFBN'ed 13�'the BOW Of DiFeeteFs of the Bank andleF (iii) to issue eRe OF ffiffe AMBB120/6 Serie., 7'hrre nod hiwr BonJ1 Sella Ruolution No. 2016-05 Resolution No. FY2017-10 Authorizing The Borough To Issue A Section -202 - The purposes for which the 2016 Series GeneF e*33 ee and Re€andixgEmLL Bonds are being issued are (i) to make Loans to the Govemmental Units to the extent and in the manner provided in Article III, including in the case of the Refunding Portion, to refund the portions of the outstanding 2006 Series Two Bonds. 2007 Series One Bonds, the 2007 Series Two Bonds, the 2007 Series Three Bonds, the 2007 Series Five Bonds, the 2008 Series One Bonds, the 2008 Series Two Bonds and the 2009 Series One Bonds that the Chairman or the Executive Director designates to be refunded pursuant to Section 304 hereof; (ii) to satisfy the Reserve Fund Requirement as provided in Section 302 hereof; and (iii) to finance costs of issuance of the 2016 Series Three and Four Bonds. Section203- Date. Maturities and Interest Rates. The 2016 Series Three and Four Bonds of each series shall be dated the date the 2016 Series Three and Four Bonds of such series are delivered to the Underwriters of such series, subject to the terms and conditions set forth in this 2016 Series Three and Four Resolution and in the applicable Bond Purchase Agreement. Subject to adjustment as provided for in this Section 203, the 2016 Series Three and Four Bonds of each series shall mature, or have Sinking Fund Installments due, on December 1, 281-72DIL and thereafter on December 1 in each of the years and in the principal amounts to be set forth in the applicable Bond Purchase Agreement, a&- authorized sauthorized below. number of series of 2016 Series Three and Four Bonds, the names and designations of, the aggregate principal amount of, the principal amount of each maturity, the amount of each Sinking Fund Installment, if any, and the maturity dates and interest rates of the 2016 Series Three and Four Bonds of each series shall be fixed and determined by the Chairman or by the Executive Director at the time the Bond Purchase Agreement for each such series is signed pursuant to Section 210 hereof, but subject to the limitations set forth in Sections 201 and 210 hereof. Section204- Interest Pavments. The 2016 Series Three and Four Bonds of each series shall bear interest from their dated date of delivery to the Underwriters_ payable on each June 1 and December 1, commencing 3une1Jecember 1, 281-72M (or such other date or dates as may be fixed and determined by the Chairman or the Executive Director at the time the Bond Purchase Agreement for such series of 2016 Series Three and Four Bonds is signed), and computed on the basis of a 360 -day year composed of twelve thirty -day months. Section205- Denominations. Numbers and Other Desig atn ion. The 2016 Series Three and Four Bonds of each series shall be issued in registered form in the denomination of $5,000 or any integral multiple thereof within a maturity and interest rate, AAYBB12016 Series Three and Four Bonds Series Resolution No. 2016.05 Page 12 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... not exceeding the aggregate principal amount of the 2016 Series Three and Four Bonds authorized herein. The 2016 Series Three and Four Bonds of each series shall be numbered serially with any additional designation that the Chairman or the Executive Director deems appropriate. (1) The 2016 Series Three and Four Bonds shall be registered initially in the name of "Cede & Co.," as nominee of DTC, and shall be issued initially in the form of a single bond for each series, maturity and interest rate, in the aggregate principal amount for such series, maturity and interest rete. Transfers of ownership of the 2016 Series Three and Four Bonds or any portions thereof, may not thereafter be registered except transfers (i) to any successor of DTC or its nominee, provided that any such successor shall be qualified under any applicable laws to provide the service proposed to be provided by it; (ii) to any substitute depository or such substitute depository's successor; or (iii) to any person as provided in paragraph (4) below. (2) Upon the resignation of DTC or its successor (or any substitute depository or its successor) from its functions as depository or a determination by the Bank that it is no longer in the best interest of Beneficial Owners to continue the system of book -entry transfers through DTC or its successors (or any substitute depository or its successor), the Bank may appoint a substitute depository or provide that 2016 Series Three and Four Bonds no longer be held by a depository and instead be held as provided in paragraph (4). Any substitute depository shall be qualified under any applicable laws to provide the services proposed to be provided by it. (3) In the case of any transfer pursuant to clause (i) or (ii) of paragraph (1) above, the Trustee shall, upon receipt of all Outstanding 2016 Series Three and Four Bonds of a series_ together with a written request of an Authorized Officer and a supply of new 2016 Series Three and Four Bonds of such series, authenticate a single new 2016 Series Three and Four Bond for the Outstanding 2016 Series Three and Four Bonds of eaeHjLQh series; for each maturity and interest rate, registered in the name of such successor or such substitute depository, or its nominee, as the case may be, all as specified in such written request. (4) In the event that (i) DTC or its successor (or substitute depository or its successor) resigns from its functions as depository, and no substitute depository can be obtained, or (ii) the Bank determines that it is in the best interest of the Beneficial Owners that they be able to obtain Bond certificates, the ownership of 2016 Series Three and Four Bonds of si ch seri, ymay then be transferred to any person or entity as provided in the Resolution and &uehlU 2016 Series Three and Four Bonds of such Seri„hall no longer be held in book -entry form. An Authorized Officer shall deliver a written request to the Trustee to authenticate 2016 Series Three and Four Bonds ofs� such sereeg as provided in the Resolution in any authorized denomination, together with a supply of definitive Bonds. Upon receipt of all then Outstanding 2016 Series Three and Four Bonds of such series by the Trustee, together with a written request of an Authorized Officer to the Trustee, new 2016 Series Three and Four Bonds of such series shall be issued and AMBB/2016 Series Three and Four Bonds Series Resolution No. 2016-05 Page 13 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... C-T��'_ i. authenticated in such denominations and registered in the names of such persons as are requested in such written request. (5) For so long as the 2016 Series Three and Four Bonds are held in book -entry form under this Section, the Bank and the Trustee may treat DTC (or its nominee) or any substitute depository (or its nominee) as the sole and exclusive registered owner of the 2016 Series Three and Four Bonds registered in its name for the purposes of payment of principal or Redemption Price of and interest on such 2016 Series Three and Four Bonds, selecting such 2016 Series Three and Four Bonds, or portions thereof to be redeemed, giving any notice permitted or required to be given to Bondholders under the Resolution (except as otherwise provided pursuant to Section 508 hereof), registering the transfer of such 2016 Series Three and Four Bonds and obtaining any consent or other action to be taken by Bondholders and for all other purposes whatsoever; and neither the Bank nor the Trustee shall be affected by any notice to the contrary. Neither the Bank nor the Trustee shall have any responsibility or obligation to any DTC Participant, any person claiming a beneficial ownership interest in the 2016 Series Three and Four Bonds under or through DTC or any DTC Participant, or any other person not shown on the registration books of the Trustee as being a registered owner, with respect to the accuracy of any records maintained by DTC or any DTC Participant (or by any substitute depository or participant); the payment by DTC or any DTC Participant (or by any substitute depository or participant) of any amount in respect of the principal or Redemption Price of or interest on the 2016 Series Three and Four Bonds, any notice that is permitted or required to be given to Bondholders under the Resolution, the selection by DTC or any DTC Participant (or by any substitute depository or participant) of any person to receive payment in the event of a partial redemption of the 2016 Series Three and Four Bonds, or any consent given or other action taken by DTC as Bondholder. The Trustee shall pay from money available under the Resolution all principal and Redemption Price of and interest on 2016 Series Three and Four Bonds only to or upon the order of DTC of the 2016 Series Three and Four Bonds are then requested to DTC or its nominee, and all such payments shall be valid and effective to fully satisfy and discharge the Bank's obligations with respect to the principal or Redemption Price of and interest on the 2016 Series Three and Four Bonds to the extent of the sum or sums so paid. Section20Z- Places and Manner of Payment. For so long as all Outstanding 2016 Series Three and Four Bonds are registered in the name of Cede & Co. or its registered assigns, payment of principal and interest thereon shall be made as provided in the Letter of Representations and the operational arrangements referred to therein as amended from time to time. In the event that the 2016 Series Three and Four Bonds are no longer registered in the name of Cede & Co. or its registered assigns or to a successor securities depository, (i) payment of interest on the 2016 Series Three and Four Bonds will be made by check or draft mailed by first class mail to the registered owner, at the address appearing on the Record Date on the bond register of the Bank kept at the corporate trust office of the Trustee, or, upon the written request of a registered owner of at least $1,000,000 in principal amount of 2016 Series Three and Four Bonds received at least fifteen (15) days prior to an AA7BB/2016 Series Three and Four Bunds Series Resolution No. 201605 Page 14 Resolution No. FY2017-10 Authorizing The Borough To Issue A w interest payment date, by wire transfer in immediately available funds to an account in the United States of America designated by such registered owner; and (ii) principal of the 2016 Series Three and Four Bonds will be payable at the corporate trust office of the Trustee upon surrender of the 2016 Series Three and Four Bonds representing such principal. Both principal of and interest on the 2016 Series Three and Four Bonds are payable in any coin or currency of the United States of America which, on the respective dates of payment thereof, shall be legal tender for the payment of public and private debts. Section208- Ootional Redemotion. (a) The Chairman and the Executive Director are, and each of them is, hereby authorized to determine the optional redemption provisions, if any, for the 2016 Series Three and Four Bonds of each series, and such provisions shall be included in the applicable Bond Purchase Agreement and in the form of the 2016 Series Three and Four Bond of such series. (b) Unless otherwise determined by the Chairman or Executive Director by the time the applicable Bond Purchase Agreement is executed, notice of optional redemption shall be given at least 20 days, and not more than 60 days, prior to the date fixed for redemption of the 2016 Series Three and Four Bonds to be redeemed and in addition to the requirements of Section 402(A)(1) through (5) and of Section 402(A)(7) of the Resolution, such notice of optional redemption shall state that it is a conditional notice and that on the date fixed for redemption, provided that moneys sufficient to redeem the 2016 Series Three and Four Bonds specified in such notice are on deposit with the Trustee, the redemption price will become due and payable and interest thereon will cease to accrue from and after said date. Section -2 The Chairman or the Executive Director are, and each of them is, hereby authorized to approve the mandatory redemption provisions, if any, for the 2016 Series Three and Four Bonds of each series that are tern bonds, and such provisions shall be included in the applicable Bond Purchase Agreement and in the form of the 2016 Series Three and Four Bond of such series. Unless otherwise determined by the Chairman or Executive Director by the time the applicable Bond Purchase Agreement is executed, notice of mandatory redemption shall be given at least 20 days, and not more than 60 days, prior to the date fixed for redemption of the 2016 Series Three and Four Bonds to be redeemed. Section214-Sale of 2016 Series Three and Four Bonds: Bond Purchase Agreements. (a) The 2016 Series Three and Four Bonds of each s ri c shall be sold to one or more of the Underwriters by negotiated sale pursuant to the terms of one or more Bond Purchase Agreements. The Chairman and the Executive Director are, and each of them is, hereby authorized to (1) approve one or more Bond Purchase Agreements and to approve and accept the terms and conditions under which the 2016 Series Three and Four Bonds of each series are sold AMB812016 Series nree and Four Bonds Series Resolution No. 2016-05 Page 15 Resolution No. FY2017-10 Authorizing The Borough To Issue A to the applicable Underwriters pursuant to the applicable Bond Purchase Agreements, in each case with terms consistent with the provisions of this 2016 Series Three and Four Resolution; (2) to designate, pursuant to Section 304 hereof, the Refunded Bonds, if any, to be refunded with proceeds of the 2016 Series Three and Four Bonds; and (3) to determine the number of series of 2016 Series Three and Four Bonds, and the name and designation of each such series, and for each series of 2016 Series Three and Four Bonds, the dated date and the delivery date, the aggregate principal amount, the principal amount of 13gncij-oLeach series" maturity and interest rate, the purchase price, the maturity and the interest payment dates and the redemption provisions and interest rate(s); provided, however, that (A) the aggregate principal amount of the 2016 Series Three and Four Bonds shall not exceed $131,000,000; (B) the true interest cost on the 2016 Series Three and Four Bonds shall not exceed four percent (4.00%); and (C) the debt service savings requirement set forth in Section 304 is satisfied. Prior to execution and delivery of the Bond Purchase Agreements, the Chairman or the Executive Director, with the assistance of the Financial Advisor, shall take into account those factors that, in their judgment, will result in the lowest true interest cost of the 2016 Series Three and Four Bonds. (b) The authority granted to the Chairman and the Executive Director under this Section 210 shall expire [one hundred twenty (120) days] after the date of adoption of this 2016 Series Three and Four Resolution. Section 211 - The Chairman or the Executive Director are, and each of them is, hereby authorized to approve the final form of, and the distribution in electronic form to prospective purchasers and other interested persons of, the preliminary official statement for the 2016 Series Three and Four Bonds (including any supplements and amendments thereto prior to execution and delivery of the Bond Purchase Agreements, the "Preliminary Official Statement'), substantially in the form submitted to the Board and part of the records of the meeting, with such changes as the Chairman or the Executive Director deems advisable. The distribution of the Preliminary Official Statement is hereby authorized, ratified and approved. The Chairman and the Executive Director are hereby further authorized to approve and execute the final official statement (the "Official Statement") substantially in the form of the Preliminary Official Statement with the addition of pricing information and such changes therein from the Preliminary Official Statement as the Chairman or the Executive Director deems advisable, and to approve and authorize the distribution of the final Official Statement in electronic and printed form. There is hereby delegated to the Chairman or the Executive Director the authority to "deem final" the Preliminary Official Statement on behalf of the Bank for purposes of Securities and Exchange Commission Rule 15c2 -12(b)(1). AMBB12016 Series Three and Four Bonds Series Resolution No. 2016-05 Page 16 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... ARTICLE III DISPOSITION OF BOND PROCEEDS Section30 (a) Subject to Section 304 hereof, the Refunding Portion of the proceeds of the 2016 Series Three and Four Bonds shall be used to purchase direct, non -callable obligations of the United States of America, the principal of and the interest on which when due will provide moneys that, together with cash, if any, then held by the Escrow Agent for such purpose, shall be sufficient and available to pay when due the principal of the Refunded Bonds, and the interest to become due on such Refunded Bonds prior to and on the first maturity or optional redemption date, as applicable; provided, however, that such amounts shall be applied only with respect to the portions of the Bonds of the series and maturities that the Executive Director designates to be Refunded Bonds pursuant to Section 304 hereof. (b) Upon the delivery of the 2016 Series Three and Four Bonds, the Bank shall apply, in accordance with Article V of the Resolution, the New -Money Portion of the proceeds derived from the sale of the 2016 Series Three and Four Bonds (i) to make a Loan to Juneau, in an aggregate principal amount not to exceed [$3,000,000], to finance costs of various voter -approved capital improvements; (ii) to make a Loan to Juneau, in an aggregate principal amount not to exceed $19,000,000, tonahle a hinean to refund, subject to market conditions, all or a portion of its outstanding 2006B Bonds; atad-(iii) to make a Loan to the City of Ketchikan, Alaska in an aggregate principal amount not to exceed $2,000,000, to finance a portion of the cost of certain improvements to harbor facilities of the City of Ketchikan, Alaska: (iv) to satisfy the Reserve Fund Rea uir meL - P,nt as provided in Section 302 hereof: and (v) to finance costs of issuance of the 2016 Series Three and Four Bonds, (c) Subject to the provisions of Section 304 hereof, a portion of the proceeds of the 2016 Series Three and Four Bonds may be applied to refund portions of 2006 Series Two Bonds. 2007 Series One Bonds, 2007 Series Two Bonds, 2008 Series One Bonds, 2008 Series Two Bonds and 2009 Series One Bonds that constitute Reserve Obligations, in lieu of paying such Bonds with moneys allocated thereto in the Reserve Fund. Sectian302 - Reserve Fund Deoosit: Bond insurance. (a) On the date of sale, but subject to Section 201 hereof, the Chairman or the Executive Director shall determine whether it is in the best interest of the Bank to use; (1) available cash or (2) a portion of the proceeds received from the sale of the 2016 Series Three and Four Bonds-. 2L (3) 2016 Reserve Fund Credit Enhancement or (4) a combination of cash, proceeds and 2016 Reserve Fund Credit Enhancement, to satisfy the Reserve Fund Requirement, and/or to obtain a surety policy in lieu of all or a portion thereof, upon delivery of the 2016 Series Three and Four Bonds, and shall cause such deposits and/or purchase to be made on or before the date of delivery of the 2016 Series Three and Four Bonds. AMBB2016 Series Three and Four Bonds Series Resolution No. 2016.05 Page 17 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... (b) The Chairman and the Executive Director are each hereby authorized to determine whether to satisfy the portion of the Reserve Fund Requirement related to the 2016 Series Three and Four Bonds by depositing with the Trustee a 2016 Reserve Fund Credit Enhancement in the form of a debt service reserve surety bond; to select a Surety Bond Issuer and purchase such 2016 Reserve Fund Credit Enhancement; and if the Surety Bond Issuer is not National Public Finance Guarantee Corporation, a monoline insurance company, to negotiate, approve, execute and deliver a 2016 Reserve Fund Credit Enhancement Agreement in form and with terms that comply with the requirements of the Resolution and that, in the Chairman's or Executive Director's judgment after consulting with the Bank's Financial Advisor, are advisable and in the best interest of the Bank. (c) The Governmental Units' responsibility for paying, or for reimbursing the Bank for the payment of any costs of providing and maintaining the Reserve Fund Requirement and the application (or the method for determining the application) of any moneys in excess of the Reserve Fund Requirement shall be determined by the Executive Director and set forth in each Loan Agreement and/or Amendatory Loan Agreement, as applicable, authorized in Section 507 hereof. (d) The Chairman and the Executive Director are each hereby authorized to solicit commitments for a 2016 Bond Credit Enhancement with respect to payment of the interest on and principal of all or a portion of the 2016 Series Three and Four Bonds and thereafter to accept one or more such eammitmentcommitments that is= in the best interest of the Bank, to purchase such 2016 Bond Credit Enhancement, and to negotiate, approve, execute and deliver a 2016 Bond Credit Enhancement Agreement in form and with terms that comply with the requirements of the Resolution and that, in the Chairman's or Executive Director's judgment after consulting with the Bank's Financial Advisor, are advisable and in the best interest of the Bank. Section303-Disoosition ofRemainder_ofBond-Proceeds. The balance of the proceeds received from the sale of the New -Money Portion of the 2016 Series Three and Four Bonds, including any premium received over the principal amount of the 2016 Series Three and Four Bonds, after deducting the amounts to be paid for costs of issuing the 2016 Series Twee and Four Bonds, amounts necessary to ensure the deposit to the Reserve Fund equals the Required Debt Service Reserve, and after deducting the amount allocable to the Reserve Obligations, if any, which amount shall be deposited in the Reserve Fund, shall be deposited with the Governmental Units and applied towards costs of issuance and debt service payments due and owing on their respective Municipal Bonds (as such term is defined in the Loan Agreements or 2016 Amendatory Loan Agreements) or such other permitted purpose, Including costs of the pr iects financed or refinanced with proceeds of the New -Money Portion of the 2016 Series Three and Four Bonds, AMBB12016 Series ZBree and Four Bonds Series Resolution No. 2016-05 Page 18 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Section30.4 - Designation of Refunded Bonds, The Chairman and the Executive Director are, and each of them is, hereby authorized to determine, after consulting with the Financial Advisor, (i) whether any of the following shall be refunded, eliminating from the category of Refunded Bonds loan obligations corresponding to municipal bonds whose terms have not been amended by the Governmental Unit to conform to the terms of the refunding authorized by this 2016 Series Three and Four Resolution as of the date of delivery of the 2016 Series Three and Four Bonds: (a) the 209; 2M Series AnelM Bonds, maturing on December 1 of 2017 through 2035: (b) the 2007 Series One Bonds, maturing on December I of 2017 through 2026;; (IBJ the 2007 Series Two Bonds, maturing on December 1 of 2017 through 2028; (e.d) the 2007 Series Three Bonds, maturing on September 1 of 2018 through 2027; (dg) the 2007 Series Five Bonds, maturing on September 1 of 2018 through 2037; (ej) the 2008 Series One Bonds, maturing on April 1 of 2017 through 2038; (€g) the 2008 Series Two Bonds, maturing on June 1 of 2019 through 2028; and (gW the 2009 Series One Bonds, maturing on September I of 2019 through 2037; provided, however, that the refunding of the Refunded Bonds so designated by the Executive Director shall realize an aggregate debt service savings of at least three percent (3.00%) of their principal amount, net of all issuance costs and underwriting discount, on a present value basis; and (ii) whether all or a portion of the outstanding 2006 Series Two Bnnds. the 2007 Series One Bonds, the 2007 Series Two Bonds, the 2008 Series One Bonds, the 2008 Series Two Bonds and the 2009 Series One Bonds that constitute Reserve Obligations shall be redeemed in whole or in part with available funds or with proceeds of the 2016 Series Three and Four Bonds. Secthm_1Q5 = jgmw Aereement(s). The Executive Director is hereby authorized and directed to enter into theone nr mere Escrow AgfeementAereements with the Escrow Agent providing for the use and disposition of moneys, if any, and direct, non -callable obligations of the United States of America for the purpose set forth in Section 301(b) hereof. AMBB/2016 Series Three and Four Bonds Series Resolution No. 2016-05 Page 19 Resolution No. FY2017-10 Authorizing The Borough To Issue A •r Ir •1 • t."�"11• •1 • �"1.1�"� :•1� The Executive Director is hereby authorized to provide irrevocable instructions IQ -the trustee of the Refunded Bonds to redeem such bonds, designated to be Refunded Bonds pursuant to Section 304 hereof, on the first available optional redemption date in accordance with the terms of the respective authorizing resolutions for the Refunded Bonds and as set forth in the applicable Escrow Agreement, ARTICLE IV EXECUTION AND FORM OF 2016 SERIES THREE AND FOUR BONDS The 2016 Series Three and Four Bonds shall be executed in the manner set forth in Section 303 of the Resolution and upon the terms agreed to in the Bond Purchase Agreement for such series of 2016 Series Three and Four Bonds in accordance with this Series 2016 Three and Four Resolution. Subject to the provisions of the Resolution, the 2016 Series Three and Four Bonds, and the Trustee's certificate of authentication, shall be of substantially the following form and tenor AMB812016 Series Three and Four Bonds Series Resolution No. 2016-05 Page 20 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... ALASKA MUNICIPAL BOND BANK GENERAL OBLIGATION AND REFUNDING BONDS, 2016 SERIES [THREE/FOUR] INTEREST RATE: MATURITY DATE: CUSIP NO.: % December 1.20 Registered Owner: CEDE & Co. Principal Amount: and No/100 Dollars Alaska Municipal Bond Bank (herein called the "Bank"), a public body corporate and politic, constituted as an instrumentality of the State of Alaska, organized and existing under and pursuant to the laws of the State of Alaska, acknowledges itself indebted to, and for value received, hereby promises to pay to CEDE & CO. or registered assigns, the principal sum specified above on the Maturity Date specified above, and to pay to the registered owner hereof interest on such principal sum from the date hereof to the date of maturity of this Bond at the rate per annum specified above, payable on each June 1 and December 1, commencing 3une]Seml,er 1, 202016. For so long as this Bond is held in book -entry form, payment of principal and interest shall be made by wire transfer to the registered owner pursuant to written instructions furnished to [_J, in r 1, as trustee under the General Bond Resolution of the Bank, adopted July 13, 2005, as amended (herein called the "Resolution"), or its successor or assigns as trustee (herein called the "Trustee"). In the event this Bond is no longer held in book -entry form, (i) payment of interest will be made by check or draft mailed by first class mail to the registered owner at the address appearing on the bond register of the Bank kept by the Trustee, or, upon the written request of a registered owner of at least $1,000,000 in principal amount of 2016 Series [Three/Four] Bonds received at least 15 days prior to an interest payment date, by wire transfer in immediately available funds to an account in the United States of America designated by such registered owner; and (ii) principal will be payable upon presentation and surrender hereof at the corporate trust office of the Trustee. Interest shall be computed on the basis of a 360 -day year composed of twelve thirty -day months. Both principal of and interest on this Bond are payable in any coin or currency of the United States of America which, on the respective dates of payment thereof, shall be legal tender for the payment of public and private debts. This Bond is a general obligation of the Bank and is one of a duly authorized issue of Bonds of the Bank designated "Alaska Municipal Bond Bank General Obligation and Refunding Bonds" (herein called the "Bonds"), issued and to be issued in various series under and pursuant to the Alaska Municipal Bond Bank Act, constituting Chapter 85, Title 44, of the Alaska Statutes (herein called the "Act"), and under and pursuant to the Resolution and a series resolution authorizing each such series. As provided in the Resolution, the Bonds may be issued from time to time pursuant to series resolutions in one or more series, in various principal amounts, may mature at different times, may bear interest at different rates and, subject to the provisions AMBB12016 Series Three and Four Bonds Serio RmItition No. 2016-05 Page 21 Resolution No. FY2017-10 Authorizing The Borough To Issue A... thereof, may otherwise vary. The aggregate principal amount of Bonds that may be issued under the Resolution is not limited except as provided in the Resolution, the applicable Series Resolution, and the Act, and all Bonds issued and to be issued under said Resolution are and will be equally and ratably secured by the pledges and covenants made therein, except as otherwise expressly provided or permitted in the Resolution and the applicable Series Resolution. The Bank is obligated to pay the principal of and premium, if any, and interest on the Bonds, including this Bond, only from the r vve�enyecor funds of the Bank pledged under the Resolutions (as defined belowl, and the State of Alaska is not obligated to pay the principal or premium, if any, or interest on the Bonds. Neither the faith and credit nor the taxing power of the State is pledged to the payment of the principal, premium, if any, or interest on the Bonds, including this Bond. The Bank has no taxing power. This Bond is one of a series of Bonds (the "2016 Series [Three/Four] Bonds") issued in the aggregate principal amount of S under the Resolution of the Bank and a series resolution of the Bank, adopted on--FebFuey September 6, 2016, and entitled "A Series Resolution Authorizing the Issuance of one or more series of General Obligation and Refunding Bonds, 2016 Series [Three/Four] of the Alaska Municipal Bond Bank" (said resolutions being herein collectively called the "Resolutions"). Copies of the Resolutions are on file at the office of the Bank and at the corporate trust office of the Trustee, and reference to the Resolutions and any and all supplements thereto and modifications and amendments thereof and to the Act is made for a description of the pledges and covenants securing the 2016 Series [Three/Four] Bonds; the nature, extent and manner of enforcement of such pledges; the rights and remedies of the registered owners of the 2016 Series [Three/Four] Bonds with respect thereto; and the terms and conditions upon which the Bonds are issued and may be issued thereunder; to all of the provisions of which the registered owner of this Bond, by acceptance of this Bond, consents and agrees. To the extent and in the manner permitted by the terms of the Resolutions, the provisions of the Resolutions or any resolution amendatory thereof or supplemental thereto may be modified or amended by the Bank, with the written consent of the registered owners of at least two-thirds in principal amount of the Bonds then outstanding and, in case less than all of the several Series of Bonds would be affected thereby, with such consent of the registered owners of at least two-thirds in principal amount of the Bonds of each series so affected then outstanding. The 2016 Series [Three/Four] Bonds are subject to redemption prior to their respective scheduled maturities as set forth below. The 2016 Series [Three/Four] Bonds maturing on or after December 1, 20_, are subject to redemption, in whole or in part, on or after 1, 2Q_, at the option of the Bank at a redemption price of 100% of the principal amount thereof to be redeemed plus accrued interest to the date fixed for redemption. AMBB2016 Series Three and Four Bands Series Resolution No. 2016-05 Pace 22 Resolution No. FY2017-10 Authorizing The Borough To Issue A [Unless previously redeemed pursuant to the foregoing optional redemption provisions, the 2016 Series [Three/Four] Bonds maturing on December 1, 20_ (the "Term Bonds") are subject to mandatory redemption on April 1 of the following years and in the following principal amounts at a redemption price equal to 100% of the principal amount of the 2016 Series [Three/Four] Bonds to be redeemed plus accrued interest, if any, to the date fixed for redemption.) Term Bonds Due December 1, 20_ Year Sinking Fund Requirement Notice of redemption (which in the case of optional redemption shall be a conditional notice) will be mailed to registered owners of 2016 Series [Three/Four] Bonds called for redemption not less than 20 days or more than 60 days before the date fixed for redemption. Except as provided in the Resolutions, interest on any 2016 Series [Three/Four] Bonds called for redemption will cease on the date fixed for redemption. This Bond is transferable, as provided in the Resolutions, only upon the books of the Bank kept for that purpose at the corporate trust office of the Trustee, by the registered owner hereof in person or by its attorney duly authorized in writing, upon the surrender of this Bond together with a written instrument of transfer satisfactory to the Trustee duly executed by the registered owner or its attorney duly authorized in writing, and thereupon a new registered 2016 Series [Three/Four] Bond or Bonds in the same aggregate principal amount and of the same maturity, in authorized denominations, shall be issued to the transferee in exchange therefor as provided in the Resolutions and upon the payment of the charges, if any, therein prescribed. The 2016 Series [Three/Four] Bonds are issuable in the denomination of $5,000 or any integral multiple thereof, not exceeding the aggregate principal amount of 2016 Series [Three/Four] Bonds maturing in the year of maturity of the Bond for which the denomination of the Bond is to be specified. Subject to such conditions and upon payment of such charges, if any, 2016 Series [Three/Four] Bonds, upon surrender thereof at the corporate trust office of the Trustee with a written instrument of transfer satisfactory to the Trustee, duly executed by the registered owner or its attorney duly authorized in writing, may, at the option of the registered owner thereof, be exchanged for an equal aggregate principal amount of registered 2016 Series [Three/Four] Bonds of any other authorized denominations, of the same maturity. Bonds only ff am FeN,enues eF ftmds of the RaHIE, and the State Bf Alaska is RE)t Obligated t8 pE*, .Sh ffkiGipal a fOF i8tPFe4 S the 2016 See [T-liFe.'Feuri n,...d.. NeithpF the faith And ,..ed:. .. the 2016 SeFi... [T-liFee./Four] Bonds AMBB12016 Series Three and Four Bonds Series Resolution No. 2016-05 Pue�_7 Resolution No. FY2017-10 Authorizing The Borough To Issue A This Bond is fully negotiable for all purposes of the Uniform Commercial Code, and each owner of this Bond by accepting this Bond shall be conclusively considered to have agreed that this Bond is fully negotiable for those purposes. The obligations of the Bank contained in the Resolutions and in this 2016 Series [Three/Four] Bond are the obligations of the Bank and not of any member, director, officer or employee of the Bank, and no recourse shall be had for the payment of the principal or redemption price or interest on this bond or for any claim hereon or on the Resolutions against any member, director, officer or employee of the Bank or any natural person executing the 2016 Series [Three/Fourl Bonds. This Bond shall not be entitled to any benefit under the Resolutions or be valid or become obligatory for any purpose until this Bond shall have been authenticated by the execution by the Trustee of the Trustee's Certificate of Authentication hereon. The Bank modified the Resolution, effective on the date when all Bonds issued prior to February 19, 2013 cease to be Outstanding, by: (i) authorizing the Trustee to release to the Bank amounts held in the Reserve Fund which exceed the Required Debt Service Reserve whenever there is a reduction in the Required Debt Service Reserve; (ii) requiring the Trustee to withdraw earnings and profits realized in the Reserve Fund, and to provide such amounts to the Bank on or before June 30 of each year so long as the balance therein equals the Required Debt Service Reserve; (iii) authorizing certain amendments and modifications to the Resolution effective upon securing the consent of Holders of at least two-thirds in principal amount of Bonds then Outstanding; and (iv) providing that an underwriter or purchaser of a Series of Bonds may consent to a modification of, or amendment to, the Resolution as Holder of such Bonds at the time such Bonds are issued. IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required by the Constitution and statutes of the State of Alaska and the Resolutions to exist, to have happened and to have been performed precedent to and in the issuance of this Bond, exist, have happened and have been performed in due time, form and manner as required by law and that the issue of the 2016 Series [Three/Four] Bonds, together with all other indebtedness of the Bank, is within every debt and other limit prescribed by law. AMBB12016 Series Three are/ Four Bonds series Resolution No. 2016-05 Page 24 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... IN WITNESS WHEREOF, the Alaska Municipal Bond Bank has caused this Bond to be executed in its name by the manual or facsimile signature of its Chairman and its corporate sea] (or a facsimile thereof) to be affixed, imprinted, engraved or otherwise reproduced hereon, and attested by the manual or facsimile signature of its Executive Director all as of the _ day of 2016. ALASKA MUNICIPAL BOND BANK [SEAL] MARK E. PFEFFER Chairman ATTEST: DEVEN J. MITCHELL Executive Director TRUSTEE'S CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the within -mentioned Resolutions and is one of the 2016 Series [Three/Four] Bonds of the Alaska Municipal Bond Bank. THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee Date of Authentication: Authorized Officer AMBB12016 Series nree and Four Bonds Seria Raolutiun No. 201605 PagC 2i Resolution No. FY2017-10 Authorizing The Borough To Issue A ... ARTICLE V MISCELLANEOUS Section 501- zyjt Aeent. The Bank of New York Mellon Trust Company, N.A., or its successor or assigns, is appointed paying agent for the 2016 Series Three and Four Bonds. Section -5D2 — Except as otherwise provided in the Bank's tax certificate, within 30 days after the end of every fifth Bond Year and within 60 days after the date on which all of the 2016 Series Three and Four Bonds have been retired (and/or at such other times as may be required by the Code and applicable Income Tax Regulations), the Bank shall determine the Excess Investment Earnings and shall pay rebate amounts due to the United States of America as provided in Section 148(f) of the Code. There is hereby established as special accounts in the Debt Service Fund the "2016 Series Three Debt Service Account," for the purpose of receiving amounts in the Debt Service Fund allocable to the 2016 Series Three Bonds, and the "2016 Series Four Debt Service Account," for the purpose of receiving amounts in the Debt Service Fund allocable to the 2016 Series Four Bonds; provided, that if so determined by the Chairman or Executive Director, separate debt service accounts for any additional series of 2016 Series Three and Four Bonds are hereby authorized to be established. Such amounts and the earnings thereon shall be deposited and held, and separately accounted for, in the applicable 2016 Series Three and Four Debt Service Account. Section 504 - The Bank intends that interest on the 2016 Series Three and Four Bonds of each series shall be excludable from gross income for federal income tax purposes pursuant to Section 103 and 141 through 150 of the Code, and the applicable regulations. The Bank covenants not to take any action, or knowingly omit to take any action within its control, that if taken or omitted would cause the interest on the 2016 Series Three and Four Bonds issued on a tax exempt basis to be included in gross income, as defined in Section 61 of the Code, for federal income tax purposes. Section S95 - ArbitraEe Covenant. The Bank shall make no use or investment of the gross proceeds of the 2016 Series Three and Four Bonds which will cause the 2016 Series Three and Four Bonds to be "arbitrage bonds" subject to federal income taxation by reason of Section 148 of the Code. The Bank hereby AMBB2016 Series Three and Four Bonds Series Resolution No. 2016.05 Page 26 Resolution No. FY2017-10 Authorizing The Borough To Issue A covenants that so long as any of the 2016 Series Thee and Four Bonds are outstanding, the Bank, with respect to the gross proceeds of the 2016 Series Three and Four Bonds, shall comply with all requirements of said Section 148 and of 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. f .t 10i= It shall hereby be clarified that the Resolution, at Section 919, shall only apply to Bonds issued on a tax-exempt basis. Section-.5�2-Loan Agreements and 2016 Amendatory Loan Aereements. The Chairman and the Executive Director are each hereby authorized to execute the Loan Agreements and the 2016 Amendatory Loan Agreements between the Bank and the Governmental Units referred to herei*jherein. each in a form similar to the applicable forms attached hereto as Appendix C and submitted to and part of the records of the meeting on September 6, 2016, with such changes as the Chairman or the Executive Director shall deem advisable. Sectirm-508 - The Bank hereby covenants and agrees that it will execute and deliver and will comply with and carry out all of the provisions of the form of Continuing Disclosure Certificate attached hereto as Appendix B with such changes as the Chairman or the Executive Director shall deem advisable and in the best interest of the Bank. Notwithstanding any other provision of this 2016 Series Three and Four Resolution, failure of the Bank to comply with the Continuing Disclosure Certificate shall not be a default of the Bank's obligations under this 2016 Series Three and Four Resolution, the Resolution or the 2016 Series Three and Four Bonds; however, the Beneficial Owner of any 2016 Series Three and Four Bond may bring an action for specific performance, to cause the Bank to comply with its obligations under the Continuing Disclosure Certificate and this Section. Sectio The Chairman and the Executive Director are, and each is, hereby authorized to execute all documents and to take any action necessary or desirable to carry out the provisions of this 2016 Series Thee and Four Resolution and to effectuate the issuance and delivery of the 2016 Series Three and Four Bonds, including agreement and acceptance of one or more Bond Purchase Agreements, and all prior actions taken to effectuate and in connection with the provisions of this 2016 Series Three and Four Resolution and the issuance and delivery of the 2016 Series Three and Four Bonds are hereby ratified and confirmed. The authority and ratification granted in this Section 509 to the Chairman and the Executive Director includes authorization to solicit commitments for a policy of insurance with respect to payment of the interest on and principal of AUBB12016 Series Three and Four Bonds Series Resolution No. 201605 Page 27 Resolution No. FY2017-10 Authorizing The Borough To Issue A all or a portion of the 2016 Series Three and Four Bonds and/or a surety policy and thereafter to accept such commitment which is in the best interest of the Bank and enter into such agreement with the bond insurer as shall be in the best interests of the Bank. Section 5 10 - Effective Date, This 2016 Revenue and Refunding Resolution shall take effect immediately on the date hereof (September 6, 2016). AMBB12016 Series Three and Four Bonds series Resolution No. 201605 Page 28 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Page 3120049*#13.B.1. APPENDIX A BLANKET ISSUER LETTER OF REPRESENTATIONS Blanket Issuer Letter of Representations u.c+utu.ena+ra\r,.n�t\Sim Mtv i. ., ur no clop m. bone D.p.ulmem—EIIOhlllty The41"fivury01h luomp•n. Sl \\Wer )IrteC 50th Fluor \'mv ILII\Y IUOIY IXgB L.gLeB VIII Vmltlr9len: Tlut letter ten lorth aur ulMkntunJing xsrh mtpeet to At Inuit'thr See moee-I fust Inurr %W rerluest be made ASO. for depart by The Del wom Truu Campnnt I"DTE'5. T Imhnr DTC to ucrep. the S rwfl,o iu.lyilde im dtpoul A DTC. rn.1 to ocr ut utto,d. 01111 UfCi Rule, with mpeet to Hee Sreu0M.. hmrr re permit, to DTC that moor will cemph IWth the mgWremrnts staled in DTCL Opero" Armngrmren. n they may be mootW fmm tueel.Hme Natty Very talr tu.. 51W.a anon. au.m.nn to. DTe: bllrv.. . a...na utc w m.BBr a m. au Im.r....ronJixMIrJNlwlyi M'r' ..d AIA•Jtl1 MMItt��hL BRIe eNVF en•n rv1.W mmn _ _. _ Br M p r 1dMH J. cEvrsaDi Pmxllnl altdAmptah ativa Dlracbor THE DEPOSRORYTPUSTCOMMKY AMB/2016 Series Three and bier Bands Serie Resolution No. 2016-05 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Page A- I SAMPLE OFFERING DOCUMENT LANGUAGE DESCRIBING BOOK -ENTRY -ONLY ISSUANCE (Prepared by DTC—bracketed material may be applicable only to certain issues) I. The Depository Trust Company ("DTC'), New York, NY, will act as securities depository for the securities (the "Securities"). The Securities will be issued as fully -registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully -registered Security certificate will be issued for [each issue of] the Securities, [each] in the aggregate principal amount of such issue, and will be deposited with DTC. [If, however, the aggregate principal amount of [any] issue exceeds $500 million, one certificate will be issued with respect to each $500 million of principal amount, and an additional certificate will be issued with respect to any remaining principal amount of such issue.] 2. DTC, the world's largest securities depository, is a limited -purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a `blearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non -U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post -trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book -entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S, and non -U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has a Standard & Poor's rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. 3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a credit for the Securities on DTC's records. The ownership interest of each actual purchaser of each Security ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished by AMBR12016 Series Three and Four Boruts Series Resolution No. 2016-05 Page A -'— Resolution No. FY2017-10 Authorizing The Borough To Issue A ... ih #awl entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities, except in the event that use of the book -entry system for the Securities is discontinued. 4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC's records reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. 5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. [Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.] [6. Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.] 7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Securities unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to Issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy). 8. Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co, or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from Issuer or Agent, on payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC, Agent, or Issuer, AMBB/2016 Series Three and Four Bonds series Resolution No. 2016-05 Page A- 3 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of Issuer or Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. [9. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, to (Tender/Remarketing] Agent, and shall effect delivery of such Securities by causing the Direct Participant to transfer the Participant's interest in the Securities, on DTC's records, to [Tender/Remarketing] Agent. The requirement for physical delivery of Securities in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on DTC's records and followed by a book -entry credit of tendered Securities to [Tender/Remarketing] Agent's DTC account.] 10. DTC may discontinue providing its services as depository with respect to the Securities at any time by giving reasonable notice to Issuer or Agent. Under such circumstances, in the event that a successor depository is not obtained, Security certificates are required to be printed and delivered. 11. Issuer may decide to discontinue use of the system of book -entry -only transfers through DTC (or a successor securities depository). In that event, Security certificates will be printed and delivered to DTC. 12. The information in this section has been obtained from sources that Issues responsibility for the accuracy thereof. AMB8/1016 Series Three and Fanr Bonds Series Rrsalution No. 201605 concerning DTC and DTC's book -entry system believes to be reliable, but Issuer takes no Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Page A- 4 APPENDIX B FORM OF CONTINUING DISCLOSURE CERTIFICATE Alaska Municipal Bond Bank (the "Issuer") executes and delivers this Continuing Disclosure Certificate (the "Disclosure Certificate") in connection with the issuance of S Alaska Municipal Bond Bank General Obligation and Refunding Bonds, 2016 Series [_] (the "Bonds"). The Bonds are being issued under the General Bond Resolution of the Bank entitled "A Resolution Creating And Establishing An Issue Of Bonds Of The Alaska Municipal Bond Bank; Providing For The Issuance From Time To Time Of Said Bonds; Providing For The Payment Of Principal Of And Interest On Said Bonds; And Providing For The Rights Of The Holders Thereof," adopted July 13, 2005, as amended (the "General Bond Resolution"), and Series Resolution No. 2016-5 adopted on September 6, 2016 (the "Series Resolution," and together with the General Bond Resolution, the "Resolutions"). The Issuer covenants and agrees as follows: Section 1. Purpose of the Disclosure Certificate. The Issuer is executing and delivering this Disclosure Certificate for the benefit of the Beneficial Owners of the Bonds, and to assist the Participating Underwriter in complying with Securities and Exchange Commission Rule 15c2 -12(b)(5). Section 2. Definitions. In addition to the definitions set forth in the Resolutions, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Report" means any Annual Report provided by the Issuer pursuant to, and as described in, Section 3 of this Disclosure Certificate. "Fiscal Year" means the fiscal year of the Issuer (currently the 12 -month period ending June 30), as such fiscal year may be changed from time to time as required by State law. "MSRB" means the Municipal Securities Rulemaking Board. "Participating Underwriter" means any of the original underwriters of the Bonds required to comply with the Rule in connection with the offering of the Bonds. "Rule" means Rule 15c2 -12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended from time to time. Section 3. Provision of Annual Reports and Financial Statements. Commencing with its Fiscal Year ending June 30, 2017, the Issuer will provide to the MSRB, in a format as prescribed by the Rule: (a) Not later than 210 days after the end of each Fiscal Year, an Annual Report for the Fiscal Year. The Annual Report shall contain or incorporate by reference: (i) annual audited financial statements of the Issuer; (ii) a statement of authorized, issued and outstanding bonded debt of the Issuer; (iii) the Reserve Fund balance; and (iv) statistics AMBE2016 Series Three and Four Bonds Series Resolution No. 2016-05 Resolution No. FY2017-10 Authorizing The Borough To Issue A Page B- 1 regarding Governmental Units similar to those found in Appendix D to the Official Statement as of the end of the prior Fiscal Year. Any or all of these items may be included by specific reference to documents available to the public or the internet website of the MSRB or filed with the Securities and Exchange Commission. The Issuer shall clearly identify each such other document so incorporated by reference. The Annual Report may be submitted as a single document or as separate documents comprising a package, provided that audited financial statements may be submitted separately from the remainder of the Annual Report. (b) Not later than 120 days after the end of each Fiscal Year, the Issuer will notify each Governmental Unit, who has, or had, an amount of bonds equal to or greater than ten percent (10%) of all outstanding loans under the General Bond Resolution, of its continuing disclosure undertaking responsibility. A list of such Governmental Units for the prior Fiscal Year will be included in the Annual Report. Section 4. Notice of Failure to Provide Information. The Issuer shall provide in a timely manner to the MSRB notice of any failure to satisfy the requirements of Section 3 of this Disclosure Certificate. Section 5. Reporting of Significant Events. (a) The Issuer shall file with the MSRB a notice of any of the following events with respect to the Bonds, within ten (10) business days of the occurrence of such event: (1) Principal and interest payment delinquencies. (2) Unscheduled draws on debt service reserves reflecting financial difficulties. (3) Unscheduled draws on credit enhancements reflecting financial difficulties. (4) Substitution of credit or liquidity providers, or their failure to perform. (5) Adverse tax opinions or events affecting the tax-exempt status of the Bonds which include (i) the issuance by the Internal Revenue Service ("IRS") of proposed or final determinations of taxability, (ii) Notices of Proposed Issues (IRS Form 5701-TEB), (iii) other material notices or determinations with respect to the Bonds, and (iv) other events affecting the tax status of the Bonds. (6) Defeasances. (7) Rating changes. (8) Tender offers. (9) Bankruptcy, insolvency, receivership or similar proceeding by the Issuer or "obligated person." AMBB/2016 Series Three and Four Bonds series Raolution No. 201605 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Page B- 2 (b) The Issuer shall file with the MSRB a notice of any of the following events with respect to the Bonds, within ten (10) business days of the occurrence of such event, if material: (1) Nonpayment -related defaults. (2) Modifications to rights of holders of the Bonds. (3) Bond calls, other than mandatory, scheduled redemptions not otherwise contingent on the occurrence of an event. (4) Release, substitution or sale of property securing repayment of the Bonds. (5) Other than in the normal course of business, the consummation of a merger, consolidation, or acquisition involving an "obligated person," or the sale of all or substantially all of the assets of the Issuer or "obligated person," or the entry into a definitive agreement to undertake such an action, or a termination of a definitive agreement relating to any such actions, other than in accordance with its terms. (6) Appointment of a successor or additional trustee or the change in name of the trustee for the Bonds. Section 6. Termination of Reporting Obligation. The Issuer's obligations under this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. Section 7. Amendment: Waiver. Notwithstanding any other provision of this Disclosure Certificate, the Issuer may amend this Disclosure Certificate, provided that the amendment meets each of the following conditions: (a) The amendment is made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature or status of the Issuer; (b) This Disclosure Certificate, as amended, would have complied with the requirements of the Rule as of the date hereof, after taking into account any amendments or interpretations of the Rule, as well as any changes in circumstances; (c) The Issuer obtains an opinion of counsel unaffiliated with the Issuer that the amendment does not materially impair the interests of the Beneficial Owners of the Bonds; and (d) The Issuer notifies and provides the MSRB with copies of the opinions and amendments. Any such amendment may be adopted without the consent of any Beneficial Owner of any of the Bonds, notwithstanding any other provision of this Disclosure Certificate or the Resolutions. AMBB/1016 Series Three and Four Bonds Series Resolution No. 2016.05 Page B- 3 Resolution No. FY2017-10 Authorizing The Borough To Issue A The first Annual Report containing amended operating data or financial information pursuant to an amendment of this Disclosure Certificate shall explain, in narrative form, the reasons for the amendment and its effect on the type of operating data and financial information being provided. Section 8. Filing. Any filing required under the terms of this Disclosure Certificate may be made solely by transmitting such filing to the Electronic Municipal Market Access as provided at http://www.emma.msrb.org, or in such other manner as may be permitted from time to time by the Securities Exchange Commission. Section 9. Defitult. In the event of a failure of the Issuer to comply with any provision of this Disclosure Certificate, any Beneficial Owner may take such actions as may be necessary and appropriate, including an action to compel specific performance, to cause the Issuer to comply with its obligations under this Disclosure Certificate. No failure to comply with any provision of this Disclosure Certificate shall be deemed an Event of Default under the Resolutions, and the sole remedy under this Disclosure Certificate in the event of any failure of the Issuer to comply with this Disclosure Certificate shall be an action to compel specific performance. Section 10. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the Issuer, the Trustee, the Participating Underwriter and the Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity. DATED this _ day of 2016. ALASKA MUNICIPAL BOND BANK DEVEN J. MITCHELL Executive Director AMBB12716 Series Three and Four Banda Series Resolution No. 2016-115 Page B- 4 Resolution No. FY2017-10 Authorizing The Borough To Issue A APPENDIX C FORM OF LOAN AGREEMENT THIS LOAN AGREEMENT, dated as of the _ day of 20—s 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]"): WITNESSETH: WHEREAS, pursuant to the Act, the Bank is authorized to make loans of money (the "Load" 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. 2q_-_, 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: 1. 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] AMBB12016 Series Three and Four Bonds series Resolution No. 201605 Page C- 1 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... [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 principal installment payments, and bearing interest from its date at the rate or rates per annum, stated in Exhibit A appended hereto. 2. 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]. 3. 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. 4. 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. 5. 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. 6. 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 AMBRI2016 Series Three and Four Bonds Series Resolution No. 201605 Page C- 2 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... 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] 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. 7. 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: (a) to pay, as the same become due, the [City's] [Borough's] Allocable Proportion of the Administrative Expenses of the Bank; and (b) 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. a. 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. 9. 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 AMBE2016 Series Three and Four Banda Serio Resolution No. 2016-05 Page C- 3 Resolution No. FY2017-10 Authorizing The Borough To Issue A 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. 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 (i) 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. 10. 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 1 of the [City] [Borough]. 11. 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. 12. [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 S ) 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.)] 13. [Rate covenant language — if applicable.[ AMBB2016 Series Three and Four Bonds Series Resolution No. 2016-05 Page C- 4 Resolution No. FY2017-10 Authorizing The Borough To Issue A 14. 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 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. 15. 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: (a) 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. (b) The [City] [Borough] has violated commitments made by it in the terms of this Loan Agreement. (c) 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. 16. 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. 17. 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. 18. 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. 01179P, 011798 and 011798. Additional or alternate CUSEP 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). 19. 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. AMB812016 Series Three and Four Bonds series Resolution No. 2016-05 Page C- 5 Resolution No. FY2017-10 Authorizing The Borough To Issue A 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. 20. 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 15c2-12, adopted under the Securities and Exchange Act of 1934. 21. 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. 22. 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. 23. 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. 24. No waiver by either party of any tern 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. 25. 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. AMBB12016 Series Three and Four Bonds Serie Resolution No. 2016-03 Pa ,c C- G Resolution No. FY2017-10 Authorizing The Borough To Issue A 26. 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. IN WITNESS WHEREOF, the parties hereto have executed this Loan Agreement the day and year first above written. ALASKA MUNICIPAL BOND BANK By: DEVEN J. MITCHELL Executive Director [CITY] [BOROUGH] OF ALASKA By: Its: AMBB2016 Series Three and Four Bonds series Resolution No. 2016.05 Page C- 7 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... EXHIBIT A [City] [Borough], Alaska [General Obligation] [Revenue] Bond, 20_[_] ("Municipal Bond") Due Principal Interest 1 Amount Ratti 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 I, 20_, at a price of 100% of the principal amount thereof to be prepaid, plus accrued interest to the date of prepayment. AMBB/20/6 Series Three and Four Bonds Series Resolution No. 2016-05 Page C- x Resolution No. FY2017-10 Authorizing The Borough To Issue A li: U p\ 1: 1 C. THIS AMENDATORY LOAN AGREEMENT, dated as of the LI day of f ] 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 r ], Alaska, a duly constituted of the State (the "(City] [Borough]"): WITNESSETH: WHEREAS, pursuant to the Act, the Bank is authorized to issue bonds and loan money (the "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 was authorized to accept a Loan from the Bank, evidenced by its municipal bond; 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, and or refinance, municipal Loans, the Bank adopted its General Obligation Bond Resolution on July 13, 2005, as amended (the "General Bond Resolution"); 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 terns of the General Bond Resolution, prior to February 19, 2013, cease to be outstanding; and WHEREAS, the Bank made a Loan to the [City] [Borough] from proceeds of the Bank's Bonds, _ Series _ ("_ Series _ Bonds") in the amount of $ , evidenced by a Loan Agreement dated 1, _ (the "Loan Agreement") between the Bank and the [City] [Borough]; and WHEREAS, the Bank's _ Series_ Bonds were issued pursuant to the terms of the m Bank's General Bond Resolution, as aended and supplemented by a series resolution; and WHEREAS, as security for repayment of the Loan, the (City] (Borough] issued its Bond, _ Series _, dated (the "Municipal Bond's of which the Bank is the registered owner; and WHEREAS, the Bank has determined that refunding a portion of the _ Series _ Bonds will result in a debt service savings thereon and on the Municipal Bond; and AMBB12016 Series Three and Four Bonds Series Revolution No. 2016-05 Page C- 9 Resolution No. FY2017-10 Authorizing The Borough To Issue A WHEREAS, pursuant to the terms of the General Bond Resolution the Bank adopted Series Resolution No. 20_-_, approved on 20_ (the "Series Resolution" and, together with the General Bond Resolution, the "Bond Resolution") authorizing the issuance of its General Obligation and Refunding Bonds, 20_ Series _ (the "Refunding Bonds") to, in part, refund a portion of the Series _ Bonds; and WHEREAS, to effect the proposed refunding and resulting debt service savings on the _ Series _ Bonds and the Municipal Bond, and to conform the terns of the Loan Agreement to the current practices of the Bank, it is necessary to amend the terms of the Loan Agreement and the Municipal Bond as provided herein. NOW, THEREFORE, the parties agree as follows: 1. The Bank will refund a portion of the outstanding _ Series _ Bonds as provided in the Series Resolution. The amounts of the principal installments of the Municipal Bond corresponding to the refunded maturities of the —Series _ Bonds, and the interest payable thereon, shall be adjusted pro rata in accordance with the debt service payable on the Refunding Bonds. The Municipal Bond henceforth shall mature in the principal amounts and bear interest at the rates per annum as stated on Exhibit A appended hereto. 2. Section 2 of the Loan Agreement is amended to include the following paragraph: 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] Refunding [Ordinance] [Resolution]"), and has taken or will take all proceedings required by law to enable it to enter into this Amendatory Loan Agreement and issue its refunding Municipal Bond to the Bank and that the refunding 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] Refunding [Ordinance] [Resolution]. 3. The refunding Municipal Bond shall be subject to optional prepayment prior to maturity on and after the same date, and on the same terms as the Refunding Bonds may be subject to optional redemption. 4. Section [_] of the Loan Agreement is amended by replacing the current language with the following: 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 of the Bank's Official Statement, dated 20_, under the heading "Summaries of Borrowers Representing 10% or More of Outstanding Principal of Bonds Issued Under the 2005 Bond Resolution" to the Official Statement and attached hereto as Exhibit B. AMBB2016 Series Three and Four Bands series Paoluliun No. 2016.05 Page C-10 Resolution No. FY2017-10 Authorizing The Borough To Issue A The [City] [Borough] further 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 purpose of Securities and Exchange Commission Rule 15c2-12, adopted under the Securities and Exchange Act of 1934. A new Section _ is added to the Loan Agreement, as follows: The [City] [Borough] agrees that it shall file, on an annual basis, its audited financial statement with the Municipal Securities Rulemaking Board not later than two hundred ten (2 10) days after the end of each fiscal year of the [City] [Borough] for the tens of the Municipal Bond and any refunding Municipal Bond. The [City] [Borough] agrees filings under this Section _ shall be made in connection with CUSIP Nos. 01179P, 011798 and 01179R. 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). 6. A new Section _ is added to the Loan Agreement, as follows: 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 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 Bank upon request. 7. A new Section _ is added to the Loan Agreement, as follows: 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, and that such fund shall be held in the name of the [City] [Borough] with the Trustee. The [City] [Borough] further agrees that the yield on amounts held in such debt service reserve account shall be restricted to a yield not in excess of percent. 8. A new Section _ is added to the Loan Agreement, as follows: (a) The [City] [Borough] hereby certifies that all Municipal Bond proceeds, except for those proceeds that are accounted for as transferred proceeds in the arbitrage certificate for its refunding Municipal Bond, have been expended prior to the date hereof. (b) The [City] [Borough] hereby certifies that all required rebate calculations relating to the Municipal Bond have been timely performed and the [City] [Borough] has remitted any necessary amount(s) to the Internal Revenue Service. AMBB12016 Series Three and Four Bonds Serin Rnolution No. 201605 Page C-1 I Resolution No. FY2017-10 Authorizing The Borough To Issue A (c) The [City] [Borough] hereby certifies that the Municipal Bond, or any portion thereof, has not previously been advance refunded. 9. A new Section _ is added to the Loan Agreement, as follows: Except as heretofore amended and as amended hereby, the Loan Agreement will remain in full force and effect so long as the Municipal Abligatiens@ remain outstanding. IN WITNESS WHEREOF, the parties hereto have executed this Amendatory Loan Agreement as of the date first set forth above. I:1W.V31I:iat110to] 17\g►77:W7 LE DEVIN MITCHELL Executive Director [CITY] [BOROUGH], ALASKA 0 Its: AMBE2016 Series Three andFour Bands Series Resolution No. 2016-05 Page C-12 Resolution No. FY2017-10 Authorizing The Borough To Issue A 11 ►. ME Ai.►r�{nil EXHIBIT A Alaska , Series _, As Amended on 20_ Principal Sum of S Principal Payment Date Principal Interest (---J-2L—) Amount Rats Principal installments shall be payable on I 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 1 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. AMBB12016 Surier Thme and Four Bonds Series Resolution No. 201605 Resolution No. FY2017-10 Authorizing The Borough To Issue A FORM OF ISSUE PRICE CERTIFICATE [, on behalf of itself and as representative (the "Representative") of and (collectively, the "Underwriters"),] purchaser[s] of the $ aggregate principal amount of Alaska Municipal Bond Bank General Obligation and Refunding Bonds, 2016 Series [Three/Four] (the "Bonds"), of the Alaska Municipal Band Bank, certify the following facts for purpose of determining the issue price of the Bonds: 1. Authorized Representative. The undersigned is the duly authorized representative of [the Underwriters[. 2. On , 2016 (the "Sale Date"), the Underwriters made a bona fide public offering of the Bonds to the public (excluding bond houses, brokers, and similar persons acting in the capacity of underwriters or wholesalers, "Public Buyers"), at the following reoffering prices expressed as a percentage of the principal amount (the "Initial Reoffering Prices"): Maturity Principal Amount Reoffering Price June 1,2017 (December 1) 3. On the Sale Date, based upon our assessment of market conditions, investor demand, sale and offering prices for comparable bonds, and the recent behavior of interest rates, the Underwriters] reasonably expected that the Initial Reoffering Prices could be a market clearing price for the Bonds of each maturity. On the Sale Date, the Initial Reoffering Prices did not exceed the fair market value of the Bonds. Based upon the Underwriter's[s'] records, the Initial Reoffering Prices were the first prices at which a substantial portion (at least 10%) of the Bonds of each maturity were sold to Public Buyers[, except that the Underwriter[s] did not sell a substantial portion of the Bonds maturing on December 1, _ at the Initial Reoffering Price to Public Buyers. AMBB/Series 2016 Three and Four Bonds Series Resolution No. 201605 I�iFe I�- Resolution No. FY2017-10 Authorizing The Borough To Issue A ... 4. These representations are provided to (i) Orrick, Herrington & Sutcliffe LLP and the Bond Bank to provide them with information concerning the Bonds; (ii) [ ], in each case for purposes of formulating their opinions in respect of such municipal bonds, and are not to be used or relied upon by any other person. The Underwriter[s] express[es] no view regarding the legal sufficiency or the correctness of any legal interpretation made by bond counsel, and nothing herein represents the Underwriter's[s'] interpretation of any laws or regulations under the Internal Revenue Code of 1986, and the Underwriter[s] expresses] no view regarding the legal sufficiency of any representations made herein. Dated 2016 [Name of Underwriter/Representative] 0Z AMBB/Scriev 2016 Three and Pour Bonds Series Resolution No. 2016-05 Resolution No. FY2017-10 Authorizing The Borough To Issue A Page D. 2 Document comparison by Workshare Compare on Monday, August 29, 2016 2:36:42 PM Count Input: 130 Deletions 119 Document 1 ID interwovenSite://NCUSADMS01/USA/76564925913 Standard 35 Description 765649259v3<USA> -Bond Bank Resolution for Series Format changed 0 Total changes 016 GO and Refunding Bonds Document 2 ID C:\NRPortbl\USAIAMT\765649259 4.docx Description t C:\NRPorMayed Legend: nDplpt;Anr Rem IYlo Alp Style change Format change mer., �i�.:,..r Inserted cell Deleted cell Moved cell Split/Merged cell Padding cell Statistics: Count Insertions 130 Deletions 119 bl\USA\AMT\765649259 4.docx Rendering set Standard Statistics: Count Insertions 130 Deletions 119 Moved from 35 Moved to 35 Style change 0 Format changed 0 Total changes 319 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... FP DRAFT 8/31/16 PRELIMINARY OFFICIAL STATEMENT DATED SEPTEMBER 28, 2016 New Issue Ratings: See "RATINGS" Book -Entry Only In the opinion of Orrick Herrington & Sutcliffe LLP, Bond Counsel, based upon an analysis of existing laws, regulations, rulings and court decisiony, and assuming, among other matters, the accuracy of certain representations and compliance with certain covenants, interest an the 1016 Series Three and Four Bonds is excluded fmm grass income forfederal income tax purposes under Section 103 of the Internal Revenue Cade of 1986, except that no opinion is expressedus, to the status of interest on any 1016 Series Four Bondfor any period that such 1016 Series Four Bond is held by a "substantial user" ofthe facilities financed or refinanced by the 2016 Series Four Bonds or by a "related person" within the meaning of Section 197(a) of the Internal Revenue Code of 1986. Bond Counsel observes, however, that interest on the 2016 Series Four Bonds is a specific preference item for purposes of the federal individual and corporate alternative minimum taxes. In the farther opinion of Bond Contract, interest on the 2016 Series Three Bandy is not a specific preference item far purposes of the federal individual or corporate alternative minimum taxes, although Bond Coumel observes that such interest is included in adjusted current earnings when calculating corporate alternative minimum taxable income. Bond Counsel also is of the opinion based upon existing laws of the State of Alaska that interest on the 1016 Series 77iree and Four Bond, is exempt fmm taxation by the State except for trumfer, inheritance and estate taxes. See "T1x6L4=.. " Alaska Municipal Bond Bank $j_�j" General Obligation and Refunding Bonds, 2016 Series Three �`rNa A $1_] General Obligation and Refunding Bonds, 2016 Series Four (AMT) Dated: Date of Delivery Due: December 1, as shown on inside cover The Aloha Municipal Bond Bank (the "Bond Bank") is issuing $[ j. aggregate principal amount of its General Obligation and Refunding Bonds, 2016 Series Three (the "2016 Series Three Bonds"), and $[ . aggregate principal amount of its General Obligation and Refunding Bonds, 2016 Series Four (the "2016 Series Four Bonds," and together with the 2016 Series Three Bonds, the "2016 Series Three and Four Bonds'). The 2016 Series Three and Four Bonds initially will be issued as fully registered bonds, in book -entry form only, registered in the name of Cede & Co., as nominee of The Depository Trust Company ("DTC"), which will serve as depository for the 2016 Series Three and Four Bonds. Individual purchases of the 2016 Series Three and Four Bonds of each series will be made in principal amounts of $5,000 or integral multiples thereof within a maturity. Purchasers of the 2016 Series Three and Four Bonds will not receive certificates representing their beneficial ownership interests in the 2016 Series Three and Four Bonds. Interest on the 2016 Series Three and Four Bonds will acerae from the date of delivery of the 2016 Series Three and Four Bonds, or from the most recent interest payment dale to which interest has been paid, and is payable on each June 1 and December 1, commencing December 1, 2016. The Bank of New York Mellon Trust Company, N.A., of San Francisco, California, as the Trustee and Paying Agent for the 2016 Series Three and Four Bonds, will make principal and interest payments to DTC. Disbursement of such payments to DTC Participants is the responsibility of DTC. Disbursement of such payments to the Beneficial Owners is the responsibility of DTC Participants. The 2016 Series Three and Four Bonds are subject to redemption prior to their stated maturity dates. The 2016 Series Three and Four Bonds are direct and general obligations of the Bond Bank, and the full faith and credit of the Bond Bank we pledged to the payment of the principal of and interest on the 2016 Series Three and Four Bonds, subject to any agreements made with the holders of any other notes or bonds of the Bond Bank pledging any particular revenues or assets not pledged under the 2005 Master Bond Resolution. The 2016 Series Three and Four Bonds use payable solely from the sources provided in the Bond Resolution. The 2016 Series Three and Four Bonds are equally and ratably secured by the pledge and assignment of all Municipal Bonds acquired by the Bond Bank under the 2005 Master Bond Resolution on a purity with other Bonds of the Bond Bank issued under the 2005 Master Bond Resolution. The 2016 Series Three and Four Bonds are the 36th and 37th series of Bonds issued under the 2005 Master Bond Resolution. The 2016 Series Three and Four Bonds do not constitute a debt or other liability of the State of Alaska, and the 2016 Series Three and Four Bands do not directly, indirectly or contingently obligate the State of Alaska to levy any form of taxation or make any appropriation for the payment of the 2016 Series Three and Four Bonds. Neither the faith and credit nor the taxing power of the State of Alaska is pledged for the payment of the 2016 Series Three and Four Bonds. The Bond Bank has no taxing power. The 2016 Series 7hree and Four Bonds are offered when, as and if issued, subject to the approving legal optniotts of Orrick Herrington & Sulciffe LLP, Bond Counsel to the Bond Bank. Certain legal matters will be passed upon for the Governmental Units by their respective bond counsel and for the Underwriters by their special counsel, Foster Pepper PLLC, Seattle, Washington. It is expected that the 2016 Series Three and Four Bonds in definitive form will be issued and available for delivery through the facilities of DTC in New York, New York, on or about November 3, 2016. Preliminary, subject to change. Resolution No. FY2017-10 Authorizing The Borough To Issue A ... RBC Capital Markets BofA Merrill Lynch (Co -Manager for the 2016 Series Three Bonds) October_, 2016, Resolution No. FY2017-10 Authorizing The Borough To Issue A ... anew s2 rag, Goldman, Sachs & Co. (Co -Manager for the 2016 Series Four Bonds) VOMITNY M�. 4"' ALASKA MUNICIPAL BOND BANK $[[- General Obligation and Refunding Bonds, 2016 Series Three Due* Principal Interest Price or CUSIP No. (December 1) Amount* Rate Yield 01179R S[ I- General Obligation and Refunding Bonds, 2016 Series Four (AMT) Due* Principal Interest Price or CUSIP No. (December 1) Amount* Rate Yield 01179R Preliminary, subject to change. Resolution No. FY2017-10 Authorizing The Borough To Issue A ... � � - 2 C XHT1 ALASKA MUNICIPAL BOND BANK 333 Willoughby Avenue, I Ith Floor P.O. Box 110405 Juneau, Alaska 99811-0405 (907)465-2388 www.treasury.dor.alaska.gov/ambba/ Board of Directors Mark Pfeffer Chair Luke Welles Vice Chair Gregory Gursey Member Chris Hladick Member (Michael Lamb First Delegate to Chris Hladick) Randall Hoffbeck Member (Pamela Leary First Delegate to Randall Hoffbeck) Executive Director Deven J. Mitchell Finance Director Ryan S. Williams Bond Counsel Orrick, Herrington & Sutcliffe LLP Seattle, Washington Trustee The Bank of New York Mellon Trust Company, N.A. San Francisco, California Municipal Advisor Western Financial Group, LLC Portland, Oregon Resolution No. FY2017-10 Authorizing The Borough To Issue A... FEW e . 'LNT-277K � a �...I No dealer, broker, salesperson, or other person has been authorized by the Bond Bank or the Underwriters to give any information or to make any representations with respect to the 2016 Series Three and Four Bonds other than those contained in this Official Statement and, if given or made, such information or representations must not be relied upon as having been authorized by the Bond Bank or the Underwriters. This Official Statement does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of the 2016 Series Three and Four Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information in this Official Statement has been compiled from official and other sources the Bond Bank considers reliable and, while not guaranteed as to accuracy, which the Bond Bank believes to be correct as of its date. The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made by use of this Official Statement shall, under any circumstances, create any implication that there has been no change in the affairs of the University since the date hereof. Information on website addresses set forth in this Official Statement is not incorporated into this Official Statement and cannot be relied upon to be accurate as of the date of this Official Statement, nor should any such information be relied upon in making investment decisions regarding the 2016 Series Three and Four Bonds. The Underwriters have provided the following sentence for inclusion in this Official Statement. The Underwriters have reviewed the information in this Official Statement in accordance with, and as part of, their respective responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriters do not guarantee the accuracy or completeness of such information. The 2016 Series Three and Four Bonds have not been registered under the Securities Act of 1933, as amended, and the Bond Resolution has not been qualified under the Trust Indenture Act of 1939, as amended, in reliance upon exemptions contained in such acts. The 2016 Series Three and Four Bonds have not been recommended by any federal or state securities commission or regulatory authority. The foregoing authorities have not confirmed the accuracy or determined the adequacy of this Official Statement. Any representation to the contrary may be a criminal offense. Certain statements contained in this Official Statement reflect not historical facts but forecasts and "forward-looking statements." The words "estimate," "project," "anticipate," "expect,' "intend," "believe," "plan," "budget," "forecast," "assume," and similar expressions are intended to identify forward-looking statements. The achievement of certain results or other expectations contained in forward-looking statements involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements described to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based upon underlying assumptions, many of which in tum are based upon further assumptions. No assurance can be given that the future results or plans discussed herein will be achieved and actual results may differ, perhaps materially, from the plans, budgets, assumptions, forecasts and projections described herein. Except for the historical information included in the continuing disclosure undertaking of the Bond Bank, the Bond Bank does not plan to issue any updates or revisions to those forward- looking statements. CUSIP is a registered trademark of the American Bankers Association, CUSIP numbers herein (Copyright 2016, CUSIP Global Services) are provided by CUSIP Global Services ("CGS"). CGS is managed on behalf of the American Bankers Association by S&P Capital IQ. These CUSIP numbers are not intended to create a database and do not serve in any way as a substitute for the CGS database. The CUSIP numbers herein are provided for convenience of reference only. CUSIP numbers are subject to change. Neither the Bond Bank nor the Underwriters nor their agents or advisors takes any responsibility for the accuracy of such CUSIP numbers. Resolution No. FY2017-10 Authorizing The Borough To Issue A TABLE OF CONTENTS INTRODUCTION...................................................1 19 General...........................................................1 19 Alaska Municipal Bond Bank........................2 19 PURPOSE OF THE 2016 SERIES THREE AND 19 FOUR BONDS..................................................3 Purpose of the 2016 Series Three and 28 Four Bonds.................................................3 SOURCES AND USES OF FUNDS ..........................5 DESCRIPTION OF THE 2016 SERIES THREE AND FOUR BONDS..........................................6 General Description.......................................6 2016 Series Three and Four Bonds................6 Optional Redemption.....................................6 43 Mandatory Sinking Fund Redemption ........... 7 Notice of Redemption....................................7 50 Selection of 2016 Series Three and Four 59 Bonds for Redemption...............................8 59 SECURITY AND SOURCES OF PAYMENT FOR 60 THEBONDS.....................................................8 60 General........................................................... 8 Pledge Effected by the 2005 Master 61 Bond Resolution.........................................9 63 Municipal Bonds............................................9 63 2005 Master Bond Resolution Reserve Fund......................................................... 10 State Payments.............................................12 Pledge of the State........................................12 ALASKA MUNICIPAL BOND BANK ................... 12 Organization.................................................12 Boardof Directors........................................13 65 Management.................................................14 65 BONDS OUTSTANDING ..................................... 14 DEBT CAPACITY ............................................... 17 DEBT SERVICE REQUIREMENTS ....................... 18 Future Financing Plans.................................19 Debt Payment Record .................................. 19 STATE OF ALASKA ........................................... 19 General......................................................... 19 State Government ........................................ 19 StateRevenues.............................................20 Government Budgets and Appropriations ... 28 Government Funds.......................................31 Restricted Revenue Forecast ........................36 General Fund Forecasts...............................37 General Fund Expenditure Trends...............38 Fiscal Year 2017 I0 -Year Plan....................39 Public Debt and Other Obligations of the State......................................................... 43 SUMMARY OF THE 2005 MASTER BOND RESOLUTION ................................................ 50 LITIGATION...................................................... 59 CERTAIN LEGAL MATTERS .............................. 59 UNDERWRITING ............................................... 60 MUNICIPAL ADvisoR....................................... 60 FINANCIAL STATEMENTS ................................. 61 TAx MATTERS ................................................. 61 RATINGS........................................................... 63 CONTINUING DISCLOSURE UNDERTAKINGS.... 63 Bond Bank Continuing Disclosure Undertaking............................................. 63 Governmental Unit Continuing Disclosure Undertakings ..........................64 Compliance with Prior Continuing Disclosure Undertakings ..........................64 SOURCES OF CERTAIN INFORMATION .............. 65 DEFINITIONS.................................................... 65 OFFICIAL STATEMENT ..................................... 67 Appendix A — Proposed Forms of Opinions of Bond Counsel Appendix B — State Payments to Governmental Units Appendix C — Governmental Unit Statistics Regarding Participation in the Bond Bank Appendix D — Summaries of Borrowers Representing Ten Percent or More of Outstanding Principal of Bonds Issued Under the 2005 Master Bond Resolution Appendix E — Financial Statements of the Bond Bank for the Year Ended June 30, 2015 Appendix F — 2005 Master Bond Resolution and 2013 First Supplemental Resolution Appendix G — Proposed Form of Continuing Disclosure Certificate Appendix H — DTC and its Book -Entry System Resolution No. FY2017-10 Authorizing The Borough To Issue A OFFICIAL STATEMENT ALASKA MUNICIPAL BOND BANK $1-1 General Obligation and Refunding Bonds, 2016 Series Three $1-1* General Obligation and Refunding Bonds, 2016 Series Four (AMT) INTRODUCTION General This Official Statement is furnished by the Alaska Municipal Bond Bank (the "Bond Bank") in connection with the sale of $[ j. principal amount of its General Obligation and Refunding Bonds, 2016 Series Three (the "2016 Series Three Bonds"), and $[ . principal amount of its General Obligation and Refunding Bonds, 2016 Series Four (the "2016 Series Four Bonds," and together with the 2016 Series Three Bonds, the "2016 Series Three and Four Bonds"), to provide information regarding the Bond Bank and the 2016 Series Three and Four Bonds. The Bond Bank was created pursuant to Alaska Statutes 44.85.005 — 44.85.420, as amended (the "Act"), for the primary purpose of lending money to eligible borrowers in the State of Alaska (the "State"), including the purchase of bonds and promissory notes issued by such borrowers. Certain capitalized terms used in this Official Statement, and not otherwise defined herein, are defined in the General Obligation Bond Resolution, adopted by the Board of Directors of the Bond Bank on July 13, 2005, as amended (the "2005 Master Bond Resolution'). A copy of the 2005 Master Bond Resolution is set forth in Appendix F. The 2016 Series Three and Four Bonds are direct and general obligations of the Bond Bank, and the full faith and credit of the Bond Bank are pledged to the payment of the principal of and interest on the 2016 Series Three and Four Bonds, subject to any agreements made with the holders of any other notes or bonds of the Bond Bank pledging any particular revenues or assets not pledged under the 2005 Master Bond Resolution. The 2016 Series Three and Four Bonds are payable solely from the sources provided in the Bond Resolution. The 2016 Series Three and Four Bonds are equally and ratably secured by the pledge and assignment of all Municipal Bonds acquired by the Bond Bank under the 2005 Master Bond Resolution on a parity with other Bonds of the Bond Bank heretofore or hereafter issued under the 2005 Master Bond Resolution. The 2016 Series Three and Four Bonds are the 36th and 37th series of Bonds issued under the 2005 Master Bond Resolution. The 2016 Series Three and Four Bonds do not constitute a debt or other liability of the State of Alaska, and the 2016 Series Three and Four Bonds do not directly, indirectly or contingently obligate the State of Alaska to levy any form of taxation or make any appropriation for the payment of the 2016 Series Three and Four Bonds. Neither the faith and credit nor the taxing power of the State of Alaska is pledged for the payment of the 2016 Series Three and Four Bonds. The Bond Bank has no taxing power. See "SECURITY AND SOURCES OF PAYMENT FOR THE BONDS." All references herein to agreements and documents are qualified in their entirety by reference to the definitive forms thereof, and all references to the 2016 Series Three and Four Bonds are further Preliminary, subject to change. Resolution No. FY2017-10 Authorizing The Borough To Issue A ... qualified by reference to the provisions with respect thereto contained in Series Resolution No. 2016-05, adopted by the Board of Directors of the Bond Bank (the "Board") on September 6, 2016 (together with the 2005 Master Bond Resolution, the "Bond Resolution"). All bonds issued under and pursuant to the terms of the 2005 Master Bond Resolution are referred to as the "Bonds." On February 19, 2013, the Board adopted a First Supplemental Resolution that amends certain provisions of the 2005 Master Bond Resolution effective as of the first date on which all Bonds issued prior to February 19, 2013 are no longer Outstanding. Holders and beneficial owners from time to time of the 2016 Series Three and Four Bonds are deemed to have consented to all of the amendments authorized in the 2013 First Supplemental Resolution. See "SUMMARY OF THE 2005 MASTER BOND RESOLUTION — Modifications to the 2005 Master Bond Resolution" and Appendix F — "2005 MASTER BOND RESOLUTION AND 2013 FIRST SUPPLEMENTAL RESOLUTION." Appendix D contains financial, economic and demographic summary information relating to the Governmental Units whose Municipal Bonds represent ten percent or more of the Loan Obligations outstanding under the 2005 Master Bond Resolution. Alaska Municipal Bond Bank The Band Bank is a public corporation of the State and an instrumentality of the State established and organized by the Act in 1975 within the State of Alaska Department of Revenue (the "DOR"), initially to assist municipalities in the State by lending money and purchasing bonds (initially general obligations and now including revenue obligations and other debt instruments) issued by municipalities, to assist municipalities in accessing the financial markets. The Act is modified from time to time, and also provides authority to finance loans to port authorities, electrical generation projects, hydroelectric projects, the Alaska Municipal League Joint Insurance Association, the University of Alaska and, most recently, joint action agencies and regional health organizations. The bonds issued by the Bond Bank to finance loans to Governmental Units are issued primarily pursuant to the 2005 Master Bond Resolution. Bonds may be issued by the Bond Bank pursuant to the 2005 Master Bond Resolution only to finance loans to Governmental Units that were eligible for such assistance as of July 13, 2005. The Bond Bank provides capital funds for eligible borrowers primarily through loans and by issuing its bonds and notes to finance such loans under conditions set forth in the Act and the administrative regulations thereunder (Chapter 144 of the Alaska Administrative Code). The Bond Bank generates funds to make such loans primarily by selling bonds on the national market and using the proceeds to purchase bonds from eligible borrowers within the State. Loan payments by Governmental Units to the Bond Bank provide the primary source of funds for payment of principal of and interest on the Bonds, including the 2016 Series Three and Four Bonds. The Bond Bank is administered by staff that is shared with the DOR. A board of five directors authorizes the Bond Bank's actions such as issuing bonds and approving loans. See "ALASKA MUNICIPAL BOND BANK." Although payments made by the Governmental Units on their Municipal Bonds are the primary security for the payment of principal of and interest on the Bonds, including the 2016 Series Three and Four Bonds, the Bond Bank also maintains a Reserve Fund as additional security for the payment of the Bonds. The Bond Bank is authorized under the Act to seek from the Legislature replenishments for the Reserve Fund if needed. See "SECURITY AND SOURCES OF PAYMENT FOR THE BONDS — 2005 Master Bond Resolution Reserve Fund." For information regarding the State of Alaska, see "STATE OF ALASKA." Resolution No. FY2017-10 Authorizing The Borough To Issue A !a a . s iP 2 .. og, PURPOSE OF THE 2016 SERIES THREE AND FOUR BONDS Purpose of the 2016 Series Three and Four Bands 1016 Series Three Bonds. The 2016 Series Three Band proceeds are to be used: (i) to make a loan to the City and Borough of Juneau; (ii) to refund bonds previously issued by the Bond Bank; and (iii) to pay a portion of the costs of issuing the 2016 Series Three Bonds. The loan to the City and Borough of Juneau is to be used for the following purposes: (i) to pay a portion of the costs of renovations to the Capital Transit maintenance shop; and (ii) to refund bonds previously issued by the City and Borough of Juneau. 1016 Series Four Bonds. The 2016 Series Four Bond proceeds are to be used: (i) to make a loan to the City of Ketchikan; (ii) to refund bonds previously issued by the Band Bank; and (iii) to pay a portion of the costs of issuing the 2016 Series Four Bonds. The loan to the City of Ketchikan is to be used to pay a portion of the costs of improvements to harbor facilities in the City of Ketchikan. Refunding Pian. Subject to market conditions, certain proceeds of the 2016 Series Three and Four Bonds are to be used to refund and redeem all or a portion of the outstanding bonds of the Bond Bank set forth below (as so refunded, the "Refunded Bonds"): REFUNDED BONDS Maturity Principal Interest Redemption Redemption CUSIP Series Date Amount Rate Date Price Number 2006 Two la 12/01/2021 $ 5,430,000 5.50% 12/ 2016 100% 01179P QK6 2006 Two (1) 12/01/2026 7,095,000 5.50 12i—/2016 100 01179P QQ3 2006 Two (1) 12/01/2031 9,180,000 5.00 12i—/2016 t00 01179P QRl 2006 Two (1) 12/012035 10,905,000 5.00 12/_2016 100 01179P QS9 2007 One 121 12/012017 1,515,000 5.00 12/ 2016 100 01179P 5K9 2007 One (2) 12/012017 1,285,000 4.125 12i—/2016 100 01179P 5J2 2007 One (2) 12/012018 1,915,000 5.00 12/ 2016 100 01179P 5M5 2007 One (2) 12/012018 1,430,000 4.125 12//2016 100 01179P 5L7 2007 One 12/012019 1,760,000 4.00 12//2016 100 01179P 5N3 2007 One 12/012020 2,320,000 4.125 12/_2016 100 01179P RK5 2007 One 12/022021 425,000 4.25 12/ 2016 100 01179P RL3 2007 One (1) 12/012026 580,000 4.375 12/_2016 100 OI 179P RMI 2007 Two 12/012017 940,000 4.00 12//2016 100 01179P SL2 2007 Two 12/012018 1,030,000 5.00 12//2016 100 01179P SMO 2007 Two 12/012019 1,105,000 5.00 12//2016 100 01179P SNS 2007 Two 12/012020 1,830,000 5.00 12//2016 100 01179P SP3 2007 Two 12/012021 1,925,000 4.00 12/2016 100 01179P SQI 2007 Two 12/01/2022 2,270,000 4.00 121/2016 100 OI 179P SR9 2007 Two 12/012023 2,525,000 4.50 12//2016 100 01179P SS7 2007 Two 12/01/2024 1,910,000 4.125 12/ 2016 100 01179P ST5 2007 Two (1) 12/012026 4,200,000 4.50 12/ 2016 100 01179P SU2 2007 Two (1) 12/012028 5,340,000 4.50 12/_2016 100 01179P SVO 2007 Three I0 9/012022 1,005,000 5.00 9/012017 100 01179R LM3 2007 Three of 9/012027 1,290,000 5.00 9/012017 100 01179R LNI 3 Resolution No. FY2O17-10 Authorizing The Borough To Issue A Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Maturity Principal Interest Redemption Redemption CUSIP Series Date Amount Rate Date Price Number 2007 Five 9/01/2018 135,000 6.00 9/01/2017 100 01179P VS3 2007 Five 9/012019 145,000 4.00 9/012017 100 01179P VT1 2007 Five 9/012020 150,000 4.125 9/012017 100 01179P VUS 2007 Five 9/012021 160,000 4.25 9/012017 100 01179P VV6 2007 Five 9/012022 165,000 4.30 9/012017 too 01179PVW4 2007 Five 9/012023 175,000 4.40 9/012017 100 01179P VX2 2007 Five 9/012024 180,000 4.50 9/01/2017 100 01179P VYO 2007 Five 9/012025 190,000 4.50 9/01/2017 100 01179P VZ7 2007 Five 9/012026 200,000 4.50 9/01/2017 100 01179P WAI 2007 Five 9/01/2027 205,000 4.625 9/01/2017 100 01179P WB9 2007 Five 9/012028 215,000 4.625 9/01/2017 100 01179P WC7 2007 Five 9/012029 285,000 4.625 9/012017 100 01179P WD5 2007 Five 9/012030 300,000 4.75 9/012017 100 01 179P WE3 2007 Five 9/012031 315,000 4.75 9/012017 100 Ol 179P WFO 2007 Five 9/012032 330,000 4.75 9/012017 100 01179P WOS 2007 Five (1) 9/012037 1,910,000 4.75 9/01/2017 100 01179P WM5 2008 One (3)i4t 4/012017 370,000 4.00 4/01/2017 100 01179P WW3 2008 One (3)(4) 4/012018 380,000 4.00 4/01/2018 100 01179P WX1 2008 One 4/01/2019 1,345,000 4.00 4/01/2018 100 01179R PT4 2008 One 4/01/2020 1,400,000 4.25 4/012018 100 01179RPUI 2008 One 4/01/2021 1,460,000 4.25 4/01/2018 100 01179RPV9 2008 One 4/01/2022 1,520,000 4.375 4/012018 t00 01179R PW7 2008 One 4/01/2023 2,675,000 4.50 4/012018 t00 01179RPX5 2008 One 4/012024 1,655,000 4.70 4/012018 100 01179R PY3 2008 One 4/01/2025 1,740,000 4.80 4/012018 100 01179R PZO 2008 One 4/012026 1,825,000 4.90 4/012018 100 01179R QA4 2008 One 4/012027 1,915,000 5.00 4/012018 100 011798 QB2 2008 One 4/012028 3,145,000 5.00 4/012018 100 01179R QC0 2008 One 4/01/2029 305,000 5.00 4/012018 100 01 179R QD8 2008 One P1 4/01/2033 1,390,000 5.10 4/01/2018 100 01179R QE6 2008 One P1 4/01/2038 2,185,000 5.20 4/01/2018 100 01179P XL6 2008 Two 6/012019 245,000 4.40 6/012018 100 01 I79R QQ9 2008 Two 6/012020 260,000 4.50 6/012018 100 01 I79R QR7 2008 Two 6/01/2021 270,000 4.60 6/012018 100 01179R QS5 2008 Two 6/012022 285,000 4.70 6/012018 too 01179R QT3 2008 Two 6/012023 695,000 4.75 6/012018 100 011798 QUO 2008 Two 6/012024 310,000 4.80 6/012018 100 011798 QV8 2008 Two 6/012025 325,000 4.85 6/012018 100 OI 1798 QW6 2008 Two 6/012026 340,000 4.90 6/012018 100 01179R QX4 2008 Two t1t 6/012028 1,150,000 5.00 6/01/2018 100 011798 QY2 4 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Maturity Principal Interest Redemption Redemption CUSIP Series Date Amount Rate Date Price Number 2009 One 9/012019 25,000 5.00 9/01/2018 100 01179R JD6 2009 One 9/01/2020 25,000 5.00 9/012018 100 01179R JE4 2009 One 9/012021 30,000 5.00 9/012018 100 01179R JFI 2009 One 9/012022 30,000 5.00 9/012018 100 01179RJG9 2009 One 9/01/2023 215,000 5.25 9/012018 100 01179R JI -17 2009 One 9/012024 30,000 5.25 9/012018 100 01179R JJ3 2009 One 9/012025 35,000 5.375 9/012018 100 01179R JKO 2009 One 9/012026 35,000 5.50 9/012018 100 01179R JL8 2009 One 9/012027 40,000 5.50 9/012018 100 01179R JM6 2009 One 9/012028 235,000 5.50 9/012018 100 01179R JN4 2009 One 9/012029 40,000 5.625 9/01/2018 100 01179R JP9 2009 One t1t 9/01/2033 195,000 5.75 9/01/2018 100 011798 1Q7 2009 One tit 9/012037 245,000 5.875 9/01/2018 100 01179PZRI Total $102,640,000 (I) Term Bonds. (2) Bifurcated maturity. (3) Defeased to maturity. (4) Partial maturity. $1,810,000 principal amount of the 2017 maturity and $2,920,000 of the 2018 maturity will remain outstanding. Certain proceeds of the 2016 Series Three and Four Bonds, together with other legally available funds, are to be deposited in a redemption account (the "Redemption Account") to be held by The Bank of New York Mellon Trust Company, N.A., San Francisco, California. Certain proceeds deposited in the Redemption Account are to be invested in noncallable direct obligations of the United States of America. The money and investments in the Redemption Account are to be used to pay interest on the Refunded Bonds when due and, on each maturity or redemption date, the principal of the Refunded Bonds when due. The mathematical accuracy of the (i) computations of the adequacy of the maturing principal amounts of and interest on the investments and of other money in the Redemption Account to pay principal of and interest on the Refunded Bonds as described above, and (ii) the computations supporting the conclusion that the 2016 Series Three and Four Bonds are not "arbitrage bonds" under Section 148 of the Code are to be verified by , independent certified public accountants. SOURCES AND USES OF FUNDS The table below sets forth the sources and uses of funds related to the 2016 Series Three and Four Bonds. 5 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Sources: Principal Amount Original Issue Premium/(Discount) Prior Reserves Bond Bank Contribution Total Sources 2016 Series Three 2016 Series Four Uses: Deposit to Redemption Account $ Loan to City and Borough of Juneau Loan to City of Ketchikan Deposit to Reserve Fund Costs of Issuance cn _ Total Uses $ Total (1) Includes Bond Bank and Governmental Unit costs of issuance such as Underwriters' discount, legal fees, financial advisory fees, rating agency fees, Trustee fees, accounting, printing and other costs of issuance of the 2016 Series Three and Four Bonds. DESCRIPTION OF THE 2016 SERIES THREE AND FOUR BONDS General Description The 2016 Series Three and Four Bonds are issuable only as fully registered bonds, registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York ("DTC"), as securities depository for the 2016 Series Three and Four Bonds. Principal of and interest on the 2016 Series Three and Four Bonds are payable by The Bank of New York Mellon Trust Company, N.A., of San Francisco, California, as Trustee under the 2005 Master Bond Resolution, to DTC which, in tum, is obligated to disburse such principal and interest payments to its participants (the "DTC Participants") in accordance with DTC procedures. See Appendix G— "DTC AND ITS BOOK -ENTRY SYSTEM." 2016 Series Three and Four Bonds The 2016 Series Three and Four Bonds mature, subject to prior redemption, on the dates and bear interest at the rates set forth on the inside cover page of this Official Statement. The 2016 Series Three and Four Bonds of each series are issuable in denominations of $5,000 or any integral multiple thereof within a maturity. Interest on the 2016 Series Three and Four Bonds will accrue from the date of delivery of the 2016 Series Three and Four Bonds, or from the most recent interest payment date to which interest has been paid, and is payable on each June 1 and December 1, commencing December 1, 2016. Optional Redemption The 2016 Series Three and Four Bonds maturing on or after December 1, . are subject to redemption in whole or in part at the option of the Bond Bank on any date on or after at a price of 100 percent of the principal amount thereof to be redeemed plus accrued interest to the date fixed for redemption. The Governmental Units' loans have the same optional redemption provisions associated with the 2016 Series Three and Four Bonds. Resolution No. FY2017-10 Authorizing The Borough To Issue A Mandatory Sinking Fund Redemption The 2016 Series Three Bonds maturing on December 1, _, are subject to mandatory sinking fund redemption on December 1 of the years and in the principal amounts set forth in the following table. Any such redemption will be at a price equal to 100 percent of the principal amount to be redeemed plus accrued and unpaid interest thereon to the date fixed for redemption, but without premium. 2016 Series Three Term Bonds Due Year Principal Amount * * Maturity. The 2016 Series Four Bonds maturing on December 1, are subject to mandatory sinking fund redemption on December I of the years and in the principal amounts set forth in the fallowing table. Any such redemption will be at a price equal to 100 percent of the principal amount to be redeemed plus accrued and unpaid interest thereon to the date fixed for redemption, but without premium. 2016 Series Four Term Bonds Due Year Principal Amount * * Maturity. Notice of Redemption The 2005 Master Bond Resolution provides that at least 20 days, but not more than 60 days, prior to the date upon which any 2016 Series Three and Four Bonds are to be redeemed, the Trustee will mail a notice of redemption to the registered owner (DTC so long as all of the 2016 Series Three and Four Bonds are held under the DTC book -entry system) of any 2016 Series Three and Four Bond all or a portion of which is to be redeemed, at the owner's last address appearing on the registration books of the Bond Bank kept by the Trustee. So long as all of the 2016 Series Three and Four Bonds are held under the DTC book -entry system, such notice will be sent only to DTC, and any notice to the beneficial owners of the 2016 Series Three and Four Bonds will be the responsibility of DTC Participants. Neither the Bond Bank nor the Trustee will mail redemption notices to the beneficial owners. The 2005 Master Bond Resolution provides that notice of redemption is required to state that on the redemption date the redemption price will become due and payable on each Series 2016 Three and Four Bond called for redemption, and that interest thereon will cease to accrue from and after such date. The 2005 Master Bond Resolution provides that if at the time of mailing any notice of redemption, money sufficient to redeem the 2016 Series Three and Four Bonds to be redeemed is not on 7 Resolution No. FY2017-10 Authorizing The Borough To Issue A deposit with the Trustee, the notice is required to state that the redemption is subject to the deposit of the redemption money with the Trustee and that the notice will be of no effect unless such money is so deposited. Selection of 2016 Series Three and Four Bonds for Redemption If fewer than all of the 2016 Series Three and Four Bonds are to be redeemed prior to maturity, the Bond Bank may select the maturity or maturities to be redeemed at the option of the Bond Bank. If, at the time notice of redemption is given the 2016 Series Three and Four Bonds are in book -entry form, then DTC will select the 2016 Series Three and Four Bonds for redemption within a maturity of a series in accordance with the Letter of Representations. The 2005 Master Bond Resolution provides that if less than all of the Bonds of any maturity of a series are called for redemption and the Bonds are not in book - entry form, the Bonds to be redeemed are to be selected by lot by the Trustee or in any manner as the Trustee, in its sole discretion, may deem appropriate and fair. See Appendix G— "DTC AND ITS BOOK - ENTRY SYSTEM." SECURITY AND SOURCES OF PAYMENT FOR THE BONDS General The Bonds, including the 2016 Series Three and Four Bonds, are direct and general obligations of the Bond Bank, and the full faith and credit of the Bond Bank are pledged to the payment of the principal of and interest on the Bonds, subject to any agreements made with the holders of any other notes or bonds of the Bank pledging any particular revenues or assets not pledged under the 2005 Master Bond Resolution. The 2016 Series Three and Four Bonds are payable solely from the sources provided in the Bond Resolution. The 2016 Series Three and Four Bonds do not constitute an indebtedness or other liability of the State of Alaska, and the 2016 Series Three and Four Bonds do not directly, indirectly or contingently obligate the State of Alaska to levy any form of taxation or make any appropriation for the payment of the 2016 Series Three and Four Bonds. As provided in the Act, the Bond Bank is obligated to pay the principal of and interest on the Bonds only from revenues or funds of the Bond Bank, and the State of Alaska is not obligated to pay the principal of or the interest on the Bonds, including the 2016 Series Three and Four Bonds. Neither the faith and credit nor the taxing power of the State of Alaska is pledged for the payment of the 2016 Series Three and Four Bonds. The Bond Bank has no taxing power. As of [September 1], 2016, the Bond Bank has outstanding Sr.. of Bonds issued under the 2005 Master Bond Resolution, $4,010,000 of bonds issued under its 2010 Master Bond Resolution and $44,135,000 of bonds issued under its 2016 Master Bond Resolution. See "BONDS OUTSTANDING." As additional security for payment of principal of and interest on the 2016 Series Three and Four Bonds and the other Bonds issued under the 2005 Master Bond Resolution, the Bond Bank has established a common Reserve Fund. See "2005 Master Bond Resolution Reserve Fund." The Reserve Fund is separate from, and the Bonds are not secured by, the reserve accounts established pursuant to the 2010 Master Bond Resolution and the 2016 Master Bond Resolution. The Reserve Fund does not secure the payment of bonds issued under the 2010 Master Bond Resolution, the 2016 Master Bond Resolution or any other resolution. The Act provides that in order to assure the maintenance of the Reserve Fund Requirement, the Legislature may appropriate annually to the Bond Bank for deposit in the Reserve Fund the amount, if any, necessary to restore the Reserve Fund to an amount equal to the Reserve Fund Requirement. The Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Chair of the Bond Bank is required annually (before each January 30) to make and deliver to the Governor and to the Legislature a certificate stating the amount, if any, required to restore the Reserve Fund to the amount of the Reserve Fund Requirement. Money received by the Bond Bank from the State pursuant to such certification is required, to the extent such certification was occasioned by the fact that the amount in the Reserve Fund was less than the Reserve Fund Requirement, to be deposited in the Reserve Fund. The Legislature is legally authorized, but not legally obligated, to appropriate such sums during the then current State fiscal year. This provision of the Act does not create a debt obligation on behalf of the State or a legally enforceable obligation of the State. Beginning in 2009, and continuing through the fiscal year ending June 30, 2017, the Bond Bank has been obligated by the 2005 Master Bond Resolution to seek, and has obtained, a standing appropriation within the State's annual operating budget to replenish the Reserve Fund, if necessary. The 2005 Master Bond Resolution requires the Bond Bank to seek this standing appropriation on an annual basis. No such replenishment from State appropriation has been necessary. If the Bond Bank is required to draw on the Reserve Fund because of a default by a Governmental Unit, the standing appropriation provides that an amount equal to the amount drawn from the Reserve Fund is appropriated from the State's General Fund to the Reserve Fund. There is no guarantee that the Bond Bank will be able to secure future standing appropriations within the State's operating budget for replenishment of the Reserve Fund. See "2005 Master Bond Resolution Reserve Fund." Pledge Effected by the 2005 Master Bond Resolution Pursuant to the 2005 Master Bond Resolution, all Municipal Bonds, all Municipal Bonds Payments, the investments thereof and the proceeds of such investments, if any, and all funds and accounts established by the 2005 Master Bond Resolution to be held by the Trustee are pledged and assigned to secure the payment of the principal of, redemption premium, if any, and interest on all Bonds, subject only to the provisions of the 2005 Master Bond Resolution permitting the application thereof for the purposes and on the terns and conditions specified in the 2005 Master Bond Resolution. The Act and the 2005 Master Bond Resolution provide among other things that (i) any pledge made in respect of the Bonds will be valid and binding from the time the pledge is made, (ii) the Municipal Bonds, the Municipal Bonds Payments and all other money and securities so pledged and thereafter received by the Bond Bank immediately will be subject to the lien of such pledge without any further act, and (iii) the lien of any such pledge will be valid and binding against all parties having any claims of any kind in tort, contract or otherwise against the Bond Bank irrespective of whether the parties have notice. Municipal Bonds Under the provisions of the Act and the 2005 Master Bond Resolution, the Bond Bank is authorized to purchase Municipal Bonds from any Governmental Unit. The 2005 Master Bond Resolution defines Municipal Bonds as "general obligation bonds, revenue bonds, notes or other evidences of debt issued by any Governmental Unit as now or hereafter defined in the Act which have heretofore been or will hereafter be acquired by the Bond Bank as evidence of a Loan to the Governmental Unit pursuant to the Act." For each issue of Municipal Bonds that the Bond Bank purchases, the 2005 Master Bond Resolution requires the Bond Bank to obtain a bond counsel's opinion stating that (i) such Municipal Bonds are valid obligations of such Governmental Unit as required by the Act and (ii) a Loan Agreement has been duly authorized and executed between the Bond Bank and the Governmental Unit that constitutes a valid and binding obligation of the Governmental Unit. Resolution No. FY2017-10 Authorizing The Borough To Issue A Each Loan Agreement obligates a Governmental Unit to (i) make interest payments on its Municipal Bond sufficient in amount and at such times to provide the Bond Bank funds to meet interest payments on its Loan Obligations as they become due; and (ii) make principal payments on its Municipal Bond sufficient in amount and at such times to provide the Bond Bank funds to meet principal payments on its Loan Obligations as they become due. Pursuant to the Loan Agreement, the Governmental Unit may be required to pay fees and charges to the Bond Bank to meet the Governmental Unit's allocable portion of certain expenses. Pursuant to each Loan Agreement relating to a revenue bond issued by a Governmental Unit, the Governmental Unit may be required to maintain with the Trustee a debt service reserve to secure payment of the Loan Obligations. Each Loan Agreement also contains restrictions on the sale or redemption of the Governmental Unit's Municipal Bonds. 2005 Master Bond Resolution Reserve Fund The 2005 Master Bond Resolution established the Reserve Fund to be held by the Trustee and maintained at an amount equal to the Reserve Fund Requirement. The Reserve Fund Requirement is equal to the least of the following: (i) 10 percent of the initial principal amount of each Series of Bonds then Outstanding; (ii) Maximum Annual Debt Service with respect to all Bonds Outstanding; (iii) 125 percent of Average Annual Debt Service on all Bonds Outstanding; or (iv) such lower amount as may be required by law. See "DEFINITIONS — Required Debt Service Reserve." The Reserve Fund has been funded with Bond proceeds, with cash deposits from the Bond Bank and, as of April 1, 2016, with a surety policy from National Public Finance Guarantee Corporation ("National") in a face amount of $10,530,206.98. The Reserve Fund Requirement may be satisfied entirely, or in part, by a letter of credit, line of credit, credit facility, surety bond, bond insurance, or any other instrument or arrangement obtained in connection with the issuance of a Series of Bonds. See "Debt Service Reserve Fund Surety Bond." As of Lam, 2016, the valuation of assets in the Reserve Fund was approximately $U million, an amount sufficient to satisfy the Reserve Fund Requirement. As of that date, approximately $[ million, representing [ percent of the assets in the Reserve Fund, was funded from cash deposits by the Bond Bank from available funds, approximately $[_ million, representing F. 1 percent, was funded from Bonds issued by the Bond Bank to make deposits in the Reserve Fund ("Reserve Fund Obligations"), and approximately $10.5 million, representing I percent, was funded by the surety policy from National. Investment income from a portion of the amounts in the Reserve Fund is applied, together with other funds, to pay principal of and interest on the Reserve Fund Obligations. The 2005 Master Bond Resolution requires the Bond Bank to submit annually to the State a budget request for an appropriation to replenish the Reserve Fund to the Reserve Fund Requirement in the event that there is a deficiency as a result of a default by a Governmental Unit. Since 2009, and continuing through fiscal year 2017, the State has included in its operating budget a standing appropriation to replenish the Reserve Fund, if necessary, and to appropriate excess earnings in the Operating Account to the Reserve Fund instead of to the State's General Fund as the Act otherwise would require. Although the Bond Bank is obligated under the 2005 Master Bond Resolution to seek and has obtained such a standing appropriation within the State's annual operating budget, the State is not obligated, legally or otherwise, to include the appropriation in its annual operating budget. The Bond Bank's annual obligation to submit to the State a budget request for an appropriation is in addition to the Bond Bank's obligation to seek an appropriation to restore the Reserve Fund to the amount of the Required Debt Service Reserve as described below. See "Moral Obligation" below. The 2005 Master Bond Resolution provides that on or before December 31 of each year, and subject to the requirements of the 2005 Master Bond Resolution, the Trustee will transfer from the Reserve Fund any amounts remaining in the Reserve Fund derived from income or interest earned and 10 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... S . • : 3 profits realized by the Reserve Fund due to investments thereof to the Operating Fund, but only to the extent that there remains after such transfer an amount in the Reserve Fund equal to the Required Debt Service Reserve. See "SUMMARY OF THE 2005 MASTER BOND RESOLUTION— Funds and Accounts— Reserve Fund" and Section 911 of the 2005 Master Bond Resolution in Appendix F. Debt Service Reserve Fund Surety Bond. National has provided a commitment to increase the face amount of the existing surety bond (the "Debt Service Reserve Fund Surety Bond") in lieu of a cash deposit in the Reserve Fund. The Debt Service Reserve Fund Surety Bond provides that upon notice from the Trustee to National to the effect that insufficient amounts are on deposit in the Debt Service Fund to pay the principal of (at maturity or pursuant to mandatory redemption requirements) and interest on the Bonds, National will be required to deposit with the Trustee an amount sufficient to pay the principal of and interest on the Bonds or the available amount of the Debt Service Reserve Fund Surety Bond, whichever is less. Upon the later of: (i) three days after receipt by National of a demand for payment, duly executed by the Paying Agent; or (ii) the payment date of the Bonds as specified in the demand for payment presented by the Trustee to National, National will be required to make a deposit of funds in an account with U.S. Bank Trust National Association, in New York, New York, or its successor, sufficient for the payment to the Trustee of amounts then due to the Trustee (as specified in the demand for payment), subject to the coverage limits of the Debt Service Reserve Fund Surety Bond. The available amount of the Debt Service Reserve Fund Surety Bond is the face amount of the Debt Service Reserve Fund Surety Bond then in effect less the amount of any previous deposits by National with the Trustee that have not been reimbursed by the Bond Bank. The Bond Bank and National have entered into a Financial Guaranty Agreement in connection with the Debt Service Reserve Fund Surety Bond. Pursuant to the Financial Guaranty Agreement, the Bond Bank is required to reimburse National, with interest, within one year after any deposit, the amount of such deposit made by National with the Trustee under the Debt Service Reserve Fund Surety Bond. The Bond Bank is also required to obtain National's consent to any amendment or modification of the 2005 Master Bond Resolution that would also require consent of holders of the Bonds. The Financial Guaranty Agreement also provides that no optional redemption of Bonds may be made until the Debt Service Reserve Fund Surety Bond is reinstated. Moral Obligation. The Bond Bank is required to deliver a statement to the Governor and the Legislature annually, before January 30, stating the amount, if any, necessary to restore the Reserve Fund to the Required Debt Service Reserve resulting from a draw on the Reserve Fund at any time during the prior year. The Legislature may, but is under no legal obligation to, appropriate money sufficient to restore the Reserve Fund to the Required Debt Service Reserve. The Bond Bank has never reported a deficiency in any of the reserve funds held by the Bond Bank. Custodian Account. Money not held by the Trustee in the Reserve Fund or in reserves for bonds issued under other bond resolutions is maintained by the Bond Bank in an account within the Operating Fund referred to as the Custodian Account (the "Custodian Account"). The Custodian Account contains direct and indirect State appropriations, prior year retained earnings not subject to the statutory annual earnings transfer, and current year investment earnings and as with the Operating Account is not held by the Trustee or pledged to the payment of the Bonds. As of June 30, 2015, the Custodian Account market value balance was $14,586,998. See Notes 2(b) and 2(d) and Note 8 in Appendix E. As of 2016, the value of the Custodian Account was $[ The Act requires that earnings on funds directly appropriated by the State to the Bond Bank be transferred to the State in the following fiscal year. Starting in fiscal year 2009, however, and continuing through fiscal year 2017, all fiscal year earnings due to the State's General Fund by statute have been appropriated to the Bond Bank's Custodian Account. The Legislature may, but is under no legal 11 Resolution No. FY2017-10 Authorizing The Borough To Issue A w •- m r. U�,�. cud obligation to, appropriate statutory earnings back to the Bond Bank. The entire Custodian Account balance is available for appropriation by the Legislature, with a majority vote and the Governor's concurrence or a with three-quarter majority vote to overcome a Governor's veto of the appropriation, during any legislative session. The Legislature has not appropriated funds out of the Custodian Account for non -Bond Bank related purposes in the current, or any prior, fiscal year. In recent years the Bond Bank has generally used the Custodian Account to make direct loans to local governments and to make deposits in the Reserve Fund. In addition, earnings on the Custodian Account have been applied toward interest payments on Reserve Fund Obligations. State Payments The Act provides that, to the extent that any department or agency of the State is the custodian of money payable to a Governmental Unit, at any time after notice from the Bond Bank that the Governmental Unit is in default on the payment of the principal of or interest on its Municipal Bonds then held or owned by the Bond Bank, the department or agency is required to withhold the payment of such money held by it and pay over such money to the Bond Bank for the purpose of paying principal of and interest on the bonds of the Bond Bank. State payments to Governmental Units include payments through the School Debt Reimbursement Program and Education Support Funding through the Department of Education and Early Development; and community jail funding through the Department of Corrections. A table in Appendix B sets forth the amount of State payments to Governmental Units that have borrowed from the Bond Bank as well as the fiscal year 2016 annual loan payments and associated estimated coverage provided by those State payments. Capital spending that is the source of matching grant funding to municipalities has been reduced since fiscal year 2015. This diminished funding is expected to continue to result in a gradual diminishment of the balances in the matching grant column of the table in Appendix B. Other than constitutionally required education support funding, there is no guarantee that State payments to Governmental Units will continue, and all of the payments could be reduced from current levels. The payment and amount of such State payments is uncertain, and legislative authorization for such payments is subject to appropriation and amendment or repeal. See Appendix B— "STATE PAYMENTS TO GOVERNMENTAL UNITS." The Bond Bank has never implemented the State payment intercept remedy. Pledge of the State In the Act, the State has pledged and agreed with the holders of the Bonds that it will not limit or restrict the rights vested in the Bond Bank by the Act to, among other things, purchase, hold and dispose of Municipal Bonds and fulfill the terns of an agreement (including the 2005 Master Bond Resolution) made by the Bond Bank with such holders, or in any way impair the rights or remedies of such holders until the Bonds, including interest on the Bonds and interest on unpaid installments of interest and all costs and expenses in connection with an action or proceeding by or on behalf of such holders, are fully met, paid and discharged. ALASKA MUNICIPAL BOND BANK Organization The powers of the Bond Bank are vested in the Board. The membership of the Board consists of five Directors: the Commissioners of the DOR and the Department of Commerce, Community and 12 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... GrX Economic Development of the State and three Directors appointed by the Governor. The three appointees serve four-year staggered terms and must be qualified voting residents of the State. The Commissioners of the DOR and the Department of Commerce, Community and Economic Development may appoint delegates to serve in their absence. The Act requires the Board in the first meeting of each fiscal year to elect one of the Directors as chair and one of the Directors as vice -chair and also to elect a secretary and a treasurer, who need not be Directors. Action may be taken and motions and resolutions adopted by the Board at any meeting by the affirmative vote of at least three Directors. The Directors appoint an Executive Director to manage the business of the Bond Bank. Board of Directors The members of the Board are listed below. Mark Pfeffer — Chair. Term expires July 15, 2017. Mr. Pfeffer was originally appointed to the Board on October 10, 2001. Mr. Pfeffer is a registered architect who owns an architectural practice in Anchorage, Alaska. He is active in the development, design and management of commercial real estate projects, many of which include public/private partnerships. He is President of Pfeffer Development, LLC. Mr. Pfeffer received a Bachelor of Architecture Degree from the University of Nebraska. Gregory Gursey —Vice Chair. Term expires July 15, 2018. Mr. Gursey was originally appointed to the Board on June 22, 2009. Mr. Gursey became President of Benefit Brokers, Inc. in 2001, after working as Vice President of Investments for Wedbush Morgan Securities for 1I years. Mr. Gursey also serves as a FINRA industry arbitrator in both civil and industry arbitration cases. After graduating from the University of Alaska Anchorage with a degree in finance, Mr. Gursey became involved with the University of Alaska Foundation. He served as the first Chairman of the UAA College of Fellows, served as a Trustee to the UA Foundation, and was a member of the Investment Committee to the UA Foundation. Mr. Gursey has served on both the State of Alaska Dental Examiner's Board and the U.S. Treasury Department's Taxpayer Advocacy Panel. He has served on the Investment Commission for the Municipality of Anchorage and several other local boards. Luke Welles — Member. Term expires July 15, 2019. Mr. Welles was originally appointed to the Board on May 21, 2008. Mr. Welles became Vice President of Finance of the Arctic Slope Native Association, Ltd in 2011. Prior to his current job he served as Chief Financial Officer of LifeMed Alaska, LLC, which provides medivac services in Alaska. Previously, Mr. Welles was the Chief Financial Officer for the Yukon Kuskokwim Healthcare Corporation, which administers healthcare in 52 rural communities, including a hospital located in Bethel, Alaska. He has management experience in healthcare, civil construction and commercial real estate. Over the past 15 years he has served on several economic development commissions in the State, as a city council member in Homer, Alaska and on multiple boards. Mr. Welles received a Bachelor of Arts Degree in Foreign Service and International Business from Baylor University. Michael Lamb —Member. Mr. Lamb is the first delegate for Chris Hladick, Commissioner of the Department of Commerce, Community and Economic Development. Mr. Lamb is a certified public accountant with more than 25 years' experience as a chief financial officer and has worked in private, public, and governmental financial management positions. He serves as the chief financial officer for the Alaska Industrial Development and Export Authority and the Alaska Energy Authority. Prior to that, for almost 15 years Mr. Lamb was the chief financial officer for the Fairbanks North Star Borough, Alaska. For almost 9 years, prior to the Borough, he was the chief financial officer for the City of St. Paul, 13 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Alaska. Mr. Lamb is a graduate of the University of Washington School of Business with a Bachelor of Arts in Business Administration, with an emphasis in accounting. Pamela Leary—Member. Ms. Leary is the first delegate for Randall Hoff neck, Commissioner of the Department of Revenue. She is the Director of the Department of Revenue — Treasury Division and acts as the State Treasurer. She previously served in the Department of Revenue as State Comptroller from 2007 through 2013. Ms. Leary began her career as an auditor with Price Waterhouse and became a partner in the firm PricewaterhouseCoopers, LLP. After moving to Alaska, Ms. Leary owned and operated a business before reentering the accounting profession with the Alaska Permanent Fund Corporation. She holds a bachelor's degree in economics from the Wharton School, University of Pennsylvania, and is a certified public accountant in the State of Alaska. Management The Bond Bank is a public corporation of the State of Alaska established and organized within the DOR in 1975. Following creation, the Bond Bank was independently staffed by a full time Executive Director, full-time Secretary, and additional short-term staff and maintained separate offices in Anchorage, Alaska. The Legislature determined in 1997 that the operation and management responsibility for the Bond Bank would be incorporated into the duties of Department of Revenue — Treasury Division. This resulted in the partial delegation of the State's Debt Manager to the Bond Bank. Staffing was augmented in 2013 when the Department of Revenue— Treasury Division Operations Research Analyst position was partially delegated to the Bond Bank. Deven J. Mitchell, who also serves as State Debt Manager and Investment Officer in the Department of Revenue— Treasury Division, with responsibility for the management of all debt of the State, was appointed Executive Director of the Bond Bank in 1999. Mr. Mitchell has worked for the Department of Revenue since 1992. He previously held several positions in Alaska financial institutions. Mr. Mitchell holds a Bachelor of Science Degree in Business Administration from Northern Arizona University. Ryan S. W1111mm, who also serves as Operations Research Analyst in the Department of Revenue— Treasury Division, was appointed Finance Director of the Bond Bank in 2014. Mr. Williams has worked for the Department of Revenue since 2009. Mr. Williams holds a Bachelor of Science Degree in Business Administration from the University of Southern California, with a concentration in International Business. The Bond Bank contracts in the private sector for a wide range of professional services. The Executive Director and Finance Director coordinate the activities of these professionals, which include bond counsel, financial advisor, accountants, auditors, fund trustees, bond trustees, arbitrage rebate consultants and investment managers. BONDS OUTSTANDING The total amount of Bond Bank bonds and notes outstanding at any one time may not exceed $1,792.5 million: $87.5 million for the University of Alaska, $205 million for regional health organizations and $1,500 million for all other purposes, including for municipalities, joint insurance associations, port authorities and joint action agencies. As of [September 1, 2016], the total principal amount of Bond Bank bonds and notes outstanding, not including the 2016 Series Three and Four Bonds, was $I 14 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Under the provisions of the Act, within the limitations described above, the Bond Bank may issue additional series of Bonds under the 2005 Master Bond Resolution or issue bonds under other resolutions. The Bond Bank currently has bonds outstanding under the following resolutions. 1976 Master Bond Resolution The Bond Bank issued $721,985,000 of general obligation bonds under its 1976 Master Bond Resolution, none of which remains outstanding. All bonds issued under the 1976 Master Bond Resolution were retired as of February 1, 2016. 2005 Master Bond Resolution The 2016 Series Three and Four Bonds are the 36th and 37th series of Bonds issued under the 2005 Master Bond Resolution. As of [September 11, 2016, the Bond Bank has issued $1,335,160,000 of general obligation bonds under the 2005 Master Bond Resolution (not including the 2016 Series Three and Four Bonds), $[ of which remain outstanding. Bonds may be issued by the Bond Bank pursuant to the 2005 Master Bond Resolution only to finance loans to Governmental Units that were eligible for such assistance as of July 13, 2005. The Bond Bank expects to continue to use the 2005 Master Bond Resolution as the primary means of financing loans to borrowers other than regional health organizations and joint action agencies. 2010 Master Bond Resolution Bonds issued under the Municipal Obligation Bond Resolution (the "2010 Master Bond Resolution") are general obligations of the Bond Bank, equally and ratably secured by a pledge and assignment of all obligations acquired by the Bond Bank under the 2010 Master Bond Resolution. As of [September t], 2016, the Bond Bank has issued $4,765,000 of bonds under the 2010 Master Bond Resolution, $4,010,000 of which remain outstanding. The Bond Bank has no plans at this time to issue additional bonds under the 2010 Master Bond Resolution. 2016 Master Bond Resolution Bonds issued under the 2016 Master Bond Resolution are general obligations of the Bond Bank, payable solely from the sources provided in and pledged pursuant to the 2016 Master Bond Resolution and the related series resolutions. As of [September 1], 2016, the Bond Bank has issued $44,135,000 of bonds under the 2016 Master Bond Resolution, all of which remain outstanding. The Bond Bank expects to continue to use the 2016 Master Bond Resolution as the primary means of financing loans to regional health organizations. Revenue Bond Resolutions The Bond Bank has issued revenue bonds under stand-alone revenue bond resolutions. The proceeds of these revenue bonds are applied toward the purchase of revenue bonds issued by municipal borrowers. Revenue bonds issued by municipal borrowers also may be purchased by the Bond Bank from the proceeds of general obligation bonds issued under the 2005 Master Bond Resolution. Under current law, Bond Bank revenue bonds are limited to $75 million in any year. There are presently no outstanding revenue bonds issued by the Bond Bank. The Bond Bank has no plans at this time to issue additional revenue bonds. 15 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Coastal Energy Impact Program The Bond Bank issued bonds to provide loans to local governments that qualified for aid under the Coastal Energy Impact Program ("CEIP"). CEIP is a federal program designed to provide financial assistance to coastal states and municipalities facing impacts from offshore oil development. The United States Department of Commerce, National Oceanic and Atmospheric Administration ("NOAA") and the Bond Bank entered into an agreement whereby the Bond Bank was the direct lending agency for the CEIP in the State, with $50 million available to make loans to local governments or to establish reserves for loans to local governments. The Bond Bank issued CEIP bonds, the proceeds of which were used to purchase bonds issued by the Kenai Peninsula Borough, the City of Seward, the City of Nome and the City of St. Paul. The total amount of CEIP bonds outstanding as of [September ❑, 2016, was $[10,252,9161, consisting of loans to the City of St. Paul and the City of Nome. The CEIP loans are administered directly by NOAA without involvement of the Bond Bank. Bonds issued for the CEIP are not secured by a pledge of any amounts held by or payable to the Bond Bank under the 2005 Master Bond Resolution, including the Reserve Fund, nor are they secured directly or indirectly by any reserve account created under the Act. The Bond Bank has no plans at this time to issue additional CEIP bonds. Direct Loans The Bond Bank has purchased certain bond anticipation notes and has defeased certain Bond Bank bonds with money from the Custodian Account while retaining underlying bonds issued by Governmental Units. As of [September 11, 2016, the Bond Bank held $[1,389,6191 of City of Galena utility revenue bonds and $[151,3081 of City of Galena appropriation obligations. The related loans were funded with legislative appropriations to the Bond Bank specifically for this purpose. As of [September 11, 2016, the Bond Bank held S[ of Kenai Peninsula Borough taxable revenue bonds. The related loans were funded with money in the Custodian Account and are secured by a pledge of gross revenues of the Central Peninsula Hospital and a debt service reserve fund, all on a parity with other Central Peninsula Hospital loans. Loans by the State of Alaska The Bond Bank has statutory authority to borrow funds from the State's General Fund at the discretion of the Commissioner or the Department of Revenue. In November 2010 and August 2011 the Bond Bank borrowed $6.0 million and $7.0 million, respectively, from the State for authorized uses of the Bond Bank. The State's fiscal year 2013 capital budget converted the 2010 and 2011 loans to grants through a $13.2 million appropriation to the Bond Bank that was effective April 15, 2012. This amount reflected the original loan amounts plus interest accrued on those loans. The Bond Bank does not currently have any outstanding loans from the State. 16 Resolution No. FY2017-10 Authorizing The Borough To Issue A BONDS ISSUED AND OUTSTANDING AS OF ]SEPTEMBER 11, 2016 (1) Includes the 2016 Series Three and Four Bonds and excludes the Refunded Bonds. Preliminary, subject to change. (2) Excludes the authority of the Bond Bank (or a subsidiary corporation of the Bond Bank) to issue bonds to finance loans to governmental employers to prepay all or a portion of their shares of the unfunded accrued actuarial liabilities of retirement systems. The Bond Bank has never used this authority and has no current plans to do so. (3) Of this amount, $86,085,000 was issued for the University of Alaska. (4) All of this amount was issued for a regional health organization. Ilrl Resolution No. FY2017-10 Authorizing The Borough To Issue A Original Amount Amount Issued Outstandine L 2005 Master Bond Resolution Bonds $[ ] (1) $ hl II. 1976 Master Bond Resolution Bonds 721,985,000 — Ill. 2010 Master Bond Resolution Bonds 4,765,000 4,010,000 IV. 2016 Master Bond Resolution Bonds 44,135,000 44,135,000 V. Coastal Energy Impact Loan Program 35,456,046 [10,252,916] DEBT CAPACITY Debt Limit (z) University of Alaska $ 87,500,000 Regional Health Organizations 205,000,000 All Other Purposes 1,500,000,000 $1,792,500,000 Less Outstanding Debt General Obligation Bonds 2005 Master Bond Resolution 1 (t) (3) 2010 Master Bond Resolution 4,010,000 2016 Master Bond Resolution 44,135,000 (4) $I Coastal Energy Loan Program I Total Outstanding Debt $I ] Remaining Debt Capacity University of Alaska 1,415,000 Regional Health Organizations 160,865,000 All Other Purposes 1 1 (1) Includes the 2016 Series Three and Four Bonds and excludes the Refunded Bonds. Preliminary, subject to change. (2) Excludes the authority of the Bond Bank (or a subsidiary corporation of the Bond Bank) to issue bonds to finance loans to governmental employers to prepay all or a portion of their shares of the unfunded accrued actuarial liabilities of retirement systems. The Bond Bank has never used this authority and has no current plans to do so. (3) Of this amount, $86,085,000 was issued for the University of Alaska. (4) All of this amount was issued for a regional health organization. Ilrl Resolution No. FY2017-10 Authorizing The Borough To Issue A DEBT SERVICE REQUIREMENTS BONDS ISSUED UNDER THE 2005 MASTER BOND RESOLUTION AND THE 2016 SERIES THREE AND FOUR BONDS Outstanding Fiscal Year Bonds (2) 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 Total of (Fiscal Years Ending June 30) 2016 Series Three and Four Bonds t1t (1) Preliminary, subject to change. (2) Excludes the Refunded Bonds. (3) Totals may not foot due to rounding. Principal Interest Total (i) IN Resolution No. FY2017-10 Authorizing The Borough To Issue A ... • r 7 Ih '� I. 4.rd Future Financing Plans The Bond Bank anticipates issuing additional bonds pursuant to the 2005 Master Bond Resolution or other bond resolutions within the next 12 months and making related loans to borrowers, including Governmental Units. The principal amount of such additional bonds depends on the number and size of the applications for Bond Bank financing from eligible borrowers. The Bond Bank is working with a second regional health organization to determine whether the Bond Bank will participate in the financing of certain additional health facilities by issuing bonds to finance a loan under the 2016 Master Bond Resolution. Debt Payment Record The Bond Bank has always made principal and interest payments on its general obligation and revenue bonds when due. No deficiencies have arisen in any Bond Bank debt service fund or reserve fund, nor has there been a need to exercise the provision requiring that State payments to Governmental Units be paid to the Bond Bank. STATE OF ALASKA General Alaska is a sovereign state of the United States of America, located in the far northwest of North America to the west of Canada, with its southeastern border approximately 500 miles north of the State of Washington. Alaska became a state in 1959. The State's population increased 9.5 percent from fiscal year 2004 to fiscal year 2014. The State's fiscal year is July I to June 30. Alaska includes approximately 586,412 square miles (approximately 365 million acres) of land and is the largest state of the United States (roughly equivalent in size to one-fifth of all of the other 49 states combined). Unlike the other 49 states, where significant portions of the land may be owned by individuals or entities in the private sector, less than one percent of the land in Alaska is owned by private, non -Alaska Native owners. As described below, most of the State's revenue is derived from resources owned by the State itself, including petroleum and minerals extracted from State-owned lands and securities in funds owned by the State. State Government Alaska became the 49th state in 1959 pursuant to the Alaska Statehood Act, which was enacted by the United States Congress in 1958 (the "Statehood Act"). The Alaska Constitution was adopted by the Constitutional Convention on February 5, 1956, ratified by the people of Alaska on April 24, 1956, and became operative with the formal proclamation of statehood on January 3, 1959. Alaska government has three branches: legislative, executive and judicial. The legislative power of the State is vested in a legislature consisting of a Senate with a membership of 20 and a House of Representatives with a membership of 40 (the "Legislature"). The executive power of the State is vested in the Governor. The judicial power of the State is vested in a supreme court, a superior court and the courts established by the Legislature. The jurisdiction of courts and judicial districts is prescribed by law. The courts constitute a unified judicial system for operation and administration. The State provides or funds a range of services including education, health and human services, transportation, law enforcement, judicial, public safety, community and economic development, public improvements and general administrative services. 19 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... There are 19 organized boroughs in Alaska and 144 cities, 96 of which are located within a borough. Of these, 13 boroughs and 23 cities impose property taxes and 9 boroughs and 52 cities impose sales taxes. State Revenues The State does not currently impose personal income taxes and has never imposed general sales taxes. The State does, however, impose a number of business-related taxes that, together with rents and royalties and fines and fees, represented nearly 100 percent of designated and unrestricted non -investment General Fund revenue in fiscal years 2015 and 2016. Grants, contributions and other revenue from the federal government and interest and investment income represent the remaining portions of State revenue. The State of Alaska Department of Revenue— Tax Division produces a semi-annual revenue sources book. The Fall Revenue Sources Book is the comprehensive annual forecast released in late November or early December, and the Spring Revenue Sources Book is an annual, partial update of the Fall forecast. The Fall 2015 Revenue Sources Book and Spring 2016 Revenue Sources Book revenue projections are summarized in Table 1. The State forecasted in the Spring 2016 Revenue Sources Book that general purpose unrestricted revenues in fiscal year 2016 will be $1,336.8 million, compared to $2,256.5 million of actual general purpose unrestricted revenue in fiscal year 2015, primarily driven by a projected $39.99 price of oil per barrel for fiscal year 2016 (a $9.59 decrease in price per barrel from the Fall 2015 forecast and a $32.59 decrease in the actual average price per barrel, $72.58, in fiscal year 2015). 30 Resolution No. FY2017-10 Authorizing The Borough To Issue A... g1lirsill!j 1 111111111111111 111 Table I Revenue, Price, and Production Differences from Fall 2015 Forecast to Spring 2016 Forecast Forecasted for Fiscal Years Ending June 30, 2016 - 2017 ($ millions / $ per barrel of oil / thousands of barrels per day) Fall 2015 Fall 2015 Spring 2016 Spring 2016 Forecast Forecast Forecast Forecast for FY 2016 for FY 2017 for FY 2016 for FY 2017 Revenue Source Unrestricted Oil Revenue .................................. $ 1,061.5 $ 1,237.3 $ 801.1 $ 704.7 Non -Oil Revenue .......................... 510.1 521.0 516.7 506.4 Investment Earnings ..................... 21.3 38.1 19.0 35.4 Subtotal ......................................... $ 1,592.9 $ 1,796.4 $ 1,336.8 $ 1,246.5 Restricted Oil Revenue .................................. $ 312.0 $ 356.1 $ 332.4 $ 322.3 Non -Oil Revenue .......................... 567.9 559.2 564.0 607.6 Investment Earnings ..................... 3,780.2 4,346.8 (2,029.1) 2,893.3 Federal Revenue ........................... 3,290.2 3,290.2 3,459.2 3,149.4 Subtotal ......................................... $ 7,950.3 $ 8,552.3 $ 2,326.5 $ 6,972.6 Total ............................................. $ 9,543.2 $10,348.7 $ 3,663.3 $ 8,219.1 ANS West Coast Price .................. $49.58 $56.24 $39.99 $38.89 ANS Production ........................... 500.2 504.9 520.2 507.1 Source: State oJAlaska Department ojRevenue. Forecast information is derived from a number of sources and is based upon a variety of assumptions, many of which themselves are based upon other forecasts and assumptions and most of which are not within the State's control. Actual budgets, plans and results may differ materially from the plans, budgets and results described herein. As described herein, with recent decreases in oil prices and production, the State's fiscal year 2015 and forecast unrestricted revenue available for General Fund appropriation also has declined. Although petroleum -related revenue remains the largest source of unrestricted revenue for the State's General Fund, increased use of currently restricted revenues, which are significantly greater than unrestricted petroleum -related revenue, together with potential sources of new revenues and potential expenditure reductions, are being considered. See "Government Budgets and Appropriations" and "General Fund Forecasts." Oil and Gas Revenues. The State's unrestricted General Fund revenues are generated primarily from petroleum production activities. The State receives petroleum revenues (some of which are restricted) from five sources: oil and gas property taxes, corporate income taxes, oil and gas production taxes, oil and gas royalties, and bonuses and rents. 21 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Oil and Gas Property Tax. The State levies an oil and gas property tax on the value of taxable property in the State used in oil and gas exploration, production and pipeline transportation of oil and gas at a rate of 20 mills (two percent) of the assessed value of the property. This is the only centrally assessed statewide property tax program in Alaska. The value of oil or gas reserves, oil or gas leases, the rights to explore for or produce oil or gas, and intangible drilling expenses are not taxable under the statute. The most notable properties that are subject to this property tax are the Trans -Alaska Pipeline System ("TAPS") (including the terminal at Valdez) and the field production systems on the North Slope, including Prudhoe Bay. The assessed value of all existing properties subject to this tax was $27.7 billion as of January 1, 2016, $28.6 billion as of January 1, 2015, $27.4 billion as of January 1, 2014, $28.6 billion as of January 1, 2013, $24.5 billion as of January 1, 2012, and $23.8 billion as of January 1, 2011. Property taxes on exploration property are based upon the estimated market value of the property. Property taxes on production property are based upon actual cost while under construction and replacement cost less depreciation, where deprecation is based upon the economic life of proven reserves, after construction. Property taxes on pipeline transportation property values (about 95 percent of which is TAPS property) are determined based upon economic value, taking into account the estimated life of the proven reserves of gas or unrefined oil then technically, economically, and legally deliverable to the transportation facility. Economic value for pipeline property under construction is based upon actual cost. Thereafter, replacement cost, less depreciation where depreciation is based upon the economic life of proven reserves, is typically relied upon to determine economic value for pipeline property. Local governments also may levy a property tax on the State's oil and gas property assessments at the same rate they tax all other property within their jurisdiction. Taxpayers receive a credit against the State's 20 mill levy for oil and gas property taxes paid to municipalities. Of the $572.4 million of property taxes collected in fiscal year 2015 on oil and gas property in the State, the State's share was approximately $125.2 million. In its Spring 2016 Revenue Sources Book, the State forecasts income from the oil and gas property tax to be approximately $133.9 million in fiscal year 2016 and $118.3 million in fiscal year 2017. Revenue from oil and gas property taxes is deposited in the General Fund; payments received by the State after a property tax assessment dispute, however, are deposited in the Constitutional Budget Reserve Fund. See "Government Funds — The Constitutional Budget Reserve Fund." Comorate Income Tax. Alaska levies a corporate income tax on Alaska taxable net income of companies doing business in Alaska (other than insurance companies that pay premium tax and other than S corporations and limited liability companies). Effective for tax years on or after August 26, 2013, corporate income tax rates are graduated and range from zero percent to 9.4 percent of income earned in Alaska. Taxable income is generally calculated using the provisions of the federal Internal Revenue Code, and the calculation of Alaska taxable income varies, depending on whether the corporation does business solely in Alaska, does business both inside and outside Alaska or is part of a group of corporations that operate as a unit in the conduct of a single business (a "unitary" or "combined" group). Oil and gas companies are combined on a world-wide basis, although for other industries only the companies doing business in the United States are combined. Taxpayers may claim all federal incentive credits, but federal credits that refund other federal taxes are not allowed as credits against State corporate income taxes. In addition to the federal incentive credits, the State provides incentives, including an education credit for contributions made to accredited State universities or colleges for education purposes, a minerals exploration incentive, an oil and gas exploration incentive and a gas exploration and development tax credit. 22 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Most corporate net income tax collections are deposited in the General Fund, although collections from corporate income tax audit assessments of oil and gas corporations are deposited in the Constitutional Budget Reserve Fund. Oil and Gas Production Taxes. The Stale levies a tax on oil and gas production income generated from production activities in the State. The tax on production is levied on sales of all onshore oil and gas production, except for federal and State royalty shares and on offshore developments within three miles of shore. The oil and gas production tax was substantially changed by the Legislature in 2006, with the Petroleum Profits Tax ("PPT'). This tax fundamentally changed Alaska's petroleum tax system from a tax on gross value to a tax generally on net profit. The gross value tax system was in place since the early 1970s and was in place during the development of Prudhoe Bay, the largest oil -field in North America. PPT introduced the concept of "Production Tax Value" ("PTV") which was gross value at the point of production minus lease expenditures (capital and operating costs). The key difference from the gross tax was subtraction of lease expenditures in calculating the tax base. PTV is similar in concept to net profit, but different in that all lease expenditures can be deducted in the year incurred; that is, capital expenditures are not subject to depreciation. The tax under PPT was 22.5 percent tax of taxable value minus lease expenditures. There was a progressive surcharge of 025 percent added for every dollar of PTV per barrel that exceeded $40. The maximum tax rate was set at 47.5 percent. In 2007, the tax was altered under a bill known as the "Alaska's Clear and Equitable Share" ("ACES"). The resulting ACES legislation maintained the general structure of PPT, but increased the production tax rate from 22.5 percent to 25 percent of PTV. The progressive surcharge changed to 0.4 percent added for every dollar of net income per barrel that exceeded $30 and was less than $92.50. Above $92.50, the progressive surcharge decreased to 0.1 percent for every additional dollar in net value. The maximum tax rate was set at 75 percent of PTV, but that rate applied only at production tax value over $342.50 per barrel, a level not seen while ACES was in place. ACES retained the 20 percent credit for all qualified capital expenditures and the small producer credit of up to $12 million per year for qualified companies. This legislation was reformed during the 2013 legislative session under Senate Bill 21 (`5B 21") that was signed into law on May 21, 2013 and challenged in a State-wide referendum that failed in August 2014. SB 21 is the existing production tax regime that applies to North Slope oil production, although it also includes provisions, including credits, that apply to production in other areas, to private landowner royalty interests and to natural gas used for qualified in -State uses. The Governor included an act relating to oil and gas production tax, tax payments, and credits in his proclamation calling the Legislature into special session beginning July 11, 2016. SB 21 retains the basic framework of PPT and ACES, with the primary change being the removal of a progressive surcharge tied to the value of oil. The base tax rate was increased from 25 percent to 35 percent of the net value of oil and gas production. Other major factors include the replacement of credits (the 20 percent credit for all qualified capital expenditures was eliminated for the North Slope) tied to capital spending with one tied to production on the North Slope, and the creation of an incentive for the development of areas north of 68 degrees North latitude that are not currently in production. SB 21 went into effect on January 1, 2014. During the creation of SB 21, the Legislature stated its intent to provide a direct incentive for companies to produce additional oil. As a result, a mechanism was created in the form of a per -taxable - barrel credit. The per -taxable -barrel credit is reduced from $8 per barrel to $0 at wellhead values between $80 per barrel and $150 per barrel, thus retaining a progressive element in the tax system. As this new production credit was introduced, the credit on qualified capital expenditures was eliminated for the North Slope. The new credit is targeted directly as an incentive to bring new production areas into development 23 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... FOSTO—Wre =MM, to new oil production rather than indirectly by providing an incentive for spending. This incentive reduces the tax liability in new production areas by excluding 20 percent of the gross value for that production from the tax calculation. Qualifying production includes areas surrounding a currently producing area that may not be commercial to develop, as well as new oil pools that have not been discovered or developed. Oil that qualifies for this gross value reduction receives a flat $5 per taxable barrel credit rather than the sliding -scale credit available for most other North Slope production. The new credit also protects State revenue at lower prices, as it cannot be applied against the statutory minimum tax, which is generally 4 percent of gross value when oil prices are above $25 per taxable barrel. This protection results in a flattening of the production tax revenue decline at prices lower than $80 per barrel. Taxpayers are required to make monthly estimated payments, based upon activities of the preceding month. These payments are due on the last day of the following month, and taxpayers are required to file an annual tax return to "true up" any tax liabilities or overpayments made during the year. As an incentive for new exploration, companies without tax liability against which to apply credits available under the SB 21 tax may apply for a refund of the value of most of the credits. In fiscal year 2015, the State paid $628 million to companies claiming such credits. The State forecasts in the Spring 2016 Revenue Sources Book that in fiscal year 2016 the State will owe $500 million to companies claiming such credits, and $775 million in fiscal year 2017. SB 21 reduced the State's exposure for such credits for the North Slope versus the prior ACES tax, as the new per -taxable -barrel credits are not eligible for refund. All unrestricted revenue generated by the oil and gas production taxes ($2.9 billion in fiscal year 2010, $4.6 billion in fiscal year 2011, $6.1 billion in fiscal year 2012, $4.1 billion in fiscal year 2013, $2.6 billion in fiscal year 2014, $0.4 billion in fiscal year 2015, and projected in the Spring 2016 Revenue Sources Book at $0.15 billion in fiscal year 2016 and $0.07 billion in fiscal year 2017) is deposited in the General Fund, except that any payments received as a result of an audit assessment under the oil and gas production tax or as a result of litigation with respect to the tax are deposited in the Constitutional Budget Reserve Fund. See "Oil and Gas Royalties, Rents and Bonuses" and Table 2. Oil and Gas Royalties. Rents and Bonuses. In fiscal year 2015, approximately 99 percent of all oil production in the State, including the reserves at Prudhoe Bay, was from State land leased for exploration and development. As the land owner, through the Department of Natural Resources ("DNR"), the State cams revenue from leasing as (i) upfront bonuses, (ii) annual rent charges and (iii) retained royalty interests in the oil and gas production. State land historically has been leased largely based on a competitive bonus bid system. Under this system the State retains a statutorily prescribed minimum royalty interest of at least 12.5 percent on oil and gas production from land leased from the State, although some leases contain royalty rates of up to 20 percent and some also include a net profit -share production agreement. Although other leasing alternatives are available under statute, they have not been used in the past. Under all lease contracts the State has ever written, it reserves the right to switch between taking its royalty in-kind or in cash (in cash royalty is valued according to a formula based upon the higher -of contract prices received by the producers, net of transportation charges). If the State takes its royalty share in-kind, the State becomes responsible for selling and transporting that royalty share, which means establishing complex contracts to accomplish these tasks. As described below, much of State royalty revenue from production on State land is restricted revenue that is not available for general appropriations. In addition to royalties from production on State land, the State receives 50 percent of royalties and lease bonuses and rents received by the federal government from leases of federal lands in the National Petroleum Reserve Alaska (the "NPR -A"). The federal government requires that such revenue be used as described in the next paragraph. The State also receives revenues from federal royalties and bonuses on all other federal lands located within State borders and federal royalties and lease bonuses and 24 Resolution No. FY2017-10 Authorizing The Borough To Issue A rents from certain federal waters at rates negotiated on a field by field basis. This revenue too is treated as federal revenue and is restricted. Use of Restricted Petroleum Revenue. As shown in Tables 2 and 3, a portion of the State's oil - related revenue, including oil and other royalty and bonus payments, is restricted revenue and is not available for general appropriations. See "Government Funds." The State Constitution requires that a minimum of 25 percent (and State statutes currently require 50 percent for certain leases) of all mineral and oil and gas lease rentals, royalties, royalty sale proceeds, federal mineral revenue sharing payments and bonuses received by the State be deposited in the Permanent Fund. See "Government Funds — The Alaska Permanent Fund." State statutes also require that at least 0.5 percent of all royalties and bonuses be contributed to the Public School Fund Trust and that most settlements with orjudgments involving tax and royalty disputes be deposited in the Constitutional Budget Reserve Fund. See "Government Funds." In addition, the State is required to deposit its entire share of lease bonuses, and rents and royalties from oil activity in the NPR -A in the NPR -A Special Revenue Fund, from which a portion is used to make grants to municipalities that demonstrate present or future impact from oil development in the NPR -A. Of the revenue in the NPR -A Special Revenue Fund that is not appropriated to municipalities, 25 percent is to be deposited in the Permanent Fund, with up to 0.5 percent to the Public School Trust Fund and the remainder available for appropriation to the Power Cost Equalization Fund or the Rural Electric Capitalization Fund. Any remaining amount is then available for General Fund appropriations. Table 2 summarizes the sources and uses of oil and other petroleum -related revenue for fiscal years 2006 through 2015. See the discussion above and Table 1 for fiscal year 2016 and fiscal year 2017 forecasts. 25 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... a�=r.r Table 2 Sources and Initial Applications of Oil and Other Petroleum -Related Revenue Fiscal Years Ended June 30, 2006 - 2015 ($ millions) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Oil Revenue to the General Fund Property Tax..... S 54.5 $ 65.6 $ 81.5 $ 111.2 $ 118.8 $ 110.6 $ 1112 $ 99.3 $ 128.1 $ 125.2 Corporate Income Tax..... 661.1 594.4 605.8 4922 446.1 542.1 568.8 434.6 316.6 94.8 Production Tax rit.............. 1,199.5 2,208.4 6,822.6 3,112.0 2,871.0 4,552.9 6,146.1 4,050.3 2,5982 389.7 Royalties (including bonuses, rents and interest) at 1,784.1 1,613.0 2,446.1 1,465.6 1,477.0 1,843.3 2,031.7 1,767.8 1,712.4 1,0782 Subtotal .............. $3,699.2 $4,481.4 $9,956.0 $5,181.0 $4,912.9 $7,048.9 $8,857.8 $6,352.0 $4,755.3 $1,687.9 Oil Revenue to Other Funds Royalties to the Permanent Fund and School Fund tri............ $ 611.5 $ 545.6 $ 850.5 $ 670.8 $ 7072 $ 870.9 $ 919.6 $ 855.9 $ 786.2 $ 518.3 Tax settlements to CBRF.......... 43.7 101.9 476.4 202.6 552.7 167.3 102.1 176.6 141.4 149.0 NPR -A royalties, rents and bonuses Ht--- 4.5 12.8 5.2 14.8 21.3 3.0 4.8 3.6 6.8 32 Subtotal .............. 659.7 660.3 1,332.1 888.2 12812 1,041.2 1,026.5 1,036.1 934.4 670.5 $4,358.9 $5,141.7 $11288.1 $6,069.2 $6,194.1 $8,090.1 $9,884.3 $7,388.1 $5,689.7 $2,358.4 Total Oil Revenue (1) The standard deduction provided under ACES for production in the Pmdhoe Bay and Kuparuk fields expired on December 31, 2009. (2) Net of deposits in the Permanent Fund and the Constitutional Budget Reserve Fund, The State Constitution requires the State to deposit at least 25 percent in the Permanent Fund, and between 1980 and 2003, State statutes required the State to deposit at least 50 percent in the Permanent Fund. The statutory minimum was changed to 25 percent beginning July 1, 2003, and changed back to 50 percent as of October 1, 2008. See "Government Funds -The Alaska Permanent Fund." (3) Includes proceeds of royalties taken in-kind. (4) By federal statute, the State receives 50 percent of federal revenues from oil and gas lease sales located in the NPR -A. Source: State ojAlaska Department ojRevenue. Nan -Oil Revenues. The State also receives unrestricted and restricted General Fund revenues from activities unrelated to petroleum. The State receives revenues from corporate income taxes paid by corporations other than petroleum producers, cigarette/tobacco excise taxes, motor fuel taxes, alcoholic beverage taxes, fishery business taxes, electric and telephone cooperative taxes, insurance premium taxes, commercial passenger vessel excise taxes and service charges, permit fees, fines and forfeitures, and 26 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... miscellaneous revenues. A number of these non -oil tax, license and fee revenue (but not investment income and federal revenue) are shared with municipalities. The Spring 2016 Revenue Sources Book reported that in fiscal year 2015, unrestricted revenue unrelated to petroleum production (excluding investment income and federal revenue) was $520.7 million and forecasted that unrestricted revenue unrelated to petroleum production would be $516.7 million in fiscal year 2016 and $506.4 million in fiscal year 2017. Contained in the non -oil figures is the minerals industry, which contributes State revenue in the form of corporate income tax, mining license tax, and mining rents and royalties. Federal Revenue. The federal government is a significant employer in Alaska, directly and indirectly, as a result of procurement contracts, grants and other spending. In addition to expenditures in connection with federal military bases and other activities in Alaska, the State receives funding from the federal government, approximately $2.4 billion in fiscal year 2013, $2.5 billion in fiscal year 2014 and $2.5 billion in fiscal year 2015. The State forecasts in the Spring 2016 Revenue Sources Book restricted federal revenue of approximately $3.46 billion for fiscal year 2016 and $3.15 billion for fiscal year 2017. The funds are primarily used for road and airport improvements, aid to schools and Medicaid payments, all of which are restricted by legislative appropriation to specific use. Federal funds most often are transferred to the State on a reimbursement basis, and all transfers are subject to audit. Investment Income. The State earns unrestricted and restricted investment earnings from a number of internal funds. The primary sources of investment income for the State are two Constitutionally -mandated funds, the Permanent Fund and the Constitutional Budget Reserve Fund. The Permanent Fund had a fund balance (principal and the earnings reserve) of approximately $52.8 billion as of June 30, 2015, $51.2 billion as of June 30, 2014, $44.8 billion as of June 30, 2013, $40.3 billion as of June 30, 2012, and $40.1 billion as of June 30, 2011. The Earnings Reserve Account, in the Permanent Fund, had a fund balance of approximately $7.2 billion as of June 30, 2015, $6.2 billion as of June 30, 2014, S4.1 billion as of June 30, 2013, $2.1 billion as of June 30, 2012, and $2.3 billion as of June 30, 2011. Appropriation of the Permanent Fund's principal balance requires amendment of the State Constitution. See "Government Funds—The Alaska Permanent Fund." The Constitutional Budget Reserve Fund had a fund balance of approximately $10.1 billion as of June 30, 2015, $12.8 billion as of June 30, 2014, $11.6 billion as of June 30, 2013, $10.6 billion as of June 30, 2012, and $10.3 billion as of June 30, 2011. The balance of the Constitutional Budget Reserve Fund is available for appropriation with a three-fourths vote of each house of the Legislature, and as described below, the State borrows from the Constitutional Budget Reserve Fund when needed to address mismatches between revenue receipts and expenditures in the General Fund and/or to balance the budget at the end of the fiscal year. See "Government Funds — The Constitutional Budget Reserve Fund" and "— The Alaska Permanent Fund." Although not as significant, the State also has in the past received the earnings on the Statutory Budget Reserve Fund. This fund had a balance of $288 million as of June 30, 2015, $2.8 billion as of June 30, 2014, and $4.7 billion as of June 30, 2013. These earnings are considered General Fund unrestricted revenue, and in October 2015 the remaining balance in the Statutory Budget Reserve Fund was transferred to the General Fund. See "Government Funds—The Statutory Budget Reserve Fund." In addition to investment income from the above-described funds, the State receives investment income (including interest paid) from investment of other, unrestricted funds ($47.9 million in fiscal year 2015, $130.2 million in fiscal year 2014, $28.1 million in fiscal year 2013, $107.8 million in fiscal year 2012, and $96.3 million in fiscal year 2011). The State has forecast investment income of other unrestricted funds to total approximately $19 million in fiscal year 2016 and approximately $35.4 million in fiscal year 2017. See "Government Funds." 27 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Major Components of State Revenues. Table 3 summarizes the sources of unrestricted and restricted revenues available to the State in fiscal years 2006 through 2015. Revenue Source Oil Revenue........ Non -Oil Revenue Investment Eamings.............. Subtotal .............. Restricted Oil Revenue ttt.... Non -Oil Revenue Investment Table 3 Total State Government Revenue by Major Component Fiscal Years Ended June 30, 2006 -2015 (S millions) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $ 3,699.2 $ 4,481.4 S 9,956.0 $ 5,181.0 $ 4,912.9 $ 7,048.9 $ 8,857.8 $ 6,352.0 $ 4,755.3 $ 1,687.9 447.9 537.1 544.4 402.6 414.0 527.7 519.6 548.4 508.5 520.7 53.3 140.1 248.8 247.6 184.0 96.3 107.8 28.1 130.2 47.9 $ 4,200.4 $ 5,158.6 $10,749.1 $ 5,8312 S 5,513.3 S 7,672.9 $ 9,485.2 $ 6,928.5 $ 5,394.0 $2,256.5 $ 659.7 $ 660.3 $ 1,332.1 $ 8882 $ 12812 $ 1,041.2 $ 1,062.5 S 1,036.1 $ 934.4 $ 670.5 536.5 684.9 604.4 545.8 467.1 473.6 452.7 485.0 473.5 491.2 Earnings .............. 3,173.3 3,737.8 (1,483.5) (6,894.5) 4,291.9 7,928.5 144.3 4,977.8 7,927.7 2,603.4 Federal Revenue. 1.966.2 1,971.9 1,902.5 2,088.4 2,387.9 2,407.9 2,455.5 2.383.2 2,511.9 2,512.7 Subtotal .............. 6,335.7 7,054.9 2,355.5 (3,372.1) 8,428.2 11,8512 4,079.0 8,882.1 11,847.5 6,277.8 $10,536.1 $12,213.5 $13,083.7 $ 2,459.1 $13,940.9 $19,5242 $13,564.2 $15,810.6 $17,241.5 $ 8,534.3 Total ................... (1) "Restricted Oil Revenue" includes oil revenue for NPR -A Rents, Royalties, and Bonuses shared by the Federal government. In fiscal year 2015 this equaled $3.2 million. Source: State of Alaska Department of Revenue. Government Budgets and Appropriations The Legislature is responsible for enacting the laws of the State, including laws that impose State taxes, and for appropriating money to operate the government. The State is limited by its Constitution and statutes and also by policy in how it manages its funds and, as in other states, no funds, regardless of source, may be spent without a valid appropriation from the Legislature. The Legislature has a 90 -day statutory time limit, and a constitutional time limit of 120 days with an allowance for up to an additional 10 days, to approve a budget. If the Legislature fails to approve a budget, or if other limited purpose legislation needs to be considered, the Governor or Legislature may call a special session to consider such matters. See' -General Appropriations." Budgets. The State's fiscal year begins on July I and ends on the following June 30, and the Legislature meets in regular session beginning on the fourth Monday of January in each year. The Governor is required by AS 37.07.020(a) to prepare (1)a statutorily conforming budget for the succeeding fiscal year, including capital, operating and mental health budgets setting forth all proposed expenditures (including expenditures of federal and other funds not generated by the State) and anticipated income of all departments, offices and agencies of the State; (2) a general appropriation bill to 28 Resolution No. FY2017-10 Authorizing The Borough To Issue A authorize proposed expenditures; and (3) in the case of proposed new or additional revenues, one or more bills containing recommendations for such new or additional revenues. The Governor's budget must be made public and be submitted to the Legislature by December 15. In accordance with AS 37.07.020(b), the Governor also is required to prepare a six-year capital budget covering the succeeding six fiscal years and a 10 -year fiscal plan. To assist the Governor in preparing budgets, proposed appropriation bills and fiscal plans, the State of Alaska Department of Revenue— Tax Division prepares forecasts of annual revenues in December and April of each year. See "State Revenues" and Table 1 above and "Government Funds" and "General Fund Forecasts" below. The State Constitution prohibits the withdrawal from the treasury of any funds, regardless of source, without an appropriation, and so the Governor's proposed budget and the Legislature's appropriation bills include federal and other funds as well as funds from the State. The Constitution also prohibits the dedication to a special purpose of the proceeds of "any State tax or license," with the exception of dedications required by federal law, mandated by the State's Constitution or in existence prior to statehood. General Approprialions. The Governor is required by State law to submit the three budgets—an operating budget, a mental health budget and a capital budget—by December 15 and to introduce the budgets and appropriation bills formally to the Legislature in January by the fourth day of the regular Legislative session. These three budgets then to go the House Finance Committee and are voted upon by the House of Representatives. The three budgets then go to the Senate Finance Committee, are voted upon by the full Senate and may go to a conference committee to work out differences between the House and Senate versions (and then be submitted to both houses for final votes). Bills passed by both houses are delivered to the Governor for signature. The Governor may veto one or more of the appropriations made by the Legislature in an appropriations bill (a "line -item veto") or may sign the bill or permit the bill to become law without a signature or veto. The Legislature may override a veto by the Governor (by a vote of three-fourths of the members of each house of the Legislature in the case of appropriation bills and by a vote of two-thirds of the members of each house in the case of other bills). Either the Governor or the Legislature may initiate supplemental appropriations during the fiscal year to deal with new or changed revenue receipts, to correct errors or for any other reason. The Governor is permitted to prioritize or restrict expenditures, to redirect funds within an operating appropriation to fund core services and to expend unanticipated federal funds or program receipts. Historically, Alaskan Governors have placed restrictions on authorized operating and capital expenditures during years in which actual revenues were less than forecast and budgeted. Such expenditure restrictions have included deferring capital expenditures, State employment hiring freezes, lay-offs and furloughs and restrictions on non-core operating expenses. As described below, General Fund revenues and operating and capital expenditures have been declining since fiscal year 2015 and declines in operating and capital expenditures have included use of administrative restrictions on spending. As shown in Table 1 and Table 3, projected State Unrestricted General Fund Revenue has diminished from $5.39 billion in fiscal year 2014 to $2.26 billion in fiscal year 2015, to a projected $1.34 billion in fiscal year 2016 and a projected $1.25 billion in fiscal year 2017. In response to the diminished State revenue forecasts, Governor Walker proposed a reduction in unrestricted General Fund State operating budget spending of 9 percent and a reduction in the capital budget of more than 80 percent for fiscal year 2016. The Legislature increased the operating budget reduction to more than 12 percent. Governor Walker additionally issued an Administrative Order to limit or stop State spending on State "Mega Projects" including the Juneau Access road, the Knik Arm Crossing, the Susima Hydroelectric project, a small diameter in -State gas pipeline project, and a proposed State road to the Ambler Mining District. These projects continue to be reviewed to determine if they warrant implementation. 29 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... 6 ��, i. of The Governor's proposed fiscal year 2017 budget included additional declines in unrestricted General Fund State operating budget expenditures and a capital budget comparable to the capital budget in fiscal year 2016. On May 18, 2016, the second regular session of the 29th Legislature reached the constitutional time limit and adjourned. On May 19, 2016 the Governor issued an executive proclamation calling the Legislature into special session starting on May 23, 2016, to consider both budget bills as well as other bills previously introduced related to increasing revenues and decreasing expenditures of the State. On May 31, 2016, the Legislature approved a fiscal year 2017 operating and capital budget, authorizing $4,417.4 million of spending. At the same time, the Legislature supplemented the fiscal year 2016 budget with $642.1 million of appropriations consisting of $430.0 million in oil and gas tax credits, $92.0 million of capital expenses, $30.1 million of agency operating expenses, and $90.0 million for retirement system funding. The proposed level of spending results in a projected $642.1 million increase in the deficit in fiscal year 2016 and a $3,171.4 million deficit in fiscal year 2017. The budget bills were transmitted to the Governor on June 20, 2016, and on June 29, 2016, the Governor signed the budgets and exercised his line -item veto authority to reduce the fiscal year 2017 appropriations by approximately $1.29 billion. The reductions consisted of $190 million to State government, K-12 education, and the University of Alaska, $430 million of oil and gas tax credits, and $665 million to the October 2016 Permanent Fund dividend distribution. The vetoes were not overridden during the fifth special session that began on July 11, 2016 and adjourned on July 18, 2016. See "General Fund Expenditure Trends." The Unrestricted General Fund deficit was $3.85 billion in fiscal year 2015 (which was managed by using transfers from the Statutory Budget Reserve Fund and by eliminating the forward funding of K-12 education). The Unrestricted General Fund deficit for fiscal year 2016 was previously projected to be $3.7 billion, to be managed by a draw on reserves. If proposed amendments to the fiscal year 2016 budget had not been vetoed (or if the Governor's vetoes had been overridden), the draw on the State's reserves would have been close to $4.5 billion. As part of his fiscal year 2017 budget, Governor Walker introduced ten bills as part of a comprehensive plan to modify how revenue of the State is accounted for, to increase user fees and charges, increase taxes, diminish certain waivers, credits and deductions, and to implement new taxes. The bill with the most impact was the Alaska Permanent Fund Protection Act that would shift the Permanent Fund to a sovereign wealth model. The Governor included all of these bills on the fourth special session agenda. On June 6, 2016, the Legislature approved the first of these bills, House Bill 247, diminishing State oil and gas tax credits. None of the legislation included in the fourth special session was approved. Unless a sixth special session is called, the first opportunity to consider proposals will be when the 30th Legislature convenes in January 2017. See "General Fund Expenditure Trends." The Legislature must appropriate to create the authority to expend General Fund revenue. If an expenditure of General Fund revenue is required mid -budget cycle, a special session of the Legislature would be required to provide the authority to make such expenditure. Appropriations for Debt and Appropriations for Subject -to -Appropriation Obligations. The Governor's proposed appropriations bills include separate subsections for appropriations for State debt and other subject -to -appropriation obligations and specify the sources of funds to pay such obligations. For the State's outstanding, voter -approved general obligation bonds and bond anticipation notes and for revenue anticipation notes to which the State's full faith and credit are pledged, money is appropriated from the General Fund and if necessary, to the General Fund from other funds, including the Permanent Fund, to the State Bond Committee to make all required payments of principal, interest and redemption premium. For these full faith and credit obligations, the State legally is required to mise taxes if State revenues are not sufficient to make the required payments. 30 Resolution No. FY2017-10 Authorizing The Borough To Issue A The Governor's proposed appropriation bills also include separate subsections for appropriations for subject -to -appropriation obligations, including various outstanding capital leases, lease -purchase financings, State -supported local -government debt for school construction and certain other limited projects and some State "moral obligation" debt. Such appropriations are made from the General Fund or from appropriations transferring to the General Fund money available in other funds such as the Constitutional Budget Reserve Fund, the Power Cost Equalization Fund, unencumbered funds of the State's public corporations and the Permanent Fund earnings reserve. Appropriation Limits. The State Constitution does not limit expenditures but does provide for an appropriation limit and reserves one-third of the amount within the limit for capital projects and loan appropriations. Because State appropriations have never approached the limit, the reservation for capital projects and loan appropriations has not been a constraint. The appropriation limit does not include appropriations for Permanent Fund dividends described below, appropriations of revenue bond proceeds, appropriations to pay general obligation bonds or appropriations of funds received in trust from a non - State source for a specific purpose. In general, under the State Constitution, appropriations that do not qualify for an exception may not exceed $2.5 billion by more than the cumulative change, derived from federal indices, in population and inflation since July 1, 1981. For fiscal year 2016, the appropriations limit was approximately $10.3 billion. Government Funds Because the State is dependent upon taxes, royalties, fees and other revenues that can be volatile, the State has developed a framework of constitutionally, statutorily, and customarily restricted revenue that is held in a variety of reserve funds to provide long-term and short-term options to address cash flow mismatches and budgetary dericils. For fiscal year 2015, revenue available for appropriation totaled $5,952.4 million, which is $3,695.9 million more than the $2,256.5 million of revenue classified as unrestricted. Investment income represented the majority of the revenue classified as restricted by custom but available for appropriation. The largest component was the Permanent Fund realized earnings at $2,931.4 million followed by the Constitutional Budget Reserve Fund at $197.7 million. The State's forecast in the Spring Revenue Sources Book projects Revenue Subject to Appropriation for fiscal year 2016 of $3,906.2 million and for fiscal year 2017 of $4,321.1 million. The State Constitution provides that with three exceptions, the proceeds of State taxes or licenses "shall not be dedicated to any special purpose." The three exceptions are when required by the federal government for State participation in federal programs, any dedication existing before statehood and when restricted for savings in the Permanent Fund or Constitutional Budget Reserve Fund as required by constitutional amendment. State revenue restricted for deposit in the Permanent Fund and Constitutional Budget Reserve Fund is then only available for appropriation as prescribed by the constitutional provisions described below. State revenue options available on a statutory basis include unrestricted revenue of the General Fund, use of the earnings or the principal balance of the Statutory Budget Reserve Fund, borrowing earnings revenue or principal balance from the Constitutional Budget Reserve Fund, use of the statutorily mandated royalty oil revenue currently flowing to the Permanent Fund, and use of the earnings revenue of the Permanent Fund. To balance revenues and expenditures in a time of financial stress, each of these funds can be drawn upon, either immediately, in the case of the Constitutional Budget Reserve Fund following a year -over -year revenue decline, or by a vote of the Legislature and with the approval of the Governor (by a three-fourths vote of each house in the case of appropriations from the Constitutional Budget Reserve Fund and by a simple majority vote in the case of appropriations from the Statutory Budget Reserve Fund and from the Permanent Fund earnings reserve). 31 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Current State funding options available on a statutory basis include unrestricted revenue of the General Fund, use of the earnings or the principal balance of the Statutory Budget Reserve Fund, borrowing restricted earnings revenue or principal balance from the Constitutional Budget Reserve Fund, use of the statutorily restricted royalty oil revenue currently flowing to the Permanent Fund, and use of the unrestricted earnings revenue of the Permanent Fund. To balance revenues and expenditures in a time of financial stress, each of these funds can be drawn upon, either immediately, in the case of the Constitutional Budget Reserve Fund following a year -over -year revenue decline, or by a vote of the Legislature and with the approval of the Governor (by a three-fourths vote of each house in the case of appropriations from the Constitutional Budget Reserve Fund and by a simple majority vote in the case of appropriations from the Statutory Budget Reserve Fund and from the Permanent Fund earnings reserve). Additional options for the State to manage budget funding include reducing State expenditures, transferring spending authority among line items, adjusting incentives to develop petroleum or mining resources, reinstituting a State personal income tax or imposing other broadbased statewide taxes. Most of these options, including the imposition of personal income taxes or other taxes, would require action by the Legislature. The Genera/ Fund. Unrestricted State revenue is annually deposited in the General Fund, which serves as the State's primary operating fund and accounts for most of the State's unrestricted financial resources. The State has, however, created more than 55 subfunds and "cash pools" within the General Fund to account for funds allocated to particular purposes or reserves, including the Constitutional Budget Reserve Fund, the Statutory Budget Reserve Fund, an Alaska Capital Income Fund, and a debt retirement fund. In terns of long-term and short-term financial flexibility, the Constitutional Budget Reserve Fund and the Statutory Budget Reserve Fund (subfunds within the General Fund) are of particular importance to the State. The Constitutional Budget Reserve Fund The State Constitution requires that oil and gas dispute -related revenue be deposited in the Constitutional Budget Reserve Fund. The State Constitution provides that other than money required to be deposited in the Permanent Fund, all money received by the State after July 1, 1990 as a result of the termination, through settlement or otherwise, of an administrative proceeding or of litigation involving mineral lease bonuses, rentals, royalties, royalty sale proceeds, federal mineral revenue sharing payments or bonuses or involving taxes imposed on mineral income, production or property, are required to be deposited in the Constitutional Budget Reserve Fund. Money in the Constitutional Budget Reserve Fund may be appropriated (i) for any public purpose, upon the affirmative vote of three-fourths of the members of each house of the Legislature; or (ii) if the amount available to the State for appropriation for a fiscal year is less than the amount appropriated for the previous fiscal year; however, the amount appropriated may not exceed the amount necessary, when added to other funds available for appropriation, to provide for total appropriations equal to the amount of appropriations made in the previous calendar year for the previous fiscal year. The State Constitution also provides that until the amount appropriated from the Constitutional Budget Reserve Fund is repaid, excess money in the General Fund at the end of each fiscal year must be deposited in the Constitutional Budget Reserve Fund. The fiscal year 2015 capital budget included a $3 billion transfer from the Constitutional Budget Reserve Fund to the Public Employees Retirement System and Teachers Retirement System. The Public Employees Retirement System received $1 billion and the Teachers Retirement System received $2 billion. In fiscal year 2016, approximately [$3.2 billion] is expected to be transferred to the General Fund. The State historically has borrowed from the Constitutional Budget Reserve Fund as part of its cash management plan to address timing mismatches between revenues and disbursements within a fiscal 32 Resolution No. FY2017-10 Authorizing The Borough To Issue A 00a- 0:: lh Ai. ...I year and also to balance the budget when necessary at the end of the fiscal year. Prior to draws in fiscal year 2015, the Legislature last appropriated funds from the Constitutional Budget Reserve Fund in fiscal year 2005. As of June 30, 2009, the balance owed by the General Fund to the Constitutional Budget Reserve Fund for draws prior to 2005 was completely repaid. The balance in the Constitutional Budget Reserve Fund as of June 30, 2013 was $11.6 billion, with earnings of $618.1 million. The balance in the Constitutional Budget Reserve Fund as of June 30, 2014 was $12.8 billion, with earnings of $1.0 billion. The balance in the Constitutional Budget Reserve Fund as of June 30, 2015 was $10.1 billion, with earnings of $197.7 million. The State's forecast in the Spring 2016 Revenue Sources Book is that investment earnings on the Constitutional Budget Reserve Fund will be $54.8 million in fiscal year 2016, and based on results through April 30, 2016 earnings are expected to be above $120 million for fiscal year 2016. The forecast for fiscal year 2017 is $67 million. The projected tax and royalty settlements to the Constitutional Budget Reserve Fund are $100 million in both fiscal year 2016 and fiscal year 2017. The Statutory Budget Reserve Fund. The Statutory Budget Reserve Fund has existed in the State's accounting structure since 1986, and as for most of the years it has existed, the Statutory Budget Reserve Fund is not expected to have a balance for at least the next several years. When funded, the Statutory Budget Reserve Fund is available for use for legal purposes with a simple majority vote of the Legislature and with approval by the Governor. If the unrestricted amount available for appropriation in the fiscal year is insufficient to cover General Fund appropriations, the amount necessary to balance revenue and General Fund appropriations or to prevent a cash deficiency in the General Fund was appropriated from the Statutory Budget Reserve Fund to the General Fund. For fiscal year 2015, this resulted in a year-end transfer from the Statutory Budget Reserve Fund to the General Fund of approximately $2.5 billion. As of June 30, 2015, the Statutory Budget Reserve Fund held approximately $288 million. The market value of the Statutory Budget Reserve Fund as of October 31, 2015 was zero due to transfers to the General Fund for expenditures. Any earnings on the Statutory Budget Reserve Fund are considered unrestricted investment revenue and flow to the General Fund. The Alaska Permanent Fund The Permanent Fund was established by a voter -approved Constitutional amendment that took effect February 21, 1977. The amendment provides that "at least twenty-five percent of all mineral lease rentals, royalties, royalty sale proceeds, federal mineral revenue sharing payments and bonuses received by the State shall be placed in a permanent fund, the principal of which shall be used only for those income-producing investments specifically designated by law as eligible for permanent fund investments" and that "all income from the permanent fund shall be deposited in the General Fund unless otherwise provided by law." In 1980, legislation was enacted that provided for the management of the Alaska Permanent Fund by the Alaska Permanent Fund Corporation, a public corporation and government instrumentality within the DOR, managed by a board of trustees. The same legislation modified the contribution rate to the Permanent Fund from 25 percent (the minimum constitutionally mandated contribution) to 50 percent of all mineral lease rentals, royalties, royalty sale proceeds, net profit shares, federal mineral revenue sharing payments and bonuses received by the State from mineral leases issued after December 1, 1979 or, in the case of bonuses, after May 1, 1980. The statutory contribution rate was changed back to 25 percent by legislation as of July 1, 2003 but then returned to 50 percent as of October 1, 2008. For fiscal year 2015, State oil and mineral revenues deposited in the Permanent Fund were $600 million compared to $779 million in fiscal year 2014. In addition to these constitutionally and statutorily mandated transfers to the Permanent Fund prior to fiscal year 2006, the Legislature has made special appropriations from the State's General Fund to the Permanent Fund several times, totaling in the aggregate approximately $2.7 billion as of June 30, 2015. 33 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... The Permanent Fund tracks earnings on a basis compliant with statements pronounced by the Governmental Accounting Standards Board ("GASB") in the compilation of the financial statements of the Permanent Fund. Fund balance consists of two parts: (1) principal, which is non -spendable, and (2) earnings reserve, which is spendable with an appropriation by the Legislature. By statute, only realized gains are deposited in the earnings reserve. Unrealized gains and losses associated with principal remain allocated to principal. Because realized gains deposited in the earnings reserve are invested alongside the principal, however, the unrealized gains and losses associated with the earnings reserve are spendable with an appropriation of the Legislature. Pursuant to legislation enacted in 1982, annual appropriations are made from the earnings reserve of the Permanent Fund, first for dividends to qualified Alaska residents and then for inflation-prooring. Between 1982 and 2015, $23 billion of dividends ($2,072 per person, for a total of approximately $1.3 billion, in fiscal year 2015, a 10 percent increase compared to fiscal year 2014) were paid to Alaska residents and $16.2 billion of Permanent Fund income has been added to principal for inflation proofing purposes (for fiscal year 2015 the inflation proofing transfer was $624 million, up from the fiscal year 2014 amount of $546 million). In addition to the statutorily directed inflation proofing transfers, the Legislature has made special appropriations from the earnings reserve account of the Permanent Fund to the principal balance of the Permanent Fund, totaling approximately $4.2 billion as of June 30, 2015. If any income remains after these transfers (except the portion transferred to the Alaska Capital Income Fund as described below), it remains in the Permanent Fund earnings reserve as undistributed income. The Legislature may appropriate funds from the earnings reserve at any time for any other lawful purpose. The principal portion of the Permanent Fund ($45.6 billion as of June 30, 2015, up from $45.0 billion as of June 30, 2014) may not be spent without amending the State Constitution. The earnings reserve portion of the Permanent Fund ($7.2 billion as of June 30, 2015, up from $6.2 billion as of June 30, 2014) may be spent with a simple majority vote of the Legislature. The Permanent Fund balance as of April 30, 2016 was approximately $53.2 billion (unaudited). During fiscal years 1990 through 1999, the Permanent Fund received dedicated State revenues from settlements of a number of North Slope royalty cases (known collectively as State v. Amerada Hess, et al.). The total of the settlements and retained income thereon, as of June 30, 2015, is approximately $424 million. Earnings on the settlements are excluded from the dividend calculation in accordance with State law and beginning in 2005, the settlement earnings have been appropriated to the Alaska Capital Income Fund, a subfund within the General Fund. Funds in the Alaska Capital Income Fund and interest thereon (approximately $24.0 million in fiscal year 2015) are unrestricted and have been appropriated for capital expenditures. 34 Resolution No. FY2017-10 Authorizing The Borough To Issue A Table 4 State of Alaska Available Funds and Recurring and Discretionary General Fund Expenditures Fiscal Years Ended June 30, 2004 - 2015 FORECAST FOR Fiscal Years Ending June 30, 2016 -2017 ($ millions) Recurring and Permanent General Purpose Discretionary CBRF Fund Fiscal Unrestricted General Fond Surplus/ Net Draw on Available Earnings Year Revenue u) Expenditures (rt (Deficit) CBRF Balance (1) Reserve (6) 2004 $ 2,346 $ 2,319 $ 26 $ - $ 2,064.2 $ 859.3 2005 3,189 2,646 543 - 2,235.7 1,439.9 2006 4,200 3,247 953 - 2,267.1 2,584.8 2007 5,159 4,272 886 - 2,549.0 4,132.0 2008 10,749 5,473 5,256 - 5,601.0 4,969.0 2009 5,831 6,000 (169) - 7,114.4 440.6 2010 5,515 4,995 520 - 8,664.0 1,209.8 2011 7,673 6,355 1,318 - 10,330.0 2,307.8 2012 9,485 7,252 2,233 - 10,642.4 2,080.6 2013 6,929 7,455 (526) - 11,564.4 4,053.8 2014 5,394 7,314 (1,920) - 12,779.7 6,211.3 2015 2,257 4,760 (2,503)(0) (2,876)n) 10,101.4 7,162.4 F 2016 () 1,337 4,971 (3,634) (3,125) () 6,976.4 7,744.2 F 2017 (7) 1,246 4,816 (3,570) (3,370)() 3,606.4 7510.0 (1) State of Alaska Department of Revenue- Tax Division. Fiscal years 2016 and 2017 forecast based on Spring 2016 Revenue Sources Book. (2) Excludes amounts set-aside to fund programs and reserve deposits. State of Alaska Office of Management and Budget. Fiscal years 2016 and 2017 forecast based on General Fund expense projections from budget summary in the Fiscal Year 2017 10 -Year Plan. (3) Net draws for fiscal year 2015 (transfer to the State of Alaska pension system) differ from borrowing reported in the State's financial statements due to restricted revenue and cash accounting impact. Net draws for fiscal years 2016 and 2017 include projections for investment earnings and tax and royalty settlements. (4) The Statutory Budget Reserve Fund was used to balance the fiscal year 2015 deficit, with $288 million remaining at June 30, 2015. In fiscal year 2016, the remaining balance in the Statutory Budget Reserve Fund was transferred to the General Fund. See "Government Fonds - The Statutory Budget Reserve Fund." Net draw forecast for fiscal year 2016 and fiscal year 2017 depicts the use of the Constitutional Budget Reserve Fund to balance the budget; however, actual funding sources to balance any projected budget shortfall may differ. (5) The Constitutional Budget Reserve Fund available balance represents the market value and the projected market value of the Constitutional Budget Reserve Fund. (6) Projection for the Permanent Fund earnings reserve as of the Alaska Permanent Fund Corporation's April 30, 2016 release of Fund Financial History and Projections, with current month's market value used as ending projection for fiscal year 2016. (7) FORECAST derived from the Spring 2016 Revenue Sources Book, State of Alaska Department of Revenue - Tax Division with best information available at that time. See "General Fund Forecasts" and "General Fund Expenditure Trends." Source: State ojAlaska Department ojRevenue. 35 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Restricted Revenue Forecast The State regularly prepares forecasts of restricted revenue generation. Table 5 provides a summary of the State's most recent restricted revenue forecasts from fiscal year 2016 through 2025. Of necessity, the forecasts include assumptions about events that are not within the State's control. Table 5 State of Alaska Restricted Revenue for Savings Actuals through 2015 and Forecast Summary Fiscal Years Ending June 30, 2016 - 2025 1[1 ($ millions) Total State Alaska Alaska Revenue CBRF Tax & Royalty Permanent Fund Permanent Fund Currently Investment Settlements Investment Dedicated Oil Restricted for Fiscal Year Earnings to CBRF Revenue 13r Revenue 131 Reserves 2011 $1,026.9 $ 167.3 $6,812.0 $ 887.0 $8,893.2 2012 191.1 102.1 (100.0) 915.0 1,108.2 2013 618.2 176.6 4,314.0 840.0 5,948.8 2014 1,006.1 141.1 6,848.0 779.0 8,774.5 2015 197.7 149.0 2,383.9 600.0 3,330.6 Projected 2016 120.9 100.0 (2,082.0) 225.0 - 2017 99.8 100.0 3,311.0 219.0 3,729.8 2018 40.2 100.0 3,450.0 244.0 3,834.2 2019 - 100.0 3,603.0 280.0 3,983.0 2020 - 100.0 3,774.0 296.0 4,170.0 2021 - 100.0 3,959.0 299.0 4,358.0 2022 - 100.0 4,148.0 278.0 4,526.0 2023 - 100.0 4,345.0 260.0 4,705.0 2024 - 100.0 4,549.0 242.0 4,891.0 2025 - 100.0 4,760.0 226.0 5,086.0 (1) This table displays actual results for fiscal years 2011 through 2015, and forecasted amounts for fiscal years 2016 through 2025. Forecasts use derived from the Spring 2016 Revenue Sources Book for the Constitutional Budget Reserve Fund and Alaska Permanent Fund Corporation dedicated oil revenue, with updates to investment earnings of the Constitutional Budget Reserve Fund through April 30, 2016. Alaska Permanent Fund Corporation investment revenue is derived from the Alaska Permanent Fund Corporation's April 30, 2016 Fund Financial History and Projections. The table reflects the State's statutory requirement to restrict a significant portion of fiscal year revenues and investment earnings. (2) Both realized and unrealized gains and losses are included pursuant to GASB 34 as interpreted by the Finance Division of the Department of Administration in its Comprehensive Annual Financial Report. The value for the Alaska Permanent Fund Corporation's investment revenue (GASB) for fiscal year 2015 uses the accounting (GAAP) net income as of June 30, 2015. Alaska Permanent Fund Corporation mid -case projections, as of April 30, 2016, are used for fiscal years 2016 through 2025. (3) Consisting of 50 percent of all mineral lease rentals, royalties, royalty sale proceeds, federal mineral revenue sharing payments, and bonuses received by the State. 50 percent of this amount is restricted by the Constitution and 50 percent is restricted by statute. Sources: State of Alaska Department of Revenue - Tar Division and State of Alaska Office of Management and Budget Forecasts from the Spring 2016 Revenue Sources Bookfor the Constitutional Budget Reserve Fund. Alaska Permanent Fund Corporation forecasts are based on the Monthly Financial Report for Apri130, 2016. 36 Resolution No. FY2017-10 Authorizing The Borough To Issue A General Fund Forecasts The State regularly prepares General Fund financial forecasts for planning and budgetary purposes. Table 6 provides a summary of the State's most recent General Fund revenue and expenditure forecasts, including forecast beginning and ending balances of available funds in the Constitutional Budget Reserve Fund and Permanent Fund earnings reserve through 2025 and forecast oil prices and production levels during the same time period. Of necessity, such forecasts include assumptions about events that are not within the State's control. The forecast oil production volumes include only production on State land and only current production and production expected from projects currently under development or evaluation on State land. The forecast does not include any revenues that could be received if a natural gas pipeline is constructed. In making its forecasts, the State makes assumptions about, among other things, the demand for oil and national and international economic factors and assumes that the Legislature will not amend current laws to change materially the sources and uses of State revenue and that no major calamities such as earthquakes or catastrophic damage to TAPS will occur. Portions of TAPS are located in areas that have experienced and may in the future again experience major earthquakes. Actual revenues and expenditures will vary, perhaps materially, from year to year, particularly if any one or more of the assumptions upon which the State's forecasts are based proves to be incorrect or if other unexpected events occur. See "Government Funds" for a description of some of the actions the State can take when revenues prove to be lower than expected. 7 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Table 6 State of Alaska Unrestricted General Fund and Budget Reserve Scenario Fiscal Years Ending June 30, 2016 — 2019 til ($ millions) Permanent ANS Oil General Recurring & Unrestricted Ending CBRF Fund Production Purpose Discretionary Revenue Reserves Earnings Forecasts Unrestricted General Fwd Surplus/ Available Reserve Oil Price (thousand Fiscal Revenues Expenditures (Deficit) Balance Balance Forecasts barrels Year ($millions) ($millions)($millions) ($millions) ($millions)a) ($/barrel) per day) 2016 $1,336.8 $4,970.5 $(3,633.7) $6,976.4 $7,744.2 $39.99 520.2 2017 1,246.5 4,816.4 (3,569.9) 3,606.4 7,510.0 38.89 507.1 2018 1,346.3 4,717.5 (3,371.2) 375.4 7,881.0 43.79 488.8 2019 1,445.9 4,722.9 (3,277.0) — 5,650.4 48.89 484.4 (1) This table represents one possible scenario taken from the revenue and expenditure projections as of the Spring 2016 Revenue Sources Book release for revenues, and General Fund expense projections used in the budget summary in the Fiscal Yew 2017 10 -Year Plan. Projections in the plan do not represent a commitment by the Administration to propose spending or generate revenue at a particular level in fiscal year 2016, fiscal year 2017 or any future year. The forecasts show that unanticipated budget shortfalls during the period presented could be filled primarily through use of reserve funds; however, other fiscal tools including spending reductions and the State's fund structure would likely be used in addition to, or in lieu of, reserve funds. (2) Fiscal year 2016 Permanent Fund Earning Reserve Fund Balance uses current value as of April 30, 2016. Fiscal year 2017 through 2019 Permanent Fund Earnings Reserve Balance uses mid -case projections as of Alaska Permanent Fund Corporation's April 30, 2016 Monthly Financial Report, and forecasts available at that time. The anticipated deficit for fiscal year 2019 reflects a projected appropriation from the Permanent Fund earnings reserve to balance the State budget; however, the Alaska Permanent Fund Corporation's forecasted net change to the assigned balance has not been adjusted for a draw from the fund. Includes estimated draw from the Permanent Fund Earnings Reserve Balance in the amount of $2,801.6 million. Sources: State of Alaska Department of Revenue — Tax Division and State of Alaska Office of Management and Budget. Forecasts from the Spring 1016 Revenue Sources Book for the Constitutional Budget Reserve Fund, oil price, production and unrestricted revenue. Alaska Permanent Fund Corporation forecasts are based on the Monthly Financial Report for April 30, 1016. [update] As reflected in Table 6, projecting the State's historical definition of general purpose unrestricted revenue, maintaining an Alaska Permanent Fund Dividend distribution to residents, maintaining a relatively flat recurring and discretionary General Fund expenditure level, and not relying on the Permanent Fund eaming reserve becomes unsustainable in fiscal year 2019. The Governor has proposed, as described in "Fiscal Year 2017 10 -Year Plan," and the Legislature has been considering, and the Governor has called them into special session beginning July 11, 2016 to again consider, a fiscal plan to redefine general purpose unrestricted revenue to include other sources and diminish recurring and discretionary General Fund expenditures. Although it is uncertain if the fiscal plan will be adopted in whole or part, it is structured to provide for a sustainable budget as reflected in Table 7. General Fund Expenditure Trends From fiscal year 2005 through fiscal year 2015, recurring Unrestricted General Fund expenditures grew by an average of 5.1 percent annually. A significant portion of the expenditures during this time frame was for savings, to forward -fund future fiscal year obligations and to make targeted capital investments. More recently, expenditure trends have reversed with fiscal year 2013 through fiscal year 38 Resolution No. FY2017-10 Authorizing The Borough To Issue A 2015 Unrestricted General Fund expenditures diminishing by an annualized rate of over 3.6 percent. The enacted fiscal year 2016 budget included approximately $4.954 billion in Unrestricted General Fund appropriations. [update; repeats prior discussion] The Governor's proposed fiscal year 2017 Unrestricted General Fund expenditure authorizations presented to the Legislature authorizes $5.556 billion of spending, consisting of $5.406 billion of operating costs and $150.3 million of capital items. The Legislature approved a fiscal year 2017 budget on May 31, 2016 that appropriates $4.417 billion in conjunction with $642.1 million of supplementary spending in fiscal year 2016. The budget bills were transmitted to the Governor on June 20, 2016. On June 29, 2016, the Governor signed the budgets and exercised his line - item veto authority to reduce the fiscal year 2017 appropriations by approximately $1.29 billion. The reductions consisted of $190 million to State government, K-12 education, and the University of Alaska, $430 million of oil and gas tax credits, and $665 million to the October 2016 permanent fund dividend distribution. The vetoes may be overridden by a three-fourths vote of the combined Legislative houses through the fifth day of the special session that begins on July 11, 2016. Fiscal Year 201710 -Year Plan The Executive branch is obligated by statute to provide a 10 -year plan on an annual basis. This plan is provided in complete form on the Office of Management and Budget's website. The Fiscal Year 2017 10 -Year Plan includes an explanation of Governor Walker's fiscal plan, "The New Sustainable Alaska Plan." The Governor introduced the plan in response to the decline in the price of oil and correlated decrease in oil and gas revenue that the State has historically used to provide for the vast majority of unrestricted general fund spending. The plan includes the five strategies of reducing government spending, supporting key investments for Alaska's future, transition to a sovereign wealth approach for funding government, adjust existing and implement new taxes, and maximize additional revenue sources. The first strategy emphasizes a lean spending plan scrutinizing all operations and programs to create a more cost-effective delivery of public services. State general fund spending has decreased 37 percent since fiscal year 2013, from $8 billion to $5 billion. The fiscal year 2016 budget implements agency operating reductions of $400 million (10 percent) and resulted in approximately 600 fewer State employees, and the Governor's fiscal year 2017 budget proposes another $140 million reduction in agency operating cuts, although the legislatively approved budget makes cuts that are closer to $600 million compared to fiscal year 2016. Action items include reducing executive agency and legislative operating costs, privatize some government services, target cross agency efficiencies to improve services and reduce costs, and reform the oil and gas tax credit system to reduce State expenditures, reward Alaskan hiring, and build a new system of direct loans. In addition to efforts of the Executive Branch, the Legislature has likewise been considering a variety of budgetary reductions including elimination or diminishing roles of State agencies, State public corporations, State grant programs, or other items historically funded by the State budget. The second strategy maintains a strategic commitment to key investments in Alaska's future, spending to protect existing infrastructure, effective public education, ensure earliest possible new revenue streams through a natural gas pipeline project, and create economic stimulus with pipeline pre - construction and construction jobs. The strategy vigorously pursues an Alaska liquefied natural gas project, establishes a capital budget using general obligation bonds in 2016 and 2018 to support only those funding requirements that would otherwise require cash payments, like transportation matches and disciplined deferred maintenance investments, and only re -introduce a sustainable general fund capital 39 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... budget after stabilizing the operating budget. The Legislature is not considering a new general obligation bond authorization at this time and no additional general obligation authorization is expected. The third strategy transitions the State to a sovereign wealth approach, using financial assets in a calculated, formulaic, sustainable way, to provide a stable source of revenue. The transition re -works the flow of funding in the State's fiscal structure by diverting volatile resource revenue away from being the primary sources of funding for the State's annual budget and putting it directly into the Permanent Fund. A transfer of approximately $3 billion from the Constitutional Budget Reserve Fund into the Permanent Fund earnings reserve on a one-time basis to provide the initial starting balance is required to permit a sustainable draw. The approach is intended to provide a stable and consistent withdrawal from the earnings of the Permanent Fund, while still allowing the Permanent Fund to grow over time. The current dividend program in Alaska is largely tied to performance of the global equity market, not resource development. The New Sustainable Alaska Plan would tie dividends directly to the State resource revenue by distributing a 50 percent share of annual natural resource royalty revenue as dividends to Alaskans. The proposal sets a 2016 transitional dividend at $1,000, but dividends are expected to remain in the $1,000 range going forward based on current estimates of future royalty revenues. The remaining 50 percent of annual natural resource royalties and 100 percent of production tax revenues would go into the Permanent Fund. Investment earnings from the Permanent Fund would continue to flow to the earnings reserve. The Legislature will be continuing to consider this framework in a special session beginning July 11, 2016. The Legislature appropriated the full dividend amount based on the historical formula for the 2017 calendar year distribution in October 2016 in the fiscal year 2016 budget; however, this appropriation was amended in the fiscal year 2017 budget, and Governor Walker diminished the appropriation through line -item veto. The legislatively approved fiscal year 2017 budget did not include an appropriation for the calendar year 2017 dividend, a break from historical practice. On June 13, 2016, the Alaska Senate approved SB 128, restructuring the Alaska Permanent Fund earnings and calculation of permanent fund dividends, but the Alaska House did not. The legislation was included in the proclamation calling the special session beginning July 11, 2016. The fourth strategy adjusts and implements new taxes to close the remaining gap using a balanced suite of targeted and broad-based taxes; as well as cross -industry tax adjustments, to include the tightening of current tax loopholes. Participation is expected from oil and gas, mining, fishing, tourism, Alaskans, and non-resident workers. Despite anticipated changes, the tax burden on individual Alaskans would remain among the lowest in the nation. The New Sustainable Alaska Plan calls for an increase to alcohol, tobacco, and motor fuel taxes, and implementation of an income tax based on a percentage of federal tax liability. The plan also calls for the modification of the State's oil and gas tax credit system to reduce those expenditures, while honoring existing claims and continuing to provide meaningful development assistance. Other than the already approved HB 247 diminishing State oil and gas tax credits, the Legislature will continue to consider this legislation in a special session beginning July 11, 2016. The fifth strategy calls for maximization of other revenue sources. Action items include leveraging Federal matching funds for transportation and Medicaid to serve Alaskans and to strengthen the State's private economy, assure revenue plans are developed when programs are introduced, and maximize dividends from State corporations. At this time it remains uncertain to what extent, if any, the Fiscal Year 2017 10 -Year Plan will be adopted by the Legislature. In addition to the Governor's plan, members of the Legislature had also introduced legislation to both change how the State utilizes revenue historically restricted by custom and generate new revenue through taxation. The legislative leadership has also publicly declared their focus on diminishing the level of State spending prior to considering increasing revenue measures. An updated 40 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Fiscal Year 2018 10 -Year Plan is expected to be adopted in December 2016. The Fiscal Year 2017 10 - Year Plan does not include the forecasts contained in the Spring 2016 Revenue Sources Book. Table 7 summarizes forecasted revenue detail and budget outlays from fiscal year 2016 through 2026 as contained in the Fiscal Year 2017 10 -Year Plan. 41 Resolution No. FY2017-10 Authorizing The Borough To Issue A W.T07-Wr =714 Table 7 State of Alaska Forecast Summary of the State Budget and Proposed Revenue Detail Fiscal Year 2017 10 -Year Plan, Office of Management and Budget Fiscal Years Ending June 30,2016 -2026 ($ millions) FY 2016 Management FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Plan Existing Revenue Oil & Gm Royalty S 650.5 S - S - S - s - 5 - S - S - $ - S - $ - Oil & Gas production Tax 172.1 - - - - - - - - - - All Other Unrestricted Revenue 770.4 839.5 904.3 932.6 946.5 1,000.0 1,040.0 1,081.6 1,124.9 1,169.9 1,216.7 Total Existing Revenue 1,593.0 839.5 904.3 932.6 946.5 1,000.0 1,040.0 1,081.6 1,124.9 1,169.9 1,216.7 New Revenues Mining - 10.0 12.0 12.3 12.8 13.3 13.8 14.4 14.9 15.5 16.1 Fishing - 19.0 20.0 20.5 21.3 22.1 23.0 23.9 24.9 25.9 26.9 Tourism - 14.0 15.0 15.3 16.0 16.6 17.3 17.9 18.7 19.4 20.2 Motor Fuel - 44.0 44.0 45.0 46.8 48.7 50.6 52.6 54.7 56.9 59.2 Alcohol - 38.0 39.0 39.9 41.5 43.1 44.9 46.7 48.5 50.5 52.5 Tobacco - 25.0 25.0 25.6 26.6 27.6 28.8 29.9 31.1 32.3 33.6 Oil & Gas - 100.0 100.0 102.3 106.3 110.6 115.0 119.6 124.4 129.4 134.6 Individual Income Tax - 100.0 195.0 1994. 207.4 215.7 224.3 233.3 242.6 252.3 262.4 Total New Revenues - 350.0 450.0 460.3 478.7 497.7 517.7 538.3 559.8 582,2 605.5 Earnings Reserve Draw - 3,300.0 3,300.0 3,300.0 3,372.0 3,445.6 3,520.9 3,597.9 3,676.6 3,757.0 3,839.3 Annual Earnings Draw - - 135.0 130.2 123.1 141.6 159.0 1939 198.9 200.3 175.0 Gasline Revenuer - - - - - - - - - - 1,500.0 Draw on Savings 3,377.5 426.9 28.2 - - - - - - - - Total Revenue 54,9705 54,916.4 $4,817.5 54,823.1 54,920.3 $5,084.9 55,237.6 $5,411,6 15.560.2 55,709.4 S7,336.5 Total Dudgee S4,9705 54,816.4 54,717.5 54,722.9 S4,820.1 54,984.9 55,137.5 55,311.5 $5,460.1 55,609.4 S6,022.2 (1) On savings and other cash balances - may require attention to corporate dividends such m Alaska Housing Finance Corporation and Alaska Industrial Development and ExportAuthority beginning in fiscal year 2021. (2) Gasline revenues atter cost for financings expected to start in 2026 will be redirected to the Permanent Fund. (3) For simplicity only management plan expenditures are shown. Supplemental budgets occur regularly but are unpredictable. Revenue in excess of spending would be the source for supplementals. (4) Projections in the plan do not represent a commitment by the Administration to propose spending or generate revenue at a particular level in fiscal year 2016 or any Future year, Source: Fiscal Year 201710 -Year Plan. 42 Resolution No. FY2017-10 Authorizing The Borough To Issue A 0 . �r=77.711i. d"I Public Debt and Other Obligations of the State State debt includes general obligation bonds and revenue anticipation notes, and State -supported debt includes lease -purchase financings and revenue bonds. The State also provides guarantees and other support for certain debt and operates a school debt and capital project debt reimbursement program. These programs do not constitute indebtedness of the State but do provide, annually on a subject -to - appropriation basis, financial support for general obligation bonds of State agencies and political subdivisions. Outstanding State Debt State debt includes general obligation bonds and revenue anticipation notes. The State Constitution provides that general obligation bonds must be authorized by law and be ratified by the voters and permits authorization of general obligation bonds only for capital improvements. The amount and timing of a bond sale must be approved by the State Bond Committee. For both general obligation bonds and revenue anticipation notes, the full faith, credit and resources of the State are pledged to the payment of principal and interest. If future State revenues are insufficient to make the required principal and interest payments, the State is legally required to raise taxes to provide sufficient funds for this purpose. $744.2 million of general obligation bonds were outstanding as of June 30, 2015. See "Summary of Outstanding Debt" and Tables 8 through 10. On November 6, 2012, voters approved $453,499,200 in general obligation bonds for the purpose of design and construction of State transportation projects. To date, the State has obtained $343,150,957.77 in funding to satisfy the $435,499,200 authorization, leaving $110,348,242.23 of unissued authority. The following other debt and debt programs of the State were outstanding as of June 30, 2015, except as otherwise noted. State Guaranteed Debt. The only purpose for which State guaranteed debt may be issued is for payment of principal and interest on revenue bonds issued for the Veterans Mortgage Program by the Alaska Housing Finance Corporation ("AHFC") for the purpose of purchasing mortgage loans made for residences of qualifying veterans. These bonds are general obligation bonds of the State, and they must be authorized by law, ratified by the voters and approved by the Slate Bond Committee. These bonds are known as "double-barrel bonds" because there are two distinct forms of security behind the bonds. The principal source of payment is the revenue stream generated by payments on the mortgage loans made from bond proceeds. Additional security to bondholders is provided by the general obligation pledge of the State to make the required debt service payments in the event that pledged revenues from mortgage repayments are insufficient. Approximately $56.9 million of Stale guaranteed debt was outstanding as of June 30, 2015. On November 7, 2010 the voters approved an additional $600 million of State guaranteed veteran's mortgage bonds, and the total current unissued authorization is $694.6 million. On June 6, 2016, the State Bond Committee approved the issuance by AHFC of bonds to refund a portion of the guaranteed bonds that remain outstanding. State -Supported Debt State supported debt is debt for which the ultimate source of payment is, or may include, appropriations from the General Fund. The State does not pledge its full faith and credit to State -supported debt, but another public issuer may have pledged its full faith and credit to it. State supported debt is not considered "debt" under the State Constitution, because the State's payments on this debt are subject to annual appropriation by the Legislature. Voter approval of such debt is not required. State supported debt includes lease -purchase financing obligations (including lease revenue capital lease bonds and certificates of participation issued by lessors of facilities used by the State) and the share of municipal general obligation bonds issued for school construction and other capital projects that is reimbursable by the State on a subject to appropriation basis. Approximately $1,206.0 million of State 43 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... supported debt was outstanding as of June 30, 2015. As of June 30, 2015, the State was obligated on $30.8 million of lease purchase financing obligations, $244.0 million of capital lease bonds and $35.84 million of capital project reimbursements. As of June 30, 2015, the State was reimbursing local municipalities on the debt service of $895.4 million of bonds under the School Reimbursement Program. House Bill 23 was approved in the 2014 Legislative Session authorizing the issuance of up to $300 million of State -supported toll revenue bonds for the purpose of partially funding a bridge from Anchorage to the Matanuska-Susitna Borough across Knik Arm. In addition to the State -supported toll revenue bonds, the bill authorized the State to enter into a maximum sized TIFIA Loan and contemplated the appropriation of additional Federal Highway Administration funds to the project. Toll collections are to be pledged to the TIFIA Loan first and the State toll revenue bonds second. Based on projected cash flows the State would expect to pay debt service on the State toll revenue bonds using annual State appropriations. The project was on hold pursuant to Administrative Order 271, but was subsequently cleared for additional work to determine the feasibility of obtaining a TIFIA loan for the proposed structure. State Moral Obligation Debt. State moral obligation debt consists of bonds issued by certain State agencies or authorities that are secured, in part, by a debt service reserve fund benefited by a discretionary replenishment provision that permits, but does not legally obligate, the Legislature to appropriate to the particular State agency or authority the amount necessary to replenish the debt service reserve fund up to its funding requirement (generally the maximum amount of debt service required in any year). State moral obligation debt is payable in the first instance by revenues generated from loan repayments or by the respective projects financed from bond proceeds. Among those State agencies that have the ability to issue State moral obligation debt are: Alaska Aerospace Development Corporation ("AADC"), which has not issued any debt; Alaska Energy Authority ("AEA"); AHFC; the Alaska Industrial Development and Export Authority ("AIDEA"); the Bond Bank; and Alaska Student Loan Corporation ("ASLC"). Approximately $1,200.4 million of State moral obligation debt was outstanding as of June 30, 2015. State and University Revenue Debt This type of debt is issued by the State or by the University of Alaska but is secured only by revenues derived from projects financed from bond proceeds. Revenue debt is not a general obligation of the State or of the University and does not require voter approval. Such debt is authorized by law and issued by the State Bond Committee or the University of Alaska for projects approved by the Commissioner of Transportation and Public Facilities or the University of Alaska. This type of debt includes Sportfish Revenue Bonds, International Airports Revenue Bonds, various University Revenue Bonds and Notes and Toll Facilities Revenue Bonds. A total of $693.0 million of revenue bonds, including $174.4 million of University of Alaska Revenue Bonds, Notes and Contracts, $31.3 million of Sportfish Revenue Bonds and $487.3 million of Airport Revenue Bonds were outstanding as of June 30, 2015. State Agency Debt. State agency debt is secured by revenues generated from the use of bond proceeds or the assets of the agency issuing the bonds. This debt is not a general obligation of the State nor does the State provide security for the debt in any other manner, i.e., by appropriations, guarantees, or moral obligation pledges. As of June 30, 2015, there was $493.8 million aggregate principal amount of State agency debt outstanding, consisting of $16.9 million AHFC obligations; $10.4 million Bond Bank Coastal Energy Bonds payable to the National Oceanic and Atmospheric Administration; $119.9 million Alaska Railroad Notes; and $346.6 million of obligations of the Northern Tobacco Securitization Corporation. State Agency Collateralized or Insured Debt. As security for State agency collateralized or insured debt, the particular State agency pledges mortgage loans or other securities as primary security 44 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... VMS M UrT.- ML M111 which, in tum, may be 100 percent insured or guaranteed by another party with a superior credit standing. This upgrades the credit rating on the debt and lowers the interest cost and makes it less likely that the State will assume responsibility for the debt. As of June 30, 2015, the total principal amount outstanding of State agency collateralized or insured debt was approximately $2,218.1 million, consisting of approximately $2,083.4 million issued by AHFC and $134.7 million issued by AIDEA. Through the Alaska Pension Obligation Bond Corporation, the State is authorized to issue up to $5,000 million of bonds and/or enter into contracts to finance the payment by governmental employers of their share of the unfunded accrued actuarial liabilities of the retirement systems. The Governor included a proposal to issue up to $2.5 billion of this authorization in calendar year 2016 if the Legislature supports the issuance. At this time, it is uncertain if this issuance will proceed. [update] Summary of Outstanding Debt Table 8 lists, by type, the outstanding State -related debt as of June 30, 2015. In March 2016, the State issued $134.8 million aggregate principal amount of General Obligation Bonds, Series 2016 to refinance the State's 2015A General Obligation Bond Anticipation Notes. On June 30, 2016, the State $128.3 million aggregate principal amount of General Obligation Bonds, Series 20I6B, to fund various transportation projects. Other categories of debt have not been compiled beyond June 30, 2015. [update] Resolution No. FY2017-10 Authorizing The Borough To Issue A ... 46 Resolution No. FY2017-10 Authorizing The Borough To Issue A Table 8 Stale of Alaska Debt and State -Related Debt by Type as of June 30, 2015 ($ millions) Total Debt Service 0 Principal Dan"., Interest to Mount, Maturity State Debt Sate of Alaska Gmaal Obligaion Bonds S 7539 S 274.0 S 1,027.8 sate -supported Debt Lano-Purchaae Financing. 30.8 11.5 42.3 Sate Reimbursement of Municipal School Debt Service 895.4 300.6 1,196.0 Sate Reimbursement ofcapial Projects 35.8 147 50.5 Capital Leases 261.0 121.1 365.1 Total State -Supported Debt 1.206.0 447 0 I Slate Guaranteed Debt Alaska Housing Finance Corporation Sate Guaranteed Bands (Vacation' Mortgage Program) 56.9 377 94.6 Stale Moral Obliplbn Debt Alaska Municipal Bond Bank Adh9aty. 1976, 2005 & 2010 Germnl Resolution General Obligetian 940.9 471.2 1,412.1 Bonds Alaska Energy Authority. Power Revenue Bonds 61 through 05 71.2 149 853 Alaska Student oan Corporation Student Loan Revenue Bonds 65.2 4.6 72.8 Education Lan Backed Nines 1201 17 1218 student Capital Pmjen Revenue Bonds 0.0 0.0 0.0 Total State Moral Obligation Debt 1,200.4 491.6 1.692.0 Sate Revenue Debt Sportfish Revnan Boeds 31.3 7.6 389 International Airports Revenue Bolls 487.3 215.5 702.8 Univenfry ol'Alnke Debt University of Alaska Revenue Bonds 1322 412 173.4 Ur versity Lase Liability all Notes Payable 419 18.4 594 Imallment Contracts 12 0.1 13 Total Univenity of Alaska Debt 1744 X9.7 234.1 Total State Revenueanit Unlvenity Debt 673-0 ----273.2 SonaAgent Debt Aloka Hoeing Finance Corporation Commercial Paper 16.9 N/A 169 Alaska Municipal Bond Bank Authority Coastal Energy Loan 10.4 24 128 Bonds Alaska Railroad 119.9 199 139.8 Northern Tobacco Securitisation Corporation 2006 Tobacco Setlement AasebBacked Bold, 346.6 394,9 741.5 Total state A6naT Debt 493.8 417.2 911.0 State Atnq Collateralised se lasurel Debt Alaka Hoeing Fiance Corporation Collateatiou d Home Mortgage Bonds it, Mortgage Revenue Bandy. 2002 Through 2011 (First Time Homebuyer Program) 852.5 477.6 1,330.1 General Meetings Revenue Bonds 2012 129.1 67.4 196.5 Government PM... Bond. 1997 & 2001 128.2 37 9 162) Sate Capital Prelim Bonds, 20032011 202.2 76.3 278.5 Sate Capitol Projan Bonds, 112012-2014 7714 300.9 1,0723 Alaska Industrial Develapmnl and apart Authority Revolving Food and Refunding Revolving Fund Bands 64.7 218 865 Power Revenue Bonds, Fiat see..(Somaliam Hydra Profen) 70.0 42.5 1125 Total State Ates, Culatenilaed or Insured Debt 218.1 1,020.4 3,238.5 Total State and state Agency Debt 6,622.0 Municipal Debt School G O Debs 1,299.4 N/A N/A Other G.O. Debt 1,095.5 N/A NIA Revenue Debt 954.3 N/A N/A Total Municipal Debt 3,349.2 Las: Stale Reimbursable Debt and Capital Leases (2) (1.1752) Lea: Alaska Municipal Bond Bank Authority Debt (927.7) included in Municipal Debt 1,2463 Total Aloka Public Debt S7,168d (i) University debt owed to AHFC is double counted in derail, but eliminated from Total Aloka Public Deb. (2) Reimbursable school G.O. debt is included in "Sate Supported Debt'. Capital Lesson me included in "Sate Agency Colatmlandi or Insure! Debt and Municipal Debt": Sate Reimbunemnt ofCapial Projects is included in' Unive a ry of Aloka Deb" all"Municipal Debt" Soarce.: Annn/relmn.aNfirmnciul.mremenr. nfAHFC, RmWRank,A1DEA AEA Uni.0,,,fAlurka, Alaska RodmaJ, roddovalyf anapacea 46 Resolution No. FY2017-10 Authorizing The Borough To Issue A General Fund Supported Obligations. General Fund support is pledged and required for only a portion of the total outstanding Alaska Public Debt. General Obligation Bonds are unconditionally supported, and Certificates of Participation and Capital Leases are subject -to -appropriation commitments with associated obligations. The School Debt and Capital Project Reimbursement Programs provide discretionary annual payments to municipal issuers for qualified general obligation bonds that are eligible by statute to participate in the programs. Over the last 20 years, the State has fully funded these programs. [update] Tables 9 and 10 show the historical level of support the State has provided from the General Fund for these outstanding obligations and the forecast support required to retire the outstanding obligations. In 2015, the Legislature passed a moratorium on all school reimbursement agreements for municipal general obligation bond authorizations approved after January 1, 2015. See "State Debt Capacity." Table 9 State of Alaska Debt Service on State Supported Debt Fiscal Years Ended June 30, 1986-2015 ($ millions) Fiscal State University Lease / Capital School Debt Capital Project Total Debt Year G.D. Revenue Debt Purchase Leases to Reimbursement Reimbursements Service (2) 1986 $163.2 $ 1.8 $ 10.4 - $ 106.3 - $281.7 1987 154.9 1.8 Ill - 115.8 - 283.7 1988 147.9 1.5 11.2 - 109.5 - 270.1 1989 135.5 2.2 11.7 - 110.2 - 259.6 1990 120.3 2.2 12.0 - 107.4 - 241.9 1991 95.5 2.7 12.0 - 1163 - 226.5 1992 69.2 2.7 11.8 - 127.3 - 210.0 1993 59.7 3.7 113 - 124.9 - 199.5 1994 33.8 0.2 8.5 - 98.6 - 141.1 1995 22.9 0.2 10.2 - 93.7 - 127.0 1996 21.3 0.2 9.6 - 79.2 - 110.3 1997 16.5 02 9.5 - 62.5 - 88.7 1998 14.2 0.2 10.3 - 61.6 - 86.3 1999 8.8 0.2 15.5 - 62.0 - 86.5 2000 2.4 - 15.0 S 3.5 64.4 - 85.3 2001 - - 12.8 3.5 52.1 - 68.4 2002 - - 12.4 8.8 54.1 - 75.3 2003 - - 11.9 8.8 52.0 - 72.7 2004 19.4 - 12.1 8.8 60.6 $ 0.3 101.2 2005 46.4 - 13.8 8.8 71.4 0.2 140.6 2006 45.7 - 13.2 8.6 81.1 2.2 150.8 2007 45.0 - 13.2 9.1 86.9 3.6 - 157.8 2008 44.4 - 11.1 11.8 91.1 4.2 162.7 2009 43.9 - 8.0 20A 93.3 3.9 169.5 2010 48.9 - 8.0 29.6 95.8 5.2 187.5 2011 53.8 - 8.0 29.7 99.6 5.3 196.4 2012 78.8 - 7.5 29.1 100.9 5.8 2-12.1 2013 76.3 - 7.0 28.6 112.3 5.4 229.6 2014 762 - 1.8 28.7 109.8 5.5 222.0 2015 73.5 - 1.8 28.7 118.0 5.5 227.5 (1) Three facilities are financed with capital leases. (2) Totals may not foot due to rounding. Source: State ojAiaska. 47 Resolution No. FY2017-10 Authorizing The Borough To Issue A Table 10 State of Alaska Existing Debt Service on Outstanding State Supported Debt Fiscal Years Ending June 30, 2016 - 2040 ($ millions) University Fiscal State Revenue Lease / Capital School Debt Capital Project Tom] Debt Year G.O. In Debt Purchase art Leases (3) Reimbursement t't Reimbursements Service to 2016 $61.3 - S4.7 $26.2 $111.4 $4.6 $208.2 2017 63.0 - 2.9 23.7 105.5 4.6 199.7 2018 62.9 - 2.9 23.7 101.1 4.6 195.2 2019 62.7 - 2.9 20.2 94.3 4.5 184.6 2020 51.6 - 2.9 20.2 90.0 4.5 169.2 2021 51.0 - 2.9 20.2 88.2 3.6 165.9 2022 40.8 - 2.9 20.2 76.3 3.6 143.8 2023 40.8 - 2.9 20.2 72.3 3.6 139.8 2024 40.9 - 2.9 20.2 612 3.6 128.8 2025 36.1 - 2.9 20.2 51.7 3.6 114.5 2026 36.1 - 2.9 20.2 40.4 2.8 102.4 2027 35.6 - 2.9 20.9 36.3 2.6 98.3 2028 35.1 - 2.9 17.6 33.6 2.2 94.7 2029 35.0 - 2.9 17.6 28.3 0.9 $4.7 2030 35.1 - - 17.6 25.2 0.9 78.8 2031 23.4 - - 17.6 22.7 0.4 64.1 2032 23.3 - - 17.6 19.4 - 60.3 2033 23.2 - - 17.6 12.4 - 532 2034 23.1 - - - 9.9 - 33.0 2035 0.1 - - - - - 0.1 2036 0.1 - - - - - 0.1 2037 0.1 - - - - - 0.1 2038 12.0 - - - - - 12.0 2039 - - - - - - - 2040 - - - - - - - (1) State G.O. debt service is net of federal subsidies for interest expenses from 2016 through 2040. Does not include issuance of the State's 2016A General Obligation Bonds or the 20168 General Obligation Bonds. (2) A prison, a building and a parking garage have been financed with capital leases. (3) Information as of January 23, 2015 [update], provided by the Department of Education & Early Development. (4) Fiscal Year 2016 -2040 payments are estimated. Totals may not foot due to rounding. Source: State ojAlaska. Payment History. The State has never defaulted on its bond obligations nor has it ever failed to appropriate funds for any outstanding securitized lease obligations. State Debt Capacity. The State has historically used the ratio of debt service to revenue as a guideline for determining debt capacity of the State. This policy was established due to the State's relatively small population and high per capita revenue due to oil resource -generated revenue. Historically the State's policy has been that debt service should not exceed five percent of unrestricted revenue when considering only general obligation bonds and certificates of participation that are State supported. More recently, the State has included more discretionary General Fund supported obligations and programs, including the School Debt Reimbursement Program, the Capital Project Reimbursement Program and certain capital leases. With the more inclusive funding, the State's policy allows the annual payments on these items to range up to eight percent of unrestricted revenue. Access to the School Debt Reimbursement Program was restricted during the 1990s due to State budgetary pressure. Beginning in the early 2000s, and carrying through 2014, the program was generally available for any qualified 48 Resolution No. FY2017-10 Authorizing The Borough To Issue A municipal project. In 2015, the Legislature passed a moratorium on State school debt reimbursement, and the Alaska Department of Education and Early Development will not issue agreements to reimburse debt from school bonds that voters approved after January 1, 2015, and before July 1, 2020. [describe curtailment] Table I1 State of Alaska Debt Service on Outstanding Obligations to Unrestricted Revenues Ill Fiscal Years Ending June 30, 1986 - 2025 Unrestricted Total Fiscal Revenues State G.O. State Supported Total School Debt Debt Service to Year ($millions) Debt Service Debt Service State Debt Service Reimbursement Revenues 1986 3,075.5 5.3% 0.4% 5.7% 3.5% 9.2% 1987 1,799.4 8.6 0.7 9.3 6.4 15.8 1988 2,305.8 6.4 0.6 7.0 4.7 11.7 1989 2,186.2 6.2 0.6 6.8 5.0 11.9 1990 2,5072 4.8 0.6 5.4 4.3 9.6 1991 2,986.6 32 0.5 3.7 3.9 7.6 1992 2,462.6 2.8 0.6 3.4 5.2 8.5 1993 2,352.0 2.5 0.6 32 5.3 8.5 1994 1,652.5 2.0 0.5 2.6 6.0 8.5 1995 2,082.9 1.1 0.5 1.6 4.5 6.1 1996 2,133.3 1.0 0.5 1.5 3.7 5.2 1997 2,494.9 0.7 0.4 1.1 2.5 3.6 1998 1,825.5 0.8 0.6 1.4 3.4 4.7 1999 1,348.4 0.7 12 1.8 4.6 6.3 2000 2,081.7 0.1 0.9 1.0 3.1 4.1 2001 2,281.9 0.0 0.7 0.7 2.3 3.0 2002 1,660.3 0.0 1.3 1.3 3.3 4.5 2003 1,947.6 0.0 1.1 1.1 2.7 3.7 2004 2,345.6 0.8 0.9 1.7 2.6 4.3 2005 3,188.8 1.5 0.7 22 22 4.4 2006 4,200.4 1.1 0.6 1.7 1.9 3.6 2007 5,158.6 0.9 0.5 1.4 1.7 3.1 2008 10,728.2 0.4 0.3 0.6 0.8 1.4 2009 5,8312 0.8 0.6 1.3 1.6 2.9 2010 5,513.3 0.9 0.8 1.7 1.7 3.4 2011 7,673.0 0.7 0.6 1.3 1.3 2.6 2012 9,485.2 0.8 0.4 1.3 1.1 2.3 2013 6,928.5 1.1 0.6 1.7 1.6 3.3 2014 5,390.1 1.4 0.7 2.1 2.0 4.1 2015 2,57.3 3.3 1.6 4.8 5.2 10.1 Pruiected 2016 1,593.0 3.8 2.2 6.1 7.0 13.1 2017 1,796.4 3.5 1.7 5.2 5.9 11.1 2018 2,021.0 3.1 1.5 4.7 5.0 9.7 2019 2,130.0 2.9 1.3 4.2 4.4 8.7 2020 2,111.3 2.4 1.3 3.8 4.3 8.0 2021 2,173.3 2.3 12 3.6 4.1 7.6 2022 2,131.8 1.9 1.3 32 3.6 6.7 2023 2,076.5 2.0 1.3 3.3 3.5 6.7 2024 2,060.6 2.0 1.3 3.3 3.0 6.3 2025 2,046.1 1.8 1.3 3.1 2.5 5.6 (1) Unrestricted revenue projection for fiscal years 2016 through 2025 is based on Fall 2015 Revenue Sources Book. Debt Service is based on lune 30, 2015 balances, not adjusted for cash defeasances. Source: State ojAlaska. 49 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... SUMMARY OF THE 2005 MASTER BOND RESOLUTION The following is a summary of certain provisions of the 2005 Master Bond Resolution. A copy of the 2005 Master Bond Resolution, together with the Supplemental Resolution adopted in February 2013, is included in this Official Statement as Appendix F. The 2013 Supplemental Resolution includes amendments to the 2005 Master Bond Resolution that take effect after all Bonds outstanding as of February 19, 2013 are no longer outstanding. See "Modifications to the 2005 Master Bond Resolution." Capitalized terms used in this summary are defined in Section 103 of the 2005 Master Bond Resolution. 2005 Master Bond Resolution Constitutes Contract The 2005 Master Bond Resolution provides that the 2005 Master Bond Resolution constitutes a contract between the Bond Bank, the Trustee and the owners from time to time of the Bonds, that the pledges made in the 2005 Master Bond Resolution and the covenants and agreements therein set forth to be performed by the Bond Bank will be for the equal and proportionate benefit, protection and security of the holders of any and all of the Bonds and that each Bond, Credit Enhancement facility and Interest Rate Exchange Agreement will be of equal rank without preference, priority or distinction. Obligation of the Bond Bank The Bonds are general obligations of the Bond Bank, and the full faith and credit of the Bond Bank are pledged for the payment of the principal or redemption premium, if any, of, interest on the Bonds solely from the sources provided in the 2005 Master Bond Resolution and any Series Resolution. The Act and the 2005 Master Bond Resolution each provides that the State is not obligated to pay the principal, premium, if any, or interest on the Bonds, and that the Bonds, are not a debt or liability of the State and neither the faith and credit of the State nor the taxing power of the State is pledged to the payment of the principal of, premium, if any, or interest on the Bonds. Pledge The Municipal Bonds and the Municipal Bonds Payments, the investments thereof and the proceeds of such investments, if any, and all funds and accounts established by the 2005 Master Bond Resolution to be held by the Trustee are pledged and assigned for the payment of the principal of, redemption price of, interest on, and sinking fund installments for, the Bonds in accordance with the terms and provisions of the 2005 Master Band Resolution, subject only to the provisions of the 2005 Master Bond Resolution permitting the application thereof for the purposes and on the terms and conditions set forth in the 2005 Master Bond Resolution. See Section 601 of the 2005 Master Bond Resolution in Appendix F. The 2005 Master Bond Resolution provides that Municipal Bonds and the Municipal Bonds Payments and all other money and securities pledged pursuant to the 2005 Master Bond Resolution immediately will be subject to the lien of such pledge without any further act, and such lien will be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the Bond Bank, regardless of whether such parties have notice thereof. Power to Issue Bonds and Make Pledges The Bond Bank covenants in the 2005 Master Bond Resolution that it is duly authorized by law to issue the Bonds and to pledge the Municipal Bonds Payments, the Municipal Bonds and other money, securities, funds and property purported to be pledged by the 2005 Master Bond Resolution, free and clear of any pledge, lien, charge or encumbrance thereon or with respect thereto prior to, or of equal rank with, the pledge created by the 2005 Master Bond Resolution, except for the liens in favor of the Trustee and Paying Agent as provided in the 2005 Master Bond Resolution. The Bond Bank also covenants that it will 50 Resolution No. FY2017-10 Authorizing The Borough To Issue A at all times, to the extent permitted by law, defend, preserve and protect the pledge of the Municipal Bonds Payments, the Municipal Bonds and other money, securities, funds and property pledged under the 2005 Master Bond Resolution and all the rights of the Bondholders under the 2005 Master Bond Resolution against all claims and demands of all persons whomsoever. General The Bond Bank covenants that it will do and perform or cause to be done and performed all acts and things required to be done or performed by or on behalf of the Bond Bank under law and the 2005 Master Bond Resolution in accordance with the terms thereof. The Act provides that the State will not limit or restrict, and the Bond Bank pledges and agrees with the Holders of the Bonds that it will not cause the State to limit or alter, the rights vested by the Act in the Bond Bank to fulfill the terms of any agreements made with Bondholders, or in any way impair the rights and remedies of such Bondholders, until the Bonds, together with the interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of such Holders, are fully met and discharged. Waiver of Laws The Bond Bank covenants in addition that it will not at any time insist upon or plead in any manner whatsoever, or claim or take the benefit or advantage of any stay or extension of law now or at any time hereafter in force which may affect the covenants and agreements contained in the 2005 Master Bond Resolution or in any Series Resolution or in the Bonds, and all benefit or advantage of any such law or laws is hereby expressly waived by the Bond Bank. Loan Agreement Provisions The 2005 Master Bond Resolution provides that no loan will be made by the Bond Bank from proceeds of the sale of Bonds and no Bonds will be issued for the purpose of providing funds with which to make a loan, unless the Loan Agreement under which such loan is to be made will comply with, but not be limited to, the following: (a) The Governmental Unit which is a party to such Loan Agreement must be a Governmental Unit as defined by the 2005 Master Bond Resolution, and the Loan Agreement must be executed in accordance with existing laws. (b) The Governmental Unit, prior to or simultaneously with the issuance of Bonds, will issue Municipal Bonds which are valid debt obligations of the Governmental Unit as required by the Act. (c) The Municipal Bonds Payment to be made by the Governmental Unit under such Loan Agreement will be not less than the interest and principal payments the Bond Bank is required to make on the Loan Obligations and will be scheduled by the Bond Bank in such manner and at such times as to provide funds sufficient to pay principal and interest on the Loan Obligations as the same become due. (d) The Governmental Unit will be obligated to pay Fees and Charges to the Bond Bank at the times and in the amounts which will enable the Bond Bank to comply with the provisions of the 2005 Master Bond Resolution to pay Administrative Expenses and fees and expenses of the Trustee and paying agent. 51 Resolution No. FY2017-10 Authorizing The Borough To Issue A (e) The Governmental Unit will agree that in the event the Municipal Bonds Payment is not paid by it to the Bond Bank on or before the times specified in the Loan Agreement, any money payable to the Governments] Unit by any department or agency of the State will be withheld from such Governmental Unit and paid over directly to the Trustee acting under the 2005 Master Bond Resolution. (f) The Bond Bank will not sell, and the Governmental Unit will not redeem prior to maturity, any of the Municipal Bonds with respect to which the Loan is made in an amount greater than the Outstanding Bonds issued with respect to such Loan which are then redeemable, and any such sale or redemption of such Municipal Bond will be in an amount not less than the aggregate of (i) the principal amount of the Loan Obligation to be redeemed (or the amount of Refunding Bonds if the Loan is being refunded), (ii) the interest to accrue on the Loan Obligation so to be redeemed to the next redemption date, (iii) the applicable redemption premium, and (iv) the costs and expenses of the Bond Bank in effecting the redemption of the Loan Obligation. (g) The Governmental Unit must give the Bond Bank at least fifty (50) days' notice of its intent to redeem its Municipal Bonds. Modification of Loan Agreement Terms The Bond Bank covenants that it will not consent to the modification of, or modify, the rates of interest of, or the amount or time of payment of any installment of principal of or interest on, any Municipal Bonds evidencing a Loan, or the amount or time of payment of any Fees and Charges payable with respect to such Loan, or the security for or any terms or provisions of such Loan or the Municipal Bonds evidencing the same, in a manner which adversely affects or diminishes the rights of the Bondholders. Enforcement of Municipal Bands The 2005 Master Bond Resolution provides that the Bond Bank will diligently enforce, and take all reasonable steps, actions and proceedings necessary for the enforcement of, all terms, covenants and conditions of all Loan Agreements and the Municipal Bonds, including the prompt collection, and the giving of notice to the Commissioner of Revenue, Commissioner of Commerce, Community and Economic Development and the Commissioner of Administration and any other department or agency of the State which is custodian of any money payable to the Governmental Unit of any failure or default of the Governmental Unit in the payment of its Municipal Bonds Payments and will promptly transfer any such money, upon receipt thereof, to the Trustee and that the Trustee will deposit any such money in the Principal Account and Interest Account in place of said unpaid Municipal Bonds Payments or in the event deficiencies in said Accounts created by such default will have been made up by the Reserve Fund, into the Reserve Fund to the extent of such deficiencies. Funds and Accounts The 2005 Master Bond Resolution established a Debt Service Fund, consisting of an Interest Account, a Principal Account and a Redemption Account; a Reserve Fund; a Rebate Fund, which consists of a separate sub -account for each Series of Bonds; and an Operating Fund. The Debt Service Fund, the Rebate Fund and the Reserve Fund are held by the Trustee. The Operating Fund is held by the Bond Bank and is not pledged to the payment of the Bonds. Debt Service Fund The Trustee is required to deposit Municipal Bonds Interest Payments and any other money available for the payment of interest in the Interest Account upon receipt thereof and on 52 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... or before each interest payment date, to pay out of the Interest Account the amounts required for the payment of the interest becoming due on each series of Bonds on such interest payment date. The Trustee is to deposit Municipal Bonds Principal Payments and any other money available for the payment of principal in the Principal Account upon receipt thereof. The Trustee is required, on or before each principal payment date or Sinking Fund Installment date, to pay out of the Principal Account the amounts required for the payment of the principal or Sinking Fund Installment due on each series of Bonds on such date. The Trustee establishes in the Redemption Account a separate sub -account for each Series of Bonds. Any money deposited in the Redemption Account from any source other than excess moneys transferred from the Reserve Fund or certain proceeds received from sales or redemptions of Municipal Bonds pursuant to Section 607 or Section 916 of the 2005 Master Bond Resolution will be applied to the purchase or redemption of Bonds. Any money deposited in the Redemption Account from the Reserve Fund because of a reduction in the Required Debt Service Reserve is to be applied to the purchase or redemption of Reserve Fund Obligations. Reserve Fund The 2005 Master Bond Resolution established the Reserve Fund as a 2005 Master Obligation Bond Resolution Reserve Account within the Alaska Municipal Bond Bank Reserve Fund created by the Act and provides that monthly, the Trustee will set aside from amounts in the Reserve Fund derived from investment earnings and profits realized by the Reserve Fund due to investments thereof, an amount which, when added to the amounts theretofore set aside for such purpose and not paid into the Interest Account, will on such date be equal to the unpaid interest on the Reserve Fund Obligations accrued and to accrue to the last day of such month. On or before each principal payment date and Sinking Fund Installment payment date of Reserve Fund Obligations, the Trustee is to withdraw from amounts in the Reserve Fund and deposit in the Principal Account an amount which, when added to the amount then on deposit in the Principal Account and derived from sources other than Municipal Bonds Payments, will be equal to the Principal Installment of the Reserve Fund Obligations falling due on such date. On or before December 31 of each year, after satisfying the deposit requirements described above, the Trustee is to withdraw from the Reserve Fund any amount remaining therein derived from investment earnings or profits due to investments thereof, and pay over said amount to the Bond Bank for deposit in the Custodian Account within the Operating Fund, but only to the extent that there remains after such withdrawal an amount in the Reserve Fund at least equal to the Reserve Fund Requirement. The 2005 Master Bond Resolution provides that the Bond Bank will pay into the Reserve Fund (i) money made available by the State and paid by the State for the purpose of the Alaska Municipal Bond Bank Reserve Fund created by the Act in the amount provided by a Series Resolution; (ii) all money paid to the Bond Bank pursuant to the Act for the purpose of restoring the Reserve Fund to the amount of the Reserve Fund Requirement; (iii) such portion of the proceeds of sale of Bonds, if any, as will be provided by any Series Resolution; (iv) Credit Enhancement; and (v) any other money which may be made available to the Bond Bank for the purposes of the Reserve Fund from any other source or sources. The Reserve Fund Requirement may be satisfied entirely, or in part, by a letter of credit, a line of credit, a credit facility, a surety bond, or any other instrument or arrangement obtained in connection with the issuance of a Series of Bonds; provided, however, any credit enhancement satisfying all or any part of the Reserve Fund Requirement after the initial issuance of Bonds or issued in substitution of any prior credit enhancement previously issued will not, by itself, cause a withdrawal or downward revision of the ratings maintained by any Rating Agency with respect to the Bonds. 53 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... In the event there will be a deficiency in the Interest Account or in the Principal Account, the Trustee is to make up such deficiencies from the Reserve Fund. Administration of Reserve Fund The 2005 Master Bond Resolution provides that money and securities held in the Reserve Fund will not be withdrawn therefrom at any time in such amount as would reduce the amount in such Fund to an amount less than the Reserve Fund Requirement except for the payment when due of debt service on Reserve Fund Obligations and to cure a deficiency in the Principal Account or the Interest Account. Rebate Fund There is to be deposited in the Rebate Fund the amount of the Rebate Requirement for each Series of Bonds, and the Trustee is to pay over to the United States Government such amounts as determined by the Bond Bank and as set forth in the 2005 Master Bond Resolution. All amounts held in the Rebate Fund, including income earned from investment of the Rebate Fund, shall be held by the Trustee free and clear of the lien of the 2005 Master Bond Resolution. Operating Fund The 2005 Master Bond Resolution requires the deposit in the Operating Account within the Operating Fund of all Fees and Charges, to the extent not otherwise encumbered or pledged, and any other money which may be made available to the Bond Bank therefor from any other source or sources. Money at any time held for the credit of the Operating Fund is to be used for and applied solely to the following purposes: (i) to pay the Administrative Expenses of the Bond Bank; (ii) to pay the fees and expenses of the Trustee and any Paying Agent; (iii) to pay financing costs incurred with respect to a Series of Bonds; and (iv) to pay any expenses incurred in carrying out any other purpose then authorized by the Act. The Operating Fund is held by the Bond Bank, not by the Trustee, and the 2005 Master Bond Resolution provides that all amounts in the Operating Fund will be free and clear of any lien or pledge created by the 2005 Master Bond Resolution. Security for Deposits and Investment of Funds The 2005 Master Bond Resolution provides that all money held by the Trustee will be continuously and fully secured, for the benefit of the Bond Bank and the Bondholders in such manner as may then be required or permitted by applicable State or federal laws and regulations regarding the security for, or granting a preference in the case of, the deposit of trust funds but does not require the Trustee or any paying agent to give security for the deposit of any money with them held in trust for the payment of the principal or Redemption Price of or interest on any Bonds, or for the Trustee to give security for any money which will be represented by obligations purchased under the provisions of the 2005 Master Bond Resolution as an investment of such money. The 2005 Master Bond Resolution also provides for the investment of funds held by the Trustee. See the definition of "Investment Securities" and Sections 702 and 703 of the 2005 Master Bond Resolution in Appendix F. Payment of Bonds The Bond Bank covenants in the 2005 Master Bond Resolution that it will duly and punctually pay or cause to be paid the principal or Redemption Price, if any, of every Bond and the interest thereon, at the dates and places and in the manner provided in the Bonds according to the true intent and meaning thereof, and will duly and punctually satisfy all Sinking Fund Installments, if any, becoming payable with respect to any Series of Bonds. 54 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Fees and Charges The Bond Bank may charge such Fees and Charges to each Governmental Unit to which a Loan is made, and will revise such Fees and Charges if necessary, so that such Fees and Charges actually collected from each such Governmental Unit will at all times produce money which, together with such Governmental Unit's Allocable Proportion of other money available under the provisions of the 2005 Master Bond Resolution, and other money available therefor, will be at least sufficient to pay, as the same become due, the Governmental Unit's Allocable Proportion of the Administrative Expenses of the Bond Bank and of the fees and expenses of the Trustee and any Paying Agent. Issuance of Additional Obligations The Bond Bank may issue additional Bonds and refunding Bonds pursuant to the terms of the 2005 Master Bond Resolution; however, no additional series of Bonds are to be issued unless: (a) the aggregate principal amount of Bonds and Notes Outstanding at the time of issuance and delivery of such additional Bonds including the principal amount of such additional Bonds, will not exceed any limit thereon imposed by State law; (b) there is at the time of the issuance of such additional Bonds no deficiency in the amounts required by the 2005 Master Bond Resolution or any Series Resolution to be paid into the Debt Service Fund and into the Reserve Fund; (c) the amount of the Reserve Fund, upon the issuance and delivery of such additional Bonds, will not be less than the Required Debt Service Reserve; and (d) the maturities of, or Sinking Fund Installments for, the additional Bonds representing Loan Obligations, unless such additional Bonds are being issued to refund Outstanding Bonds, will be equal to the scheduled Municipal Bonds Principal Payments to be made in respect of the Loans with respect to which such additional Bonds are to be issued. The Bond Bank expressly reserves the right to adopt other general bond resolutions and reserves the right to issue notes and any other obligations so long as the same are not a charge or lien on the Municipal Bonds, the Municipal Bonds Payments and the Fees and Charges or payable from the Debt Service Fund or the Reserve Fund. Defeasance If the Bond Bank pays or causes to be paid to the holders of all Bonds then Outstanding, the principal and interest and/or Redemption Price, if any, to become due thereon, at the times and in the manner stipulated therein and in the 2005 Master Bond Resolution and also will pay or cause to be paid all other sums payable under the 2005 Master Bond Resolution, including any amounts payable to the United States, then, at the option of the Bond Bank, as expressed in an instrument in writing signed by an Authorized Officer and delivered to the Trustee, the covenants, agreements and other obligations of the Bond Bank to the Bondholders will be discharged and satisfied. The 2005 Master Bond Resolution provides that Bonds may, prior to the maturity or redemption date thereof, be deemed to have been paid if (i) in case any of said Bonds are to be redeemed on any date prior to their maturity, the Bond Bank will have given to the Trustee in form satisfactory to it irrevocable instructions to publish notice of redemption on said date of such Bonds, and (ii) there will have been deposited with the Trustee either monies in an amount which will be sufficient or Investment Securities 55 Resolution No. FY2017-10 Authorizing The Borough To Issue A which are not subject to redemption prior to the dates on which amounts will be needed to make payments on the Bonds and described in clause (1) of the definition thereof, the principal of and the interest on which when due will provide money which, together with the money, if any, deposited with the Trustee or Paying Agent at the same time, will be sufficient, to pay, when due, the principal or Redemption Price, if applicable, and interest due and to become due on said Bonds on and prior to the redemption date or maturity date thereof, as may be the case. See the definition of "Outstanding" and Article XIII of the 2005 Master Bond Resolution in Appendix F. Supplements and Amendments The Bond Bank may adopt a Series Resolution or Supplemental Resolution without the consent of the Bondholders or the Trustee for various purposes not inconsistent with the 2005 Master Bond Resolution, to provide for the issuance of additional Series of Bonds, to impose additional limitations or restrictions on the issuance of Bonds, to impose other restrictions on the Bond Bank, to surrender any right, power or privilege, or to confirm any pledge of or lien upon the Municipal Bonds or the Municipal Bonds Payments or any other funds. The Bond Bank may also supplement the 2005 Master Bond Resolution to cure any ambiguity or defect in the 2005 Master Bond Resolution, provided such modifications are not contrary to or inconsistent with the 2005 Master Bond Resolution as theretofore in effect. Any other modification or amendment of the 2005 Master Bond Resolution and of the rights and obligations of the Bond Bank and of the Bondholders may be made with the written consent (i) of the holders of at least two-thirds in principal amount of the Bonds Outstanding at the time such consent is given, or (ii) in case less than all of the several Series of Bonds then Outstanding are affected by the modification or amendment, of the holders of at least two-thirds in principal amount of the Bonds of each Series so affected and Outstanding at the time such consent is given; provided, however, that such modification or amendment will not permit (i) a change in the terms of redemption or maturity of the principal of any outstanding Bond or of any installment of interest thereon or Sinking Fund Installment therefor, (ii) a reduction in the principal amount or the Redemption Price thereof or in the rate of interest thereon, (iii) a reduction of the percentage of the Holders of which is required to effect any such modification or amendment, or (iv) the creation of any lien prior to or on a parity with the lien created by the 2005 Master Bond Resolution (except in the manner provided by the 2005 Master Bond Resolution) or deprive the Bondholders of the lien created by the 2005 Master Bond Resolution, without the consent of the holders of all the Bonds Outstanding or of the Series of Bonds affected by such modification or amendment. To the extent that the full payment of the interest and principal of Bonds of a Series is secured by Credit Enhancement, the Credit Enhancement Agency will be considered to be the Bondholder of all the Bonds of the Series for purposes of exercising any rights with respect to supplements and amendments to the 2005 Master Bond Resolution if the Credit Enhancement so provides. See Articles X and XI and the definition of "Bondholder" in the 2005 Master Bond Resolution and Section 202 of the Supplemental Resolution in Appendix F. Events of Default and Remedies Each of the following events is an Event of Default under the 2005 Master Bond Resolution: (a) the Bond Bank defaults in the payment of the principal or Redemption Price of, Sinking Fund Installment for, or interest on, any Bond when and as the same will become due whether at maturity or upon call for redemption, or otherwise; (b) the Bond Bank fails or refuses to comply with the provisions of the Act regarding the certification of deficiencies in the 2005 Master Bond Resolution Reserve Fund, or such 56 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... i. Qi Jig -mi amounts as will be certified to the Governor and to the Legislature pursuant to the Act are not appropriated and paid to the Bond Bank prior to the termination of the then current State fiscal year; or (c) the Bond Bank fails or refuses to comply with the provisions of the Act, other than as described in (b) above, or defaults in the performance or observance of any other of the covenants, agreements or conditions on its part in the 2005 Master Bond Resolution, any Series Resolution, any Supplemental Resolution, or in the Bonds contained, and such failure, refusal or default will continue for a period of 45 days after written notice thereof by the Trustee or the Holders of not less than 25 percent in principal amount of the Outstanding Bonds; provided, however, that an event of default will not be deemed to exist under the provisions described in clause (c) above upon the failure of the Bond Bank to make and collect Fees and Charges required to be made and collected by the 2005 Master Bond Resolution or upon the failure of the Bond Bank to enforce any obligation undertaken by a Governmental Unit pursuant to a Loan Agreement including the making of the stipulated Municipal Bonds Payments so long as the Bond Bank may be otherwise directed by law and so long as the Bond Bank will be provided with money from the State or otherwise, other than withdrawals from or reimbursements of the Reserve Fund, sufficient in amount to pay the principal of and interest on all Bonds as the same will become due during the period for which the Bond Bank will be directed by law to abstain from making and collecting such Fees and Charges and from enforcing the obligations of a Governmental Unit under the applicable Loan Agreement. The 2005 Master Bond Resolution provides that upon the happening and continuance of any event of default described in paragraph (a) above, the Trustee will proceed, or upon the happening and continuance of any event of default described in paragraphs (b) and (c) above, the Trustee may proceed, and upon the written request of the holders of not less than 25 percent in principal amount of the Outstanding Bonds will proceed, in its own name, to protect and enforce its rights and the rights of the Bondholders by such of the following remedies as the Trustee, being advised by counsel, will deem most effectual to protect and enforce such rights: (a) by mandamus or other suit, action or proceeding at law or in equity, enforce all rights of the Bondholders, including the right to require the Bond Bank to make and collect Fees and Charges and Municipal Bonds Payments adequate to carry out the covenants and agreements as to, and pledge of, such Fees and Charges and Municipal Bonds Payments, and other properties and to require the Bond Bank to carry out any other covenant or agreement with Bondholders and to perform its duties under the Act; (b) by bringing suit upon the Bonds; (c) by action or suit in equity, require the Bond Bank to account as if it were the trustee of an express trust for the holders of the Bonds; (d) by action or suit in equity, enjoin any acts or things which may be unlawful or in violation of the rights of the holders of the Bonds. Acceleration. The 2005 Master Bond Resolution provides that upon the occurrence of an event of default in the payment of principal of and interest on Bonds then Outstanding, the Trustee may, and upon the written request of the holders of not less than a majority in aggregate principal amount of the Bonds at the time Outstanding will, declare the principal of all the Bonds then Outstanding, and the interest accrued thereon, to be due and payable immediately, and upon any such declaration the same will be immediately due and payable. This provision, however, is subject to the condition that if before any 57 Resolution No. FY2017-10 Authorizing The Borough To Issue A judgment or decree for the payment of the money due will have been obtained or entered, the Bond Bank deposits with the Trustee a sum sufficient to pay all principal on the Bonds matured prior to such declaration and all matured installments of interest upon all the Bonds, with interest on such overdue installments of principal at the rate bome by the respective Bonds, and the reasonable expenses of the Trustee, and any and all other defaults known to the Trustee will have been made good or cured to the satisfaction of the Trustee or provision deemed by the Trustee to be adequate will have been made therefor, then the holders of at least a majority in aggregate principal amount of the Bonds then outstanding, may, on behalf of the holders of all of the Bonds, rescind and annul such declaration and its consequences and waive such default. See Sections 1203 and 1204 in Appendix F. Bondholders' Direction of Proceedings. The holders of a majority in principal amount of the Bonds then Outstanding will have the right to direct the method of conducting all remedial proceedings to be taken by the Trustee, provided that such direction will not be otherwise than in accordance with law or the 2005 Master Bond Resolution, and that the Trustee will have the right to decline to follow any such direction which in the opinion of the Trustee would be unjustly prejudicial to Bondholders not parties to such direction. Limitation on Rights of Bondholders. No holder of any Bond will have any right to institute any suit, action, mandamus or other proceeding in equity or at law under the 2005 Master Bond Resolution, or for the protection or enforcement of any right under the 2005 Master Bond Resolution or any right under law unless such holder will have given to the Trustee written notice of the event of default or breach of duty on account of which such suit, action or proceeding is to be taken, and unless the holders of not less than 25 percent in principal amount of the Bonds then Outstanding will have made written request of the Trustee and will have afforded the Trustee a reasonable opportunity either to proceed to exercise the powers granted under late or to institute such action, suit or proceeding in its name and unless, also, there will have been offered to the Trustee reasonable security and indemnity against the costs, expenses and liabilities to be incurred thereby, and the Trustee will have refused or neglected to comply with such request within a reasonable time. No holder of the Bonds will have any right to affect, disturb or prejudice the security of the 2005 Master Bond Resolution, or to enforce any right with respect to the Bonds or the 2005 Master Bond Resolution, except in the manner provided in the 2005 Master Bond Resolution, and all proceedings at law or in equity will be instituted, held and maintained in the manner herein provided and for the benefit of all Bondholders. Excess Earnings The Bond Bank covenants and agrees to calculate Rebatable Arbitrage and to pay Rebatable Arbitrage to the United States of America in the manner necessary to comply with the then applicable federal tax law. Within 30 days after the end of every fifth Bond Year, and within 60 days of the date when all of each Series of Bonds have been retired (or at such other time or times as may then be required by the Code and the applicable Income Tax Regulations), the Bond Bank will determine the Rebatable Arbitrage with respect to each Series of Bonds, and pay rebate amounts due the United States of America with respect thereto, as provided in Section 148(f) of the Code. Modifications to the 2005 Master Bond Resolution In addition to modifications with and without consent of Bondholders, the 2005 Master Bond Resolution authorizes modifications of any provision set forth in the 2005 Master Bond Resolution by the terns of a Supplemental Resolution, with such modifications becoming effective after all Bonds of each Series Outstanding as of the date of such Supplemental Resolution authorizing such modification cease to be Outstanding. The 2013 First Supplemental Resolution was adopted by the Board on February 19, 2013. 58 Resolution No. FY2017-10 Authorizing The Borough To Issue A The 2013 First Supplemental Resolution authorizes the following modifications to the 2005 Master Bond Resolution: (i) to authorize the Trustee to release to the Bond Bank amounts held in the Reserve Fund which exceed the Required Debt Service Reserve whenever there is a reduction in the Required Debt Service Reserve, (ii) to authorize the Trustee to release to the Bond Bank earnings and profits realized from investments in the Reserve Fund on or before June 30 of each year so long as the balance therein equals the Required Debt Service Reserve, (iii) to allow for certain amendments and modifications to the 2005 Master Bond Resolution to be effective upon securing the consent of Holders of at least two-thirds in principal amount of Bonds then Outstanding, and (iv) to establish that consent of Holders of Bonds, when required under the terms of the 2005 Master Bond Resolution, specifically includes the consent of an underwriter or purchaser of a Series of Bonds at the time such Bonds are issued. The modifications to the 2005 Master Bond Resolution set forth in the 2013 First Supplemental Resolution shall become effective after all Bonds issued prior to the 2013 Series One Bonds cease to be Outstanding and compliance by the Bank with certain requirements set forth in the 2005 Master Bond Resolution, at which time these modifications will apply to the 2016 Series Three and Four Bonds and govern the rights and obligations of the Holders thereof. LITIGATION Upon the delivery of the 2016 Series Three and Four Bonds, the Bond Bank will furnish a certificate to the effect that, among other things, there is no litigation pending in any court to restrain or enjoin the issuance or delivery of the 2016 Series Three and Four Bonds, or in any way contesting the validity or enforceability of the 2016 Series Three and Four Bonds, the 2005 Master Bond Resolution or any Bonds or money pledged under the 2005 Master Bond Resolution. CERTAIN LEGAL MATTERS Legal matters incident to the authorization, issuance and sale by the Bond Bank of the 2016 Series Three and Four Bonds are subject to the approving legal opinions of Orrick, Herrington & Sutcliffe LLP, Bond Counsel to the Bond Bank. The proposed fors of the opinions of Bond Counsel are set forth in Appendix A. Certain legal matters will be passed upon for (i) the City of Ketchikan and the City and Borough of Sitka by their bond counsel, Stradling Yocca Carlson & Rauth, P.C. of Seattle, Washington, (ii) the City of Dillingham, the City of Kodiak, the City of Nome, the Northwest Arctic Borough, Petersburg Borough and the City of Wasilla by their bond counsel, Birch Horton Bittner & Cherot of Anchorage, Alaska, (iii) the Municipality of Skagway and the City and Borough of Juneau by their bond counsel, K&L Gates LLP of Seattle, Washington, (iv) the City of Bethel, the Kenai Peninsula Borough and the City of Seward by their bond counsel, Jerain, Dunnagan & Owens, P.C. of Anchorage, Alaska, and (v) the Aleutians East Borough and the Kodiak Island Borough by their co -bond counsel, Foster Pepper PLLC of Seattle, Washington, and the Levesque Law Group, LLC of Anchorage, Alaska. Certain legal matters will be passed upon for the Underwriters by their special counsel, Foster Pepper PLLC, Seattle, Washington. Any opinion of such counsel will be limited in scope and delivered only to the Underwriters, and may not be relied upon by investors. 59 Resolution No. FY2017-10 Authorizing The Borough To Issue A The firm of Foster Pepper PLLC, Seattle, Washington has secured the consent of the Underwriters, the Aleutians East Borough and the Kodiak Island Borough regarding the multiple representations of clients in this transaction. UNDERWRITING The 2016 Series Three Bonds are to be purchased by RBC Capital Markets, LLC, acting on behalf of itself and as representative of Merrill Lynch, Pierce, Fenner & Smith Incorporated, at a purchase price of $ (reflecting the aggregate principal amount of the 2016 Series Three Bonds, plus a [net] original issue premium of $ less an underwriters' discount of $ 1. The Underwriters have represented to the Bond Bank that the 2016 Series Three Bonds have been subsequently reoffered to the public initially at the prices or prices corresponding to the yields set forth on the inside cover of this Official Statement. The 2016 Series Four Bonds are to be purchased by RBC Capital Markets, LLC, acting on behalf of itself and as representative of Goldman, Sachs & Co., at a purchase price of $ (reflecting the aggregate principal amount of the 2016 Series Four Bonds, plus a [net] original issue premium of $. less an underwriters' discount of $ ). The Underwriters have represented to the Bond Bank that the 2016 Series Four Bonds have been subsequently reoffered to the public initially at the prices or prices corresponding to the yields set forth on the inside cover of this Official Statement. The initial offering prices or prices corresponding to the yields set forth on the inside cover of this Official Statement may be changed from time to time by the Underwriters without prior notice to any person. The Underwriters may offer and sell the 2016 Series Three and Four Bonds to certain dealers, unit investment trusts or money market funds at prices lower than the initial offering prices or prices corresponding to the yields set forth on the inside cover of this Official Statement. The Underwriters and their respective affiliates are full-service financial institutions engaged in various activities that may include securities trading, commercial and investment banking, municipal advisory, brokerage, and asset management. In the ordinary course of business, the Underwriters and their respective affiliates may actively trade debt and, if applicable, equity securities (or related derivative securities) and provide financial instruments (which may include bank loans, credit support or interest rate swaps). The Underwriters and their respective affiliates may engage in transactions for their own accounts involving the securities and instruments made the subject of this securities offering or other offering of the Bond Bank or the Governmental Units. The Underwriters and their respective affiliates may make a market in credit default swaps with respect to municipal securities in the future. The Underwriters and their respective affiliates may also communicate independent investment recommendations, market color or trading ideas and publish independent research views in respect of this securities offering or other offerings of the Bond Bank and the Governmental Units. MUNICIPAL ADVISOR Western Financial Group, LLC has acted as financial advisor (the "Municipal Advisor") to the Bond Bank in connection with the issuance of the 2016 Series Three and Four Bonds. The Municipal Advisor is not obligated to undertake, and has not undertaken to make, an independent verification or to assume responsibility for the accuracy, completeness, or fairness of the information contained in this Official Statement. Western Financial Group, LLC is an independent advisory firm registered with the Securities and Exchange Commission and is not engaged in the business of underwriting, trading, or distributing municipal securities or other public securities. 60 Resolution No. FY2017-10 Authorizing The Borough To Issue A FINANCIAL STATEMENTS The financial statements of the Bond Bank included as Appendix E to this Official Statement have been audited by BDO USA, LLP, independent certified public accountants, to the extent and for the periods indicated in their report thereon. Such financial statements have been included in reliance upon the report of BDO USA, LLP. The Bond Bank has not requested BDO USA, LLP to provide written consent for inclusion of the financial statements in this Official Statement. TAX MATTERS In the opinion of Orrick, Herrington & Sutcliffe LLP ("Bond Counsel'), based upon an analysis of existing laws, regulations, rulings and court decisions, and assuming, among other matters, the accuracy of certain representations and compliance with certain covenants, interest on the 2016 Series Three Bonds is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986 (the "Internal Revenue Code"), except that no opinion is expressed as to the status of interest on any 2016 Series Four Bond for any period that such 2016 Series Four Bond is held by a "substantial user" of the facilities financed or refinanced by the 2016 Series Four Bonds or by a "related person" within the meaning of Section I47(a) of the Internal Revenue Code. Bond Counsel observes, however, that interest on the 2016 Series Four Bonds is a specific preference item for purposes of the federal individual and corporate alternative minimum taxes. In the further opinion of Bond Counsel, interest on the 2016 Series Three Bonds is not a specific preference item for purposes of the federal individual or corporate alternative minimum taxes, although Bond Counsel observes that such interest is included in adjusted current earnings when calculating corporate alternative minimum taxable income. Bond Counsel is also of the opinion, based on existing laws of the State, that interest on the 2016 Series Three and Four Bonds is exempt from taxation by the State except for transfer, estate and inheritance taxes. A complete copy of the proposed forms of opinions of Bond Counsel is set forth in Appendix A. To the extent the issue price of any maturity of a series of the 2016 Series Three and Four Bonds is less than the amount to be paid at maturity of such 2016 Series Three and Four Bonds (excluding amounts stated to be interest and payable at least annually over the term of such 2016 Series Three and Four Bonds), the difference constitutes "original issue discount," the accrual of which, to the extent properly allocable to each Beneficial Owner thereof, is treated as interest on the 2016 Series Three and Four Bonds which is excluded from gross income for federal income tax purposes. For this purpose, the issue price of a particular maturity of a series of the 2016 Series Three and Four Bonds is the first price at which a substantial amount of such maturity of the 2016 Series Three and Four Bonds is sold to the public (excluding bond houses, brokers, or similar persons or organizations acting in the capacity of underwriters, placement agents or wholesalers). The original issue discount with respect to any maturity of a series of the 2016 Series Three and Four Bonds accrues daily over the tern to maturity of such 2016 Series Three and Four Bonds on the basis of a constant interest rate compounded semiannually (with straight-line interpolations between compounding dates). The accruing original issue discount is added to the adjusted basis of such 2016 Series Three and Four Bonds to determine taxable gain or loss upon disposition (including sale, redemption, or payment on maturity) of such 2016 Series Three and Four Bonds. Beneficial Owners of the 2016 Series Three and Four Bonds should consult their own tax advisors with respect to the tax consequences of ownership of 2016 Series Three and Four Bonds with original issue discount, including the treatment of Beneficial Owners who do not purchase such Bonds in the original offering to the public at the first price at which a substantial amount of such 2016 Series Three and Four Bonds is sold to the public. 61 Resolution No. FY2017-10 Authorizing The Borough To Issue A 2016 Series Three and Four Bonds purchased, whether at original issuance or otherwise, for an amount higher than their principal amount payable at maturity (or, in some cases, at their earlier call date) ("Premium Bonds") will be treated as having amortizable bond premium. No deduction is allowable for the amortizable bond premium in the case of bonds, like the Premium Bonds, the interest on which is excluded from gross income for federal income tax purposes. However, the amount of tax-exempt interest received, and a Beneficial Owner's basis in a Premium Bond, will be reduced by the amount of amortizable bond premium properly allocable to such Beneficial Owner. Beneficial Owners of Premium Bonds should consult their own tax advisors with respect to the proper treatment of amortizable bond premium in their particular circumstances. The Internal Revenue Code imposes various restrictions, conditions and requirements relating to the exclusion from gross income for federal income tax purposes of interest on obligations such as the 2016 Series Three and Four Bonds. The Bond Bank and each Governmental Unit have made certain representations and covenanted to comply with certain restrictions, conditions and requirements designed to ensure that interest on the 2016 Series Three and Four Bonds will not be included in federal gross income. Inaccuracy of these representations or failure to comply with these covenants may result in interest on the 2016 Series Three and Four Bonds being included in gross income for federal income tax purposes, possibly from the date of original issuance of the 2016 Series Three and Four Bonds. The opinion of Bond Counsel assumes the accuracy of these representations and compliance with these covenants. Bond Counsel has not undertaken to determine (or to inform any person) whether any actions taken (or not taken), or events occurring (or not occurring), or any other matters coming to Bond Counsel's attention after the date of issuance of the 2016 Series Three and Four Bonds may adversely affect the value of, or the tax status of interest on, the 2016 Series Three and Four Bonds. Accordingly, the opinion of Bond Counsel is not intended to, and may not, be relied upon in connection with any such actions, events or matters. Although Bond Counsel is of the opinion that interest on the 2016 Series Three and Four Bonds is excluded from gross income for federal income tax purposes, the ownership or disposition of, or the accrual or receipt of amounts treated as interest on, the 2016 Series Three and Four Bonds may otherwise affect a Beneficial Owner's federal, state or local tax liability. The nature and extent of these other tax consequences depends upon the particular tax status of the Beneficial Owner or the Beneficial Owner's other items of income or deduction. Bond Counsel expresses no opinion regarding any such other tax consequences. Current and future legislative proposals, if enacted into law, clarification of the Internal Revenue Code or court decisions may cause interest on the Bonds to be subject, directly or indirectly, in whole or in part, to federal income taxation or to be subject to or exempted from state income taxation, or otherwise prevent Beneficial Owners from realizing the full current benefit of the tax status of such interest. For example, the Obama Administration's budget proposals in recent years have proposed legislation that would limit the exclusion from gross income of interest on the 2016 Series Three and Four Bonds to some extent for high-income individuals. The introduction or enactment of any such legislative proposals or clarification of the Internal Revenue Code or court decisions may also affect, perhaps significantly, the market price for, or marketability of, the 2016 Series Three and Four Bonds. Prospective purchasers of the 2016 Series Three and Four Bonds should consult their own tax advisors regarding the potential impact of any pending or proposed federal or state tax legislation, regulations or litigation, as to which Bond Counsel is expected to express no opinion. The opinion of Bond Counsel is based on current legal authority, covers certain matters not directly addressed by such authorities, and represents Bond Counsel's judgment as to the proper treatment of the Bonds for federal income tax purposes. It is not binding on the Internal Revenue Service ("IRS") or the courts. Furthermore, Bond Counsel cannot give and has not given any opinion or assurance about the 62 Resolution No. FY2017-10 Authorizing The Borough To Issue A future activities of the Bond Bank or the Governmental Units or about the effect of future changes in the Internal Revenue Code, the applicable regulations, the interpretation thereof or the enforcement thereof by the IRS. The Bond Bank and the Governmental Units have covenanted, however, to comply with the requirements of the Internal Revenue Code. Bond Counsel's engagement with respect to the 2016 Series Three and Four Bonds ends with the issuance of the 2016 Series Three and Four Bonds, and, unless separately engaged, Bond Counsel is not obligated to defend the Bond Bank, the Governmental Units or the Beneficial Owners regarding the tax- exempt status of interest on the 2016 Series Three and Four Bonds in the event of an audit examination by the IRS. Under current procedures, parties other than the Bond Bank, the Governmental Units and their appointed counsel, including the Beneficial Owners, would have little, if any, right to participate in the audit examination process. Moreover, because achieving judicial review in connection with an audit examination of tax-exempt bonds is difficult, obtaining an independent review of IRS positions with which the Bond Bank or the Governmental Units legitimately disagree, may not be practicable. Any action of the IRS, including but not limited to selection of the 2016 Series Three and Four Bonds for audit, or the course or result of such audit, or an audit of bonds presenting similar tax issues may affect the market price for, or the marketability of, the 2016 Series Three and Four Bonds, and may cause the Bond Bank, the Governmental Units or the Beneficial Owners to incur significant expense. RATINGS Fitch Ratings ("Fitch") and S&P Global Ratings ("S&P") have assigned ratings of "t_j"and " respectively, to the 2016 Series Three and Four Bonds. Such ratings reflect only the views of such organizations and any desired explanation of the significance of such ratings should be obtained from the rating agency furnishing the same, at the following addresses: Fitch, One State Street Plaza, New York, New York 10004, (212) 908-0500; S&P, 55 Water Street, New York, New York 10041 (212) 438- 1000. Generally, a rating agency bases its rating on the information and materials furnished to it and on investigations, studies and assumptions of its own. There is no assurance that such ratings will continue for any given period of time or that such ratings will not be revised downward or withdrawn entirely by the rating agencies if, in the judgment of such rating agencies, circumstances so warrant. Any such downward revision or withdrawal of such ratings may have an adverse effect on the market price of the 2016 Series Three and Four Bands. CONTINUING DISCLOSURE Bond Bank Continuing Disclosure Undertaking The Bond Bank has covenanted for the benefit of the holders and beneficial owners of the 2016 Series Three and Four Bonds to provide, or to cause to be provided, certain financial and operating information not later than 210 days after the end of each Fiscal Year (currently June 30) in which any 2016 Series Three and Four Bonds are outstanding, commencing in the Fiscal Year ending June 30, 2016 (each, an "Annual Report"). In addition, the Bond Bank has covenanted to provide notices of the occurrence of certain enumerated events. The Annual Reports are required to be filed by the Bond Bank with the MSRB through its EMMA system. The specific nature of information to be contained in the Annual Report and the enumerated events of which the Bond Bank is to give notice are set forth in the form of the Continuing Disclosure Certificate set forth in Appendix G. These covenants have been made in order to assist the Underwriter in complying with paragraph (b)(5) of Securities and Exchange Commission Rule 15c2-12 ("Rule 15c2-12"). 63 Resolution No. FY2017-10 Authorizing The Borough To Issue A Governmental Unit Continuing Disclosure Undertakings Each of the Governmental Units from which the Bond Bank is purchasing Municipal Bonds with proceeds of the 2016 Series Three and Four Bonds (the "2016 Series Three and Four Governmental Units") has covenanted in its Loan Agreement or will covenant in its Loan Agreement to file with the MSRB, on an annual basis, its audited financial statements no later than 210 days after the end of such Governmental Unit's fiscal year for the term of the Municipal Bonds and any refunding Municipal Bonds. In addition, each of the 2016 Series Three and Four Governmental Units has covenanted in its Loan Agreement or will covenant in its Loan Agreement that if its bonds constitute ten percent or more of the outstanding principal amount of the Municipal Bonds held by the Bond Bank under the 2005 Master Bond Resolution, such 2016 Series Three and Four Governmental Unit will execute a continuing disclosure agreement prepared by the Bond Bank for purposes of complying with Rule 15c2-12. Beginning in 2009, each Governmental Unit from which the Bond Bank purchased Municipal Bonds was required to covenant to execute a continuing disclosure certificate if such Governmental Unit's bonds constituted ten percent or more of the outstanding principal amount of the Municipal Bonds held by the Bond Bank under the 2005 Master Bond Resolution. Effective as of October 30, 2014, each Governmental Unit from which the Bond Bank purchased Municipal Bonds or refunding Municipal Bonds is required to covenant to file with the MSRB, on an annual basis, its audited financial statements no later than 210 days after the end of such Governmental Unit's fiscal year for the term of the Municipal Bond and any refunding Municipal Bond, as well as to execute a continuing disclosure agreement if its bonds constitute ten percent or more of the outstanding principal amount of the Municipal Bonds held by the Bond Bank under the 2005 Master Bond Resolution. In addition, each Governmental Unit has covenanted that if its Municipal Bonds constitute ten percent or more of the outstanding principal amount of the Municipal Bonds held by the Bond Bank under the 2005 Master Bond Resolution, such Governmental Unit will provide to the Bond Bank for inclusion in future official statements financial information generally of the type included in the Bond Bank's official statements with respect to Governmental Units representing ten percent or more of the Bonds outstanding under the 2005 Master Bond Resolution. See Appendix D. Compliance with Prior Continuing Disclosure Undertakings Bands Issued Under the 2005 Master Bond Resolution. The Bond Bank previously has entered into continuing disclosure undertakings under Rule 15c2-12 in connection with its outstanding Bonds. The Bond Bank subsequently discovered it had not filed certain event notices in connection with rating downgrades of insurers and underlying ratings upgrades. The Bond Bank subsequently filed event notices. In addition, the Bond Bank discovered it had not included in its annual report statistics of Governmental Units similar to those found in Appendix C of its official statements, as required by prior continuing disclosure undertakings. Such information was included in publicly available official statements prepared by the Bond Bank every year of noncompliance for Bonds issued under the 2005 Master Bond Resolution. Such information was, however, dated on or about the date of the official statement rather than as of the end of the Bond Bank's fiscal year end. This technical deficiency was cured and the Bond Bank filed such information with the MSRB. 'Be Bond Bank has not retained Moody's Investors Service ("Moody's") to rate Bonds issued under the 2005 Master Bond Resolution since February 20, 2014, when the 2014 Series One Bonds were issued. Moody's does rate other bonds of the State, however, and on February 29, 2016, when it reduced its rating on the State's general obligation bonds to Aal/outlook negative, Moody's also reduced its rating 64 Resolution No. FY2017-10 Authorizing The Borough To Issue A on all of the State's moral obligation debt to Aa3 from Aa2. This rating change affected Bonds issued by the Bond Bank through February 20, 2014. Notices of Moody's downgrades were linked to the CUSIP numbers for the State's bonds and other obligations but were not linked to the CUSIP numbers for the Bond Bank's Bonds. The Bond Bank has subsequently linked the notice to the applicable Bond Bank CUSIP numbers. The Bond Bank also discovered that one of the Governmental Units had not made all of its required disclosures on time and had not disclosed such failures when required. Other Bonds Issued by the Bond Bank The Bond Bank previously entered into continuing disclosure undertakings for bonds issued under its 1976 Master Bond Resolution and 2010 Master Bond Resolution. The Bond Bank discovered that certain annual financial information relating to governmental units participating in the 1976 Master Bond Resolution pool and the 2010 Master Bond Resolution pool had not been fled. This technical deficiency was cured and such information was filed with the MSRB. As of February 1, 2016, no bonds remain outstanding under the 1976 Master Bond Resolution. The Bond Bank previously entered into continuing disclosure undertakings in connection with certain revenue bonds issued by the Bond Bank. The Bond Bank discovered certain annual financial information relating to governmental units was not filed under the terms of such undertakings. These revenue bonds no longer remain outstanding. General The Bond Bank has developed procedures to help ensure its compliance with its continuing disclosure obligations in all material respects. Although there have been instances of technical deficiencies with its previous undertakings, the Bond Bank believes it has complied in the past five years in all material respects with its previous undertakings under Rule 15c2-12. Governmental Units. In 2014, the Bond Bank discovered that certain of the Governmental Units that timely filed annual financial information in accordance with their prior undertakings inadvertently failed to associate that annual financial information with all Bonds issued and Outstanding under the 2005 Master Bond Resolution. Effective February 20, 2014, each undertaking and/or Loan Agreement executed by a Governmental Unit includes an express requirement that such filing be linked to the CUSIP numbers for all Outstanding Bonds issued under the 2005 Master Bond Resolution. SOURCES OF CERTAIN INFORMATION As of the date of this Official Statement, the Governmental Units that have loan obligations in an amount of ten percent or greater in the pool of loans financed with proceeds of Bonds are the City and Borough of Sitka (t percent), the Kenai Peninsula Borough ((_] percent), the City and Borough of Juneau (I percent) and the City of Ketchikan (t percent). These Governmental Units have provided the information set forth in Appendix D of this Official Statement. The Bond Bank makes no representation as to the accuracy or completeness of the information concerning the City and Borough of Silks, the Kenai Peninsula Borough, the City and Borough of Juneau and the City of Ketchikan set forth in Appendix D of this Official Statement. DEFINITIONS The following terms are used in this Official Statement with the following meanings: See also the definitions in Article I of the 2005 Master Bond Resolution in Appendix F. "Act" — The Alaska Municipal Bond Bank Act, codified as Chapter 85, Title 44, of the Alaska Statutes, as amended. 65 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... "Bond Bank" — The Alaska Municipal Bond Bank, a public corporation and instrumentality of the State of Alaska within the Department of Revenue but with legal existence independent of and separate from the State. "Bonds" — Bonds issued by the Bond Bank under the 2005 Master Bond Resolution pursuant to a Series Resolution. These include "Loan Obligations" and "Reserve Fund Obligations" as defined below. "Code" — Internal Revenue Code of 1986 and the regulations thereunder, as amended. "Credit Enhancement" — A letter of credit, a line of credit, a credit facility, a surety bond, bond insurance, or any other instrument or arrangement obtained in connection with the issuance of a Series of Bonds to further secure the payment of the Bonds of such Series or to satisfy the Reserve Fund Requirement. "Credit Enhancement Agency" — Any bank or other institution that provides Credit Enhancement. "Debt Service Fund" — A fund established by the 2005 Master Bond Resolution to be maintained and held by the Trustee. The 2005 Master Bond Resolution defines and provides that the "Interest Account," "Principal Account' and "Redemption Account' are maintained within the Debt Service Fund. "Fees and Charges" — All fees and charges authorized to be charged by the Bond Bank pursuant to Section 44.85.080(8), (15), and (16) of the Act and charged by the Bank pursuant to the terms and provisions of the Loan Agreements. "Governmental Unit" — A municipality or such other entity from which the Bond Bank is authorized by law to purchase its revenue bonds, general obligation bonds, notes, or other forms of indebtedness and which otherwise satisfies conditions found in the 2005 Master Bond Resolution and in the Loan Agreement. "Loan Agreement" — An agreement, and any amendments thereto, entered into between the Bond Bank and a Governmental Unit setting forth the terms and conditions of a loan. "Loan Obligations" — The amount of Bonds and the Bonds themselves issued by the Bond Bank for the purchase of Municipal Bonds of a Governmental Unit. "Municipal Bonds" — General obligation bonds, revenue bonds, notes or other evidence of debt issued by any Governmental Unit, as defined in the Act, which have been acquired by the Bond Bank as evidence of a loan to the Governmental Unit pursuant to the Act. "Municipal Bonds Payment" — The amounts paid or required to be paid, from time to time, for principal and interest by a Governmental Unit to the Bond Bank on the Governmental Unit's Municipal Bonds. "Nates" — Any obligations referred to in the 2005 Master Bond Resolution issued by the Bond Bank other than Bonds. "Operating Fund" — A fund established by the 2005 Master Bond Resolution. This fund is not held by the Trustee and money therein is not pledged as security for Bonds. 66 Resolution No. FY2017-10 Authorizing The Borough To Issue A "Outstanding" — When used with reference to Bonds, as of any date, Bonds theretofore or then being delivered under the provisions of the 2005 Master Bond Resolution, other than Bonds owned or held by or for the account of the Bond Bank except: (i) any Bonds cancelled by the Trustee at or prior to such date, (ii) any Bonds for the transfer or exchange of or in lieu of or in substitution for which other Bonds shall have been delivered pursuant to the 2005 Master Bond Resolution, and (iii) Bonds deemed to have been paid as provided in the 2005 Master Bond Resolution. "Reserve Fund" — The reserve account established by the 2005 Master Bond Resolution and held by the Trustee pursuant to the provisions of the 2005 Master Bond Resolution. "Reserve Fund Obligations" — Bonds issued by the Bond Bank to obtain funds to deposited in the Reserve Fund. "Reserve Fund Requirement" — The amount required to be on deposit in the 2005 Master Bond Resolution Reserve Fund is the least of the following: (i) 10 percent of the initial stated principal amount of each Series of Bonds then Outstanding; (ii) maximum annual principal and interest requirements on all Bonds then Outstanding; (iii) 125 percent of average annual principal and interest requirements on all Bonds then Outstanding; or (iv) such lesser amount as shall be required by law. The Reserve Fund Requirement may be satisfied entirely, or in part, by Credit Enhancement; provided, however, any Credit Enhancement satisfying all or any part of the Reserve Fund Requirement after the initial issuance of Bonds or issued in substitution for any prior Credit Enhancement previously issued will not, by itself, cause a withdrawal or downward revision of the ratings maintained by any Rating Agency with respect to the Bonds. "Required Debt Service Reserve" — As of any date of calculation, the amount required to be on deposit in the Reserve Fund which amount shall at least be equal to the Reserve Fund Requirement. "Series Resolution" — A resolution of the Bond Bank authorizing the issuance of a series of Bonds in accordance with the terms of the 2005 Master Bond Resolution. "2005 Master Bond Resolution" — The Bond Bank's General Obligation Bond Resolution adopted July 13, 2005, as amended on August 19, 2009. (The Bond Bank may adopt additional general obligation resolutions for the same or different purposes.) The amendments adopted in the 2013 First Supplemental Resolution will be effective after all Bonds outstanding on February 19, 2013 no longer are outstanding. See the forms of the 2005 Master Bond Resolution and the 2013 First Supplemental Resolution in Appendix F. OFFICIAL STATEMENT The Bond Bank has authorized the execution and distribution of this Official Statement. ALASKA MUNICIPAL BOND BANK By: Executive Director 67 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... APPENDIX A PROPOSED FORMS OF OPINIONS OF BOND COUNSEL Resolution No. FY2017-10 Authorizing The Borough To Issue A APPENDIX B STATE PAYMENTS TO GOVERNMENTAL UNITS The State of Alaska (the "State") disburses to Alaskan cities and boroughs (the "Governmental Units") funds that generally are available for uses other than paying municipal bond debt service. In the event of default by a Governmental Unit with respect to a Loan Agreement, the Bond Bank is authorized to cause such funds, held in custody by the State prior to disbursement, to he paid over to the Bond Bank. However, the State may at any time reduce or terminate the disbursements or programs under which they are made. Four of the departments of the State that disburse money to Governmental Units are as follows: (1) Department of Education and Early Development. The Department of Education and Early Development (DEED) disburses State aid for educational purposes primarily through the school debt reimbursement, the foundation funding, and pupil transportation programs, in addition to funding for boarding homes, residential boarding, youth in detention, special schools, and the Alaska Challenge Youth Academy programs. The first program provides a system under which the State, subject to annual appropriation by the Legislature, will reimburse municipalities that operate school districts for certain costs of school construction. State reimbursement applies to debt service on locally issued general obligation school bonds. Timing of reimbursements is determined by municipalities' debt service payments, and is made throughout the year. This program provides that subject to statutory and regulatory conditions that the State will reimburse municipalities for a pre -determined percentage of debt service incurred for such bonds, depending on when such bonds were issued and the project components. The State has in the past, and may in the future, appropriate less than the full amount to which the municipalities are entitled. When appropriations are less than 100 percent of the entitlement, funds have been allocated pro rata among the eligible school districts. Under the second program, the State aids local school districts in the payment of operating expenses under the State "K-12 foundation" funding which provides education -related aid for operating costs associated with qualified K-12 schools as well as programs such as the handicapped facilities and nutrition programs. The program provides for monthly distributions to the school districts. Under the third program, the state aids local school districts for pupil transportation. The program provides for monthly distributions to the school districts. Under the fourth program, the state has provided one-time grant funds. (2) Department of Revenue. The Department of Revenue disburses shares of various State taxes collected by the within the jurisdiction of certain Governmental Units including aviation fuel, Commercial Passenger Vessel, electric, telephone, liquor and fisheries resources landed and business taxes. Payments are distributed both semi-annually in January and July and annually in October depending upon the type of tax. (3) Department of Commerce. Community and Economic Development. The Department of Commerce, Community and Economic Development (DCCED) administers a payment in lieu of taxes program under which the federal government pays a fee for use of land. The payments received from the federal government are passed through the State to certain Governmental Units. Distributions occur annually in July. The State also disburses money to certain Governmental Units through the DCCED's Capital Matching Grants program to provide assistance in financing capital projects. Distributions are made throughout the year as approved projects are constructed. Additionally the State Revenue Sharing B-1 Resolution No. FY2017-10 Authorizing The Borough To Issue A program provides an annual transfer to certain governmental units based on population. The revenue sharing transfers occur in the first quarter of the fiscal year. (4) Department of Corrections. The Department of Corrections transfers monthly amounts to pay operational expenses of local communities that house prisoners in municipal -owned facilities. In addition to the four sources listed above, the State disburses to Governmental Units funds that are not available for intercept by the Bond Bank to address any shortfalls in a Governmental Unit's loan repayments to the Bond Bank. A reduction in the distribution of such funds, such as State assistance to Governmental Units to address pension liabilities, could have a negative impact on the financial health of Governmental Units. Sources:State of Alaska Department of Administration — Finance Division; State of Alaska, Office of Management and Budget; and State of Alaska Department of Revenue — Tar Division. Further information regarding the State of Alaska may be found at rnvwalaska.gov. I3-2 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Page 4Q00439* 03.e.1. Resolution No. FY2017-10 Authorizing The Borough To Issue A ... APPENDIX C GOVERNMENTAL UNIT STATISTICS REGARDING PARTICIPATION IN THE BOND BANK 2005 MASTER BOND RESOLUTION OUTSTANDING LOAN PRINCIPAL TO GOVERNMENTAL UNIT BORROWERS AS OF SEPTEMBER 11, 2016 (Does Not Include 2016 Series Three and Four Bonds) Borrower Outstanding Par Percent of Outstanding City and Borough of Sitka 144,865,000 14.66% Kenai Peninsula Borough 111,710,000 11.31% City and Borough of Juneau 125,325,000 12.69% City of Ketchikan 102,625,000 10.39% University of Alaska 86,085,000 8.71% Kodiak Island Borough 97,445,000 9.86% Ketchikan Gateway Borough 36,950,000 3.74% Northwest Arctic Borough 34,995,000 3.54% City of Seward 32,630,000 3.30% City of Unalaska 34,015,000 3.44% Aleutians Bast Borough 27,275,000 2.76% Municipality of Skagway 20,890,000 2.11% City of Cordova 17,900,000 1.81% Lake & Peninsula Borough 17,145,000 1.74% City of Kodiak 12,875,000 1.30% Petersburg Borough 11,280,000 1.14% City of Dillingham 10,610,000 1.07% Haines Borough 11,690,000 1.18% City of Nome 4,925,000 0.50% Municipality of Anchorage 3,615,000 0.37% City of Homer 3,475,000 0.35% City of Bethel 2,635,000 0.27% City of Valdez 2,5051000 0.25% City of Sand Point 2,435,000 0.25% City of King Cove 3,105,000 0.31% City of Soldotna 2,010,000 0.20% City of Craig 1,755,000 0.18% City of Kenai 1,530,000 0.15% City of Klawock 1,360,000 0.14% City and Borough of Wrangell 1,245,000 0.13% City of Wasilla 1,185,000 0.12% City of Hoonah 1,080,000 0.11% City of Palmer 785,000 0.08% City of Adak 755,000 0.08% City of North Pole 820,000 O.08% City of Saxman 160,000 0.02% Reserve Obli ations 16,185,000 1.64% Total Outstandin Par $987,875,000 100.00% C-1 Resolution No. FY2017-10 Authorizing The Borough To Issue A APPENDIX D SUMMARY OF BORROWERS REPRESENTING TEN PERCENT OR MORE OF OUTSTANDING BONDS ISSUED UNDER THE 2005 MASTER BOND RESOLUTION fa Resolution No. FY2017-10 Authorizing The Borough To Issue A ... GENERAL OBLIGATION FINANCIAL BUmL y M1lunld +1—V uMRI IPmiGon 301 3013 310 3014 =S M,.e Y 4 b 9.n1 b, b. A;41Y,3n mml + tlaR1 6 U,6+4,1X1 TTI CWkvtwn W nN m x'4mn +x4rn b -----w-8gZ2 bMznl>M1, uNv+n+n nN �IIWIYn > 11MMa O M6M] > H,WI,IYI 9 1.Y U tl A, 6 1{,1113,Iw -,JM, ,I1a.1 � D.1,MT> a.l vn_I YrtY 4.1. H 11.11.. +'nW •+• n4•f •nvfJ11111tl1 Ill.. Iln 111. 11 Debt un b+ 4•+ e� wun5 6M,WR14U1MM, 11M,114,fl32 11MI,YIUAYYI 1931 A . 2M.i1141nl.l i+Jlnln v t u+W Ilb..,,lal ] .,. I..I ,. ] 1. i .M > 1{Y. 1W 41 l,.U\ +...t I'1�. It. Iliul: III:NY 11 01 1 I'r lY IW 11+,I�N Geven1Emvamk+Yd Gemo6np6k0+1+ 3111 3013 3013 =4 MS Annu+IGmwIM R+le npu Wm TYsnNY Val.vrl,C., T,10T VWYuh Cep11Y To tOTMx PY +Y+m+A of Aeeculd Vdue ! X. YMiA]IIt,1 S) 5 II_.l\+ + 2,19H Y;11,Y91,3JX S 111. t,UIIIAINtTN S 11. 1 > 9M]b9.Il1U S 11 ,:NI , 1 1045AT1AW IIIL 11'� &+wd1 N+14 mml+4trJ In flol Ie+1ID1l+W II r d tlw J+tr d Me InerynLLn d Mb trb4. D-2 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... (Liabilities and Net Assets ,.r . .. o.,.,,.,a'I, 11,611,319 12,077,554 14,240,772 17,118,321 Electric Enterprise Fund 9,061 III of electric customers 5,282 5,309 5,403 5,490 Financial Summary Other Liabilities 1,722,772 2,477,182 6,355,564 2011 2012 2013 2014 2015 Assets 79,485,000 105,100,000 119,510,000 Deferred loss/premium on bonds Cash 24,320,421 31,450,650 28,803,187 13,505,669 4,447,481 Restricted Assets 6,871,164 3,595,875 21,197,459 18,121,955 21,733,477 Other Assets 5,010,167 7,266,275 13,897,615 11,777,153 7,988,506 Construction In Progress 11,646,987 1B4O86,724 58,930,539 137,885,040 12,535,308 Utility Plant in Service 63,103,150 61,775,003 59,900,343 59,508,277 217,550,674 Total Assets 110,951,889 122,174,527 182,729,143 240,798,094 264,255,446 (Liabilities and Net Assets 11,401,523 11,611,319 12,077,554 14,240,772 17,118,321 Liabilities 9,061 III of electric customers 5,282 5,309 5,403 5,490 5,683 Other Liabilities 1,722,772 2,477,182 6,355,564 13,017,817 3,355,323 Revenue Bonds Payable 48,700,000 47,570,000 79,485,000 105,100,000 119,510,000 Deferred loss/premium on bonds 1,471,509 (1,711,547) 5,943,338 6,742,293 6,347,870 Revenue Note(s)Payable 8,800,188 8,535,498 7,973,608 7,973,608 10,050,744 Total Liabilities 60,694,469 56,871,133 99,757,510 132,833,718 139,263,936 Net Assets 50,257,420 65,303,394 82,971,633 107,964,375 124,991,510 Operating Revenues 11,401,523 11,611,319 12,077,554 14,240,772 17,118,321 Operating Expenses 9,061 III of electric customers 5,282 5,309 5,403 5,490 5,683 Administrative and General 1,739,699 2,003,768 1,975,492 2,860,066 2,406,734 Operation and Maintenance 5,257,342 5,914,895 5,152,028 4,964,074 7,443,239 Depreciation 1,987,559 1,971,739 11966,195 1,841,712 1,814,707 Operating Income 2,416,925 1,720,917 2,963,839 4,574,920 5,453,641 Nonoperating revenue (expense) �e lIn Investment Income 490,986 459,107 314,600 196,399 313,069 Interest Expense (1,725,198) (2,848,639) (1,678,238) (426,419) (316,203) Other 625,748 572,946 812,866 463,877 Net Income before contributions and transfers 1,182,713 (42,867) 2,173,147 5,157,766 5,914,384 Capital contributions 4,039,237 5,266,050 17,169,455 19,455,106 9,986,217 Extraordinary Item: Net Pension Obligation Relief 119,824 139,806 325,771 379,871 1,126,533 Transfer In (Out) net (998,128) Change In Net Assets 5,341,774 5,362,989 18,670,245 24,992,743 17,027,134 Population of City and Borough 8,773 8,952 9,084 9,098 9,061 III of electric customers 5,282 5,309 5,403 5,490 5,683 gwH Sold 111,795,344 111,G49,623 111,155,330 111,155,330 105,293,250 Revenue Bond Debt Service 3,477,959 3,467,567 4,529,240 5,045,158 7,158,839 Revenue Bond Coverage)- 1.25) 1.41 1.43 1.27 1.34 1.27 Note: $2,500,000 transferred Into Rate Stabilization Fund In FY2015 $2,006,696 transferred out of Rate Stabilization Fund In FY2015 Total of rate Stabilization Fund as of June 30, 2015 - $3,001,304 TF.. --h Fae —•nm nle, eA I,e.—I--In,1 .. 1.1,. A --,.A. ..... —I.—n(Mle �e lIn D-3 Resolution No. FY2017-10 Authorizing The Borough To Issue A r euno ovrvw con wr o,,r RBOR ENTERPRISE FUND IANCIAL SUMMARY 2011 2912 2013 2 25 iETS Plant In-Service (net of depreciation) 14,789,299 14,122,591 13,550,231 13,153,475 20,560,565 UM 90,000 90,000 90,000 90,000 90,000 Construction Work in Progress 20,229 57,838 665,476 7,824,365 939,917 Cash 3,733,467 4,735,101 6,599,187 6,616,954 7,595,507 Restricted Assets - - 3,615,663 589,166 317,566 Other Assets 1,342,572 1,339,389 1,218,385 1.524,898 1,036,361 it Assets 19,975,587 20,344,919 25,736,942 29,798,858 30,539.916 31LITIES AND NET ASSETS Revenue Bonds Payable 0 0 4,569,486 3,840,000 3,705,000 Other Liabilities 1,405,227 1,156,003 1,144,138 1,689,033 1,592,094 it Liabilities 1,405,227 1,158,003 5,713,824 5,529,033 5,287,094 'ASSETS 16,570,340 19,188,916 20,023,318 24,289,825 25,242,8221 rating Revenues 2,854,858 3,154,885 3,096,419 3,184,252 3,365,977 rellun and Maintenance 2,492,110 2,434,329 1,708,210 2,454,599 2,194,755 tlnlstre8ve and General - - - redelion 899,958 988,619 6BB,511 688,074 669,102 ril Income (Lose) (537,208) (266,063) 719,698 43,579 502.120 -Operating Revenue (Expense) 46,509 155,308 156,844 778,434 375.830 Income (Loss) Before Contribution (490,699) (110,757) 876,542 820,013 877,949 Ital Contributions 1,690,873 2,549,949 0 3,458,599 122,108 Transfers-In(Out) 3,804,600 675,000 (42,141) (32,105) (27,080) del Item - NPO/OPEB write off nge In Net Assets 5,004,774 ---Tl -14,192 834,401 4,248,507 972,997 n of Cly 8,773 8,952 9,084 9,098 9,061 Bond Coverage No Harbor No Harbor No payments of Bonds Banda P81 5,16 5.31 ugh has not completed Its Fiscal year 2015 audit as of the date of the preparation of this table. 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Central Peninsula General Hospital FINANCIAL SUMMARY D-6 Resolution No. FY2O17-10 Authorizing The Borough To Issue A 20.11 2412 Z013 2419 :415 ASSETS Caprel Assets (net of deFmcla0on) $67,842.931 $64.853,893 $69,429,953 571,387.990 593,151,047 Casty 21.700,302 27,803,487 35,197.813 35.508.043 37.638,411 Cash held for Plant Replacement 10.097.241 11,421.461 11,322.7229 16.447,687 18,838,950 Resmcted Asseis 3,584,121 633,493 500.000 4,693,402 5,069,037 Unspent bone proceeds 31 75,450 18,468485 Other Assets 19,105,718 29,383,574 29,863.005 32.652,905 38,942891 Total Assets 122.330.313 134.095.908 146.313.507 191.966.077 212.108,921 LIABILITIES AND NETASSETS Revenue Bonds Payable - - - 32,490,000 33.8901100 GO Bows Payable 35,990,000 32255,000 30,130.000 27.905.000 25,6701100 Other Lablitiles 10.965,610 18,041.771 18,176,258 20.336,761 24.137535 Total Uabllites 46.955.610 50.2%,771 48.306.258 80.731.761 83.697535 NETASSETS 75.374.703 83.799.137 98.007.249 111.234.316 128,411286 Operating Revenues 101.279.075 116.849,605 123,951,263 126,713,712 144,009,565 Operating Expenses 86.771.449 99.255.770 102.247,165 104,364.018 117.067,440 Depreciation 8,056595 8,004.562 7,959,305 8,066,688 8,471959 Operating Income (Loss) 6.451.031 9.589,273 13.744.793 14.283.006 18.470.166 Non-Operethg Revenue (Expense) (1.105.595) 1808.253) (1,541,657) (1.070.583) (1.300.456) Not Income(Loss) Before Contribution 5,345.436 8,781.020 12.203,142 13,212.423 17.169710 Capital Contrbutions 212.945 52.843 2,OD4,970 14,644 7260 Change In Net Poslllon 5,558.381 8.833,663 14,208.112 13.227.067 17.176970 D-6 Resolution No. FY2O17-10 Authorizing The Borough To Issue A CIT/ AND BOROUGH OF JUNEAU FINANCIAL SUMMARY General Govemmenual Fund alunki Finantlal Podllon 2011 2012 2m3 2m4 2015 Average 9 nas mrowera rh nvaax orre YRmI Pars O PCIIOIIS h rtml O ¢titanRate LOUL Years Loliecionei 6 lotalLoLleetion Rate M!al Fan "MR6 nas31 n3 EntangenRy Operalrox0 ,bb tlu o 6 Yn iantt x Itorb ma evenues u neer amse _ menta a nrer vemmenla ate _ - veu nits a e a3 ion vmue t-4 nu runes 4 43,6 2 41, ,061 48090, 3,436,443 m vPnue t- enta rl s 1 anon e Memmenu Porter 1 anon 1- n rise un s nIJJ —d almn Jet t S tl. (.IAx S111,44,6WJ.l .l ,( o1J neld anon P 1 S S 14.1 i,l S h ll. o" •• �� ,nselnlm`nIJ 1, t' 1 axJ ssCsst' nIJ t L 1 i J "M,:tiA'fiAM l,enerJ l.11lun t' 1 cllJ na JI.'J_ I'll, OfJ n L, e 1 nJ 7o S�..IFYs"11,11 1�jlo General EmnomB and UrmO n ala Pllt 1 2012 200 2014 2m3 Annual pu Taxable Assessed Value $ 3,989,34;944 I S 4,011713,132i s 4,215,06$2. i 8 4,3N,114,933 I 8 4A94,321,3R 239 Assessed Value Per capita5 1..59 8 13,511 8 Ot1,aA 5 13'-,598 8 135782 To 10 Tax Pavers as a% of Assessed Value 13]8% 13.131 13.82% 13.61% 13.61% U-7 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... i M M C 3 rs� I I. r.l RBOR ENTERPRISE FUND IANCIAL SUMMARY f ASSETS 2011 2012 2013 2014 2015 iETS 2,854,858 3,154,885 3,173,272 3,508,430 4,202,862 Plant In -Service (net of depreciation) $13,827,335 $12,844,129 $11,875,368 $14,325,870 $17,517,553 Construction Work in Progress 29,889,294 33,499,769 42,397,974 40,419,897 50,214,768 Cash 4,728,522 4,660,755 3,466,374 4,030,992 3,975,676 Restricted Assets 10,702,703 11,196,479 10,946,328 10,564,614 9,581,172 Other Assets 764,741 847,869 543,407 879,907 1,718,645 3l Assets 59,912.595 63,049,001 59,229,451 70,011,080 83,007,814 Ital Contributions 1,690,873 2,549,949 7,392,466 660,852 BILITIES AND NET ASSETS Transfers -In (Out) 3,804,600 675,000 500,000 0 Revenue Bonds Payable 9,700,000 9,691,595 9,380,434 9,033,637 9,758,734 Other Liabilities 2,110,290 2,140,909 1,401,365 2,050,500 3,105,738 it Liabilities 11,810,290 11,832,504 10,781,799 11,084,137 12,864,472 f ASSETS 48,102,305 51,216,497 58,447,652 58,926,943 70,143,342 sating Revenues 2,854,858 3,154,885 3,173,272 3,508,430 4,202,862 :ration and Maintenance 2,492,110 2,434,329 2,498,178 2,814,717 3,347,050 Unistrative and General - - - - - �recialion 899,955 988,519 968,761 1,003,707 1,150,701 !rating Income (Loss) (537,208) (266,063) (293,667) (309,994) (294,889) -Operating Revenue (Expense) 48,509 155,308 (214,688) 128,433 501,698 Income (Loss) Before Contribution (490,899) (110,757) (508,353) (181,561) 206,809 Ital Contributions 1,690,873 2,549,949 7,392,466 660,852 5,788,674 Transfers -In (Out) 3,804,600 675,000 500,000 0 6,224,425 tial item - NPO/OPER write off nge in Net Assets 5,004,774 3,114,182 7,384,113 479,291 72,219,808 n of City 31,275 32,441 32,660 33,064 33,064 Bond Coverage 1.19 1.79 1.21 1.67 2.60 D-8 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... CITY AND BOROUGH OF JUNEAU PORT DEVELOPMENT SPECIAL REVENUE FUND FINANCIAL SUMMARY D-9 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... 2011 2012 2013 2014 2015 iETS Plant In -Service (net of depreciation) Construction Work in Progress Cash 4,428,233 (208,085) (252,013) 71,012 2,709,760 Restricted Assets - - OtherAssets 314,814 269,712 484,639 294,257 408,137 it Assets 4,743,047 81,627 232,628 365,269 3,117,897 BILITIES AND NET ASSETS Revenue Bonds Payable - - - - Other Liabilities - - 151,020 349,585 642,980 it Liabilities 151,020 349,585 642,980 'ASSETS 4,743,047 61,627 81,606 15,684 2,474,917 .rating Revenues 2,557,651 2,834,080 2,825,479 2,864,578 2,868,633 .ration and Maintenance 2,800 5,500 5,500 5,500 5,500 iinistrative and General - - - - reciation - - - - ,rating Income (Loss) 2,555,051 2,628,580 2,819,979 2,859,078 2,863,133 -Operating Revenue (Expense) Income (Loss) Before Contribution 2,555,051 2,628,580 2,819,979 2,859,078 2,863,133 ital Contributions - - - - Transfers -In (Out) (1,500,000) (7,310,000) (2,800,000) (2,925,000) 403,900 nge in Net Assets 1,055,051 (4,681,420) 19,979 (65,922) 2,459,233 ulation of City 31,275 32,441 32,660 33,064 33,064 D-9 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Conduit Debt WILDFLOWER COURT (A not for profit organziation) FINANCIAL SUMMARY g Revenues 2010 2011 2012 2013 2014 ETS 9,802,944 9,894,353 9,594,317 9,666,530 9,961,681 Plant In -Service 5,674,338 4,909,305 4,620,999 4,734,678 3,771,100 Cash 1,255,867 1,582,128 1,752,043 1,437,085 1,970,693 Restricted Assets 1,735,178 1,707,402 2,170,928 1,489,365 1,450,054 Other Assets 1,312,915 1,399,517 1,444,749 1,786,787 1,267,699 1 Assets 9,978,298 9,598,352 9,988,719 9,447,915 8,459,546 31LITIES AND NET ASSETS Bond Debt 13,650,000 13,050,000 11,705,000 11,596,229 10,204,712 Other Liabilities 878,190 904,428 2,052,663 1,132,323 996,579 1 Liabilities 14,528,190 13,954,428 13,757,663 12,728,552 11,201,291 ASSETS (DEFICIT) (4,549,892) (4,356,076) (3,768,944) 3,280,637 (2,741,745) g Revenues 10,361,609 10,859,195 10,841,324 11,057,791 11,447,862 g Expenses 9,802,944 9,894,353 9,594,317 9,666,530 9,961,681 rtion 937,147 832,579 780,765 935,669 1,008,253 rg Income (Loss) (378,482) 132,263 466,243 455,592 477,928 !rating Revenue (Expense) 27,924 61,553 120,890 32,713 60,964 in Net Assets (350,558) 193,816 587,132 488,305 538,892 a Bond Coverage 1.01 1.33 1.32 1.12 1.10 The Bond Bank has received notification from senior management of Wildflower Court that for calendar year 2013 and 2014 Wildflower Court fell short of the required debt service coverage ratio of 1.15 times. Per section 5.1(b) of the loan agreement between the City and Borough of Juneau and Wildflower Court, Wildflower Court is working with the City and Borough to identify measures to return the facility to compliance with the debt service coverage requirement of the loan agreement. Audited financial statements for Wildflower Court for fiscal year 2015 were not available as of the date of the preparation of this table. D-10 Resolution No. FY2017-10 Authorizing The Borough To Issue A CITY AND BOROUGH OF JUNEAU BARTLETT REGIONAL HOSPITAL FINANCIAL SUMMARY 2011 2012 2013 2014 2015 ASSETS Plant In -Service (net of depreciation) $72,772,410 $74,566,327 $74,002,798 $69,208,456 $63,710,212 Construction Work in Progress 6,866,761 6,202,224 2,826,314 228,425 3,647,565 Cash 14,990,308 17,386,189 26,113,833 38,596,921 44,834,531 Restricted Assets 10,160,114 6,549,498 5,490,768 5,327,673 5,327,519 Other Assets 23,011,283 23,482,113 25,230,208 20,528,164 23,810,042 Total Assets 127,800,878 128,166,331 133,663,919 133,889,639 141,329,869 LIABILITIES AND NET ASSETS Revenue Bonds Payable 25,570,000 24,926,795 25,304,679 24,346,618 24,346,618 Other Liabilities 11,391,053 8,999,867 8,829,067 11,033,875 46,306,102 Total Liabilities 36,961,053 33,926,682 34,133,746 35,380,493 70,652,720 NET ASSETS 90,839,823 94,239,669 99,530,173 98,509,146 70,677,149 Operating Revenues 90,680,838 95,026,373 84,250,207 80,198,274 90,281,184 Operation and Maintenance 83,883,389 89,411,913 76,957,444 78,820,476 92,676,248 Administrative and General - - - - - Depreciation 6,552,177 7,145,290 7,001,295 7,088,559 6,815,728 Operating Income (Loss) 245,270 (1,530,830) 281,468 (5,708,761) (9,210,793) Non -Operating Revenue (Expense) 1,579,634 3,306,366 4,119,820 3,610,234 14,405,416 Net Income (Loss) Before Contribution 1,824,904 1,775,536 4,401,288 (2,098,527) 5,194,623 Capital Contributions 89,002 471,910 134,858 0 0 Net Transfers-In(Out) 1,152,600 1,152,400 1,123,000 1,077,500 1,054,500 Special Item - NPO/OPER write off Change in Net Assets 3,066,508 3,399,846 5,658,946 (1,021,027) 8,249,123 Population of City 31,275 32,441 32,660 33,064 33,084 Revenue Bond Coverage 3.63 3.00 7.34 2.50 8.97 li Resolution No. FY2017-10 Authorizing The Borough To Issue A ... U-12 Resolution No. FY2017-10 Authorizing The Borough To Issue A Page 4G&A"4-0h #13.6.1. W OF KUMNIUH KUCHIIUN PUBLIC URL91E5 ENTERPRISE FUND FINLNCMLSUMMNR7 2011 2012 2013 2014 2015 NW4.4 4.0,08 MN.O UMuOW "SUB Wtli PUn a.SNw 569.018.324 641.015,]2] $78099601 5112$1.731 8112,071,050 Cmetru0i9n WOIA M Pn .. 17,131.914 B.M.495 ]0.908,014 3,621229 1,7X210 C.sO 11845,43 15.767.999 20,646 6 lSwa.we 17.M.9n Rn9kfaO NNaU 2.983.585 2.695,085 2.9010443 2.106 430 MUM DN.mB WebN tl R.reivp. 211.299 129,451 51,254 M,M anm N.q. 11.991790 3.757265 10,448800 9,256,515 7.576290 TOW /14..14 114.950.970 19,570.25] 14].122.]4] 145055.X7 141,743.992 WIBIUREB R. B.M. PoOW 188Um 18543159 27900.802 X,021,]42 24,045.404 0Mwb" . 44698431 5.4n.437 Q,4 M 10,435,740 1237t.121 TOM 11-4.. 2].731.x1 22.045896 4FJM 1 38-457062 W416M NUPOSMON 91219899 95543.657 199299-412 1066X,215 1D4.== OpWvp Rev . x.773,941 ]1,902743 37.717,315 35.988.99 37.MI.12 O.e1.Ib MWIW np 19,997.855 21,982942 X,887,131 23107.990 24.0X,8]] Mm m4 .M GaraM Sm.4v 5.411.608 5.426.512 5.761.985 5.475AH D .a.I. S.B99.449 %an.7e7 6281.041 8.90e.970 1.057.750 0p7.Un9 M .. (Lm.) 2.185110 5X.731 YJ9.811 11.964 (M.336) Non -Op Wg Manu(E4 ) 1]6]6071 (]68.0021 068Q7t1 155].2711 143.,5991 1843IIwIIis 11.,0116.143. COIIb4Mlp 1621643 Mm (128090) (56X6) (1,155.874) COr.IrDNbn 4,841,002 5.016.X7 8268,615 7,15611t 9,01M Tnnf6.r-P.ym.nt In Wuol T.m" 9X,0001 928.0001 069.0001 ��x�.0�001 941.0001 Gunp NNNNwb 5704,805 4.428496 7m.756 5�ep. mOJ n.IW2B21 P.pl.4on W Sm Mu 13.586 13.750 1],9]8 13,456 12ne P.P9W OCR/ 6,142 6191 6,]1] eau 8273 . Of ENMMCUNom.n 2433 7.516 7,514 7,808 7,604 .OITW,h .Ms.1.L 7,057 Sox B4O6] 5699 5.721 6OI9ANr t. 3147 3.243 3.243 3,162 SAW R.w.BOM CO.a1N. 2.81 2.50 3M 2.S5 ].X Yl.oanitrp ch. OM7P-v ga1NHIM C4Y CMtp. Wo4.IO. prymeM M feu d w mpl M IepMM N • tr.nWl � 11M X12 r1uM nanln1.1.8 W n8.Ma11n tlq XI] COmptlxnNa Mnu.l FF4ntLl R.pol 103191 Resolution No. FY2017-10 Authorizing The Borough To Issue A j0C 5> r�� 4 4 9.e,i CRY OF NETCHIMN PORT FINANCIAL SUMMARY 271 M12 2013 2014 MIS AudibG MEMS' AWif A Aw Unawnd ASSETS Cao 52.373,608 (1,255,517 2,800,167 5.501,277 6.420.701 Pon Fe Ifin(M) 42,70640 47,766,T1i 53,485542 54312,543 52,761,891 COMNuakn Wm8'n pn,,. 5,531,746 5.066.016 5.449,151 200,84] 439,032 RenulGed Amts 5,823.924 8.06209] S.Sw.m 5.724.101 7.582,483 ONar Aluets 3,670.192 4.238,551 8,840,111 4.001.010 4,435290 To%I Ann% 59320310 65.43(1.969 75115.133 ]2.635.806 71.640.598 WBRITIES General OSlpoknBmEe Psyetle 540,000 270,00) R.enw BUMS Payada 35,090.000 34,315000 33.505,000 33880000 31,775,000 OIMrIJa691k5 2,847,160 1,073313 1.896080 B60.W2 1.275821 Totsl liolilitien 36,471.(50 35.857,313 35.204.380 33.520.012 35050.521 NET P0.9R1ON 20,)4].(3(1 29,778,675 40,071.313 39,315,850 36.559,775 O,cmup R.. 7,886,401 8.592.255 9,145,920 6576059 9,033271 Operation Sb Msinlmaras 3.957,909 0.566525 4,416.473 4,56L1D3 4,470.650 DepadaMn 1.401,734 14359,513 1,638,8133 1,587,253 1,569,911 Pre ny Tun IU,762 142,575 165,627 10,412 165389 ganWl9lnco2M 11naa1 2.4]3.9]9 3101.842 2,928.857 2151191 2.806151 Nw14)pSnUlq Rsvmua (Ezgm) 12.043.6041 M3,562 1812.6311 12058.)1)1 (1,527820) Wt Incomn 11 -on) Before ContHSuUo 411,175 3025,204 2,014,323 174,574 1,278431 GAntndNoManECpitalC.rn 4,554,981 6,214,416 5676,543 4,47753 277647 Tn.ba - (8.176) (60199) 15,015,60Q (1,619,258) TninsW Peyme n in W. f Tex. (285000) (295.000) (319,000) (319,000) (319.000) CMnwin NetP.Ilbn 4780.158 8.338.442 10.291,68] (755,477) f4>D21�01 115x Mnual De5t6e 2.24 538 3.0 232 2.09 10 S Mnual Dets Senrbbimrv. AccounIfRaw and Ftwlawmm; FundSPH Les. Pryments 116 167 1.42 1,09 0.95 'UnaudlIn! 5p1S%pa 28 34 31 37 38 0 of CMwISbpn 426 467 456 485 4% M of Mn, P4.9en 830547 885,789 938,124 877,559 93417n ' Rm6 shoA l inlammkn pmv Sy U%lteto9%n VSEorn Bureau ' TM 2012 AuE4 wen leststsE Sn0 re6eEW m Na 273 Cl2mgenenain MnwlFinalwal RepSM1 eIWYm�w4rwcNvypptpMmlyn wm,.0421. D-14 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... APPENDIX E FINANCIAL STATEMENTS OF THE ALASKA MUNICIPAL BOND BANK FOR THE YEAR ENDED JUNE 30, 2015 E -I Resolution No. FY2017-10 Authorizing The Borough To Issue A ... APPENDIX F 2005 MASTER BOND RESOLUTION AND 2013 FIRST SUPPLEMENTAL RESOLUTION F-1 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... APPENDIX G PROPOSED FORM OF CONTINUING DISCLOSURE CERTIFICATE U-1 Resolution No. FY2017-10 Authorizing The Borough To Issue A ... 10 'd m" .l APPENDIX H DTC AND ITS BOOK -ENTRY SYSTEM 1. The Depository Trust Company ("DTC"), New York, NY, will act as securities depository for the 2016 Series Three and Four Bonds. The 2016 Series Three and Four Bonds will be issued as fully - registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully -registered certificate will be issued for each maturity of each series of the 2016 Series Three and Four Bonds in the aggregate principal amount of such maturity, and will be deposited with DTC. 2. DTC, the world's largest securities depository, is a limited -purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non -U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post -trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book -entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non - U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has a rating from Standard & Poor's of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. 3. Purchases of 2016 Series Three and Four Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the 2016 Series Three and Four Bonds on DTC's records. The ownership interest of each actual purchaser of each 2016 Series Three and Four Bond (`Beneficial Owner") is in tum to be recorded on the Direct and Indirect Participants records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the 2016 Series Three and Four Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in 2016 Series Three and Four Bonds, except in the event that use of the book -entry system for the 2016 Series Three and Four Bonds is discontinued. 4. To facilitate subsequent transfers, all 2016 Series Three and Four Bonds deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of 2016 Series Three and Four Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the 2016 Series Three and Four Bonds; DTC's records reflect only the identity of the Direct Participants to whose Resolution No. FY2017-10 Authorizing The Borough To Issue A accounts such 2016 Series Three and Four Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. 5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of 2016 Series Three and Four Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the 2016 Series Three and Four Bonds, such as redemptions, tenders, defaults, and proposed amendments to the 2016 Series Three and Four Bond documents. For example, Beneficial Owners of 2016 Series Three and Four Bonds may wish to ascertain that the nominee holding the 2016 Series Three and Four Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them. 6. Redemption notices shall be sent to DTC. If less than all of the 2016 Series Three and Four Bonds within a maturity are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed. 7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to 2016 Series Three and Four Bonds unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Bond Bank as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts 2016 Series Three and Four Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). 8. Payments on the 2016 Series Three and Four Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the Bond Bank or the Trustee, on payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer fort or registered in "street name," and will be the responsibility of such Participant and not of DTC, the Bond Bank or the Trustee, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal and interest payments on the Bonds to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Bond Bank or the Trustee, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. 9. DTC may discontinue providing its services as depository with respect to the 2016 Series Three and Four Bonds at any time by giving reasonable notice to the Bond Bank or the Trustee. Under such circumstances, in the event that a successor depository is not obtained, 2016 Series Three and Four Bond certificates are required to be printed and delivered. 10. The Bond Bank may decide to discontinue use of the system of book -entry -only transfers through DTC (or a successor securities depository). In that event, 2016 Series Three and Four Bond certificates will be printed and delivered to DTC. 11. The information in this section concerning DTC and DTC's book -entry system has been obtained from sources that the Bond Bank believes to be reliable, but the Bond Bank takes no responsibility for the accuracy thereof. Resolution No. FY2017-10 Authorizing The Borough To Issue A ... Page 44f?N0P4'j9iV► #13.a.2. KODIAK ISLAND BOROUGH AGENDA STATEMENT SEPTEMBER 15. 2016 r , ASSEMBLY REGULAR MEETING TITLE: Resolution No. FY2017-12 Approving Fiscal Year 2017 Kodiak Island Borough Non -Profit Funding. ORIGINATOR: Meagan Christiansen FISCAL IMPACT: Yes $267,312 Account Number: multiple SUMMARY STATEMENT: FUNDS AVAILABLE: Amount Budgeted: 234,000 The Kodiak Island Borough has for many years supported local non profit organizations to assist in providing local services that would not otherwise be provided by local government. The Borough has received applications requesting funding in fiscal year 2017. The Assembly has reviewed the requests and discussed distribution of funds at the August 25, 2016 work session as described in the resolution and supporting documentation spreadsheets. RECOMMENDED MOTION: Move to adopt Resolution No. FY2017-12. Kodiak Island Borough Resolution No. FY2017-12 Approving Fiscal Year 2017 Kodiak I... 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Introduced by. Borough Manager Requested by: Borough Assembly Drafted by: Special Projects Support Introduced on: 09/15/2016 Adopted on: KODIAK ISLAND BOROUGH RESOLUTION NO. FY2017-12 A RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY APPROVING FISCAL YEAR 2017 KODIAK ISLAND BOROUGH NON- PROFIT FUNDING WHEREAS, the Kodiak Island Borough is fortunate to enjoy the efforts of many benevolent non-profit organizations that provide services that enrich our lives ; and WHEREAS, Kodiak Area charitable non-profit organizations provide humanitarian services that many of our community members rely upon; and WHEREAS, these organizations provide expanded education, cultural, and health services that cannot be provided through the ordinary governmental budget; and WHEREAS, these organizations expand the services that can be provided, with limited funds, through the utilization of volunteers; and WHEREAS, these organizations all fit within the adopted powers of the Kodiak Island Borough; and WHEREAS, these organizations submitted applications requesting funds in the total amount of $418,955; and WHEREAS, the Kodiak Island Borough Assembly appropriated a total of $267,312 for FY2017 as follows: $233,999 from the Non Profit Funding fund, $14,521 from the Tourism Development Fund, and 18,792 from the Buildings & Grounds Fund, to the Non -Profits listed; and NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH that the Kodiak Island Borough contributions to non profits will be allocated per the attached spreadsheet. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2016 ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Resolution No. FY2017-12 Approving Fiscal Year 2017 Kodiak I... KODIAK ISLAND BOROUGH Jerrol Friend, Borough Mayor Resolution No. FY2017-12 Page 1 of 1 FY2017 Kodiak Island Borough Non-profit funding sorted alphabetically Budget ryii Funding based on 8/25 work session FY17 Requests ryli Requests reduced to match budget 234,000 FY17 Based on 6/30 WS discussions 234,000 beep rtao priority orglnizatians+ calc the rest proprtlonally 234,000 All reduced by 40% 234,000 FY2016 390,000 1 Alutiiq Heritage Foundation 5,585 10,000 5,585 $ 64 $ 6,000 $ 10,000 2 American Red Cross 7,176 7,900 4,412 $ 50 $ 4,740 $ 7,900 3 Brother Francis Shelter 49,403 56,180 31,375 49,403 $ 56,180 $ 33,708 $ 56,180 4Hop eCommunity Resources 5,500 3,072 $ 32 $ 3,030 $ 5,050 5 Hospice and Palliative Care of Kodiak 9,673 20,000 11,170 9,673 $ 11,000 $ 6,600 $ 11,D0D 6 Humane Society of Kodiak 5,000 2,792 $ 27 S 2,550 $ 4,250 _ 7 Kodiak Area Native Association - WIC 9,233 10,500 5,864 9,233 $ 10,500 $ 6,300 $ 10,500 8 Kodiak Area Transits stem 15,000 8,377 $ 96 $ 9,000 $ 15,000 9 Kodiak Arts Council 15,300 8,545 $ 98 S 9,210 $ 15,350 30 Kadlak Community Health Center 19,990 11,164 $ 127 $ 12,000 $ 20,000 11 9edHk-647Sceu4S $ 6 S 600 $ 1,000 12 Kadlak Head Start 6,331 9,000 51026 6,331 $ 7,200 $ 4,320 S 7,200 13 Kodiak Historical Society 5,585 10,000 5,585 $ 64 $ 6,000 $ 10,000 14 Kodiak Island Food Bank 39,677 43,092 24,066 39,677 S 45,120 $ 27,072 $ 45,120 15 Kodiak Maritime Museum 3,351 6,000 3,351 $ 64 $ 6,000 $ 10,000 16 Kodiak Public Broadcasting Corporation 7,123 12,000 6,702 7,123 $ 52 $ 4,860 $ 8,100 17 Kodiak Soil& Water Conservation District 4,250 2,374 $ 27 $ 2,550 $ 4,250 18 Kodiak Teen Court -Rent/Office Space 6,211 6,211 3,459 $ 32 $ 3,060 $ 5,100 19 Kodiak Women's Resource & Crisis Center 52,762 60,DD0 33,509 52,762 $ 60,000 S 36,000 $ 60,OOD 20,MaAan HBs $ 6 IS 600 $ 1,000 21 PKI Counseling Center Safe Harbor 21,984 25,000 13,962 21,984 $ 159 $ 15,000 $ 25,000 22 Salvation Army of Kodiak 7,035 10,000 5,585 7,035 $ 8,000 $ 4,800 $ 8,000 _ 23 Senior Citizens of Kodiak 30,778 35,000 19,547 30,778 $ 35,000 $ 21,000 S 35,000 24 Special Olympia 5,4.05 7,500 4,189 5 38 $ 3,6DO S 25 Threshold Services, Inc. _ _ _ _ _ 5,572 3,112 $ 51 $ 4,800 $ 26 did Harbor Alliance 20,000 11,170 1 _ Contingent /reserve $ 6 $ 600 $ 6,000 8,000_ 1,000 Total 267,312 418,995 234,000 23,000 5 234.000 $ 234,000 $ 390,000 -Ills fuRds.---ywested 'Priority; "tourism fund; -Buildings Fund "Previously Identified as priority; "Possible funding from tourism f ., Add KMXT, Safe Harbor to priority list Proportional to FY17 Resolution No. FY2017-12 Approving Fiscal Year 2017 Kodiak I... Page 44&A"413iV #13•B•2. FY17 Non Profit Funding Priority/Essential Services 1 Brother Francis Shelter 49,403 2 Hospice and Palliative Care of Kodiak 9,673 3 Kodiak Area Native Association - WIC 9,233 4 Kodiak Head Start 6,331 5 Kodiak Island Food Bank 39,677 6 Kodiak Women's Resource & Crisis Center 52,762 7 PKI Counseling Center (Safe Harbor) 21,984 8 Salvation Army of Kodiak 7,035 9 Senior Citizens of Kodiak 30,778 10 Kodiak Public Broadcasting Corporation 7,123 Total Non-profit Funding 233,999 Tourist/Museum Organizations 1 Alutliq Heritage Foundation 5,585 2 Kodiak Historical Society 5,585 3 Kodiak Maritime Museum 3,351 Total Tourism Funding 14,521 Space Rent 1 Red Cross 7,176 2 Kodiak Teen Court 6,211 3 Special Olympics 5,405 Total Building/Grounds Funding 18,792 TOTAL 267,312 Resolution No. FY2017-12 Approving Fiscal Year 2017 Kodiak I... KODIAK ISLAND BOROUGH AGENDA STATEMENT SEPTEMBER 15, 2016 ASSEMBLY REGULAR MEETING F Y TITLE: Resolution No. FY2017-14 Appointing Members to the Kodiak Fisheries Development Association Board of Directors (Stosh Anderson). ORIGINATOR: Angela MacKenzie FISCAL IMPACT: FUNDS AVAILABLE: Account Number: Amount Budgeted: SUMMARY STATEMENT: The Kodiak Island Borough and City of Kodiak jointly designated the Kodiak Fisheries Development Association (KFDA) as the Eligible Crab Community Entity (ECCE). The by- laws of the KFDA provide for appointment of Directors to the Board by the Kodiak Island Borough Assembly and the Kodiak City Council for three year terms. One of the three "Joint KFDA Director's Seats" expired in July 2016. Mr. Stosh Anderson wishes to be reappointed for a seat to expire July 2019. RECOMMENDED MOTION: Move to adopt Resolution No. FY2017-14. Kodiak Island Borough Resolution No. FY2017-14 Appointing Members to the Kodiak Fi... 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 0M2 ,i Xg.d Introduced by: Borough Manager Requested by: Borough Assembly Drafted by: Borough Clerk Introduced on: 09/15/2016 Adopted on: KODIAK ISLAND BOROUGH RESOLUTION NO. FY2017-14 A RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY APPOINTING A MEMBER TO THE KODIAK FISHERIES DEVELOPMENT ASSOCIATION BOARD OF DIRECTORS WHEREAS, the North Pacific Fishery Management Council adopted the Bering Sea/Aleutian Islands Crab Rationalization Program as Amendments 18 and 19 to the Fishery Management Plan for Bering Sea /Aleutian Islands King and Tanner Crabs; and WHEREAS, under the Program, Kodiak was designated as an eligible crab community (ECC) and in connection with such designation the Kodiak Island Borough and the City of Kodiak have the authority to jointly exercise certain rights of first refusal (ROFR) with respect to processor quota shares (POS) allocated under the Program; and WHEREAS, to exercise the ECC ROFR the Kodiak Island Borough and the City of Kodiak have jointly designated the Kodiak Fisheries Development Association (KFDA) as the region's eligible crab community entity (ECCE) having the authority to do so on their behalf; and WHEREAS, the bylaws of the Kodiak Fisheries Development Association provide for appointment of Directors to the Board of the KFDA by the Kodiak Island Borough Assembly and the Kodiak City Council; and WHEREAS, the bylaws of the KFDA state, in part, that Directors shall serve for three-year terms and until their successors are appointed and qualified; and WHEREAS, Mr. Slosh Anderson, Joint Reappointee, has indicated a desire to continue serving on the KFDA Board of Directors. NOW, THEREFORE BE IT RESOLVED, BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT Mr. Slosh Anderson is appointed as one of the Joint reappointees on the Kodiak Fisheries Development Association for a term to expire 2019. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF , 2016 ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Resolution No. FY2017-14 Appointing Members to the Kodiak Fi... KODIAK ISLAND BOROUGH Jerrol Friend, Borough Mayor Resolution No. FY2017-14 Page 1 of 1 Page 44&A"419ih #13.6.3. KODIAK ISLAND BOROUGH / CITY OF KODIAK KODIAK FISHERIES DEVELOPMENT ASSOCIATION' ° BOARD OF DIRECTORS 2015 NAME TERM PHONE EMAIL CITY APPOINTEES Crab Processors Representative Mike Woodruff 7/2016 486-8100 mwoodruff626Dyahoo.com Crab Harvester Representative Jeff Stephan 7/2017 486-4568 isteohan( otialaska.net JOINT APPOINTEES Slosh Anderson 7/2016 486-3673 stosh aCdhotmail.com Linda Freed 7/2017 486-5314 freed(a),gci.net Albert Tyler Schmeil 7/2017 486-8587 tmschmeil(a gci.net BOROUGH APPOINTEES Crab Processors Representative Tuck Bonney 7/2018 486-3329 tbonnev(c)nosi.us Crab Harvester Representative Jerry Bongen 7/2018 486-6245 ibongen(a),mac.com Resolution No. FY2008-04 states: "Directors shall be appointed by joint resolution of the Borough Assembly and City Council. Appointments shall take place annually, at July meetings of the Borough Assembly and City Council. Directors shall have staggered three (3) year terms of office, assigned by a random selection method at the first Board meeting, such that as close as possible to one third (1/3) of the Board is up for appointment each year. Directors shall serve until their successors are appointed and qualified." CITY MANAGER, AIMEE KNIAZIOWSKI 486-8640 akniaziowskiIBcitv.kodiak.ak.us OFFICE OF THE CITY MANAGER 710 MILL BAY ROAD, ROOM 219 KODIAK, AK 99615 Revision Date: 8/17/2015 Revised by: am Resolution No. FY2017-14 Appointing Members to the Kodiak Fi... IiMME2 7 U mgj BYLAWS OF KODIAK FISHERIES DEVELOPMENT ASSOCIATION ARTICLE I — NAME The name of the organization shall be Kodiak Fisheries Development Association (the "Corporation"). ARTICLE lI — PURPOSE The Corporation is organized exclusively to promote the social welfare of the City of Kodiak and the Kodiak Island Borough (together, the "Kodiak Community"), consistent with Section 501(c)(4) of the Internal Revenue Code of the United States (as the same may be amended, supplemented, or replaced from time to time, the "Internal Revenue Code"). Subject to the foregoing, the specific purposes for which the Corporation is organized are as follows: A. To act as an Eligible Crab Community Entity ("ECCE") on behalf of the Kodiak Community for purposes of exercising rights of first refusal in connection with proposed transfers of processor quota shares ("PQS") and Individual processor quota ("IPQ"), pursuant to the Bering Sea/Aleutian Island ("BS/AI") crab rationalization program regulations set forth at 50 C.F.R. part 680, as the same may be amended from time to time (the Regulations"); B. If the Council of the City of Kodiak (the "City Council") and the Kodiak Island Borough Assembly (the "Borough Assembly") authorize it to do so, to act as an Eligible Crab Community Organization ("ECCO") for the Kodiak Community for purposes of holding crab rationalization quota shares ("QS") on behalf of the Kodiak Community and making the resulting individual fishing quota ("IFQ") available to residents of the Kodiak Community; and C. In general, to exercise those powers set forth in AS 10.20.005, et seq., as now enacted or as may hereafter be amended, and to exercise such other powers that now are or hereafter may be conferred by law upon a corporation organized for the purposes set forth herein or that are necessary or incidental to the powers so conferred, subject only to such limitations that are or may be prescribed by state or federal law, any resolution of the City Council or the Borough Assembly, these Articles of Incorporation, and the Corporation's Resolution No. FY2017-14 Appointing Members to the Kodiak Fi... Page 464'04QW#13.6.3. Bylaws, including without limitation the limitations placed on organizations exempt from taxation under Section 501(c)(4) of the Internal Revenue Code. ARTICLE III — MEMBERSHIP The Corporation shall have no members. ARTICLE IV — BOARD OF DIRECTORS Section 1. Functions and Powers. The initial Board of Directors (the "Initial Board") shall have the authority to adopt the Corporation's initial Bylaws, elect its initial officers, take whatever steps may be appropriate to qualify it as an ECCE with the National Marine Fisheries Service ("NMFS") pursuant to the Regulations, execute right of first refusal contracts between the Corporation and PQS holders as required under the regulations, and file affidavits of execution with NMFS. All other authority to act as a board of directors for the Corporation shall be reserved to the Board of Directors appointed pursuant to Article IV, Section 3, below (the "Board of Directors" or the "Board"), provided that the authority of the Board of Directors to manage the affairs of the Corporation; determine its policies within the limits of the Articles of Incorporation and these Bylaws; collect, administer, and disburse the Corporation's funds; approve projects; and otherwise actively pursue and promote the purposes of the Corporation, shall in all cases be subject to such limits as may be jointly imposed from time to time by the City Council and the Borough Assembly. The salaries, if any, of all employees of the Corporation shall be determined by or under the direction of the City Council and the Borough Assembly. The budget and funding of the Corporation shall be as jointly approved by the City Council and Borough Assembly from time to time. Section 2. Number. The number of directors serving on the Initial Board shall be three (3). The number of Directors serving on the Board of Directors shall be seven (7). The Initial Directors shall be named by the incorporators and shall remain in office until their successors are designated and qualified in accordance with Article IV, Section 3, below. Section 3. Composition and Voting Rights. The Board of Directors of the Corporation shall be appointed by the City Council and the Borough Assembly, as follows: A. Two (2) directors shall be appointed by the City Council; B. Two (2) directors shall be appointed by the Borough Assembly; and Resolution No. FY2017-14 Appointing Members to the Kodiak Fi... C. Three (3) directors shall be jointly appointed by the City Council and the Borough Assembly. At least two (2) directors shall represent the interests of Kodiak Community BS/AI crab harvesters, and at least two (2) directors shall represent the interests of Kodiak Community BS/AI crab processors. Except as otherwise provided in the Corporation's Articles of Incorporation or these Bylaws, approval by a four - sevenths (4/7) vote of all directors is required for all Board action. Section 4. Appointment and Terms of Office. Directors shall be appointed by joint resolution of the City Council and the Borough Assembly. Appointments shall be made annually, at July meetings of the City Council and Borough Assembly. Directors shall have staggered three (3) year terms of office, assigned by a random selection method at the first Board meeting, such that as close as possible to one third (1 /3) of the Board is up for appointment each year. Directors shall serve until their successors are appointed and qualified. Section 5. Meetings. Meetings of the Corporation's Board of Directors shall be held at times and places designated by the Board. Special meetings of the Board may be called by a majority of the Board or by the President. Participation in a Board meeting by means of a telecommunications device that allows all parties to hear each other at the same time shall be the equivalent of presence in person at a meeting. Section 6. Public Participation at Meeting. Members of the public shall be permitted to attend and shall be given an opportunity to be heard at all meetings of the Corporation's Board of Directors; provided that the Board may from time to time enter closed executive session as permissible under Alaska statutes. Section 7. Notice of Meetings. Notice of each meeting describing the matters to come before the Board at that meeting shall be given in writing to each director by mail, facsimile, or electronic mail transmission, not less than three (3) days prior to the meeting. In addition, reasonable public notice of any meeting of the Corporation's directors, which notice shall include the meeting's date, time, and place, shall be given at least three (3) days in advance of the meeting, in accordance with A.S. 44.62.310(e). Section 8. Waiver of Notice. A director may waive any notice required to be given by signing a written waiver either before or after the meeting. A director may not waive the failure to give public notice per A.S. 44.62.310(e). Resolution No. FY2017-14 Appointing Members to the Kodiak Fi... WO- m a,of-Imgzj = Section 9. Presumption of Assent: A director who is present at a meeting of the Board of Directors at which action on any corporate matter is taken shall be presumed to have assented to the action taken unless: A. The director objects at the beginning of the meeting, or promptly upon the director's arrival, to holding the meeting or transacting business at the meeting; B. The director's dissent or abstention from the action taken is entered in the minutes of the meeting; or C. The director files a written dissent or abstention with the presiding officer of the meeting before its adjournment or with the Corporation within a reasonable time after adjournment of the meeting. The right of dissent or abstention is not available to a director who votes in favor of the action taken. Section 10. Ouorum. Presence of five -sevenths (5/7) of the directors shall constitute a quorum for the transaction of business at all meetings. Section 11. Action Without a Meeting. The Corporation's Board of Directors may not take action without a meeting. Section 12. Removal. A director may be removed from the Board of Directors at the discretion of the entity or entities that appointed such director. A director may also be removed by the Board if he or she is absent from three (3) consecutive Board meetings without being excused by a majority of the other directors. Section 13. Remuneration. No salary or other remuneration shall be paid to directors unless approved in advance by joint resolution of the City Council and the Borough Assembly. ARTICLE V — COMMITTEES Section 1. Designation. The Board of Directors may appoint committees to assist and advise the Board with those functions, powers, duties, and tenure as the Board deems appropriate. Each committee shall consist of at least two (2) directors and such other persons as the Board may designate who need not be members of the Board of Directors. Resolution No. FY2017-14 Appointing Members to the Kodiak Fi... Section 2. Limitation of Comrnfttee Powers. Committees shall exercise advisory authority only, and any committee recommendation shall require subsequent action by the Board of Directors before binding the Corporation. ARTICLE VI - OFFICERS AND EXECUTIVE DIRECTOR Section 1. Number and Title. The officers of the Corporation shall be a President, a Vice President, a Secretary, and a Treasurer, all of whom shall be elected by the Board of Directors. The Secretary and the Treasurer may be, but need not be, members of the Board. Section 2. Election. Officers shall be elected annually, at the first meeting following appointment of the Board. The Initial Directors may elect interim officers, who shall hold office only until the Board of Directors is appointed. Section 3. Term. Officers other than those elected by the Initial Board shall hold office for one (1) year terms, and all officers shall serve until their respective successors are elected and qualified. Section 4. Resignation. Any officer of the Corporation may resign at any time by giving written notice to the Board of Directors, or to any other officer of the Corporation. Any such resignation is effective when the notice is delivered, unless the notice specifies a later date, and shall be without prejudice to the contract rights, if any, of such officer. Section 5. Removal. The Board of Directors may remove any officer elected by it, with or without cause. The removal shall be without prejudice to the contract rights, if any, of the person so removed. Section 6. Vacancies. If the office of any officer becomes vacant by any reason, the directors may appoint a successor who shall hold office for the unexpired term. Section 7. Remuneration.. No salary or other remuneration shall be paid to an officer or employee of the Corporation unless approved in advance by the City Council and the Borough Assembly. Section S. Executive Director. The City Council and Borough Assembly may authorize the Corporation to retain an Executive Director, who shall be responsible for the administration and management of the Corporation. If the City Council and Borough Assembly authorize an Executive Director, the Resolution No. FY2017-14 Appointing Members to the Kodiak Fi... Executive Director shall be appointed and may be removed as the City Council and Borough Assembly direct ARTICLE VII - DUTIES OF OFFICERS Section 1. President. The President shall preside at all meetings of the Board of Directors.. Section 2. Vice President. The Vice President shall, in the absence or disability of the President, perform the duties of the President. Section 3. Secretary. The Secretary shall supervise the keeping of the minutes of all meetings of the Board of Directors of the Corporation. The Secretary shall have charge of such books and papers as the Board of Directors may direct, including without limitation those records specified in Article VIII, below, which shall, at all reasonable times, be open to the examination of any director upon reasonable notice to the Secretary. The Secretary shall arrange to provide proper notice of all meetings of the Board of Directors. Section 4. Treasurer. The Treasurer shall supervise the keeping of full and accurate accounts of receipts and disbursements in books belonging to the Corporation. Section 5. Contract Rights. The appointment of an officer does not of itself create any contract rights in favor of the officer. ARTICLE VIII - BOOKS AND RECORDS Section 1. Books of Accounts and Minutes. The Corporation: A. Shall keep as permanent records minutes of all meetings of its Board of Directors and a record of all recommendations of any conunittee(s) of the Board of Directors; B. Shall maintain appropriate accounting records; C. Shall keep a copy of the following records at its principal office: L The Articles or Restated Articles of Incorporation and all amendments to them currently in effect; 2. The Bylaws or Restated Bylaws and all amendments to them currently in effect; Resolution No. FY2017-14 Appointing Members to the Kodiak Fi... 3. Its financial statements for the past three (3) years, including balance sheets showing in reasonable detail the financial condition of the Corporation as of the close of each fiscal year, and an income statement showing the results of its operations during each fiscal year prepared on the basis of generally accepted accounting principles or, if not, prepared on a basis explained therein; 4. A list of the names and business addresses of its current directors and officers; 5. Its most recent biennial report delivered to the State of Alaska; 6. Its Application to become an ECCE, and all supporting documents, including but not limited to all right of first refusal contracts with PQS and/or IPQ holders; 7. Records related to every right of first refusal offered to the Corporation, its response to the same, and all related documents; and 8. All reports the Corporation may submit to the National Marine Fisheries Service or the State of Alaska. Section 2. dies of Resolutions. Any person dealing with the Corporation may rely upon a copy of any of the records of the proceedings, resolutions, or votes of the Board of Directors or shareholders, when certified by the President or Secretary. ARTICLE IX - MISCELLANEOUS PROVISIONS Section 1. Checks and Notes. All financial instruments of the Corporation shall be signed by the officer or officers designated by the Board of Directors. Section 2. Fiscal Year. The fiscal year of the Corporation shall be from January 1 through December 31. Section 3. Deposits. All funds of the Corporation not otherwise employed shall be deposited in interest-bearing accounts selected by the Treasurer and approved by a majority of the directors. Resolution No. FY2017-14 Appointing Members to the Kodiak Fi... Section 4. Acceptance of Gifts. Donations. etc. No gift, donation, bequest, or subscription to the Corporation shall be deemed to have been accepted until acted upon affirmatively by the Board of Directors. Section 5. Conflict of Interest. A director may be present during and participate in discussion and action regarding any Corporation transaction with respect to which a director has a direct or indirect material financial interest Lf and only iF (a) the director discloses the material facts of his or her financial interest; (b) the Board authorizes the conflicting interest transaction by a vote sufficient to meet the Board action requirements of these Bylaws, without counting any interested director's vote; and (c) the Board can demonstrate by clear and compelling evidence that the transaction is reasonable and fair to the Corporation at the time it is authorized, approved, or ratified. If any of the foregoing conditions are not satisfied with respect to any transaction involving the Corporation in connection with which a director has a direct or indirect material financial interest, such director may not be present during and may not participate in any discussion or action with respect to such transaction. ARTICLE X - PARLIAMENTARY PROCEDURE The most recent edition of Robert's Rules of Order shall govern questions of parliamentary procedure at all meetings of the Board of Directors, the Executive Committee, or any other committee of the Corporation. ARTICLE XI - AMENDMENTS These Bylaws may be amended or replaced only by a joint resolution of the City Council and Borough Assembly. ARTICLE XII - INDEMNIFICATION, INSURANCE, AND BONDING Section 1. Officers and Directors. The Corporation shall indemnify and defend all present and former directors, officers, employees, and agents of the Corporation against any expenses of any proceeding (including by or in the right of the Corporation) to which they are parties because they are or were directors, officers, employees, or agents of the Corporation, all as defined and to the fullest extent permitted by law. Section 2. Insurance. The Corporation may purchase and maintain insurance on behalf of any person who is or was serving at the request of the Corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, other enterprise, or employee benefit plan Resolution No. FY2017-14 Appointing Members to the Kodiak Fi... Page 45)7A@P4 #1s.e.s. against any liability asserted against such person and incurred by such person in any such capacity or arising out of such person's status as such, whether or not the Corporation would have the power to indemnify such person against such liability under the provisions of this Article. Section 3. Bondine. The Board may require that any person authorized to sign checks for the Corporation shall furnish, at the expense of the Corporation, a fidelity bond in such sum as the Board shall prescribe. ADOPTED by the initial Board of Directors on September 13, 2005. t a-vA-c je � Bongen, Prb sident Laine O'Brien, Secretary VAAKTNM%MO TAK0U X WWaS aMWVAIENTA49C roN"JAwSU04W.I Resolution No. FY2017-14 Appointing Members to the Kodiak Fi... against any liability asserted against such person and incurred by such person in any such capacity or arising out of such person's status as such whether or not the Corporation would have the power to indemnify such person against such liability under the provisions of this Article. Section 3. Bon ,dine. The Board may require that any person authorized to sign checks for the Corporation shall furnish, at the expense of the Corporation a fidelity bond in such sum as the Board shall prescribe. ADOPTED by the initial Board of Directors on September 13, 2005. Jerry Bongen, President n Laine O'Brien, Secretary U\I.!{I\(q q]CAiE\[091AR {yMFF160FVE131V�1EM AqO]/.}IONOYUWSiIY®A.C(C Resolution No. FY2017-14 Appointing Members to the Kodiak Fi... • • j r1 I� i. AK Enlitr k: 92967 Dale File : Ulf 1RP99 Moo AM Stmoat Alaska ARTICLES OF INCORPORATION i eePart nt of Commarce OF KODIAK FISHERIES DEVELOPMENT ASSOCIATION The undersigned incorporators hereby adopt the following Articles Of Incorporation: ARTICLE I The name of the corporation is Kodiak Fisheries Development Association (the "Corporation"). ARTICLE II The Corporation shall have perpetual duration. ARTICLE III The Corporation is organized exclusively to promote the social welfare of the City of Kodiak and the Kodiak Island Borough (together, the "Kodiak Community"), consistent with Section 501(c)(4) of the Internal Revenue Code of the United States (as the same may be amended, supplemented, or replaced from time to time, the "Internal Revenue Code"). Subject to the foregoing, the specific purposes for which the Corporation is organized are as follows: A, To act as an Eligible Crab Community Entity ("ECCE") on behalf of the Kodiak Community for purposes of exercising rights of first refusal in connection with proposed transfers of processor quota shares and individual processor quota, pursuant to the Bering Sea/Aleutian Island crab rationalization program regulations set forth at 50 C.F.R. part 680, as the same may be amended from time to time (the Regulations"); B. Subject to the Council of the City of Kodiak and the Kodiak Island Borough Assembly specifically authorizing it to do so, to act as an Eligible Crab Community Organization ("ECCO") for the Kodiak Community for State of Alaska emneylic Cmpaaticn Fmm9mt 9 Page(s) 11111111111111111111111111111111111111111111111111111111111l� - ,51 Resolution No. FY2017-14 Appointing Members to the Kodiak Fi... purposes of holding crab rationalization quota shares on behalf of the Kodiak Community and malting the resulting individual fishing quota available to residents of the Kodiak Community; and r C. In general, to exercise those powers set forth in AS 10.20.005, at seq., as now enacted or as may hereafter be amended, and to exercise such other powers that now are or hereafter may be conferred by law upon a corporation organized for the purposes set forth herein or that are necessary or incidental to the powers so conferred, subject only to such limitations that are or may be prescribed by state or federal law, any resolution of the Council of the City of Kodiak or the Kodiak Island Borough Assembly, these Articles of Incorporation, and the Corporation's Bylaws, including without limitation the limitations placed on organizations exempt from taxation under Section 501(e)(4) of the Internal Revenue Code. ARTICLE N Provisions for regulating the affairs of the Corporation, including provisions for distribution of assets on final liquidation, are as follows: A. The Corporation shall not engage in any transactions or activities prohibited by the applicable sections of Subchapter F of Chapter 1 of the Internal Revenue Code, or of the Alaska Nonprofit Corporation Act, as they are now in effect or may be afterwards amended, supplemented, or replaced. B. No more than an unsubstantial part of the Corporation's activities shall consist of unrelated trade or business as defined in Section 513 of the Internal Revenue Code. C. No part of the net earnings of the Corporation shall inure to the benefit of any private individual, or any officer, director, employee, or agent of the Corporation or substantial contribution to it, except as reasonable compensation for services actually rendered to the Corporation. D. No loan shall be made by the Corporation to any director or officer of the Corporation. E. The Corporation shall not directly or indirectly participate or intervene in any political campaign on behalf of or in opposition to any candidate for public office, ballot initiative, or other voter resolution, nor shall any substantial part of its activities consist of attempting to influence legislation by propaganda or otherwise. Resolution No. FY2017-14 Appointing Members to the Kodiak Fi... r7 F. The Corporation shall be dissolved in accordance with the relevant provisions of the Alaska Nonprofit Corporation Act, AS 10.20.290 et seq. Upon dissolution of the Corporation, its assets shall be distributed to organizations whose purposes and activities are substantially the same as those of the Corporation for one or more exempt purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code, or shall be distributed to the federal government or to a state or local government, for a similar public purpose. Any such assets not so disposed of by the Corporation in the course of winding up its affairs shall be disposed of by a court of competentjurisdiction in the judicial district in which the principal office of the Corporation is then located, exclusively for such exempt purposes or to such organization or organizations as said court shall determine are organized and operated exclusively for such exempt purposes. G. The Corporation shall have no members. H. The management of the Corporation is hereby vested in its Board of Directors. The number of directors, their tens, and their qualifications shall be as specified in the Bylaws of the Corporation. ARTICLE V LIMITATION OF LIABILITY A director of the Corporation shall not be personally liable to the Corporation for monetary damages for conduct as a director, except for.. A. Any breach of the dfrect&s duty of loyalty to the Corporation; B. Acts or omissions involving intentional misconduct by the director or a knowing violation of law by the director; or C- Any transaction from which the director will personally receive a benefit in money, property, or services to which the director is not legally entitled. If the Alaska Nonprofit Corporation Act is amended to authorize corporate action further eliminating or limiting the personal liability of directors, then the liability of a director of the Corporation shall be eliminated or limited to the fullest extent permitted by the Alaska Nonprofit Corporation Act, as so amended. Any repeal or modification of the foregoing paragraph by the Corporation shall not adversely affect any right or protection of a director of the Resolution No. FY2017-14 Appointing Members to the Kodiak Fi... Corporation with respect to any rights or omissions of such director occurring prior to such repeal or modification. ARTICLE VI REGISTERED AGENT The name of the initial registered agent and the address of the initial registered office of the Corporation are: National Registered Agents, Inc. 801 West 10th Street, Suite 300 Juneau, Alaska 99801 ARTICLE VII INITIAL DIRECTORS The Corporations initial Board of Directors shall consist of three (3) persons who shall serve until their successors are elected and qualify. The names and addresses of the initial directors are: Name: Ms. Linda Freed Address 210 W1 0 _ILLL-f< A k� 94GI5 Name: Mr. Jerome Seib ICo cLZ.a,Ttl'j &JOIL Address: 7tD Mdl 1 .9 // C& 44ets Name: M . Jose h Sullivan Address:L4 �a+� �d:..4 g46tf Resolution No. FY2017-14 Appointing Members to the Kodiak Fi... c7 rs� v e. -..,I ARTICLE VIII INCORPORATORS The names and addresses of the incorporators of the Corporation are: Name: Ms. Linda Freed, c. q" Address:wlA.A.A Name: .Jerome Se b Address: Name: Mr. Joseph Sullivan C Address: L G . J Kv gg6ls k EXECUTED this 5 day o �h, 2005. _,_ Incoxpnramr w S Inco or 1 ncorporator u:\Pm\wNueels\Mlnuoemvowamm�moc�r...9+�—• oa Resolution No. FY2017-14 Appointing Members to the Kodiak Fi... Kodiak Fisheries Development Association Statement of NAILS Code The undersigned h-mpomtor of the Kodiak pishettes Development Association hereby states that the following North American Industry Classification System Code: 9261 most dosely describes the activiyes in which the Kodiak Fisheries Development Association win initially engage, DATED: April J Mo. — a� h f"a-� seph M. Sullivam Incorporator LhZCAOMO u Nmw Resolution No. FY2017-14 Appointing Members to the Kodiak Fi... KODIAK ISLAND BOROUGH AGENDA STATEMENT SEPTEMBER 15, 2016 ASSEMBLY REGULAR MEETING TITLE: Resolution No. FY2017-15 Encouraging The State Of Alaska To Declare A Condition Of Economic Disaster In Kodiak And Requesting The Utilization Of The Commercial Fishing Revolving Loan Fund (CFRLF) To Assist The Affected Fishermen And Their Families Impacted By The Fisheries Disaster ORIGINATOR: FISCAL IMPACT: Account Number: SUMMARY STATEMENT: FUNDS AVAILABLE: Amount Budgeted: This resolution was requested and being introduced by Assembly member Skinner. It encourages the State of Alaska to declare a condition of economic disaster in Kodiak and requesting the utilization of the Commercial Fishing Revolving Loan Fund (CFRLF) to assist the affected fishermen and their families impacted by the fisheries disaster. A Gulf of Alaska Pink Salmon Fisheries preliminary information/summary is attached to the packet. A copy of the resolution was sent to the City of Kodiak for the Council's consideration. RECOMMENDED MOTION: Move to adopt Resolution No. FY2017-15. Kodiak Island Borough Resolution No. FY2017-15 Encouraging The State Of Alaska To ... 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 Introduced by: Requested by: Drafted by Introduced on: Adopted on: KODIAK ISLAND BOROUGH RESOLUTION NO. FY 2007-15 Assembly Member Skinner Assembly Member Skinner Governor's Office 09115102016 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH ENCOURAGING THE STATE OF ALASKA TO DECLARE A CONDITION OF ECONOMIC DISASTER IN KODIAK AND REQUESTING THE UTILIZATION OF THE COMMERCIAL FISHING REVOLVING LOAN FUND (CFRLF) TO ASSIST THE AFFECTED FISHERMEN AND THEIR FAMILIES IMPACTED BY THE FISHERIES DISASTER WHEREAS, pink salmon are Alaska's highest volume salmon fishery; and WHEREAS, there is substantial scientific concern that the warm temperatures in the Gulf of Alaska which raised surface temperatures 2 degrees Celsius has impacted this vital fishery; and WHEREAS, the statewide harvest of 36 million pink salmon (aka humpies) is far less than the preseason forecast of 90 million and the prior year harvest of 190 million; and WHEREAS, this is the worst salmon year in nearly 40 years; and WHEREAS, hatcheries will likely not meet their cost recovery harvest, and fishermen on Kodiak dealt with a rare island -wide weeklong closure, and WHEREAS, fishermen and their families in Kodiak are in dire financial condition such that they are in fear for paying their bills and their mortgages; and WHEREAS, the entire Prince William Sound Pink Salmon fishery has been severely impacted, and WHEREAS, the State of Alaska, the Department of Commerce, Community and Economic Development (DCCED) and the Division of Economic Development (DED) share the primary objective of a strong resident fleet; and WHEREAS, the Kodiak community is a political subdivision of the State of Alaska; AND NOW THEREFORE BE IT RESOLVED, that the Kodiak Island Borough encourages the State of Alaska to declare that a condition of economic disaster exists in Kodiak; and BE IT FURTHER RESOLVED that the Commercial Fishing Revolving Loan Fund (CFRLF) has numerous tools and methods built into it to assist harvesters who may experience financial hardship as a result of poor fishery returns or other unexpected occurrences that may affect livelihoods, and we request DED utilize those tools to the fullest and provide the flexibility to weather the economic storm with the affected fishermen in order to help meet our goal of a strong resident fleet; and Kodiak Island Borough Resolution No. FY2007-15 Page 1 of 2 Resolution No. FY2017-15 Encouraging The State Of Alaska To ... 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 BE IT FURTHER RESOLVED that the State of Alaska is requested to use all available tools to assist the fisherman and their families that have been economically impacted by this fisheries disaster. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2016 ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough Resolution No. FY2017-15 Encouraging The State Of Alaska To KODIAK ISLAND BOROUGH Jerrol Friend, Borough Mayor Resolution No. FY2007-15 Page 2 of 2 � � � � � •. � 1►� �� a �, r,l Gulf of Alaska Pink Salmon Fisheries, 2016 Preliminary information through August 24, 2016 Summary • Harvest to date of pink salmon around Gulf of Alaska Is about 24.5 million fish, which is less than 25% of preseason forecast (103 million fish) for this portion of Alaska (South Alaska Peninsula to Southeast Alaska). • Harvest is generally below 5 -year average harvest for even -year pink salmon and in some places harvest Is exceptionally low o South Alaska Peninsula -38%of5-year average; 30% of lower bound of forecast o Chignik -19%of5-year average; no forecast made o Kodiak Management Area- 16% of 5 -year average; 27% of lower bound of forecast o Lower Cook Inlet -17% of 5 -year average; 43% of lower bound of forecast o Upper Cook Inlet- Equal to 5 -year average; no forecast made o Prince William Sound - 29% of 5 -year average harvest for combined runs • natural run - Equal to 5 -year average; exceeded lower bound of forecast • hatchery run - 25% of 5 -year average; 37% of lower bound of forecast o Southeast Alaska -71%of5-year average; exceeded lower bound of forecast • To date preliminary gross earnings estimates for 2016 are 35 to 85% below 5 -year averages. • Escapement assessment is ongoing and reports are variable. Some areas are reporting that escapements are on target where as others are well behind objectives for this time of year (e.g. some districts in Chignik are only 9% of objectives). Summary of year-to-date harvest Information on Gulf of Alaska pink salmon fisheries, 2016. Harvest numbers are reported in millions of fish and, when available, estimated exvessel gross earnings are reported in millions of dollars. LCI 0.095 NA 0.56 NA 0.22-0.96 0.47 UCI 0.38 NA 0.39 NA PWS Natural 2.1 $6.60° 2.06 $4387° 0.54-4.6 2.7 PWS Hatchery 9.5 37.67° 26.0.45.4r 35.7 SEAK 15.8 $13.80 22.1 $ 14.01 13.0-55.0 34.0 ' Preliminary harvest estimates as of August 24, 2016. ° Estimated enessel gross earnings do not Include discards, deadloss, and hatchery cost recovery harvest. The 2016 data provided are preliminary and based off of inseason estimates and verbal reports from processors. `Large decline in South AK Peninsula pink salmon In 2010 that has been rebuilding. Harvest prior to 2010 was around 8 million. ° Values of harvest not calculated separately for natural and hatchery fish. ' Commercial common property and hatchery cost recovery harvests. 'Sum of the total run forecasts from Prince William Sound Aquaculture Corporation and Valdez Fisheries Development Association minus the sum of the broodstock goals In their annual management plans. 1 Resolution No. FY2017-15 Encouraging The State Of Alaska To 2016 Preliminary 5 -yr average for even Preseason Preseason Harvest Estimate? years (2006.2014) Harvest Forecast Harvest Forecast Range Estimate Area Numbers Value Numbers Value" S. AK Pen. 3.0 $1.48 4.2` $ 3.32 9.0-18.7 12.9 Chignik 0.14 $0.11 0.75 $ 0.74 - - Kodiak 3.0 $2.21 15.7 $14.64 11.2-21.1 16.2 LCI 0.095 NA 0.56 NA 0.22-0.96 0.47 UCI 0.38 NA 0.39 NA PWS Natural 2.1 $6.60° 2.06 $4387° 0.54-4.6 2.7 PWS Hatchery 9.5 37.67° 26.0.45.4r 35.7 SEAK 15.8 $13.80 22.1 $ 14.01 13.0-55.0 34.0 ' Preliminary harvest estimates as of August 24, 2016. ° Estimated enessel gross earnings do not Include discards, deadloss, and hatchery cost recovery harvest. The 2016 data provided are preliminary and based off of inseason estimates and verbal reports from processors. `Large decline in South AK Peninsula pink salmon In 2010 that has been rebuilding. Harvest prior to 2010 was around 8 million. ° Values of harvest not calculated separately for natural and hatchery fish. ' Commercial common property and hatchery cost recovery harvests. 'Sum of the total run forecasts from Prince William Sound Aquaculture Corporation and Valdez Fisheries Development Association minus the sum of the broodstock goals In their annual management plans. 1 Resolution No. FY2017-15 Encouraging The State Of Alaska To Regional Fishery Summaries Westward Region South Alaska Peninsula • There have been no pink salmon -specific openings in the area this season —only Incidental in sockeye salmon fisheries. • Harvest to date is about 3 million pink salmon, which is 30% of the lower bound of the preseason forecast range estimate of 9 million fish. • The 5 -year average harvest for even -year pink salmon (4.2 million) is affected by a large crash in 2010 and the run has been rebuilding since. Harvest prior to 2010 was around 8 million pink salmon in even years. Therefore, harvest to date is 70% of most recent 5 -year average, but 38% of harvest prior to 2010. • Escapement is about 12% of what the objectives are for this point in the season. Chignik Management Area • There has been no directed pink salmon harvest this year — only incidental in sockeye salmon fisheries. • Harvest to date is about 139,000 pink salmon. There is no formal preseason forecast for Chignik Area pink salmon. • Harvest to date is 19% of the 5 -year average harvest for even -year pink salmon (750,000 fish). • Chignik Management Area pink salmon escapement is about 50% of the Sustainable Escapement Goal. • Escapements in some districts are as low as 9% of the objective. Kodiak Management Area • Harvest opportunities have been limited, only about 16 days of fishing relative to an average of around 25-30. • For 70% of the pink salmon run, the majority of the Kodiak Area has remained closed. Only the districts that achieved their minimum escapement objectives have had pink salmon fishing time past August 1". Currently, only the Westside of Kodiak is open, due to dual management for both sockeye and pink salmon. • Harvest to date is about 3 million pink salmon, which is 27% of the lower bound of the preseason forecast range (about 11 million fish). • The harvest is 15.7% of the 5 -year average harvest for even -year pink salmon (15.7 million fish). • Escapement is well behind in most places on both the island and the Mainland. Surveys are being conducted currently, but most recent results show very poor escapement. Those systems that have weirs and enumerate pinks (Karluk and Ayakulik) are well behind where they are typically at this point. • Karluk - ^329,000 escaped so far in 2016 and 70% of the run is typically through the weir by Aug 24. 10 -year average for even years is 1,108,000. • Kitoi Hatchery pink salmon return had the lowest survival on record. Central Region Lower Cook Inlet Harvest to date is about 95,000 fish, which is 43% of lower bound of the preseason forecast range (220,000 natural and hatchery fish). Harvest is 17% of the 5 -year average for even -year pink salmon (560,000 natural and hatchery fish). Resolution No. FY2017-15 Encouraging The State Of Alaska To ... • Hatchery pink salmon returns are about what they expected. • Escapement has been difficult to assess because very poor weather conditions has resulted in a lack of aerial and ground surveys. • Limited observations do indicate a mixed bag with some streams with poor pink salmon escapements while others have a lot of pink salmon. Upper Cook Inlet • No forecasts or escapement goals for pink salmon runs in Upper Cook Inlet. • There are no pink salmon -specific escapement assessment projects, so escapements not completely monitored. • Harvest to date Is about equal to the 5 -year average for even -year pink salmon (390,000 fish). Prince William Sound • Harvest to date on the combined natural and hatchery pink salmon is about 11.6 million pink salmon which is 45% of the lower bound of the forecast range estimate of 26 million fish. • The combined harvest to date is 29% of the 5 -year average harvest for even -year pink salmon (39.7 million fish, including hatchery cost recovery). • 20161s the 2 5 smallest commercial common property harvest since 1998, and is less than half the even -year median harvest during this time period (8.65 million in 2016 vs. 21.5 million median; 1998-2015). • 2 of 3 PWSAC hatcheries are experiencing record low commercial harvest (WNH In 2004 had a lower return). • Hatchery pink salmon harvests of 9.5 million fish were 37% of the lower bound of the forecast (26.0 million). • Natural pink salmon harvests of 2.1 million exceeded the lower bound of the forecast (540 thousand). • Based on a very coarse look at the data there is a possible difference In return performance between hatchery and natural pink salmon. • No official pink salmon escapement calculation has been made at this time because surveys are ongoing. However preliminary pink salmon escapement data suggest that goals were met In 6 districts where surveys were completed. Adequate surveys have not been completed In 2 other districts because of weather and pilot availability. Southeast Alaska • Harvest to date Is about 15.8 million pink salmon, which is above the lower bound of the preseason forecast range estimate of 13 million fish. • Southern SE accounted for most of the harvest and escapement. • Some areas of inside waters in Northern SE had some of the lowest returns since the 1970s. • Very limited seine fishing occurred on Inside waters of Northern SE north of Sumner Strait, but there has not been much of a fishery in that area in even years since 2008. Resolution No. FY2017-15 Encouraging The State Of Alaska To Page 47004 #13.C.1. KODIAK ISLAND BOROUGH AGENDA STATEMENT SEPTEMBER 16, 2016 ASSEMBLY REGULAR MEETING TITLE: Ordinance No. FY2017-17 Placing A Temporary Moratorium On The Enforcement Of Those Sections Of Title 17 (Zoning) Of The Borough Code That Prohibit The Keeping Of Chickens And Other Animals Useful To People In The Rr-Rural Residential, R1 -Single -Family Residential, R2 -Two -Family Residential, And R3 -Multi -Family Residential Zoning Districts, And Initiating A Planning And Zoning Commission Review Of Title 17 (Zoning) Of The Borough Code To Consider Amendments That Will Allow Such Uses In Those Districts, And Directing Staff To Perform A Concurrent Review Of Chapter 6.04 (Animal Control) Of The Borough Code To Recommend Amendments That More Specifically Address The Control Of Chickens And Other Animals Useful To People. ORIGINATOR: Jack Maker FISCAL IMPACT: No Account Number: SUMMARY STATEMENT: FUNDS AVAILABLE: Amount Budgeted: This ordinance was requested and is being introduced by Assembly Member Crow in an effort to address public comment supporting the keeping of chickens and other animals useful to people in residential zoning districts. Although such activities are permitted uses in three low density residential districts, they are prohibited uses in one low density district and all medium and high density districts. The ordinance places a temporary moratorium on the enforcement of Title 17 (Zoning) codes that prohibit such uses in those residential districts and initiates a Planning and Zoning Commission code review to consider amendments that would allow such uses. The ordinance also directs staff to perform a concurrent review of Chapter 6.04 (Animal Control) to recommend amendments that more specifically address the control of chickens and other animals useful to people. The temporary moratorium only applies to enforcement of Title 17 (Zoning) codes. Title 6 (Animal Control) codes that address animal cruelty, control of animals, animal waste, etc., would continue to be enforced. RECOMMENDED MOTION: Move to adopt Ordinance No. FY2017-17 in first reading to advance to public hearing at the next regular meeting of the Assembly. Kodiak Island Borough Ordinance No. FY2017-17 Placing ATemporary Moratorium On Th... 8 9 10 11 12 13 14 15 16 17 18 19 20 21 99 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Page 4N?W4 Introduced by: Assembly Member Crow Requested by: Assembly Member Crow Drafted by: CDD Introduced: 09/15/2015 Public Hearing: Adopted KODIAK ISLAND BOROUGH ORDINANCE NO. FY2017-17 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH PLACING A TEMPORARY MORATORIUM ON THE ENFORCEMENT OF THOSE SECTIONS OF TITLE 17 (ZONING) OF THE BOROUGH CODE THAT PROHIBIT THE KEEPING OF CHICKENS AND OTHER ANIMALS USEFUL TO PEOPLE IN THE RR - RURAL RESIDENTIAL, R1 -SINGLE-FAMILY RESIDENTIAL, R2 -TWO- FAMILY RESIDENTIAL, AND R3 -MULTI -FAMILY RESIDENTIAL ZONING DISTRICTS, AND INITIATING A PLANNING AND ZONING COMMISSION REVIEW OF TITLE 17 (ZONING) OF THE BOROUGH CODE TO CONSIDER AMENDMENTS THAT WILL ALLOW SUCH USES IN THOSE DISTRICTS, AND DIRECTING STAFF TO PERFORM A CONCURRENT REVIEW OF CHAPTER 6.04 (ANIMAL CONTROL) OF THE BOROUGH CODE TO RECOMMEND AMENDMENTS THAT MORE SPECIFICALLY ADDRESS THE CONTROL OF CHICKENS AND OTHER ANIMALS USEFUL TO PEOPLE WHEREAS, there has been a noted increase in the keeping of chickens and other animals useful to people in residential zoning districts within the Kodiak Island Borough; and WHEREAS, the keeping of chickens and other animals useful to people is an agricultural activity as defined by Kodiak Island Borough Code 17.25.020.A; and WHEREAS, agricultural activities are listed as a permitted use in the low density RR1- Rural Residential One, RR2-Rural Residential Two, and C -Conservation Zoning Districts; and WHEREAS, agricultural activities are not listed as a permitted use in the low density RR - Rural Residential District, medium density R1 -Single-family Residential and R2 -Two-family Residential Districts, and high density R3-Mulit-family Residential District and are therefore a prohibited use in those districts per Kodiak Island Borough Code 17.15.080; and WHEREAS, through public comment at several Kodiak Island Borough Assembly and Planning and Zoning Commission public meetings and through other public forums (e.g.; social media sites, local newspaper editorials, letters to the editor, etc.), numerous Kodiak Island Borough residents have expressed their support for the keeping of chickens and other animals useful to people in all residential zoning districts; and WHEREAS, the Kodiak Island Borough Assembly recognizes that many residents rely on the keeping of chickens and other animals to supplement their subsistence needs; and Kodiak Island Borough, Alaska Ordinance No. FY2017-17 Page 1 of 4 Ordinance No. FY2017-17 Placing ATemporary Moratorium On Th... 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 WHEREAS, many municipalities across the country have recognized this need and have amended their land use codes to allow the keeping of chickens and other animals useful to people in low, medium, and high density residential zoning districts; and WHEREAS, Kodiak Island Borough Code 17.205.010 provides that "Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts"; and WHEREAS, Kodiak Island Borough Code 17.205.030.A, allows the assembly to initiate proposed amendments to the regulations of Title 17 (Zoning) of the Borough Code; and WHEREAS, the Kodiak Island Borough Assembly has determined that a review of Title 17 (Zoning) of the Borough code should be conducted to investigate whether the public necessity, convenience, general welfare, and good zoning practice would be enhanced by amending the code to allow the keeping of chickens and other animals useful to people in low, medium, and high density residential zoning districts; and WHEREAS, the Kodiak Island Borough has determined that staff should perform a concurrent review of Chapter 6.04 of the Borough Code to recommend amendments that more specifically address the control of chickens and other animals useful to people; and WHEREAS, the Kodiak Island Borough Assembly has determined that a temporary moratorium should be placed on the enforcement of those sections of Title 17 (Zoning) of the Borough code that prohibit the keeping of chickens and other animals useful to people in low, medium, and high density residential zoning districts until such time that the associated code reviews can be completed and recommended amendments be codified; and WHEREAS, the Kodiak Island Borough Assembly recognizes that noise created by roosters has the potential to create a nuisance that may negatively impact the rights of surrounding property owners in medium and high density residential zoning districts; and WHEREAS, the Kodiak Island Borough Assembly recognizes that smaller lot sizes within medium and high density residential zoning districts may not be capable of providing the area required for the proper keeping of livestock (e.g.; cattle, sheep, swine, horses, ponies, mules, and goats); and WHEREAS, the Kodiak Island Borough Assembly has determined that the moratorium should not apply to the enforcement of those sections of Title 17 (Zoning) of the Borough code that prohibit the keeping of roosters and livestock in medium and high density residential zoning districts. 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. Kodiak Island Borough, Alaska Ordinance No. FY2017-17 Placing A Temporary Moratorium On Th... Ordinance No. FY2017-17 Page 2 of 4 99 Section 2: A temporary moratorium is hereby placed on the enforcement of those 100 sections of Title 17 (Zoning) of the Borough code that prohibit the keeping 101 of chickens and other animals useful to people in the RR -Rural Residential, 102 R1 -Single-family Residential, R2 -Two-family Residential, and R3 -Multi - 103 family Residential Districts. 104 105 Section 3: This temporary moratorium does not apply to the enforcement of those 106 sections of Title 17 (Zoning) of the Borough code that prohibit the keeping 107 of roosters and livestock in the R1 -Single-family Residential, R2 -Two-family log Residential, and R3 -Multi -family Residential Districts. 109 110 Section 4: By this ordinance, the assembly of the Kodiak Island Borough initiates a 111 Planning and Zoning Commission review of Title 17 (Zoning) of the 112 Borough code to investigate whether the public necessity, convenience, 113 general welfare, and good zoning practice would be enhanced by amending 114 the code to allow the keeping of chickens and other animals useful to 115 people in low, medium, and high density residential zoning districts. The 116 review shall be conducted in accordance with the provisions of Chapter 117 17.205 (Amendments and Changes) of the Borough Code and shall be 118 completed no later than eighteen (18) months from the date of approval of 119 this ordinance. 120 121 Section 5: By this ordinance, the Assembly of the Kodiak Island Borough directs staff 122 to perform a concurrent review of Chapter 6.04 (Animal Control) of the 123 Borough Code to recommend amendments that more specifically address 124 the control of chickens and other animals useful to people. The review shall 125 be completed no later than eighteen (18) months from the date of approval 126 of this ordinance. 127 128 Section 6: This temporary moratorium shall expire twenty-four (24) months from the 129 date of adoption of this ordinance. Should, prior to that date, the above 130 review result in amendments to Title 17 (Zoning) of the Borough Code that 131 allow the keeping of chickens and other animals useful to people in low, 132 medium, and high density residential zoning districts, the moratorium shall 133 expire on the date the amendments are codified. 134 135 136 137 138 139 140 141 142 143 144 145 146 Kodiak Island Borough, Alaska Ordinance No. FY2017-17 Page 3 of 4 Ordinance No. FY2017-17 Placing A Temporary Moratorium On Th... Page 4W6A"413iV #1s.c.1. 147 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 148 THIS DAY OF 2016 149 150 KODIAK ISLAND BOROUGH 151 152 153 154 Jerrol Friend, Borough Mayor 155 ATTEST: 156 157 158 159 Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Ordinance No. FY2017-17 Page 4 of 4 Ordinance No. FY2017-17 Placing A Temporary Moratorium On Th... Page 47+4 #1s.c.1. Sections of Title 17 (zoning) of the Borough code applicable to Ordinance No. FY2017-17 Chapter 17.15 GENERAL PROVISIONS AND USE REGULATIONS 17.15.020 Conformity with regulations required. No building, part of a building, or any land shall be used, occupied, erected, moved, or altered unless in conformity with the provisions of this title for the district in which the building or land is located. 17.15.080 Uses prohibited unless authorized. Land uses not listed as a permitted use in a district are prohibited. Chapter 17.25 DEFINITIONS 17.25.020 A definitions. "Agricultural activities" means the production, keeping, or maintenance, for sale, lease, or personal use, of plants and animals useful to people. Chapter 17.50 C—CONSERVATION DISTRICT (Low density residential) 17.50.020 Permitted principal uses and structures. The following land uses and activities are permitted in the conservation district: A. All of the permitted principal uses and structures in the NU natural use zoning district; B. Agricultural activities and related structures, including commercial livestock grazing; with a written conservation plan between the land owner or lease holder and the Kodiak soil and water conservation district, in those areas historically established for livestock grazing consisting of the northeast portion of Kodiak Island east of a line drawn from Crag Point on Sharatin Bay to the mouth of Wild Creek in Ugak Bay, and including Chirikof Island and Sitkinak Island; Chapter 17.60 RR2 — RURAL RESIDENTIAL TWO DISTRICT (Low density residential) 17.60.020 Permitted uses. The following land uses and activities are permitted in the rural residential two district: A. Accessory buildings; Ordinance No. FY2017-17 Placing A Temporary Moratorium On Th... Page 4RN09497W #13.C.1. Sections of Title 17 (zoning) of the Borough code applicable to Ordinance No. FY2017-17 B. Agricultural buildings and activities; Chapter 17.65 RR — RURAL RESIDENTIAL DISTRICT (Low density residential) 17.65.020 Permitted principal uses and structures (agricultural activities not listed). The following land uses and activities are permitted in the rural residential district: A. Single-family dwellings; B. Vacation homes; C. Bed and breakfasts; and D. Hoop houses. 17.65.030 Permitted accessory uses and structures (agricultural activities not listed). A. Accessory buildings. B. Home occupations. C. Hoop houses. 17.65.040 Conditional uses (agricultural activities not listed). The following land uses may be permitted by obtaining a conditional use permit in accordance with Chapter 17.200 KIBC: A. Fireworks stands; and B. Recreational vehicle parks. Chapter 17.70 RR1— RURAL RESIDENTIAL ONE DISTRICT (Low density residential) 17.70.020 Permitted uses. The following land uses are permitted in the rural residential one district: A. Accessory buildings; B. Agricultural buildings and activities; Chapter 17.75 R1— SINGLE-FAMILY RESIDENTIAL DISTRICT (Medium density residential) 17.75.020 Permitted uses (agricultural activities not listed). Ordinance No. FY2017-17 Placing A Temporary Moratorium On Th... Page 476404xSh #1s.c.1. Sections of Title 17 (zoning) of the Borough code applicable to Ordinance No. FY2017-17 The following land uses and activities are permitted in the single-family residential district: A. Accessory buildings; B. Churches; C. Greenhouses; D. Home occupations; E. Parks and playgrounds; F. Single-family dwellings; and G. Hoop houses. 17.75.030 Conditional uses (agricultural activities not listed). The following land uses may be allowed by obtaining a conditional use permit in accordance with the provisions of Chapter 17.200 KIBC: A. Hospitals; B. Schools; C. Bed and breakfasts; D. Vacation homes; and E. Recreational vehicle parks. Chapter 17.80 R2 —TWO-FAMILY RESIDENTIAL DISTRICT (Medium density residential) 17.80.020 Permitted uses (agricultural activities not listed). The following land uses are permitted in the two-family residential district: A. Accessory buildings; B. Beauty shops; C. Churches; D. Clinics; E. Greenhouses; F. Home occupations; G. Hospitals; H. Parks and playgrounds; I. Professional offices; J. Schools; K. Single-family dwellings; Ordinance No. FY2017-17 Placing A Temporary Moratorium On Th... Sections of Title 17 (zoning) of the Borough code applicable to Ordinance No. FY2017-17 L. Two-family dwellings; M. Vacation homes; N. Bed and breakfasts; and O. Hoop houses. 17.80.025 Conditional uses (agricultural activities not listed). The following land uses may be permitted by obtaining a conditional use permit in accordance with Chapter 17.200 KIBC: A. Mobile home parks. B. Recreational vehicle parks. Chapter 17.85 R3 — MULTIFAMILY RESIDENTIAL DISTRICT (High density residential) 17.85.020 Permitted uses (agricultural activities not listed). The following land uses are permitted in the multifamily residential district: A. Accessory buildings; B. Beauty shops; C. Boardinghouses; D. Churches; E. Clinics; F. Greenhouses; G. Home occupations; H. Hospitals; I. Multifamily dwellings; J. Parks and playgrounds; K. Professional offices; L. Schools; M. Single-family dwellings; N. Two-family dwellings; O. Vacation homes; P. Bed and breakfasts; O. Mobile home parks; and R. Hoop houses. Ordinance No. FY2017-17 Placing A Temporary Moratorium On Th... Page 46d`J@A4'0W #1s.c.1. Sections of Title 17 (zoning) of the Borough code applicable to Ordinance No. FY2017-17 17.85.025 Conditional uses (agricultural activities not listed). The following land use may be permitted by obtaining a conditional use permit in accordance with Chapter 17.200 KIBC: A. Recreational vehicle parks. Chapter 17.205 AMENDMENTS AND CHANGES 17.205.010 Authority. Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts. 17.205.020 Report from planning and zoning commission. The commission shall report in writing to the assembly on any proposed change or amendment regardless of the manner in which such change is initiated and such report shall find: A. Findings as to need and justification for a change or amendments; B. Findings as to the effect a change or amendment would have on the objectives of the comprehensive plan; and C. Recommendations as to the approval or disapproval of the change or amendment. 17.205.030 Manner of initiation. Changes in this title may be initiated in the following manner: A. The assembly upon its own motion; Chapter 17.210 ENFORCEMENT. PENALTIES AND REMEDIES Sections: 17.210.010 Administrative enforcement action. 17.210.020 Administrative inspections. 17.210.030 Penalties and remedies. For provisions authorizing the assembly to prescribe penalties for violation of codified ordinances not to exceed a fine of $500.00 and imprisonment for 30 days, see AS 29.25.070. 17.210.010 Administrative enforcement action. A. The zoning officer may order: 1. The discontinuation of unlawful uses of land or structures; 2. The removal or abatement of unlawful structures, or any unlawful additions or alterations thereto; Ordinance No. FY2017-17 Placing A Temporary Moratorium On Th... Sections of Title 17 (zoning) of the Borough code applicable to Ordinance No. FY2017-17 3. The discontinuation of construction or other preparatory activity leading to an unlawful structure or an unlawful use of a land or structure; 4. When necessary to ensure compliance with this title, the suspension or revocation of building permits, variances, or other borough land use entitlements. S. Upon complaint by a citizen, or upon his own Initiative, the zoning officer may, after Investigation, Initiate criminal proceedings against any person for the violation of this title. Except for prosecutions for falling to comply with an order Issued under subsection A of this section, the zoning officer shall give at least 10 days' written notice of Intent to prosecute, and may Initiate criminal proceedings only If the violation Is not cured within the notice period. 17.210.020 Administrative Inspections. In accordance with this section, the zoning officer may make Inspections necessary to enforce the provisions of this title. When the zoning officer has reasonable cause to believe that In any building or on any premises there exists any violation of this title, he may enter such building or premises at any reasonable time to inspect the same or perform any of his duties under this title; provided, that where the Constitution of the United States or the state of Alaska requires that the zoning officer obtain a search warrant before making an inspection, he shall not make the Inspection until authorized to do so by a search warrant issued by a court of competent jurisdiction. 17.210.030 Penalties and remedies. A. A person who violates any provision of this title, an order Issued under KIBC 17.210.010(A) or any term or condition of a conditional use, variance or other entitlement Issued under this title, Is guilty of a misdemeanor and upon conviction is punishable by a fine of not more than $300.00, In addition to the surcharge required to be imposed under AS 12.55.039. B. Notwithstanding the availability of any other remedy, the borough or any aggrieved person may bring a civil action to enjoin any violation of this title, any order Issued under KIBC 17.230.010(A), or any term or condition of a conditional use, variance or other entitlement Issued under this chapter; or to obtain damages for any injury the plaintiff suffered as a result of a violation. An action for Injunction under this section may be brought notwithstanding the availability of any other remedy. Upon application for Injunctive relief and the finding of an existing or threatened violation, the superior court shall enjoin the violation. C. Each act or condition violating this title, any order Issued under KIBC 17.210.010(A), or any term or condition of a conditional use, variance, or other entitlement Issued under this title, and each day during which the act or condition exists, continues or Is repeated shall be a separate and distinct violation. D. The penalties provided for violation of this chapter are In addition to and not In lieu of any other penalty provided for In state law or any civil remedy available to the borough. Ordinance No. FY2017-17 Placing A Temporary Moratorium On Th... Page 4@9-NO4AXY 03.C.1. KIBC Title 17 (Zoning) Amendments Recommended by Assembly Member Crow ("Note: these recommendations will be provided to the Planning and Zoning Commission for consideration during their review) Proposed Code Revisions To allow the raising of chickens and livestock for personal use amend the following sections 17.15.060 Zoning compliance. Zoning compliance is required for site grading (excavation and fill), erection, construction, establishment, moving, alteration, enlargement, repair, or conversion of anybuildingor structure in any district established by this title, subject to the following: A. An application for zoning compliance will be filed with the community development department on a form provided by the department. If the application meets the requirements of this title, as verified in the department, and other applicable regulations, a permit will be issued. An as -built of the property maybe required to ensure that applicable requirements can be met, when existing structures are located on the property. Any zoning compliance permit issued is subject to the same expiration, suspension, and revocation provisions as a building permit issued for the same construction project (See Uniform Building Code Section 303(d) and (e), as currently adopted under KIBC 15.05.020). B. In all cases where the commission or the board of adjustment has granted a variance to this title, the department will issue zoning compliance to allow the building work to be done in accordance with the decision, except that no permit will be issued following the granting of a variance until the time for filing an appeal has expired and it is verified that no appeal has been filed. C. No building permit shall be issued by a building official until the community development department has verified from the application for zoning compliance for a proposed building that it conforms and will be occupied for a use in conformity with the provisions and regulations of this title, except that this provision shall not apply to building permits for residential structures when no yard or height changes are involved. Any building permit issued in conflict with this title is null and void. D. A detached accessory structure or a use that is accessory to a single-family use; however, a detached accessory structure less than 200 square feet in area is exempt from this section. 17.25.020 Adefinitions. Ordinance No. FY2017-17 Placing A Temporary Moratorium On Th... Page 4@ 4-Qh #13.C.1. _KIBC Title 17 (Zoning) Amendments Recommended by Assembly Member Crow ('Note: these recommendations will be provided to the Planning and Zoning Commission for consideration during their review) "Agricultural activities" means the production, keeping, or maintenance, for sale, lease, or personal use, of plants and animals useful to people. "Airport elevation" means the established elevation of the highest point of the usable landing area. Airport, Municipal. "Municipal airport" means the City of Kodiak Municipal Airport and Lilly Lake. Airport, Utility. "Utility airport" means any airport in the borough designed and/or constructed to serve aircraft in approach categoryA (speed less than 91 knots). "Alley" means a public way designed and intended to provide only a secondary means of access to any property abutting thereon. "Alteration" means any change, addition, or modification in the construction, location, or use classification. "Animal" A. Domesticated animal and Pets. Any animal customarily kept for companionship, including but not limited to doss, cats, birds, fish, rabbits, ferrets, gerbils, hamsters. turtles, and similar. Domestic pets include chickens (no roosters), ducks, or rabbits. B. Exotic, wild, or vicious animal. Any species of animal not considered domestic or livestock, including but not limited to alligators, badgers, bears, beavers, bobcats, cheetah, cougars, coyotes, hawks. jaguars, kangaroos, lions, lynx, monkeys, mink, opossums, owls, porcupines, prairie dogs, raccoons, skunks, tigers, wolverines, wolves, wild hybrids, or the offsorine of any animals that have been bred to a wild animal, poisonous, and nonpoisonous reptiles, spiders, insects, and endangered species. C. Livestock. Horses, ponies, donkeys, and similar equine: cattle, bison, deer, elk, sheep, goats, llamas, and similar ruminants and cervidae, swine, yaks, poultry and fowl (other than domestic chickens or ducks), if allowed in the zoning district), and other domestic animals usually, but not always, kept or raised on a farm. Domesticated animals or pets and exotic, wild, or vicious animals shall not be considered livestock. Apartment House. For "apartment house," see "Dwelling, multiple -family," KIBC 17.25.050. "Approach surface" means an approach surface longitudinally centered on the extended runway centerline and extending outward and upward from each end of a runway. The Ordinance No. FY2017-17 Placing A Temporary Moratorium On Th... Page 4G ►4XSM #1s.C.1. KIBC Title 17 (Zoning) Amendments Recommended by Assembly Member Crow (*Note: these recommendations will be provided to the Planning and Zoning Commission for consideration during their review) inner edge of the approach surface is the same width as the runway and it expands uniformly to a width of 1,500 feet of each end of the runway. The approach surface extends for a horizontal distance of 5,000 feet at a slope of 20:1. No building or structure may be constructed or erected nor mayany other object be stored or placed in such a manner as to protrude into the approach surfaces. A. The approach surfaces for the municipal airport extend upward and outward from the south end of the existing lake surface (towards Larch Street) and the north end of the gravel runway (Von Scheele Way) only. "Automobile wrecking" means the dismantling of used motor vehicles or trailers or the storage or sale of parts from dismantled or partially dismantled, obsolete, or wrecked vehicles. [Ord. 93-66 §3, 1993; Ord. 87-09-0 §§3, 5, 6,1987; prior code Ch. 5 subch. 2 §98. Formerly §§17.06.011-17.06.050]. 17.160.020 Definition. "Accessory building" means: A. A detached building, the use of which is appropriate, subordinate and customarily incidental to that of a main building, located on the same lot as the main building and which is not designed or intended to be used for living or sleeping purposes. B. An accessory building shall be considered to be a part of the main building when joined to the main building by a common wall not less than four feet long or by a roofed passageway which shall not be less than eight feet in width. C. Any structure, regardless of type of foundation or base support, including skid - mounted or other movable structure that also requires a building permit for construction (for example, structures where the „..'eete., Feef aFea P;,Pppag 11^ SEI61aFe feet structure footprint exceeds 200 square feet). A minor structural development that does not require a building permit is not regulated by this chapter. D. A nonmotorized container van when used for the sole purpose of storing emergency response equipment in the Kodiak Island Borough and not placed on a permanent foundation. [Ord. 2001-01 §2, Ordinance No. FY2017-17 Placing A Temporary Moratorium On Th... Page 4@6A+4xSh #13.c.I. KIBC Title 17 (Zoning) Amendments Recommended by Assembly Member Crow ("Note: these recommendations will be provided to the Planning and Zoning Commission for consideration during their review) 17.160.030 Permitted districts. A. Accessory buildings are permitted in all land use districts that specifically allowfor them. RhqPRGP Af R FRROR bUildiRg used @5 a FesideRsei ei(eept that IR the Page nf A -OPPARt let, SRFRPtiFRP ..II_.,_.. _Rel _ I...:I. *Rg ., Pd E,,.... ;4dp..pp The following accessory structures are permitted on lots used and zoned for residential uses: 1. Attached or detached garages 2. Storage sheds or other detached storage buildings 3. Accessory greenhouses 4. Hoop houses S.Banyas 6. Smokehouses 7. Porches, decks, balconies, and ADA access ramps 8. Hot tubs 9. Livestock shelters, where permitted, subiect to KIBC 17 10. Similar accessory structures approved by the department C. An accessory building as defined by KIBC 17.160.020(D) is permitted in all zoning districts with authorization from the local municipality and issuance of a zoning compliance permit. 17.161 Domesticated Animals. Pets & Livestock for personal use D. In the R-1, R-2, and R-3 zoning districts, up to five dogs, cats, or other domestic animals, aged six months or older are permitted provided that the animals are not kept for commercial purposes. In the RR -1, RR -2, CR -2, CR -5, PR, C, and V zoning districts, up to ten domesticated animals are permitted provided that the animals are not kept for commercial purposes. E. Chickens, Ducks, and Rabbits. No more than twelve chickens, ducks, or rabbits or any combination up to twelve shall be allowed per lot in the R-1, R-2, or R-3 zoning districts, subiect to the following requirements: Ordinance No. FY2017-17 Placing A Temporary Moratorium On Th... KIBC Title 17 (Zoning) Amendments Recommended by Assembly Member Crow ('Note: these recommendations will be provided to the Planning and Zoning Commission for consideration during their review) • A fence or other structure which is adequate to contain the animals, their waste, and litter shall be maintained at all times. • Adeguate measures shall be taken to properly dispose of animal wastes and litter. • The presence of these animals does not create undue noise or odors such as would create a nuisance or diminish the residential nature of the neighborhood. • Hen houses, coops, hutches, and chicken tractors shall be restricted to the backyard area of the lot. • Any chicken coops, chicken tractors, or rabbit hutches shall be setback at least 10' from side and rear property lines, and five feet from other structures, including decks. • Keeping chickens, ducks, and rabbits as domesticated animals or pets within the City of Kodiak is regulated by Chapter 7.04 Kodiak City Code. • Keeping chickens, ducks, and rabbits as domesticated animals or pets outside of the City of Kodiak is also regulated by Chapter 6.04 KIBC. F. Livestock shall be raised and kept for personal use onlv. Anv food. fur. or other products shall be kept, used, or consumed by the family residing on the same property. This shall not be construed to prevent the private sale of products, such as eggs, milk, wool, etc. which are produced in volumes greater than that which can be reasonably expected to be used or consumed bvthe family: nor shall it prevent the sale of animals born to livestock kept for personal use, provided that livestock are not kept for commercial breedine or other commercial purposes 1. Animals kept for livestock must be completely enclosed in a fenced area that is of suitable height and construction to contain the animals, subject to the requirements of KIBC 17.140.090. A low- voltage electrified fence is permitted, subiect to the following: a. Voltage shall not exceed 10.000 volts in pulses. Fences and chareine systems must meet UL and federal safety standards. b. The electrified fence shall display warning signs mounted on the fence every 40 feet or less. 2. All waste, including manure, shall be managed so there are no unsanitary or unsafe conditions. 3. Any agricultural building used to shelter livestock shall be considered an accessory structure and must. at minimum. be a Heid structure designed to withstand normal wind and snow loads Ordinance No. FY2017-17 Placing A Temporary Moratorium On Th... Page 407+400#1s.C.1. KIBC Title 17 (Zoning) Amendments Recommended by Assembly Member Crow ("Note: these recommendations will be provided to the Planning and Zoning Commission for consideration during their review) 4. Horses and other equine and cattle and other bovine with a mature animal weight of 55 Pounds or greater may not be raised on a lot less than 20,000 square feet in area. There is no minimum lot area for other types of livestock. 5. Keeping of livestock shall comply with KIBC Title 6. Animals and any applicable state and federal requirements. 6. The requirements of this section do not apply to permitted commercial agricultural operations. Ordinance No. FY2017-17 Placing A Temporary Moratorium On Th... 2 Me AUG 2 9 2016 KODIAK ISLAND BOROUGH PARKS & RECREATION COMMITTEE MINUTES June 28, 2016 Regular Meeting 6:38 p.m. -Conference Room CALL TO ORDER CHAIR SALTONSTALL called to order the June 28, 2016 Parks and Recreation Committee Regular Meeting at 6:31 p.m. ROLL CALL Requested excusal was Ben Millstein and Sharon Wolkoff. Committee members present were Patrick Saltonstall, Helm Johnson, Marnie Leist, and Steve Paulson. Excused were Ben Millstein and Sharon Wolkoff. Absent was Dale Stratton. Ex -officio member present was Alan Schmitt. Absent ex -officio members were Frank Peterson, Ron Bryant, and Corey Gronn. COMMITTEE MEMBER LEIST MOVED to excuse Ben Millstein and Sharon Wolkoff. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY Community Development Department staff present was Tom Quass and Sheila Smith, APPROVAL OF AGENDA COMMITTEE MEMBER LEIST wanted to change the time for the record showing 6:30 p.m. as the meeting time. COMMITTEE MEMBER JOHNSON MOVED to approve the agenda as amended. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY MINUTES OF PREVIOUS MEETINGS COMMITTEE MEMBER LEIST MOVED to approve the May 24, 2016 Parks and Recreation Regular Meeting minutes. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY AUDIENCE COMMENTS AND APPEARANCE REQUESTS None OLD BUSINESS A) Monashka Bandit Range COMMITTEE MEMBER PAULSON stated he does not have a firm commitment from the boy scouts on the cleanup. He hopes to know more by tomorrow. He is trying to target July 9'h. Tom Quass said what he thinks will happen is that he and Duane Dvorak coordinate about the same time we start putting the No Shooting signs up. B) Termination Point (Placeholder) Nothing new. June 28, 2016 Parks and Recreation Committee Meeting Minutes Page 1 of 3 Parks And Recreation Committee Regular Meeting Minutes Of Ju... C) Saltery Trail Improvements (Placeholder) Quass said they have not started work out there yet. At the last meeting, he said they have a lot of stuff in for it and people in place but he does not think they will start until July or August. D) Island Lake Trail Improvements (Placeholder) Quass said it is completed. EX -OFFICIO MEMBER SCHMITT stated the two new bridges are nice and the trail was moved up where it was starting to slough off into the creek. It is hard to tell where the old trail was. E) Killarney Hills (Joint meeting with P&Z 31 August 6:30 pm KIB conference room) Quass said in your packet is the latest overview memorandums that Sara Mason provided of what is going on with it and then it goes through, for instance staff recommended to go ahead and pro -scope of work and course of action and that the commission should be in favor of the Master Planning Project. That's what staff is recommending, what that means is to go forward with all, if you look at the next page it talks about data collection and analysis, stakeholder engagement, scenario development, selection etc. If you look at this it's going to be a long time before a decision is actually made of what to do with that property because with staff saying recommend to move forward with the Master Planning Process, that means then they are going to start getting into who wants to do what with it and all the stakeholders and all of that. Joint meeting with the Assembly and Planning and Zoning August 315, at 6:30 p.m. in the conference room, it's proposed. EX -OFFICIO MEMBER SCHMITT stated at the May P&Z meeting, the commission accepted the proposal to proceed with it. F) Spruce Cape Helo Pad Future Use G) Narrow Cape Public Access — Letter sent to KIB Assembly H) lditarock ATV Race Held on 21 May — Preview any video or photos NEW BUSINESS A) TMO's for Saltery Trail Quass said he sent the committee the email about the process for TMO's and what we need to do. As a group, the first thing is the products that you need from Community Development is you are going to have to submit something saying you want certain maps and then they will be produced as time allows based on the GIS Analyst's schedule. During discussion, CHAIR SALTONSTALL said the committee already decided what trails they wanted. Included was Saltery to the river and then from Portage to the Pasagshak trail that is a single trail so we said we would do it all in one shot. Saltery Cove Road to Pasagshak and Lake Miam to the Olds River. Quass said he would work on the wording for the request June 28, 2016 Parks and Recreation Committee Meeting Minutes Page 2 of 3 Parks And Recreation Committee Regular Meeting Minutes Of Ju... CHAIR SALTONSTALL said we want to make sure the maps have the anadromous stream crossings. COMMUNICATIONS A) July Planning and Zoning Public Hearing Items EX -OFFICIO MEMBER SCHMITT explained the public hearing cases. COMMITTEE MEMBER JOHNSON MOVED to accept communications. Brief discussion of land disposal case locations and possible recreational value. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY REPORTS Meeting Schedule: • July 26, 2016 Parks & Recreation Committee Regular Meeting- 6:30 p.m.-KIB Conference Room • August 23, 2016 Parks & Recreation Committee meeting- 6:30 p.m.- KIB Conference Room COMMITTEE MEMBER JOHNSON MOVED to accept reports. AUDIENCE COMMENTS None COMMITTEE MEMBER'S COMMENTS Alan Schmitt said to keep up the good work. Helm Johnson asked if Frank Peterson is supposed to be our assembly rep because he has never come to a meeting. Should we get a new one? ADJOURNMENT COMMITTEE MEMBER JOHNSON MOVED to adjourn. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY CHAIR SALTONSTALL adjourned the meeting at 7:17 p.m. DIAJKBOROLH PA ND EGF COMMI AT]E it ATTEST By: _ z)no, n l�).— Sheila Smith, Secretary Community Development Department APPROVED: August 23, 2016 June 28, 2016 Parks and Recreation Committee Meeting Minutes Page 3 of 3 Parks And Recreation Committee Regular Meeting Minutes Of Ju... zM AUG 2 g 2016 KODIAK ISLAND BOROUGHt—------- PARKS & RECREATION COMMITTEE �G12KoniAH MINUTES July 26, 2016 Regular Meeting 6:30 p.m -KIB Conference Room CALL TO ORDER CHAIR SALTONSTALL called to order the July 26, 2016 Parks and Recreation Committee regular meeting at 6:30 p.m. ROLL CALL Requested excusal was Dale Stratton. Committee members present were Patrick Saltonstall, Helm Johnson (arrived 6:32 p.m.), Sharon Wolkoff (arrived 7:08 p.m.), Marnie Leist, Ben Millsteln, and Steve Paulson. Excused was Dale Stratton. Ex -officio member present was Alan Schmitt. Absent ex -officio members were Frank Peterson, Ron Bryant, and Corey Gronn. A quorum was established. COMMITTEE MEMBER LEIST MOVED to excuse Dale Stratton. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY Community Development Department staff present was Tom Quass and Sheila Smith. APPROVAL OF AGENDA COMMITTEE MEMBER MILLSTEIN MOVED to approve the agenda. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY MINUTES OF PREVIOUS MEETINGS None AUDIENCE COMMENTS AND APPEARANCE REQUESTS None OLD BUSINESS A) Monashka Bandit Range - Clean up and Closure Tom Quass said the Borough Manager agreed to shut the area down. We have not shut it down yet because we do not have the proper signage. He said the sign in your packet is what we were going to put up and he showed an example of the signs that will be posted. We cannot post signs in the DOT Right -of -Way without their permission so they will be posted on borough property. As soon as we get permission from DOT we will post signs that they have approved in the Right -of -Way. The Borough Manager is having us investigate whether or not we can get the guardrail extended all the way down to block it completely. COMMITTEE MEMBER JOHNSON arrived at 6:32 p.m. CHAIR SALTONSTALL said there would probably need to be another cleanup at some point. COMMITTEE MEMBER PAULSON said we had twenty-two people cleaning up that took less than two hours. He suggested doing another cleanup in the fall after the growth has gone away. He let the Boy Scouts know that we would probably use them again for another cleanup once the sign issue is resolved. What they cleaned up weighed one -thousand -twenty pounds. Page 1 of 4 Parks and Recreation Meeting Minutes July 26, 2016 Parks And Recreation Committee Regular Meeting Minutes Of Ju... Quass said by the next meeting hopefully, he can say we got them posted. He is going to make sure the newspaper gets a picture once the signs are posted, do a spot with KMXT, and then it is Natural Use and you can do whatever is allowed in Natural Use except for shooting. It will be posted on Facebook and on the website, and then we will try to get it out through KISA and the Coast Guard. If you want to get it set up where it will be a nice overlook you will have to go to the Borough Manager. EX -OFFICIO SCHMITT said you might consider approaching the Lyons Club or Rotary Club about putting in benches. Periodically, they look for community projects to do. Quass said if we want to do more clearing we have to get the Resource Management Officer involved because he gives the permits or allows us to cut the trees. B) Termination Point (Great Land Trust update to Assembly 11 August) Quass said this is a confidential draft that is still in draft as far as what can happen and how it can happen and such. CHAIR SALTONSTALL said it goes to the Assembly on August 11"', should we have some sort of comment before August 11" ready. Quass said it is just going to be an update by Duane Dvorak on August 11'". CHAIR SALTONSTALL asked the committee to read this and then make comments as a committee. During discussion, there was committee consensus to read the documents and send any comments to Sheila Smith so she can send them out to the committee for response. Once everyone has submitted their responses, CHAIR SALTONSTALL will then write a letter for Smith to send out for each member's approval before the chair signs so staff can forward to the Assembly. C) Saltery Trail Improvements (Placeholder) Quass said they have not started work yet. They are working on needed permits. It will be next month, in about three weeks before he starts work out there. D) Killarney Hills (Joint meeting with P&Z August 31, 2016-6:30 pm-KIB conference room) Quass said as a reminder that thejoint meeting with Planning and Zoning is August 312'. Who is it with, the city? EX -OFFICIO SCHMITT stated he asked Director Mason who said it is still being talked about. He thinks it is going to be both the Borough Parks and Rec and the City Parks and Rec as well. Quass said he thinks the primary is Planning and Zoning and the City of Kodiak Parks and Rec because they are the. E) Spruce Cape Helo Pad Future Use Quass said there's no updates on that because the committee here, are you thinking about making a proposal to put in a little. CHAIR SALTONSTALL said he did not know this was still on the agenda. EX -OFFICIO SCHMITT stated the Lands Committee and Planning and Zoning, at the last regular meeting, approved three things; the parcel where the helo pad is is not needed for public purposes, starting the Comp Plan Amendment to rezone it from Public Use Lands to Residential, and then doing the rezone but the rest of the parcel (the narrow section that goes to the north) nothing is happening with it. There is a picnic table at that far end. Page 2 of 4 Parks and Recreation Meeting Minutes July 26, 2016 Parks And Recreation Committee Regular Meeting Minutes Of Ju... Page 4g +4]WM #18.A.1. Brief discussion. Quass said to keep it in the back of your mind that do you as a committee want to take that on again to try to get someone to come in to put something up there, you know the whole vision thing. COMMITTEE MEMBER MILLSTEIN said if we are going to think about soliciting interest from an organization like the Rotary or Lyons Club we should have that parcel on the list as well. He does not see it as a high priority. F) Narrow Cape Public Access —Letter sent to KIB Assembly CHAIR SALTONSTALL said he hopes their letter made it to the assembly Quass said yes. G) Iditarock ATV Race Held on May 21, 2016— Preview any video or photos Brief discussion. H) TMO's for Saltery Trail CHAIR SALTONSTALL said In SM 6 map, there is a trail easement that does not follow the trail. During discussion, the committee relayed to Quass which trails they need maps for. Sharon Wolkoff arrived at 7:08 p.m. NEW BUSINESS A) Long Island Conservation Easement Brief discussion. Quass said their intent Is to keep a section of Long Island; they probably want to put a structure on the northwest section of the island. They wanted to give easements on the southeast side and then on the west side. Consensus on reading these documents and sending in comments so CHAIR SALTONSTALL can also write a committee letter for Long Island also. COMMUNICATIONS A) August Planning and Zoning Public Hearing Items EX -OFFICIO SCHMITT said there's one thing that will generale some public comments on; items J, K, and L. The three cases goes with the same parcel. It is on the corner of Sharatin and Monashka Bay, the big parcel. The Lands Committee's idea of changing the zoning to residential and then trying some kind of public/private ownership or something to get the property developed. He briefly touched bases on the other public hearing items. COMMITTEE MEMBER MILLSTEIN MOVED to acknowledge receipt of communications. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY REPORTS Meeting Schedule: • August 23, 2016 Parks & Recreation Committee meeting at 6:30 p.m. in the KIB Conference Room • September 27, 2016 Parks & Recreation Committee meeting at 6:30 p.m. in the KIB Conference Room COMMITTEE MEMBER PAULSON requested to be excused for the August 23 Id meeting due to being out of town. Page 3 of 4 Parks and Recreation Meeting Minutes July 26, 2016 Parks And Recreation Committee Regular Meeting Minutes Of Ju... ■ � � � �. rP'� t Mrd COMMITTEE MEMBER LOST MOVED to acknowledge receipt of reports. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY AUDIENCE COMMENTS None COMMITTEE MEMBER'S COMMENTS Marnie Leist thanked borough staff for their efforts for resolving the issues with the bandit range and cleanup efforts. Alan Schmitt said the Rotary Club or the Lyon's Club may be willing to put some benches in there if the committee would contact them. Sharon Wolkoff said there has been an interest in disc golf lately and she thought a disc golf course would be cool in town. They put one in at Nemitz recently which is probably only for military. Steve Paulson said the people shoot at the bandit range because they do not have or see viable alternatives. He thinks KISA needs to organize an effort to get the word out to explain their availability, other locations, what they offer, and fees. The bandit range will likely crop up somewhere else. Patrick Saltonstall said he has talked to KISA about this once and they agree but they never seem to do anything. Steve Paulson said the scouts often do Eagle projects that require of upwards of one -hundred man-hours of labor to do. They have done a lot of projects that can clean out areas, create a park, and so and so. The disc golf range is a good idea. ADJOURNMENT COMMITTEE MEMBER JOHNSON MOVED to adjourn. I VOICE VOTE ON MOTION CARRIED UNANIMOUSLY M ATTEST By: —c -CC om�&O Sheila Smith, Secretary Community Development Department APPROVED: August 23, 2016 Patrlck Saltonstall, Page 4 of 4 Parks and Recreation Meeting Minutes July 26, 2016 Parks And Recreation Committee Regular Meeting Minutes Of Ju... X%." ISLAND BOROUGH Date: August 4, 2016 To: Mayor and Assembly From: Personnel Advisory Board Subject: Ordinance #FY2016-21 OFFICE of the MANAGER MEMORANDUM The Personnel Advisory Board of the Kodiak Island Borough met on June 23, 2016 and again yesterday, August 3, 2016, to consider the proposed Ordinance #FY2016-21 that would change language in the Hiring and Advancement Chapter of the Personnel Manual. The new language removes the five-day internal recruitment requirement and, therefore, removes the practice to first consider any internal applicants, or current employees, who meet the minimum qualifications as described in the job description and are in good employment standing. At our August 3`a meeting, the Personnel Advisory Board unanimously agreed to recommend the Assembly postpone the ordinance indefinitely for the following reasons. First, Section 416 "Promotion" of the Personnel Manual states, "All other things being equal, it shall be the policy of the Kodiak Island Borough to promote from within the ranks of the Borough Employees." It has also been the practice of the Borough to recruit internally before opening recruitment to the outside. Based on feedback we received from many Borough employees, they view this polity as a benefit to them as employees, a motivation to remain a dedicated employee, and indication that the Borough values their contributions and service. A change to the language that would no longer grant this opportunity will have a significant impact on employee morale, and will essentially change the Borough's philosophy on the value of promoting from within. Second, passing this ordinance would only affect non-union positions (less than 10% of the workforce) as this is a topic that would need to be brought to the negotiating table this November. Union employees have adamantly described that the proposed change would not be passed by the Union as the current policy and practice is viewed as a significant benefit to employees at a time when employee benefits are dwindling due to rising costs and budget considerations. If the ordinance is passed by the Assembly but does not make it through Union negotiations, Borough Management will be burdened with the duty of managing two separate recruitment policies. Given negotiations are only a few months away, it seems more appropriate to bring any proposed language to the table and create a consistent policy based on the results of negotiations. We recommend that you, our Borough Assembly, postpone the proposed ordinance at this time. We thank you for your consideration and for allowing us to serve the Borough as members of the Personnel Advisory Board. Respectfully submitted, w �,�A4b Lynn B sh, Chair Working Conditions Advisory Council Memos Memos dated June 21, 2016 and July 18, 2016 from the Non -Union Borough employees in opposition to Ordinance No. FY2016-21, and the proposed changes to the Personnel Manual; and stating their recommendation that Ordinance No. FY2016-21 be postponed indefinitely. Lauri Whiddon From: Lauri Whiddon Sent: Wednesday, June 22, 2016 10:33 AM To: 'Lynn Bash' (lynnbash@rocketmail.com); Lindsey Howell (Lindsey.Howell@kodiakhealthcare.org); brenda.zawacki@providence.org Subject: PAB Meeting June 23, 2016 Attachments: WCAC memo to PAB signed.pdf Good Morning Board Members, The Working Conditions Advisory Council met yesterday in response to proposed Ordinance FY2O16-21, which will be discussed at our meeting tomorrow night. This memo is to be made part of your meeting packet, and I will have extra copies at the meeting. Information about the Working Conditions Advisory Council is covered under Chapter 2 of the Personnel Manual and was included in your packet for the meeting. If you have any questions, please let me know. Regards, Lauri 111111 Whiddon, 111 K; til IRix I CI' I I R Of6ccI /I.xcc I I l ive AssislanI OffiLC of the Itorough ALnwgo Kodiak bland Itonmgh 710 Mill ILIy Rodd, Room 122, Kothak, A6 99615 I`. 90 .4811 9301 P. 907.486.9374 hvhiddonrlkcxiinknk.0 s hh u:/ / tsnLw. kodiaknk.0 s To. Mayor Friend; Kodiak Island Borough Assembly; Kodiak Island Borough Personnel Advisory Board From: Kodiak Island Borough Working Conditions Advisory Council Date: June 21, 2016 Re: Ordinance FY2016-21 The Working Conditions Advisory Council (WCAC), which is formed in accordance with the Kodiak Island Borough Personnel Manual Section 204.1 and the provisions of AS 23.40, represents those borough employees not represented by a cooperative bargaining unit. We submit this memo to the Personnel Advisory Board and the Borough Mayor and Assembly regarding the Borough Assembly's proposed Ordinance FY2016-21 Amending Kodiak Island Borough Personnel Code Chapter 4 Hiring and Advancement Section 402 Job Vacancies and Section 405 Job Posting to Allow an Alternative for the Borough to Recruit New Applicants. The WCAC has the following concerns regarding Ordinance FY2016-21: 1. The Kodiak Island Borough Assembly is charged by AS 29.20.050(a) and KIB 2.25.005 with the legislative power of the borough. The Manager of the Borough under AS 29.20.500 and KIB 2.45.010 is vested with the administrative power of the borough government including, "supervision and control, directly and indirectly over all administrative departments, agencies, directors, and all other employees of the borough..." In AS 29.20.500(7), he is specifically tasked to serve as the personnel officer, unless the governing body authorizes the manager to appoint a personnel officer. Clearly the Assembly is overstepping its authority by introducing ordinances concerning the hiring practices of borough personnel. In fact, this constitutes a lack of checks and balance of power that is a basic tenant of our representative democratic form of government whether it is on the Federal, State, or local level. The WCAC's position, which is well supported by state and local regulations, is that personnel matters fall within the Managers responsibility and that it is not the purview of the legislative branch and therefore not appropriate for rules relating to personnel matters to come from the Assembly level. 2. Although the proposed language changes may seem benign by advertising vacancies simultaneously in-house and to the general public, it is contradictory to the current personnel policy as contained within the Personnel Manual section 416, which states, "All things being equal, it shall be the policy of the Kodiak Island Borough to promote from within the ranks of the Borough employees." Further, it is contradictory to the succession planning efforts and the employee training policies that have been so heavily endorsed by the current and past assemblies. Certainly a five day wait for in-house applicants is not greatly hampering the ability of the borough to fill the position from outside sources. Further, current promotion policy (i.e. clerk 1 to clerk 2) requires advertising the job in-house and the employee applying for the higher rated position. As the proposed ordinance reads, this could lead to advertising a job in-house and externally and it is possible that an external applicant would rate higher than the current employee. This could result in the termination of the current employee rather than a promotion. Clearly, this Is not the policy that the borough wishes to promulgate. The members of the WCAC collectively believe there should be an opportunity for recognition of a current employee's commitment and efforts to gain experience, training, mentorship, and institutional knowledge prior to accepting external applications. 3. The language in the ordinance "whenever practicable and in the best interest of the borough" is subjective. Who or what determines when it is practicable and in the best interest of the borough? The manager currently has this duty under AS 29.20.500 and KIB 2.45.030. The proposed changes indicate that the Assembly is delving into micromanaging the day-to-day administration of the borough, which is not good governance. 4. Lastly, when we allow the legislative body to draft, introduce and approve an ordinance concerning personnel issues, we have no need for the Personnel Board's input as it can be ignored. After all it is only an advisory board. This is indeed a very dangerous precedent. For the above reasons, it is the request of the WCAC that the Personnel Advisory Board not recommend approval of Ordinance FY2016.21 to the Borough Assembly. The WCAC, while reviewing the personnel manual for this letter, noted additional items that need to be clarified or addressed, and we will bring them forward at a later date. Respectfuirts William Ro Chairperson To: Kodiak Island Borough Personnel Advisory Board CC: Mayor Friend; Kodiak Island Borough Assembly From: Kodiak Island Borough Working Conditions Advisory Council July 18, 2016 The Working Conditions Advisory Council (WCAC), which is formed in accordance with the Kodiak Island Borough Personnel Manual Section 204.1 and the provisions of AS 23.40, represents those borough employees not represented by a cooperative bargaining unit. We previously submitted a memo to the Personnel Advisory Board (PAB) on lune 16'h outlining reasons for our objections to the Borough Assembly's proposed Ordinance FY2016-21 Amending Kodiak Island Borough Personnel Code Chapter Hiring and Advancement Section 402 Job Vacancies and Section 405 Job Posting to Allow an Alternative for the Borough to Recruit New Applicants. At the PAB meeting in June, the committee did not take final action on their recommendations concerning that Ordinance and proposed the option to explore wordsmithing the document to ensure that there was a preference for hiring in-house. The WCAC's position and opposition to this ordinance has not changed over the last month. However, rather than wordsmithing the current document we strongly suggest that the PAB recommend to the assembly that they postpone indefinitely this ordinance. The reason for postponement is that there are other items in this section of the Personnel Manual that need to be addressed and changed, such as rules for internal promotion, definitions for temporary and part-time employees and employee transfers. It is far better to complete a comprehensive rewrite of the manual than to address it piecemeal. As noted in our June 16`h memo under AS 29.20.500(7), the manager is specifically tasked to serve as the personnel officer, unless the governing body authorizes the manager to appoint a personnel officer. The proposed ordinance really serves no purpose. At best, it mav allow latitude to allow for advertising job openings to the general public five days earlier (as it allows for possible simultaneous advertisement in-house and to the general public, although this is not mandatory). The "Whereas" statements introducing the ordinance do not propose to cure an ill with the current system, just change the current procedures to no benefit to the current hiring practices of the borough administration. The current Personnel Manual does need a revision on how the borough departments promote from within and how borough departments can re -organize within their departments, but it needs to be a comprehensive revision, which this ordinance is not. Respectfully, William Robe Chairperson IBEW Shoo Steward Memo Email response regarding input to the proposed changes to the Personnel Manual and Ordinance #FY2016-21. Lauri Whiddon From: Duane Dvorak Sent: Friday, June 10, 2016 12:06 PM To: Lauri Whiddon; John Rhines;jbjwood2oOO@yahoo.com Subject: RE: Ordinance FY2016-21 Lauri, Thanks for the notification of this potential change to borough code. We have spoken with our union representative and it looks like a topic that we would need to bargain over if it is adopted and the intent is to apply it to bargaining unit positions. We will need some time to discuss this amongst our bargaining unit members to see how the members feel about this potential change. We recognize that, if adopted, this change would immediately apply to exempt positions within the borough. Given that we have a contract cycle coming to a close on December 31, 2016, we would expect that this could be a subject of bargaining during the process of renewing that agreement. It is not anticipated that there is a need to bargain over this one item outside of the normal contract cycle. We will endeavor to be ready to discuss this matter when the appropriate time has arrived. Thanks, --Duane Duane Dvorak Resource Management Officer Kodiak Island Borough Manager's office 710 Mill Bay Road, Room 101 Kodiak AK 99615 (907)486-9304 (907) 486-9374 (Fax) ddvQrak(@kodiakak.us htta:/Jwww.kodiakak.us From: Lauri Whiddon Sent: Thursday, June 09, 2016 9:18 AM To: Duane Dvorak; John Rhines; ib iwood2000(o�vahg%com Subject: Ordinance FY2016-21 Shop Stewards, Please see the attached memo regarding proposed changes to the Borough hiring process. Lauri Lll11'1 Whiddou, 111 R, SHRA1-CP IIR Officer/Executive. Must:wl offiec of the Borough Manager 6oclutk Island Itotough 710 Mill Iiav Road, Rami 125 Rodi.tk, AK 99615 KODL K ISLAND BOROUGH OFFICE of the MANAGER MEMORANDUM TO: Duane Dvorak, Resource Management Officer Jeff Johnson, Baler II John Rhines, PC Network Tech 11 FROM: Lauri Whiddon, HR Officer/Executive Assistant' THROUGH: Michael Powers, Borough Manager DATE: June 6, 2016 SUBJECT: Ordinance FY2016-21 The Borough Assembly has proposed a change to the KIB Personnel Manual, specifically Chapter 4 Hiring and Advancement Section 402 Job Vacancies and Section 405 Job Posting, to allow an alternative for the Borough to recruit new applicants for vacant positions. Ordinance FY2016-21 is attached for your consideration. This ordinance has passed through to the second reading which Is scheduled for July 21, 2016 at the regular meeting of the Assembly. It is the desire of management to treat all Borough employees the same and it is strongly recommended that the Collective Bargaining Agreement (CBA) and the Personnel Manual are consistent. We therefore recommend that the CBA be changed as well. In accordance with CBA Section 19.9 Meet and Confer, as this is a matter of mutual concern to Borough employees, we are notifying you of our recommendation regarding this ordinance, and will make ourselves available to discuss. Kodiak Island Borough Assembly Regular Meeting Guidelines August 4, 2016, 6:30 p.m., Borough Assembly Chambers PLEASE ANNOUNCE: Please remember to turn off ringers on your cell phones or put them on vibrate. 1. INVOCATION Major David Davis of the Salvation Army. 2. PLEDGE OF ALLEGIANCE — Mayor Friend. 3. ROLL CALL KIBC 2.25.070.... 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. Recommended motion: Move to excuse any Assembly Member Peterson who is absent due to personal leave. VOICE VOTE ON MOTION. 4. APPROVAL OF AGENDA 5. APPROVAL OF MINUTES None. 6. CITIZENS' COMMENTS (These are limited to three minutes per speaker.) Agenda Items not scheduled for public hearing and general comments. Read phone number: Local is 486-3231; Toll Free is 1-855-492-9202. Please ask speakers to: 1. sign in 2. state their name for the record 3. turn on the microphone before speaking 7. AWARDS AND PRESENTATIONS None. 8. COMMITTEE REPORTS Kodiak Island Borough Assembly Guidelines August 4, 2016 Page 1 9. PUBLIC HEARING A. Ordinance No. FY2016-21 An Ordinance Of The Assembly Of The Kodiak Island Borough Amending Kodiak Island Borough Personnel Code Chapter 4 Hiring And Advancement Section 402 Job Vacancies And Section 405 Job Posting To Allow An Alternative For The Borough To Recruit New Applicants. Clerks Note: Attached on ® paper is a memo from the Personnel Advisory Board. Recommended motion: Move to adopt Ordinance No. FY2016-21 Staff Report — Manager Powers Open public hearing. Read phone number: Local is 486-3231; Toll Free is 1-855-492-9202. Please ask speakers to sign in and state their name for the record. Comments are limited to three minutes per speaker. Close public hearing. Assembly discussion. ROLL CALL VOTE ON MOTION. B. Ordinance No. FY2017-02 Authorizing The Submission Of An Advisory Question To The Qualified Voters Of The Borough At The October 4, 2016 Regular Borough Election To Determine Whether The Public Supports The Idea Of Consolidating The Kodiak Island Borough And The City Of Kodiak Into A Single Unit Of Government. Clerk's Note: Attached on — paper is a substituted version of the ordinance. Recommended motion: Move to adopt Ordinance No. FY2017-02. Staff Report — Manager Powers Recommended motion: Move to amend Ordinance No. FY2017-02 by substitution (Version 2). ROLL CALL VOTE ON MOTION TO AMEND. Open public hearing. Read phone number: Local is 486-3231; Toll Free is 1-855-492-9202. Please ask speakers to sign in and state their name for the record. Comments are limited to three minutes per speaker. Close public hearing. Assembly discussion. ROLL CALL VOTE ON THE MAIN MOTION AS AMENDED. Kodiak Island Borough Assembly Guidelines August 4, 2016 Page 2 C. Ordinance No. FY2017-03 Submitting to the Qualified Voters on the October 4, 2016 Ballot in Each Area Affected by the Ordinance the Question of Altering the Boundary of Road Service Area No. 1 Clerk's Note: Attached on = paper is a substituted version of the ordinance. Recommended motion: Move to adopt Ordinance No. FY2017-03. Staff Report — Manager Powers Recommended motion: Move to amend Ordinance No. FY2017-03 by substitution (Version _). ROLL CALL VOTE ON MOTION TO AMEND. Open public hearing. Read phone number: Local is 486-3231; Toll Free is 1-855-492-9202. Please ask speakers to sign in and state their name for the record. Comments are limited to three minutes per speaker. Close public hearing. Assembly discussion. ROLL CALL VOTE ON THE MAIN MOTION AS AMENDED. D. Ordinance No. FY2017-04 Submitting to the Qualified Voters the Question of Establishing the Otmeloi Way Streetlight Service Area to Provide Operation and Maintenance of Streetlights Along Otmeloi Way Clerk's Note: Attached on YELLOW paper is a substituted version of the ordinance. Recommended motion: Move to adopt Ordinance No. FY2017-04. Staff Report — Manager Powers Recommended motion: Move to amend Ordinance No. FY2017-04 by substitution (Version ). ROLL CALL VOTE ON MOTION TO AMEND. Open public hearing. Read phone number: Local is 486-3231; Toll Free is 1-855-492-9202. Please ask speakers to sign in and state their name for the record. Comments are limited to three minutes per speaker. Close public hearing. Assembly discussion. ROLL CALL VOTE ON THE MAIN MOTION AS AMENDED. Kodiak Island Borough Assembly Guidelines August 4, 2016 Page 3 10. BOROUGH MANAGER'S REPORT 11. MESSAGES FROM THE BOROUGH MAYOR 12. UNFINISHED BUSINESS None. 13. NEW BUSINESS A. Contracts 1. Contract No. FY2017-09 A Sole Source Agreement To Purchase 300,000 Spruce Tree Seedlings From Koncor Forest Products For A Spring 2017 Planting Season. Recommended motion: Move to approve KIB Contract No. FY2017-09 in the amount of $120,231.00 Staff Report — Manager Powers Assembly discussion. ROLL CALL VOTE ON MOTION B. Resolutions — None. C. Ordinances for Introduction — None. D. Other Items 1. Assembly Granting Permission To Bayside Fire Department To Dispose of Squad 10 And Sole Source An Acquisition Of A Used Piece Of Fire Apparatus. Recommended motion: Move to grant permission to Bayside Fire Department to dispose of a Squad 10 and sole source an acquisition of a used piece of fire apparatus. Assembly discussion. ROLL CALL VOTE ON MOTION. 14. CITIZENS' COMMENTS (These are limited to three minutes per speaker.) Agenda Items not scheduled for public hearing and general comments. Read phone number: Local is 486-3231; Toll Free is 1-855-492-9202. Please ask speakers to: 1. sign in 2. state their name for the record 3. turn on the microphone before speaking Kodiak Island Borough Assembly Guidelines August 4, 2016 Page 4 15. EXECUTIVE SESSION A. Chiniak Emergency Shelter Replacement - Insurance Negotiations Recommended motion: Move to convene into executive session to discuss the Chiniak Emergency Shelter insurance negotiations, a subject matter that the immediate public knowledge of which would tend to affect adversely the finances of the borough. ROLL CALL VOTE ON MOTION. Recommended motion: Move to invite the Mayor, Assembly, Borough Manager, Construction Inspector/Engineer Dave Conrad, and Clerk's Office staff into executive session. ROLL CALL VOTE ON MOTION. After the vote, Mayor Friend recesses the regular meeting and convenes the executive session. Upon returning from the executive session, Mayor Friend reconvenes the regular meeting and announces the action that will be taken as a result of the executive session B. Strategies In Negotiating The Hospital Lease Recommended motion: Move to convene into executive session to discuss strategies in negotiating the hospital lease, a subject matter that the immediate public knowledge of which would tend to affect adversely the finances of the borough. ROLL CALL VOTE ON MOTION. Recommended motion: Move to invite the Mayor, Assembly, Borough Manager, and Clerk's Office staff into executive session. ROLL CALL VOTE ON MOTION. After the vote, Mayor Friend recesses the regular meeting and convenes the executive session. Upon returning from the executive session, Mayor Friend reconvenes the regular meeting and announces the action that will be taken as a result of the executive session. Kodiak Island Borough Assembly Guidelines August 4, 2016 Page 5 C. Clerk's Performance Evaluation Recommended motion: Move to convene into executive session to discuss the Clerk's Performance Evaluation, a subject that qualifies for executive session as a matter that may tend to prejudice a character or reputation of a person. ROLL CALL VOTE ON MOTION. Recommended motion: Move to invite the Mayor and Assembly into executive session. ROLL CALL VOTE ON MOTION. After the vote, Mayor Friend recesses the regular meeting and convenes the executive session. Upon returning from the executive session, Mayor Friend reconvenes the regular meeting and announces the action that will be taken as a result of the executive session. 16. ASSEMBLY MEMBERS' COMMENTS Announcements — Mayor Friend The next Assembly work session will be held on Thursday, August 11 at 6:30 p.m. in the Borough Conference Room which will be followed by a special meeting. The next Assembly regular meeting is scheduled for Thursday, August 18 at 6:30 p.m. in the Borough Assembly Chambers. 17. 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Visit our Facebook page: www.facebook.com/KodiakIslandBorough Follow us on Twitter: @KodiakBorough At Its Regular Meeting Of September 15, 2016, The Kodiak Island Borough Assembly Took The Following Actions. The Next Regular Meeting Of The Borough Assembly Is Scheduled On Thursday, October 6, 2016, At 6:30 P.M. In The Borough Assembly Chambers. ADOPTED Ordinances Amending the 2008 Comprehensive Plan By Changing The Future Land Use Designation Of The Following Borough Owned Lands From Public Ownership/Facilities To Residential Or Rural Residential: Ordinance No. FY2017-05, Lot 7A, Block 2, Monashka Bay Subdivision From Public Ownership/Facilities To Rural Residential (P&Z Case No. 16-024). Ordinance No. FY2017-07, Lot 5, Block 5, Monashka Bay Subdivision From Public Ownership/Facilities To Rural Residential (P&Z Case No. 16-033). Ordinance No. FY2017-09, A ± 20,000 Square Foot Portion Of U.S. Survey 3099 From Public Ownership/Facilities To Urban Residential (P&Z Case No. 16-036). Ordinance No. FY2017-13, A ± 1 Acre Portion of Lot 1A-4, U.S. Survey 3465 From Public Ownership/Facilities To Urban Residential (P&Z Case No. 16-030). ADOPTED Ordinances Rezoning The Following Borough Owned Lands From PL-Public Use Lands District to R1-Single-Family Residential District, R2-Two-Family Residential District, Or RR1-Rural Residential One District: Ordinance No. FY2017-06, Lot 7A, Block 2, Monashka Bay Subdivision From PL-Public Use Lands District To RR1-Rural Residential One District (P&Z Case No. 16-025). Ordinance No. FY2017-08, Lot 5, Block 5, Monashka Bay Subdivision From PL-Public Use Lands District To RR1-Rural Residential One District (P&Z Case No. 16-034). Ordinance No. FY2017-10, Rezoning A ± 20,000 Square Foot Portion Of Lot 29, U.S. Survey 3099 From PL-Public Use Lands District To R2-Two-Family Residential District (P&Z Case No. 16-037). Ordinance No. FY2017-14, A ± 1 Acre Portion of Lot 1A-4, U.S. Survey 3465 From PL-Public Use Lands District To R2-Two-family Residential District (P&Z Case No. 16-031). POSTPONED Contract No. FY2016-45A Amending Contract No. FY2016-45 Twin Creeks Fire Salvage Timber Sale Contract, Between A-1 Timber Consultants, Inc. And The Kodiak Island Borough, To Provide An Exception To Section 11 Timber Operations, Subsection "C", Slash Operations To The October 6, 2016 Regular Meeting Of The Assembly. ADOPTED Resolution No. FY2017-10 Authorizing The Borough To Issue A General Obligation School Refunding Bond To Refund Certain Principal Installments Of An Outstanding General Obligation School Bond Of The Borough And To Pay Costs Of Issuing The Bond, Fixing Certain Details Of Such Bond, Authorizing Its Sale, And Providing For Related Matters. ADOPTED Resolution No. FY2017-12 Approving Fiscal Year 2017 Kodiak Island Borough Non-Profit Funding. ADOPTED Resolution No. FY2017-14 Appointing Members to the Kodiak Fisheries Development Association Board of Directors (Mr. Stosh Anderson). Vol. FY2017, No. 8 September 16, 2016 Kodiak Island Borough Assembly Newsletter View our website at www.kodiakak.us. Visit our Facebook page: www.facebook.com/KodiakIslandBorough Follow us on Twitter: @KodiakBorough ADOPTED Resolution No. FY2017-15 Encouraging The State Of Alaska To Declare A Condition Of Economic Disaster In Kodiak And Requesting The Utilization Of The Commercial Fishing Revolving Loan Fund (CFRLF) To Assist The Affected Fishermen And Their Families Impacted By The Fisheries Disaster. ADVANCED Ordinance No. FY2017-17 Placing A Temporary Moratorium On The Enforcement Of Those Sections Of Title 17 (Zoning) Of The Borough Code That Prohibit The Keeping Of Chickens And Other Animals Useful To People In The Rr-Rural Residential, R1-Single-Family Residential, R2-Two- Family Residential, And R3-Multi-Family Residential Zoning Districts, And Initiating A Planning And Zoning Commission Review Of Title 17 (Zoning) Of The Borough Code To Consider Amendments That Will Allow Such Uses In Those Districts, And Directing Staff To Perform A Concurrent Review Of Chapter 6.04 (Animal Control) Of The Borough Code To Recommend Amendments That More Specifically Address The Control Of Chickens And Other Animals Useful To People To Public Hearing At The Next Regular Meeting Of The Assembly. CONVENED Into Executive Session To Discuss Matters Involving Negotiations With The IBEW , A Subject Matter Which Qualifies For Executive Session Per KIBC 2.30.030(F.1.d) Matters Involving Negotiations W ith Labor Organizations Representing Borough Employees, INVITED The Borough Mayor, Assembly, Manager, Finance Director, and Clerk’s Office Staff into executive session, and DIRECTED The Borough Manager To Continue The Negotiations. CONVENED Into Executive Session To Discuss Borough Manager's Evaluation, A Subject That Qualifies For Executive Session As A Matter That May Tend To Prejudice A Character Or Reputation Of A Person, and INVITED the Borough Mayor and Assembly into executive session. No Action Was Taken As A Result Of The Executive Session.