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CITY OF SEWARD, ALASKA
RESOLUTION NO. 96-048
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, PROVIDING FOR THE SUBMISSION
TO THE QUALIFIED VOTERS OF THE CITY OF SEWARD THE
QUESTION OF THE ISSUANCE OF NOT TO EXCEED $7,500,000 IN
GENERAL OBLIGATION BONDS OF THE CITY TO FINANCE THE
CONSTRUCTION OF A NEW HEALTH CARE CENTER IN THE CITY AND
THE LEASE OF SEWARD GENERAL HOSPITAL AND THE NEW HEALTH
CARE CENTER TO THE SISTERS OF PROVIDENCE IN WASHINGTON,
DBA PROVIDENCE ALASKA MEDICAL CENTER
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 all legislative powers not prohibited by law
or by the Charter of the City, and it has been determined that the matters set forth in this resolution
are not prohibited by law or the Charter; and
WHEREAS, by Resolution No. 96-17, adopted March 18, 1996, the City Council called a
special election to be held in the City on May 21, 1996, for the purpose of authorizing the sale of
general obligation bonds or lease obligations for capital facilities construction and to authorize the
transfer of assets and liabilities from Seward General Hospital to Providence Alaska Medical Center;
and
WHEREAS, by Resolution No. 96-040, adopted March 26, 1996, the City Council accepted
the terms and conditions of a proposed alliance (the "Proposed Alliance") between the Sisters of
Providence in Washington, dba Providence Alaska Medical Center ("Providence"), under which
Providence would assume control of Seward General Hospital and operate a new health care center
in the City to be financed by the City and constructed by Providence; and
WHEREAS, in order to implement the Proposed Alliance, it is necessary for the City to
obtain voter approval of an issue of general obligation bonds of the City in an amount not to exceed
$7.,500,000 to pay the cost of constructing a new health care center in the City; and
WHEREAS, the City Council has determined that it is in the public interest that the question
of the City entering into an agreement with Providence for the lease of Seward General Hospital and
the construction, lease and operation of the new health care center be submitted to the qualified
voters of the City;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
CITY OF SEWARD, ALASKA
RESOLUTION NO. 96-048
Section 1. It is hereby determined to be for a public purpose and in the public interest of the
City of Seward to incur general obligation bonded indebtedness in an amount not to exceed
$7,500,000 for the purpose of paying the costs of constructing and acquiring health care center
capital improvements in the City.
Section 2. The sum of $7,500,000 shall be borrowed by, for and on behalf of the City of
Seward for health care center capital improvements and shall be evidenced by the issuance of general
obligation bonds of the City. The bond proceeds shall be used for capital improvements only. The
full faith and credit of the City are pledged for the payment of the principal of and interest on the
bonds, and ad valorem taxes upon all taxable property in the City shall be levied without limitation
as to rate or amount to pay the principal of and interest on the bonds when due.
Section 3. A special election is to be held on May 21, 1996, in and for the City of Seward,
for the purpose of submitting a general obligation bond proposition to the qualified voters of the City
for approval or rejection. The proposition must receive a majority vote of the qualified voters of the
City voting on the question to be approved. The proposition shall be substantially in the following
form:
PROPOSITION NO.1
Shall the City of Seward incur debt and issue general obligation bonds not to exceed
$7,500,000 for the purpose of paying a portion of the costs of constructing and
acquiring health care center capital improvements within the City, and shall the City
enter into an agreement with the Sisters of Providence in Washington, dba
Providence Alaska Medical Center, for the lease of Seward General Hospital and the
construction, lease and operation of the new health care center, substantially on the
terms contained in the Proposed Alliance between the City and Sisters of Providence
in Washington, dba Providence Alaska Medical Center, approved in Resolution No.
96-040 of the City?
The bonds shall be secured by a pledge of the full faith and credit of the City. It is
expected that annual payments of principal and interest on the bonds will not exceed
the annual amount to be received by the City from the one percent sales tax levied
by City Ordinance No. 507, which was ratified by the qualified voters of the City on
April 20, 1982.
(Resolution No. 96-048)
Section 4. The proposition set forth in Section 3 of this resolution shall be printed on a ballot
which may set forth other propositions, and the following words shall be added as appropriate and
next to a space provided for marking the ballot:
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 96-048
PROPOSITION NO.1
YES
NO
Section 5. The City intends to allocate proceeds of the bonds authorized under Section 2 of
this resolution to reimburse expenditures by the City for costs of the acquisition, construction and
equipping of the health care center incurred prior to the issue date of the bonds.
Section 6. Sections 1, 2 and 5 of this resolution shall become effective only if the
proposition described in Section 3 is approved by a majority of the qualified voters voting on the
proposition at the special election on May 21, 1996. The remaining sections of this resolution shall
become effective upon adoption.
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PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 15th
day of April, 1996.
THE CITY OF SEWARD, ALASKA
AYES:
NOES:
ABSENT:
ABSTAIN:
Anderson, Bencardino, Crane, Deeter, Keil, King, Sieminski
None
None
None
ATTEST:
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