HomeMy WebLinkAboutRes1976-945
ATTACHED TO AND MADE
A PART OF THE HINUTES OF THE SEHARD CIll COUNCIL-:VO~UME 7
.~ ~~AG ,
CITY OF SEWARD, ALASKA I / James R. Fi in,
':/ City Clerk-Treasurer
RESOLUTION NO. 945 C
A RESOLUTION AUTHORIZING AND DIRECTING THE
CITY MANAGER TO ENTER INTO A LOAN AGREEMENT
WITH THE ALASKA MUNICIPAL BOND BANK AUTHORITY
PROVIDING FOR THE ISSUANCE AND SALE OF NOT TO
EXCEED $1,200,000 OF GENERAL OBLIGATION BONDS
TO SAID AUTHORITY.
WHEREAS, at a special municipal election held in the
City of Seward, Alaska, on October 5, 1971, pursuant to Resolu-
tion No. 829, passed and approved August 9, 1971, the provisions
of the Charter and Code of Ordinances of the City of Seward, and
other proceedings of Council duly and regularly had, the qualified
electors of the City authorized the issuance of general obligation
bonds of the City in the total principal sum of not to exceed
$600,000 for the purpose of planning and constructing improvements
to its water and sewer systems, and
WHEREAS, at a special municipal election held in the
City of Seward, Alaska, on October 7, 1975, pursuant to Resolu-
tion No. 926, passed and approved August 11, 1975, the provisions
of the Charter and Code of Ordinances of the City of Seward, and
other proceedings of Council duly and regularly had, the qualified
electors of the City authorized the issuance of general obligation
bonds of the City in the total principal sum of not to exceed
$600,000 for the purpose of planning and constructing improvements
to its water and sewer systems, and
WHEREAS, the Board of Directors of the Alaska Bond Bank
Authority has authorized said Authority to enter into a Loan
Agreement with the City of Seward and to purchase the City's
general obligation bonds in the principal amount of $1,200,000
to provide part of the funds to plan and construct improvements
to the water and sewer system of the City, and
WHEREAS, the City has been assured of grants from the
State and Federal Governments for the remainder of the funds
necessary to construct said improvements, and
WHEREAS, it is deemed necessary and in the best
interest of the City and its inhabitants that said $1,200,000 of
water and sewer bonds be issued and sold by negotiated bid to the
Alaska Bond Bank Authority,
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA, THAT:
Section 1. The City Manager be, and he hereby is,
authorized and directed to enter into a Loan Agreement, with
the Alaska Bond Bank Authority providing for a loan in the sum
of not to exceed $1,200,000 for sewer and water purposes and the
issuance of its general obligation bonds authorized by the
qualified electors of the City at a special municipal election
held in the City of Seward on October 5, 1971, pursuant to
Resolution No. 829, passed and approved August 9, 1971, and
at a special municipal election held in the City of Seward on
October 7, 1975, pursuant to Resolution No. 926 passed and
approved August 11, 1975.
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Section 2. Said Loan Agreement shall be substantially
in the form of the Loan Agreement attached hereto and marked
"Exhibit A" and shall be consistent with the provision of
Resolutions No. 829 and 926 and the approval given by the electors
at the special municipal elections on October 5, 1971, and
October 7, 1975.
Section 3. After execution of said Loan Agreement by
the proper officials of the City of Seward and the Alaska Bond
Bank Authority, the City will enact an ordinance providing for
the issuance and sale of its water and sewer general obligation
bonds in the amount of not to exceed $1,200,000 to said authority
in accordance with the terms of said Loan Agreement.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, THIS 26th DAY OF APRIL, 1976.
CITY OF SEWARD, ALASKA
f2~~J l/r;1/~/
By Is/Richard A. Neve'
Mayor
AYES: Gillespie, Dieckgraeff, Mott, Oldow & Dague
NOES: non e
ABSENT: Rulm and N~ve' .
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. ame sR. F ~:p . . '..;..)
! tity Clerk-ci~y, Ma,Ii~g~f :,,:,,-::,>
V Approved as to Fc>,r,trr: ,;,' .;.,r
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HUGHES, THORSNESS, GANTZ,
POWELL & BRUNDIN, Attorneys
for the City of Seward
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By
Richard O. Gantz
["
,EI'j'/am .
1/22/76
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EXHIBIT ." A "
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LOAN .AGRFE.~nmT
Agreement, daten the day of , 1976,
between the Alaska Hunieipal Bond Bank Authority, a ho~y
corporate and politic constituted a~ an instru!:1entali.tv of
the State of Alaska eJ~ercising ;?ub1ic and essential governmental
f,\nctions (hereinafter referred to as the "Authority"), created pur-
suant to the provisions of Chapter 58, Title 44, Alaska Statu~e8,
a~ amend~d, (hereinaft~r referr~d to as the "Act"), havin~ its
principal place of husinesG at J\nchoraae, 1\lasl~a, and, a duly
constituted political subdivision of the State (herl'!inafter
referred to as the "~tunieipality"):
t'T I T TT E SSE T H:
~~ereas, pursuant to the Act, the ~uthority is
authorized to make loans of Money (hereinafter referred to as
the "Loan 11 or "J.oans") to governmental units; ani!
t'lhereas, the ~'~unicipality is a Governnental pnit as
defined in the General Bond Resolution of the Jlu1!horitv herein-
after mentioned and pursuant to the J\ct is allt:horizei! to accept
a Loan from the Authority to be evidenced by it!'; municipal bonds
purchased by the Authority; and
tofuereas, the ltunicipa1ity is desirous of borrol-ring
money from the Authority in the amount of $
and has submitted an application to the Authod.ty for a Loan in
such amount and the Hunicipality hilS duly aut~orized tne issuance
of' serial bonds in the princip3.l amount of $ of
~.,hich serial honds in the al",Oll.'1t of $ (the
"I,!unicipal Bonds") ar€\'to be purchased hy t!le J\utho:r.ity as
evidence of the Loan in accordance ,,,ith thi.s 1\gr<::!em~nt, ,,'hieh
!:lunicipal Bonds shall he in sub5tanti'111y the! fOr;rl appenc1ed hereto
by the nunicipality as r:xhibit Bi and
Whereas, the app1ication of the nunicipality contains
the information requir~r1 by Sections 30 a'1d 40 of Chapter 25,
Ti tIe 15 of the A.laska Adninistrati ve ('O(1~ and the Imthori tv has
approved the application pursunnt to Section 60 of sai~ Chapter.
vlhereas, to provi,le for
Authority in order to obtain from
to make snch Loa.'ls, the ',uthority
Resolution on
"Bond ~esolution") and
maJ:ing of such Lof.ln to
i!unicipal Bonds,
the issuance of bon~~ of the
time to tiMe monies Hith which
ha~ a~optcd the r,enp.ral Bond
(herein referred to as the
~Till adopt a resolution aut.~orizing the
the 11unicipality and the purchase of the
NOH, TH"S?FFORE, the parties agrr~e:
1. The JI.uthority hereby maken th~ I.oan' and t~c
I':unicipali ty accept3 the I,oan in the ar'\ount. of $
1\s .~vidence of the Loan ~adn to the !1unicJpality anrl ~W::'I money
borrm'~cd from the 1\uthority by the !'unicipality, t'1c ~~unicipaJ.ity
hereby sells to the Authority the !-!unicipCll Bonds in tr.e aT!1ount
of $ . Tile Bunicioal Eond~ shall bAar int8rp.~t from the
date"of theircfelivery to t~A 1\uthorlty at suc'~ ret~ or ratc9 per
annu.'!I as will result in an interest cost rate t1) t!1~ I'unicipa1ity
of . pcr centum ( %) {as calculated hy the "IBZ\" or
"Intcres-t;. C;ost Per Anrmm"-method] or at such rnt~ or. ratAs per
annum ns \'Till result in a lesser inter>9st cont rat~ to the
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t~unicipality. The interest cost rate for purposes of this Loan
Agreem<.:!nt 'ilill he computed withollt regard to Section 3 and 4 hereof
~..hich require that the ?'~unicipality Mal:e funds availahl~ to the
Tnlstee acting under the Bond Resolution for the payment of
principal and interest at leC'.st bllsin~!';s days prior to
each respective principal and interest payrr.p.nt nate. Suhject to
any applicable legal limitations, the rate or rates of interest
borne 1)y the nunicipal Bonns 5h<\11 be the sane rate or rates 01=
interest borne by the bonds sold hy the Authority (for corres-
po;vUng maturities) in orc1er to ohtain the monies ",it~l \lhich to
1~,al\8 the Loan and .to purd\Cl.sc tl-te Hunicipal Bonos. No ri'l.te of
interest horne 1-,v any of t1c ~~unicioal Donds shall be morc than
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two per centun (2%) hig!ler than the Im-1eGt rate of interest
borne by any of the other !-!unicipal Bowls.
2. The nunicipi\lity has duly adoptor. or ",ill adopt
all necessary ordinances and rGsolutions a1'1d has ta::en or \.Till
take all proccedingR req11ircd by law to enanlc it to enter into
this T"oan .l\greemf!nt and issue its binr}:!.!}'] obli<Tations to the
Au thori ty.
3. The a.''1Ollnt to he paid hy the '!uniciivlli ty pursuant
to this Loan Agrecnent representing interost c.ue on its "unicipal
Bonds (hereinafter roferrc(1 to ".s the "!-lunicipal Bonfls Interest
Payn't}~nts ") shall he not less tlV\!1 the rate or rates of i:1terest
the Z\uthority is required to P'lY on the bonds is~;uec1 hy the
l\uthority to obtain the funds fro"l ~v;'lic:l this I.o~!1 is mcHle an;'1
sha.ll be scheduler} J"~' th'~ Authority in such mann"r and at sllch
til'1es (notwi t;lst.:lnd{_n~T tht.:! dates of p11.';!T'1ent as stated in the
, .. 1 I 1) +- '1 f " fF" t t 't t
.'!un~c~p3. 30nc g as ,~~ prov~'~e unos nu :..~r::1.en, 0 pay 1!1 eres
as th8 same beconcs (lue 01, the proportionate al1011'1t of honds
iSGued by the ll,utl,ori ty for the purpose of ontaininq fnn,}::; to
l'Ji'!kc th'C) Loan to the >lunici?ali ty (hereinafter n~f~rrPlI to as the
":lunicipality' n Loan 0])1),cratio!1") anc1 the !,tu1'1icipality s!lall mal-e
sue:, funds availablc~ to t.n"! '::'ruatee ncting un':ler th~ DODr} r>esolu-
tion at least bUGin~s~ rlays prior to cac~ intcr~st pay-
ment date.
4. The ctnount to J~8 pnic\ by tho ~"unici::>al:i.tv pursuant
to this Loan l\greement r0.prc3rmting pr.incipal dug on its ~lunicipa1
Rond:] (hereinafter rcferrpc:. to as "'.lU'licipal Bond;; Pr:i.ncipal
Payrrnnts") shall be 3C~,?(11l).(!d !.'y the ,1\uthori ty in such 1'li'mner and
. at such tines (nohTithstanc1in.q the elates of payrn~nt as stated in
t:18 nunicipnl ~onds) as to provirln. funtlc; sufficl8nt to pay the
prir..cipal of the J'iunicipality's I,oan 0bliqation a.s th'? SC'!'lC matures
(baser1 upon t:1f'~ m;-ttllrity schp.l1ulc provi"o", l-)y fI'1r'1 for t!lI~
~,lunic;i::,"Ility an0 appended hereto U"l 'F.x!1iH,t 1\) anr} the "un5.cipality
sh<lll )"12\k8 Slldt funcls available to th~ Trustee acting un(}er the
Dond Resolution at least ,pusinn~s days prior to each
principal paynent date. In t~~ ewmt the ar:vmnts r" ff'r:r~d to in
parC\grap~!3 (3) and (4) to bl~ paid by the runic:i.puli tv pnr'5uant
to this Loan Agrecl'lcnt are not madlSl aval1a~,lc at ar.v ti~8 specified
therein 1 the !1unicipali ty agn~es that any fI'.0!18Y payar'le to it
hy any departr'1ent or aqcncy of th~ State be ",:I. U~h~lrl frOl~ it and
paid over diroctly to tho Trustee acti~g un~nr t~e Bon~ ~esolution
and this Agreement ahall be full Har:r.ant, a\lthorlty and direction
to make such payment to any official of t':0 Stat~ rr>spn!1sihle
for such paynent upon notice to sllch offidJll by the j',uthori ty
uS provided in the Act.
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5. 'rhe Bunicipality is o~ligated to pay fees and
charges to the Authority (hereinafter referred to as the "PeAs
and Charges"). Such Fees and Charges actually collected from the
Hunicipality shall be in an a:n.ount sufficient, together "lith the
~1unicipality' s 1\llocablo. 'Proportion of other monies available
therefor, includinq any specific grants made by the United states
of J\merica or any a<;rancy or in!3truhlentality thereof or'hy the
State or any agency or instru~~ntality thereof, .
(a) to pay, as the sa:ne becolT',e due, the Municipality's
Allocable Proportion of the adninistrative exp~nses of the
Authority; and
(b) to !Jay, as the same becone due, th~ "unicipality 's
Allocable Proportion of the feer; and expenses of the trustee
and payment agents for the bonds of the Authority.
flunicipality's l\llocable Proportion a~ u~ed herein shall Mean the
proportionate ,mount of the total reo:uirenent in respAct of ",hich
the term is used deterrr.ined l->y the ratio that the total of the
!cunicipality's Loan Obligation outstanding heers to th~ total of
that portion of the bonds issued by th~ Authority to obtain funds
wi th ~.,hich to r:take loans which are outstanding as certified by
the l'.uthori ty.
6. The nunicipality is ohligatecl to ma):e the
l.lunicipal Bonds Principal Payt':lentg sche(1ull'Jd l'>y the l\uthority
on an annual basis and is o~')lio,ate0 to mak.,~ the ~~unicipal Bonds
Interest PayPlents scheduled by t'1e l\uthoritv aml to pay tl'Je
Pees and Charges imposed by the Authority on a se~i-annual
basis.
7. The Authority s~all not sell and the "unlcipality
shall not redeem prior to maturity any of. 1:11,0 ;cun;,cip'?\l Ronds
\Vi th respect to ':lhich the Loan is made prior to th~ r11\ te on which
all outstanding bonds of the 1\uthority issuer! l,'it~l respect to
....'hich such Loan relates are redeo?,."ahl~, aT'r1 in the event of any
sale or reder.1ption prior to l"laturi ty of such ~.Tllnicipal Rands
thereafter, the saMe shall be in an Cl!TlOnnt equal to the aggregate
of (i) the principal ill'1ount of the '.~unic5,pal ity' s Loan Obligation
so to be redeemed, (il) the interest to accrue on the ~!un:tcipality' s
Loan Ohligation so to be rede8:'1eU to the next r"!d<'!!l'!"ltion date
ther~of not previously pair] hy the 1:unicipalit.y, (iii) t'1c
applicable prenhun, 5.f any I payahle on thp. ~:unicipali t~" r; Loan
Obligation so to be redee!11ed, and (iv) the costs and E!XT)"!nfJe!'J
of the Authority in effectil".<] tn,e redemption of the ~\unicipality's
Loan Obligation so to be r~c10eP1ed, lese; t~e a,-'otmt of l"lonies avail-
a~lle in the applicable sub-account or sur,-accmmt3 in the redemp-
tion account estnblis'1et'l 1'1y the Bond RAsolllt:ion aNl availal-le for
\.,i thdril\-.'al from t:1e P.eservo Fllnr'J. pursuant to t!1C 'C0:10 ?,esolntion
and for application to the re.c1er::ption of n.onds of tne l\ut!lOrity
so to be redeened in accordance \'lith the t~IT'S 1'l!"'r1 provisions of
the Bonn Resolution, as c1~ termin.:~(1 by the l\uthor'l ty; provided,
ho\o!p.ver I th,~t, in t:'w event t:1o'~ bon,1,5 of t!:n J'.ut'-lori ty i ssuec1 to
provide the funds \'Iith Nhich the Author.ity !'1iH'~ t"'.e !,O,~!1 under
this Loan J",CJreemen t \,1 th resp(-!ct to \'hic'l, t'1(~ sale or r"(~i?l"lpt:lon
prior to l"\aturi ty of such '!unicipal Bonds i ~ 118inrr ";:lr~ ll:\ve been
refunder1 and the refunding bonds of the l\ut':lOrity i"S'lN1 for t..'1e
purpos,= of refunding sucl1 original ho'1c1s ~'.'er~ i~SU2d in a principal
aJ"lount in e~cess of or lC!1n th,m tne ?Tuniciryali ty' s Lo;m Ohligation
rel'lainino, unpaid at the elate of issuance of SUC~l r~fun0 ing bond!3,
the amount \'lhich the nU:1icipi\lity shall be obli<rat~d to nay under
item (i) above shall be t'1e rrincipal amount of such refundinq
bonds outstanding.
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In no event shall
~~,unicip3.1 l30nds be effect'3d
and consent of both parti~s
any such sale or redeMption of
without the prior .,.'ri.tten agreement
hereto.
8. Simultaneously ,,,ith th~ d8liv~ry of the ?\u!'lici~ality's
Dond or Bonds to the Aut;lOrity, t}le ;'~unicip31ity shall furnish to
~1e Authority '3vidcnce satisfactory to the nuthority which sh~11
set forth among other things, that said BO!1d or Bon(1s ",ill con~'
sti tllte valic"!. general obligations of the Hunicip~li ty.
9. The nnnicipality shall rye ohlirya~ed to infC;>r:<1 in
,,'riting the :\uthor.ity and the corporate trust officp of t'1e tru:;tee
for the Authority's bonds at least 30 days prior to eac~ intereBt
pa:ment date on the :tuniaipal Bond'3 of the na'n,:! of thl"! official
to ,,}1011 invoices for the paynent of interBst and prinGip."ll shol11d
be addressed.
10. Notwith9tanding Paragraph 14 hArcof, prior to pay-
mC!1t of the arr,ount of tl1e Loan, or an:! portion t'1,~r~of, and the
delivery of the ::unir;ipality's Bond or 130::<:13 to the J\ut!lOrity
or its designee, the JI.utl1ority shall hClvc t}~e riqht to canc~l all
or any part of its o~)ligations ]v~rCtln:'!8r if:
(a) !\:"T'lY repr'~scntation, ~"i1rrant~' OT oth,?r sti'lb~Ment
made by the ;:unlcipil1ity to the ]\ut1,ority in co'mectinn ".'1t'1 its
application to tile 1\ut11''Jrity for i1 I,oan shall b~ iT'.corrl>ct or in-
com;:>lete in any, i;laterial resJ'1p.ct.
(b) 'l'he ",uniGiI'lality has viol3.tc\(l cO~l;T'itT~ents ,~ade by
it in its a?pllo::ati()!1 u'1,l snp?or+:incr t~oc...n~nts or h.:J.s violated
<my of the ter~~3 of t'1is Loan Agrr'?eln~~nt.
(c) Th,~ fiT'l'\l1cial po:::itio:1 of tl18 "'tmici;-}3.lity has,
in the opinion of the 1I.nthorit,! st1Eferw~ a puterially a(\.v'''\r.se
chunge bet~..een the date of this Loan ,"\gren1"l~Et a:v] t"'-," sc1:lerluled
time of delivery of tl1e "lunicipal Donds to tlw 1\ut'~ori t'l.
11. If any provisio~ of this LOan ~gr~R~pnt sh~ll
for any reaso'1 he hRlc1 to b~ inval ill or unCi1 forc':~ar: 1 ~, the
invalidit'l or up.':mforcG'lbility of S\1C~ provisior1 s1n11 not:
affect any of the} remaining ;>rovi'Jion:; of t~'d_s Loan 7\rrrr>~"..ent
and this Loan 1\gr<~e,lI}nt sJ1.:'tll bo con-;truf-!d and cnforcer'l as if
such invalid or u~QnforceaJ)le ryrovision had not heen contained
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12. This Loan /'I.gr'}e'"cnt r,\n.y h~ C~(cc\1t,,(l 1n O:1C or
more counterparts, an:' of uhic:1 shall l,e ::-p'C"Clrrt?:J for all pur-
po~e:; as an ori,final ancl 2'.11. of: \'7'1i~~ con:::;titntr..! lout one and
th,') ~nr.C instr'lnent. Bach party 11'Tr<"\"!'1 t1).'1t it ~,'ill execute any
and all docunents or ot:her instrllT",cnts, i\ncl t<l}:<~ SUC'1 ot~(!r.
actions as is n{~cossary to give eff<?ct to t1-:E"\ tr>J:'Tr1:"; nf this Loan
A,grc8nent.
13. No ",:aiv.;?!:' hy pithcr Dartv nf .'1ny t",rn or condition
of the Loan Agreement shall bc deenecl or c::Jn,;~rw~d as a \"11i ver
of any other tems or condi.tions, nor shall a v::livcr 0: any breach
be d(~ened to cO!l'1ti tute a Fai ver of an-I surr:"'rrl.1r>:)!; r.n:""lch, whether
of the sane or of a diff8rnnt s~ction, eu~s",ctinn, nar~qrapht
clause, phrase, or other provision of t~1i~~ I,oC1n ,'\(!n,0\'1<)nt.
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14. This Loan Agreemont merges and supersedes all
prior negotiations, reprc"lcntations, ana agr(!€'!'!'entn het'~ean the
parties hereto relating to the sllbject matter h(!reof and con-
sti tutes the entire agreel1~ent het\"een the parties hereto in
respect thereof.
nl HITNESS T-mERF.OF, the parti~s herp.to haVF~ executed
this agreement the clay and year first a~ove \-Trittfm. ..
]\L.lI.SK7\ r~\i7'nCIFi\T.J Bo~m
B7\N!C J..t~TF()RI':"V
(Seal)
By
Chalrr'i:i1;--
1\ttest:
"unicir)"lli tv
(Seal)
13y __._._______, ______
Attest:
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E\':HIBIT 1\
To be cOMpleted hy t~~ i~uniciDC11it.,
'~attlrity Scherlule
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Arrounts shoulrl b'l in multi1Jlc3 of $5,IJOO.
~:unici:)f111ty' s
Bonds Due
1
Pr.i.":ciDill r'J:1ount
1977
1978
1') 7)
1930
U31
1982
l~'n
19~~4
J_ f) (J:;
1')%
1987
1()88
19')0
11)<\0
1<) () 1
1992
1'193
1 <):; ,i
1')9:,)
$
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Total
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