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HomeMy WebLinkAboutRes2003-080 I I I Sponsored by: Shealy CITY OF SEWARD, ALASKA RESOLUTION 2003-80 A RESOLUTION AUTHORIZING THE CITY OF SEWARD TO ISSUE GENERAL OBLIGATION REFUNDING BONDS, 2003A IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $3,000,000 TO REFUND CERTAIN OUTSTANDING GENERAL OBLIGATION BONDS OF THE CITY, FIXING CERTAIN DETAILS OF SUCH BONDS AND AUTHORIZING THEIR SALE. WHEREAS, the City of Seward, Alaska (the "City") is a home rule city and under Section 11 of Article X of the Alaska Constitution may exercise alllegislative power not prohibited by law or the charter ofthe City, and it has been determined that the matters set forth in this resolution are not prohibited by law or the charter; and WHEREAS, there are now outstanding $1,100,000 of General Obligation Refunding Bonds, 1984 Series A, as amended in 1986 and 1993, ofthe City maturing on or after October 1,2003 (the "1984 Bonds") issued under Resolution No. 84-105, Resolution No. 86-69 and Resolution 93-062 of the City; and WHEREAS, there are now outstanding $1,080,000 of Amended General Obligation Refunding Bonds, Series 1987, as amended in 1993, of the City maturing on or after December 1, 2003 (the "1987 Bonds") issued under Resolution No. 87-109 and Resolution 93-063 of the City; and WHEREAS, there are now outstanding $1,180,000 of General Obligation Bonds, Series 1990, as amended in 1993, of the City maturing on or after December 1,2003 (the "1990 Bonds") issued under Resolution No. 90-024 and Resolution 93-064 of the City; and WHEREAS, the council finds that it is in the best interest of the City to provide for the refunding, including the payment of principal of, and premium and interest on, those maturities of the 1984 Bonds, the 1987 Bonds and the 1990 Bonds (the "Refunded Bonds") whose refunding the City Manager or City Finance Director determines will produce the percentage debt service savings specified in this resolution, by the issuance of general obligation refunding bonds in the aggregate principal amount of not to exceed $3,000,000 (the "Bonds"); and WHEREAS, Section 11.2(a) ofthe home rule charter of the City provides that the City may issue general obligation refunding bonds without ratification of the voters; and WHEREAS, the Council finds that it is necessary and appropriate to delegate to each of the City Manager and City Finance Director authority to determine the maturity amounts, interest rates CITY OF SEWARD, ALASKA RESOLUTION 2003-80 and other details of the Bonds, and to determine other matters pertaining to the Bonds that are not provided for in this resolution; and WHEREAS, there has been presented to the City the form of an Amendatory Loan Agreement between the Alaska Municipal Bond Bank and the City, which amends the Loan Agreements dated as of October 1, 1993 between the Alaska Municipal Bond Bank and the City to provide for the refunding of the Refunded Bonds through their exchange for refunding bonds to be issued by the City, and related matters. NOW, THEREFORE, BE IT RESOLVED: Section 1. Definitions. The following terms shall have the following meanings in this resolution: (A) "Amendatory Loan Agreement" means the Amendatory Loan Agreement between the City and the Bond Bank, amending the Loan Agreements to provide for the refunding of the Refunded Bonds through their exchange for the Bonds, and related matters. (B) "Bond" or "Bonds" means any ofthe "General Obligation Refunding Bonds, 2003A" of the City of Seward, the issuance and sale of which are authorized herein. (C) "Bond Bank" means the Alaska Municipal Bond Bank, a public corporation of the State of Alaska. (D) "Bond Bank Bonds" means the General Obligation Refunding Bonds, Series 2003A of the Bond Bank. (E) "Bond Register" means the registration books maintained by the Registrar, which include the names and addresses of the Registered Owners of the Bonds or their nominees. (F) "City" means the City of Seward, a municipal corporation of the State of Alaska, organized as a home rule city under Title 29 of the Alaska Statutes. (G) "Citv Finance Director" means the Finance Director of the City, and any person duly authorized to act in that capacity as Interim Finance Director or Acting Finance Director. (H) "Code" means the Internal Revenue Code of 1986, as amended from time to time, together with all regulations applicable thereto. I I I CITY OF SEWARD, ALASKA RESOLUTION 2003-80 (I) "Council" means the Council of the City of Seward, as the general legislative authority ofthe City of Seward, as the same shall be duly and regularly constituted from time to time. (J) "Loan Agreements" means, collectively, the Loan Agreement between the City and the Bond Bank dated as of October 1,1984, as amended August 1, 1986 and October 1,1993; the Loan Agreement between the City and the Bond Bank dated as of December 1, 1987, as amended October 1, 1993; and the Loan Agreement between the City and the Bond Bank dated as of April 1 , 1990, as amended October 1,1993. (K) "1993 Bonds" means the $3,360,000 of 1984 Bonds, 1987 bonds and 1990 Bonds maturing on or after October 1, 2003. (L) "Refunded Bonds" means the maturities of the 1993 Bonds whose refunding is approved by the City Manager or City Finance Director under Section 13. (M) "Registered Owner" means the person named as the registered owner of a Bond in the Bond Register. (N) "Registrar" means the City Finance Director. (0) "Resolution" means this Resolution No. 2003-_ofthe City. Section 2. Authorization of Bonds and Purpose ofIssuance. For the purpose of effecting the refunding by exchange of the Refunded Bonds in the manner set forth hereinafter and in the Amendatory Loan Agreement, the City hereby authorizes and determines to issue and sell the Bonds in the aggregate principal amount of not to exceed $3,000,000. Section 3. Obligation of Bonds. The Bonds shall be direct and general obligations of the City and the full faith and credit of the City are hereby pledged to the payment ofthe principal of and interest on the Bonds. The City hereby irrevocably pledges and covenants that it will levy and collect taxes upon all taxable property within the City without limitation as to rate or amount, in amounts sufficient, together with other funds legally available therefore, to pay the principal of and interest on the Bonds as the same become due and payable. Section 4. Designation. Maturities, Interest Rates. and Other Details of Bonds. The Bonds shall be designated "City of Seward, Alaska, General Obligation Refunding Bonds, 2003A." The Bonds shall be in the denomination of$I,OOO or any integral multiple thereof, shall be numbered separately in the manner and with such additional designation as the Registrar deems necessary for purposes of identification, and may have endorsed thereon such legends or text as may be necessary CITY OF SEWARD, ALASKA RESOLUTION 2003-80 or appropriate to conform to the rules and regulations of any governmental authority or any usage or requirement oflaw with respect thereto. A portion of the principal of the Bonds shall mature annually commencing in 2004 and continuing no later than 2011. The Bonds shall bear interest from their date, payable commencing on a date on or after September 1,2003 and semi-annually thereafter in each year. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months. The dated date, the principal and interest payment dates, the aggregate principal amount, the principal amount of each maturity, and the interest rates on the Bonds shall be determined at the time of execution ofthe Amendatory Loan Agreement under Section 17. Section 5. Optional Redemption. The Bonds, if any, subject to optional redemption by the City, the time or times when such Bonds are subject to optional redemption, the terms upon which such Bonds may be redeemed, and the redemption price or redemption prices for such Bonds, shall be determined at the time of execution of the Amendatory Loan Agreement under Section 17. Section 6. Selection of Bonds for Redemption: Notice of Redemption. (A) Selection of Bonds for Redemption. As long as the Bond Bank: is the Registered Owner of the Bonds, the selection of Bonds to be redeemed shall be made as provided in the Loan Agreement. If the Bond Bank: is no longer the Registered Owner of the Bonds, the selection of Bonds to be redeemed shall be made as provided in this subsection (A). Ifthe City redeems at any one time fewer than all ofthe Bonds having the same maturity date, the particular Bonds or portions of Bonds of such maturity to be redeemed shall be selected by lot (or in such other manner determined by the Registrar) in increments of $1,000. In the case of a Bond of a denomination greater than $1,000, the City shall treat such Bond as representing such number of separate Bonds each of the denomination of $1 ,000 as is obtained by dividing the actual principal amount of such Bond by $1,000. In the event that only a portion of the principal amount of a Bond is redeemed, upon surrender of such Bond at the office of the Registrar there shall be issued to the Registered Owner, without charge therefore, for the then unredeemed balance of the principal sum thereof, at the option ofthe Registered Owner, a Bond or Bonds oflike maturity and interest rate in any ofthe denominations authorized herein. (B) Notice of Redemption. As long as the Bond Bank: is the Registered Owner ofthe Bonds, notice of any intended redemption of Bonds shall be given as provided in the Loan Agreement. If the Bond Bank: is no longer the Registered Owner ofthe Bonds, notice of any intended redemption of Bonds shall be given as hereinafter provided. Notice of redemption shall be mailed not less than 30 nor more than 45 days prior to the date fixed for redemption by first class mail to Registered Owners of the Bonds to be redeemed at their addresses as they appear on the Bond Register on the day the notice is mailed. Notice of redemption shall be deemed to have been given when the notice is mailed as herein provided, whether or not it is actually received by the Registered Owners. All notices of I I I CITY OF SEWARD, ALASKA RESOLUTION 2003-80 redemption shall be dated and shall state: (1) the redemption date; (2) the redemption price; (3) if fewer than all outstanding Bonds are to be redeemed, the identification (and, in the case of partial redemption, the respective principal amounts) of the Bonds to be redeemed; (4) that on the redemption date the redemption price will become due and payable upon each such Bond or portion thereof called for redemption, and that interest thereon shall cease to accrue from and after said date; and (5) the place where such Bonds are to be surrendered for payment of the redemption price, which place of payment shall be the office of the Registrar. Official notice of redemption having been given as aforesaid, Bonds or portions of Bonds to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date, such Bonds or portions of Bonds shall cease to bear interest. Upon surrender of such Bonds for redemption in accordance with said notice, such Bonds shall be paid at the redemption price. Installments of interest due on or prior to the redemption date shall be payable as herein provided for payment of interest. Upon surrender of any Bond for partial redemption, there shall be prepared for the Registered Owner a new Bond or Bonds of the same maturity in the amount of the unpaid principal. All Bonds which have been redeemed shall be canceled and destroyed by the Registrar and shall not be reissued. Each check or other transfer of funds issued to pay the redemption price of Bonds shall bear the CUSIP number, if any, identifying, by maturity, the Bonds being redeemed with the proceeds of such check or other transfer. Section 7. Form of Bond. Each Bond shall be in substantially the following form, with such variations, omissions and insertions as may be required or permitted by this Resolution: UNITED STATES OF AMERICA STATE OF ALASKA CITY OF SEWARD (A Municipal Corporation of the State of Alaska) NO. $ GENERAL OBLIGATION REFUNDING BOND, 2003A REGISTERED OWNER: PRINCIPAL AMOUNT: CITY OF SEWARD, ALASKA RESOLUTION 2003-80 The City of Seward (the "City"), a municipal corporation of the state of Alaska, hereby acknowledges itself to owe and for value received promises to pay to the Registered Owner identified above, or its registered assigns, the Principal Amount indicated above in the following installments on 1 of each of the following years, and to pay interest on such installments from the date hereof, payable on 1, 200_ and semiannually thereafter on the 1 st days of and of each year, at the rates per annum as follows: Year Principal Amount Interest Rate For so long as this Bond is owned by the Alaska Municipal Bond Bank (the "Bond Bank"), payment of principal and interest shall be made as provided in the Loan Agreement between the Bond Bank and the City (the "Loan Agreement"). In the event that this Bond is no longer owned by the Bond Bank, installments of principal and interest on this Bond shall be paid by check or draft mailed by first class mall to the Registered Owner as ofthe close of business on the fifteenth day of the month preceding each installment payment date; provided that the final installment of principal and interest on this Bond shall be payable upon presentation and surrender of this Bond by the Registered Owner at the office ofthe Registrar. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months. Both principal of and interest on this Bond are payable in lawful money 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 one of the General Obligation Refunding Bonds, 2003A ofthe City of Seward, Alaska, of like tenor and effect except as to interest rate, serial number and maturity, aggregating $ in principal amount, and constituting Bonds authorized for the purpose of refunding certain general obligation bonds issued by the City, and is issued under Resolution No. of the City entitled: A RESOLUTION AUTHORIZING THE CITY OF SEWARD TO ISSUE GENERAL OBLIGATION REFUNDING BONDS, 2003A IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $3,000,000 TO REFUND CERTAIN OUTSTANDING GENERAL OBLIGATION BONDS OF THE CITY, FIXING CERTAIN DETAILS OF SUCH BONDS AND AUTHORIZING THEIR SALE. (the "Resolution"). I I I The maturity installments ofthis Bond maturing on and after ,20_ are subject to redemption prior to maturity at the option ofthe City on any date on or after , 20 , either as a whole or in part and from such maturities as the City shall determine, and by lot within a maturity, at a redemption price equal to the principal amount ofthe maturity installment of this Bond to be redeemed plus accrued interest to the date of redemption. This Bond is transferable as provided in the Resolution, (i) only upon the bond register of the City, and (ii) upon surrender of this Bond together with a written instrument of transfer duly Section 7. Effective Date. This resolution shall take effect upon adoption by the Seward City Council. PASSED AND APPROVED by the City Council of the city of Seward, Alaska this 28th day of July, 2003. THE CITY OF SEWARD, ALASKA ~~ Stu Clark, ayor AYES: NOES: ABSENT: ABSTAIN: Shafer, Branson, Dunham, Orr, Valdatta, Amberg, Clark None None None ATTEST: