HomeMy WebLinkAboutRes2009-053Sponsored by: City Manager
CITY OF SEWARD, ALASKA
RESOLUTION 2009-053
A RF,SOLU'I'ION OF THE CITY COUNCIL OF THE CITY OF SF,WARD,
ALASKA, I'ROVID[NG FOR THE SUBMISSION TO TIIF. QUALIFIED
VOTERS OF THE CITY OF SEWARD THE QUESTION OF THE
ISSUANCE OF NOT TO F.XCF,ED $5,000,000 IN GENERAL OBLIGATION
BONDS OF TFIF, CITY 'I'O FINANCE ALL OR A PORTION OF THE
CONSTRUCTION OF A COMBINED LIBRARY/MUSEUM CAPITAL
IMPROVEivIENT PROJECT
WHEREAS, as part of the Seward Centennial celebration of the founding of Seward, then
Seward Mayor Edgar Blatchford sought project proposals from the public that would directly benefit
the citizens of the community, would begin in the centennial year 2003 and reach completion during
2012, the one hundredth anniversary of the incorporation of the City; and
WHEREAS, the Seward Community Library Museum project was selected to be the
embodiment of the community's pride by preserving history and providing access to present and
future knowledge; and
WHEREAS, the total cost of the combined community library/museum is estimated to be
$10,000,000 which includes planning, design, construction, management and furniture and fixtures;
and
WHEREAS, the City of Seward, the Seward Community Library Association and the
Resurrection Bay Historical Society, through the creation of a joint Seward Community Library
Museum Building Committee, and with the assistance of Foraker Prcdcvclopmenl Fund consultants,
ate working to create a sustainable project; and
WHEREAS, since 2003 progress includes purchase of a Bile, completion of a feasibility
study, a concept design, a business plan and a public phone survey; and
WFIEREAS, the public phone survey revealed that S8'% of the respondents were very likely
or likely to support bond funding for the project, supported by a %a% sales tax increase to help pay
for the capital costs of this project; and
WHEREAS, through the efforts of the Seward Community Library Museum Building
Committee, over $1,000,000 has already been committed to this project, through private donations,
grants, City contributions, and professional in-kind services and property acquisition; and
CITY OF SF,WARD, ALASKA
RESOLUTION 2009-053
WHEREAS, the amount of money raised to date and dte phone survey results demonstrate
that there is overwhelming community support for this project.
NOW, THEREFORE,, BE IT RESOLVF,D BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. It is hereby determined to be for a public purpose and in the public interest of the
City to borrow through the issuance of general obligation bonded indebtedness in an amount not to
exceed $5,000,000 for the purpose of paying for the capital costs of a combined library/museum
capital improvement in the Cily. The sum of $5,000,000 shall be borrowed by, for and on behalf of
the City of Seward for library/museum capital improvements and shall be evidenced by the issuance
of general obligation bonds of the City. The bond proceeds shall be used for capital improvanents
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 2. The bonds will not be issued until additional funding is obtained from private
contributions, grants, state or federal sources.
Section 3. The City shall submit the following proposition, in substantially the following
form, to the qualified voters of the City of Seward at the October G, 2009 regular City election. The -•
proposition must receive an affirmative vote from a majority of the qualified voters voting on the
question to he approved.
Proposition No. 3
General Obligation Bonds for Seward Community Library J4useum Capital Improvements
Shall the City of Seward incur debt and issue general obligation bonds in an amount not to
exceed five million dollars ($5,000,000) to finance the construction of community library museum
capital improvements in the City? Bonds may not be issued until the City has obtained additional
funding through contributions and grants for the remainder of the costs of the project.
The bonds shall be secured by a pledge of the full faith and credit of the City. Il is expected
that annual pa}nnents of principal and interest on the Bonds will not exceed the annual amount to be
received by the City from aone-half percent sales tax.
PROPOSITION NO. 3
YES
NO
CITY OF SEWARD, ALASKA
RESOLUTION 2009-053
A "Yes" vote authorizes the issuance of not to exceed SS million dollars of general obligation bonds
for capital costs for the library/museum project.
A "No" vote does not authorize the issuance of not to exceed $5 million dollars of general obligation
bonds for capital costs for the library/museum project.
Section 4. The City intends to allocate proceeds of the Bonds authorized under Section 1 of
this Resolution to reimburse expenditures by the City for costs of acquisition, construction and
equipping of the Library/Museum Project incurred prior to the date of issuance of the Bonds.
Section 5. Sections 7 and 4 of this Resolution shall be come effective only if the proposition
described in Section 3 is approved by a majority of the qualified voters of the City of Seward voting
on the proposition al the election on October 6, 2009. The remaining sections ofthis resolution shall
become effective upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 22°`~
day of Junc, 2009.
THE CITY OF SEWARD, ALASKA
Clark Corbridge, Mayor
AYES: Valdatta, Dunham, Bardarson, Kellar, Smith, Keil, Corbridge
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
~, r
Jean Lewis
City Clerk
(City Seal)
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COUNCIL AGENDA STATEMENT
Meeting Date: Juuc 22, 2009
Through: City Manager Phillip Oates/~
From: Library Director Patricia Lim~ille
Agenda Item: Resolution 2009-~~, providing for the submission to the qualified voters
of the City of Seward the question of the issuance not to exceed
$5,000,000 in general obligation bonds of the City to finance all or a
portion of the construction of a combined library/museum capital
improvement project
BACKGROUNll & JUSTIFICATION:
In 2003, Seward Mayor Edgar Blatchford proposed developnlg a community centered project in
the Centennial year of 5eward's founding to be completed in 20] 2, the 100`x' atmiversary of the
incorporation of Seward. Anew combined library museum was selected to be the embodiment
of the community's pride by preserving history and providing access to present and future
knowledge for the residents of Seward, the outlying areas and all seasonal workers and visitors.
The Seward Community Library Museum Building Committee (SCLMBC), the City of Seward,
the Seward Community Library Association (SCLA) and the Resurrection Bay Historical
Society (RBHS) are working together to wmpletc this project.
Progress toward the goal includes formation of the SCLMBC, purchase of the former Salvation
Army property as a dedicated site for the facility, a formal Memorandum of Understanding
between the SCLA and the RBF[S, non-profit entities of the library and the museum, to accept
private sector fundnrg intended for the facility and dedication of Cily funds for capital campaign
expenditures.
Since 2006 the project has been guided by Forakcr Predevelopment Fund (FPF), capital project
development consultants, with the goal of creating a sustainable facility. FPF was created and is
supported by the Denali Commission, the Mental Health Trust and Rasmuson Foundation. FPF
completed a feasibility study of the original concept, revealiig a plan that was ewnomically
unsustainable by the Seward community. FPF provided architectural and program planning
expertise to create a conceptual design more suited to Seward's needs and resources. In April
2009, Foraker hired McDowell Group to conduct a telephone survey of randomly selected
Seward voters to gauge support for the project and their willingness to vote to publicly finance
its construction. 208 people were surveyed with 9 out of 10 agreeing that a new library museum
is needed and ~8°/~ either very Likely or likely to vote for a Y~ % increase in sales tax to help pay
for the project.
The estimated cost of the facility, including planning, design, construction, project management,
furiiture and fixtures, is $ ] 0 million. The plan of finance includes S 1 million private foundation
and individual donations and $4-5 million state and federal funding. The remaining $5 million
will be secured by general obligation bonds financed by the citizens of Seward. These bonds Wray
not be issued until the City has obtained additional funding tlu'ough contributions and grants for
the remainder of the costs ofthe project. As of May 2009, over $1 million has been committed to
this project through private donations, grants, City contributions and professional in-kind
services.
Jb
Library and museum services are offered to Seward residents, those living outside the city limits
and all seasonal workers and visitors equally. The Seward Community Library Museum will be
owned and operated by the City of Seward. Resolution 2009- anticipates passage of an
ordinance adding a'/% sales tax within the City. Although the sales tax is not dedicated, it is the
intent to use all or a portion of the proceeds of this tax increase to help meet the needs of the
project. A sales tax would allow both residents and non-residents who utilize the City's library
and museum to contribute to the construction and operation costs, thereby distributing the
expense instead of placnig the entire tax burden on owners of real property within the City
CONSISTENCY CHECKLIST:
Where applicable, this resolution is consistent with the Seward City Code, Charter,
Comprehensive Plans, Land Use Plans, Strategic Plan and City Comicil Rules of Procedures.
FISCAL NOTE:
The intent ofthe SCLM Committee is to place an advisory ballot on the October 2009 election to
ask the voters if they support a 0.5'% increase in sales tax to pay for operating and capital costs.
This would generate approx. $500,000 per year in revenue. The estimated annual debt service
costs on a 25-year $5 million general obligation bond (assuming 5.75%~ borrowing rate) are
approxunately $380,000, with the remainder o the sal e tax evenue to be used to pay for
increased operating, repairs, and mai anc sts.
Approved by Finance Department
ATTORNEY REVIEW X
RECOMMENDATION:
Council approve Resolution 2009-m~~, providing for the submission to the qualified voters of
the City of Seward the question of the issuance not to exceed $5,000,000 in general obligation
bonds of the City to finance all or a portion of the construction of a combined library/museum
capital improvement project.
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