HomeMy WebLinkAbout01092017 City Council Packet
Seward City Council
Agenda Packet
Welcome to the New Year!
January 09, 2017
City Council Chambers Beginning at 7:00 p.m.
HappyNewYear!
HappyNewYear!
1963 1965 2005 The City of Seward, Alaska
CITY COUNCIL MEETING AGENDA
{Please silence all cellular phones during the meeting}
January 9, 2017 7:00 p.m. Council Chambers
Jean Bardarson
CALL TO ORDER
Mayor
PLEDGE OF ALLEGIANCE
Term Expires 2017
ROLL CALL
CITIZEN COMMENTS ON ANY SUBJECT EXCEPT
Marianna Keil
THOSE ITEMSSCHEDULED FORPUBLIC HEARING
Vice Mayor
\[Thosewhohavesignedin will begiventhefirstopportunityto
Term Expires 2018speak. Time is limited to3minutesper speaker and36minutes
total time for this agenda item.\]
Ristine Casagranda
APPROVAL OF AGENDA AND CONSENT AGENDA
\[Approval of Consent Agenda passes all routine items indicated
Council Member
byasterisk (*). Consent Agenda items are not considered separately
Term Expires 2018
unlessa council memberso requests.Intheevent of such arequest,the
item isreturned to the Regular Agenda\]
David Squires
SPECIAL ORDERS, PRESENTATIONS AND REPORTS
Council Member
Term Expires 2017
Proclamationsand Awards
Borough Assembly Report
Sue McClure
CityManagerReport
CouncilMember
City Attorney Report
Term Expires 2017
OtherReportsand Presentations
Deborah Altermatt
AnnualPort and Commerce AdvisoryBoard Report
Council Member
Term Expires 2017
IntroducingWELOVEUS,amethodologyfor
creatingtheworldthatworksforeveryone,by Lynda
Erik Slater
Paquette(Casagranda)
Council Member
Term Expires 2018
PUBLIC HEARINGS
James Hunt
Ordinances ForPublic Hearing and Enactment
City Manager
1.Ordinance 2016-009, Amending Seward City Code 15.10.220
Johanna Kinney
Development Requirements –Notes, To Allow The Minimum Lot
City Clerk
Size Platting Of 3,000 Square Feet And Clarification Of Lot Size
For Duplex Development.
Will Earnhart
City Attorney
City of Seward, Alaska Council Agenda
January 9, 2017 Page 1
8.UNFINISHED BUSINESS– None
9.NEW BUSINESS
A.Ordinances For Introduction
*1.Ordinance 2017-001,Amending Seward City Code 7.10.320 (J) (2), Reserved
Moorage, Duration, Death -Removing “Annual” From TheTerm“Annual
Moorage Fee”.
Resolutions
Resolution 2017-001, Authorizing An Additional $32,080.91 Toward Harbor Float
Construction Representing TheState Of Alaska’sAdditionalAdministrative Fee
Required After ProjectStart, And Appropriating Funds.
Resolution 2017-002, Authorizing TheCityManagerToEnter Into A Cooperative
Agreement With The State Of Alaska Department Of Fish & Game (ADF&G)
Division Of Administrative ServicesForTheFederalAidIn Sport Fish
Restoration Recreational Boating Access Program For The PurposeOfDesigning
And Permitting AReplacementSeward South Harbor Launch Ramp.
Resolution 2017-003, Authorizing TheIssuanceOfAGeneralObligationBond Of
The CityInAPrincipalAmountNot To Exceed $3,000,000 To Finance Costs Of
Capital Improvements ToRoads In The City,As Authorized By Resolution
2016-045 And Ratified By TheCity’sVoters At AnElection Held On October 4,
2016;AuthorizingTaxLevies To Pay ThePrincipalThereofAndInterest
Thereon; AndAuthorizingTheSale Of TheBondTo The AlaskaMunicipalBond
Bank On TheTermsAnd Conditions Provided In This Resolution.
Other New Business Items
*1. Approval oftheDecember12, 2016 City CouncilMeeting Minutes.
*2. Continue the Port and Commerce AdvisoryBoard for 2017.
*3.Non-objectionto the renewalofliquor license #2790forRay’sWaterfrontBar
&Grill.
*4. Non-objection to the renewalofliquor license #4696 for Gene’sPlace.
*5Non-objection to the renewalofliquor license #3230 for Apollo Restaurant
INFORMATIONAL ITEMSAND REPORTS(No Action Required)
PlanningandZoningCommission Quarterly Report
COUNCIL COMMENTS
CITIZEN COMMENTS
COUNCILAND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS
ADJOURNMENT
City of Seward, Alaska Council Agenda
January 9, 2017 Page 2
3
4
Sponsored by:Planning and Zoning Commission
Introduction Date: December 12, 2016
Public Hearing Date: January 9, 2017
Enactment Date: January 9, 2017
CITY OF SEWARD, ALASKA
ORDINANCE 2016-009
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA,AMENDING SEWARD CITY CODE 15.10.220
DEVELOPMENT REQUIREMENTS –NOTES, TO ALLOW THE
MINIMUM LOT SIZE PLATTING OF 3,000 SQUARE FEET AND
CLARIFICATION OF LOT SIZE FOR DUPLEX DEVELOPMENT
WHEREAS, City Council requested the Planning and Zoning Commission review and
bring forward City Code amendments to allowthe platting and single family home development
of 3,000 square foot lots; and
WHEREAS,current City Code allows for the single family home development of
existing originally platted 3,000 square footlots but does not allow for the development of other
3,000 square foot lots or the platting of additional 3,000 square foot lots; and
WHEREAS,amending the City Code to allow additional 3,000 square foot parcels could
provide added single family home lots and greater in-fill or density; and
WHEREAS, the lotssouth of Van Buren,within the Original Townsite of Seward and
the Federal and Laubner Additions, are served by existing utilities located in both the alley and
street rights-of-way, allowing for required utility separation on small lots; and
WHEREAS,the Planning and Zoning Commission held three (3)work sessions and two
(2)public hearings in review of the code amendments to allow platting and single family home
development of 3,000 square foot parcels; and
WHEREAS,minimum lot size for single family homes and multi-family developments
with three –four unitsis currently provided in theDevelopment Requirementsof the City Code;
however, no guidance is provided for duplex development; and
WHEREAS,staff has provided a code amendment to provide clarification on the lot size for
duplex or two family developments; and
WHEREAS,the Planning and Zoning Commission held a public hearing on September
6, 2016 andNovember 1, 2016recommended City Council approve theproposed City Code
amendments within this Ordinance.
NOW, THEREFORE, THE CITY OF SEWARD ORDAINS that:
5
CITY OF SEWARD, ALASKA
ORDINANCE 2016-009
Page 2of 3
Section 1. Seward City Code is hereby amended as follows:
Chapter 15.10.220Development Requirements –Notesishereby amended as follows:
(Deletions are Bold Strikethroughs; Additions are Bold Underline)
15.10.220DevelopmentRequirements - Notes
***
NOTE 2.
***
B. In the R1, R2, R3, UR, OR and ,AC and CBDistricts, fromthe Seward
Highway/Phoenix Road intersectionVan Buren Street South, 6,0003,000SF and
north, 7,0006,000SF with 6030 and 7060foot minimum frontages respectively, for
single-family residences.
***
D. In the R1, R2, R3, UR, OR and,AC and CBDistricts, individual originallyplatted
lots of at least 3,000 SF in the Original Townsite, Federal Addition, Laubner Addition,
Cliff Addition and Bayview Addition may be developed for single-family residences
provided all other development requirements of this chapter are met.
***
F. Two-family or duplex developments require a minimum of 6,000 SF in the R2,
R3, UR, OR, AC and CB Districts and 20,000 SF in the RM District. Duplex
developments within the Federal Addition Subdivision require 5,000 SF. All other
development requirements of this chapter shall bemet.
Section 2.This ordinance shall take effect ten (10) days following enactment.
th
ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,this 9
day of January, 2017.
THE CITY OF SEWARD, ALASKA
Jean Bardarson, Mayor
6
CITY OF SEWARD, ALASKA
ORDINANCE 2016-009
Page 3of 3
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
______________________
Johanna Kinney, CMC
City Clerk
(City Seal)
7
8
9
10
11
12
13
14
15
16
17
Sponsored by: Hunt
Introduction:January 9, 2017
Public Hearing:January 23, 2017
Enactment:January 23, 2017
CITY OF SEWARD, ALASKA
ORDINANCE 2017-001
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AMENDING SEWARD CITY CODE 7.10.320(J) (2), RESERVED
MOORAGE, DURATION, DEATH - REMOVING “ANNUAL” FROM THE
TERM “ANNUAL MOORAGE FEE”
WHEREAS,to better conform with Internal Revenue Service (IRS) requirements, the City
Council amended the Harbor Tariff in 2014 to allow for semi-annual moorage commitments by
Resolution 2014-092; and
WHEREAS,currently the City of Seward does not collect annual fees for reserve tenant
moorage; and
WHEREAS,the City Code 7.10.320 (J) (2) refers to the moorage fee as an annual moorage
fee; and
WHEREAS,as a technical change and for better clarity, staff is requesting removal of the
word “annual” from this section of the code; and
WHEREAS,upon review of the City Code, there were no other references to an annual
moorage fee found.
NOW THEREFORE,THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA,HEREBY ORDAINSthat:
Section 1.Seward City Code Section 7.10.320 (J) is amended as follows:
Strikeout = deleteBold Italics= new
7.10.320 – Reserved Moorage
J.Duration. A holder's rights to reserved moorage space, once assigned, continues
until the holder ceases having a qualifying interest in a vessel suitable for the
assigned space, until the holder's death, or until the holder's voluntarily or
involuntarily relinquishment of the space. A holder's right does not transfer with the
sale or other disposition of the vessel.
…
18
CITY OF SEWARD, ALASKA
ORDINANCE 2017-001
___________________________
2.Death.In the case of the death of the holder the space may be transferred only to
the holder's family member. To be an effective transfer the family member must have
a qualifying interest in the vessel assigned to the reserved moorage space and must
make a request for transfer, in writing, to the harbormaster with appropriate
documentation no later than the date the next annualmoorage fee is due.
Section 2. This ordinance shall take effectten days following its enactment.
rd
ENACTED by the City Council of the City of Seward, Alaska, this 23 day of January,
2017.
THE CITY OF SEWARD, ALASKA
________________________________
Jean Bardarson, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
______________________________
Johanna Kinney, CMC
City Clerk
(City Seal)
19
20
21
22
23
24
25
26
27
28
Sponsored by:Hunt
CITY OF SEWARD, ALASKA
RESOLUTION 2017-001
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING AN ADDITIONAL $32,080.91 TOWARD
HARBOR FLOAT CONSTRUCTIONREPRESENTING THE STATE OF
ALASKA’S ADDITIONAL ADMINISTRATIVE FEEREQUIRED AFTER
PROJECT START, ANDAPPROPRIATING FUNDS
WHEREAS,the City of Seward,by Resolution 2015-072, approved accepting grant
funds from the State of Alaska Facility Grant Program in the amount of $2,684,000; and
WHEREAS,the signed grant agreement stipulated that the State’s share of
administrative fees (Indirect Cost Allocation Plan or ICAP) on the grant would be equivalent to
2% of the grant, but that the “grantor reserves the right to modify the department’s ICAP rates as
necessary”; and
WHEREAS, during the project on October 1, 2015, the State unilaterally raised the
ICAP to 3.34%for all reimbursements between October 1, 2015 and July 1, 2016, andagain on
July 1, 2016, raised the ICAPto 3.97% for all reimbursements subsequent to July 1, 2016; and
WHEREAS, the FacilityGrant Funding amount went from $2,684,000 to a reduced
amount of $2,594,520; $53,680 was appropriated in Resolution 2015-075 to cover a portion of
ICAP, leaving a remaining shortfall of $35,795.08; and
WHEREAS,the City came in under budget on the project by $3,714.17 which, when
applied to the required ICAP, leaves a remaining shortfall of $32,080.91 which will be
appropriated from the same source of CPV funds as used to fund the City’s share of the project.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA that:
Section 1. Funding in the amount of $32,080.91 is hereby appropriated from
Commercial Passenger Vessel Tax Fund no. 11113-0000-3071-11372 to the A, B, C and S-float
Replacement Project infrastructure account no. 11372 0000 8101 to cover the shortfall.
Section 2.This resolution shall take effect immediately upon its adoption.
th
PASSED AND APPROVEDby the City Council of the City of Seward, Alaska, this 9
day of January, 2017.
29
CITY OF SEWARD, ALASKA
RESOLUTION 2017-001
___________________________
THE CITY OF SEWARD, ALASKA
Jean Bardarson, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
______________________
Johanna Kinney, CMC
City Clerk
(City Seal)
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Sponsored by: Hunt
CITY OF SEWARD, ALASKA
RESOLUTION 2017-002
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A
COOPERATIVE AGREEMENT WITH THE STATE OF ALASKA
DEPARTMENTOF FISH & GAME (ADF&G) DIVISION OF
ADMINISTRATIVE SERVICES FOR THE FEDERAL AID IN SPORT
FISH RESTORATION RECREATIONAL BOATING ACCESS
PROGRAMFOR THE PURPOSE OF DESIGNING AND PERMITTINGA
REPLACEMENTSEWARD SOUTH HARBOR LAUNCH RAMP
WHEREAS, in 2011 ADF&G evaluatedthe South Launch rampand determined it
neededto be replaced; and
WHEREAS, the City has pursued funding with ADF&G to replace the South Launch
Ramp; and
WHEREAS,the City of Seward, by Resolution 2016-033, committed to ADF&G to
provide funding fora 25% City match to replace the South Harbor Launch Ramp, under the
Phase II construction portion of the project; and
WHEREAS, ADF&G has sent the City a Cooperative Agreement to start Phase 1of the
project, including design and permitting; and
WHEREAS,ADF&G and the Federal Aid in Sport Fishing Restoration Recreational
Boating Access Program will fully fund Phase 1 with the estimated cost of $400,000; and
WHEREAS,the City of Seward will continue to comply with the ADF&G agreement for
the complete renovation of the South Harbor Launch Ramp.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA that:
Section 1. The City Manager is hereby authorized to enter into a cooperativeagreement
with ADF&G and the Federal Aid in Sport Fishing Restoration Recreational Boating Access
Programfor Phase 1 of the City of Seward South Harbor renovation project, in substantial form
as presented at this meeting.
S
ection 2. This resolution shall take effect immediately.
th
PASSED AND APPROVEDby the City Council of the City of Seward, Alaska, this 9day of
January, 2017.
51
CITY OF SEWARD, ALASKA
RESOLUTION 2017-002
___________________________
THE CITY OF SEWARD, ALASKA
Jean Bardarson, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
______________________
Johanna Kinney, CMC
City Clerk
(City Seal)
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
Sponsored By: Hunt
CITY OF SEWARD, ALASKA
RESOLUTION 2017-003
A RESOLUTION OF THE CITY COUNCIL OF SEWARD, ALASKA,
AUTHORIZING THE ISSUANCE OF A GENERAL OBLIGATION BOND
OF THE CITY IN A PRINCIPAL AMOUNT NOT TO EXCEED $3,000,000
TO FINANCE COSTS OF CAPITAL IMPROVEMENTS TO ROADS IN
THE CITY, AS AUTHORIZED BY RESOLUTION 2016-045 AND
RATIFIED BY THE CITY’S VOTERS AT AN ELECTION HELD ON
OCTOBER 4, 2016; AUTHORIZING TAX LEVIES TO PAY THE
PRINCIPAL THEREOF AND INTEREST THEREON; AND
AUTHORIZING THE SALEOF THE BOND TO THE ALASKA
MUNICIPAL BOND BANK ON THE TERMS AND CONDITIONS
PROVIDED IN THIS RESOLUTION
WHEREAS,at an election held in Seward, Alaska (the “City”), on October 4, 2016, the
number and proportion of qualified electors of the City as required by law for the adoption
thereof voted in favor of the proposition authorizing the issuance of general obligation bonds of
the Cityin a principal amount not to exceed $3,000,000to financecapitalimprovements to roads
in the City (the “Project”), as authorized by Resolution 2016-045 of the Citypassed on July 25,
2016(the “Election Legislation”); and
WHEREAS, the Council wishes to authorize the issuance of not to exceed $3,000,000
principal amount of the general obligation bondsauthorized by the Election Legislationand
approved by the City’svoters; and
WHEREAS,it is in the best interest of the Cityto sell the bonds to the Alaska Municipal
Bond Bank (the “Bond Bank”) on the terms and conditions set forth herein and in a loan
agreement authorized by this resolution to be entered into by the City Manageror Finance
Director.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKAthat:
Section 1.Definitions. As used in this resolution, the following words have the
following meanings, unless a different meaning clearly appears from the context:
“Bond”means the City of Seward, Alaska, General Obligation Road Bond, 2017, in a
principal amount not to exceed $3,000,000, authorized to be issued and sold to the Bond Bank
pursuant to this resolution.
“Bond Bank” means the Alaska Municipal Bond Bank, a public corporation and
instrumentality of the State of Alaska, created pursuant to the provisions of Chapter85, Title 44,
Alaska Statutes, as amended.
76
CITY OF SEWARD, ALASKA
RESOLUTION 2017-003
____________________________
“Bond Bank Bonds” means bonds to be issued by the Bond Bank to provide funds to be
loaned to the City pursuant to the terms of the Loan Agreement.
“Bond Fund” means the “Cityof Seward Obligation Bond Redemption Fund, 2017,”
authorized to be created by Section 5 of this resolution.
“Bond Premium” means proceeds of the Bond representing an allocation of original issue
premium, if any, on the Bond Bank’s Bonds.
“Bond Register” means the registration books for the Bond maintained by the Registrar,
for the purpose of complying with the requirements of Section149 of the Code and listing, inter
alia, the names and addresses of the Registered Owner of the Bond.
“City” means City of Seward, a first class home rule municipal corporation duly
organized and existing under the Constitution and laws of the State of Alaska and its Charter.
“Code” means the federal Internal Revenue Code of 1986, as amended, together with
corresponding and applicable final, temporary or proposed regulations and revenue rulings
issued or amended with respect thereto by the United States Treasury Department or the Internal
Revenue Service, to the extent applicable to the Bond.
“Council” means the Council of the City of Seward, the general legislative authority of
the City, as the same shall be duly constituted from time to time, or any successor body.
“Election Legislation” means Resolution 2016-045 of the City, adopted by the Council
onJuly 25, 2016, and ratified by the City’svoters in an election held in the Cityon October 4,
2016.
“Finance Director
”meansthe City’s Finance Director or the successor to the duties of
that office.
“Government Obligations” means any bonds or other obligations that, as to principal and
interest, constitute direct obligations of, or are unconditionally guaranteed by, the United States
of America.
“Loan Agreement” means the Loan Agreement by and between the Cityand the Bond
Bank authorized to be entered into pursuant to Section 12 of this resolution.
“Project Fund” means the “Road Project Fund, 2017,” created pursuant to Section11 of
this resolution.
“Registrar” means the Finance Director, for the purposes of registering and authenticating
the Bond, maintaining the Bond Register, and paying principal of and interest on the Bond.
77
CITY OF SEWARD, ALASKA
RESOLUTION 2017-003
____________________________
“Registered Owner” means the person in whose name the Bond is registered on the Bond
Register.
“Rule
” means the SEC’s Rule 15c2-12 under the Securities Exchange Act of 1934.
“SEC” means the Securities and Exchange Commission.
“Tax Certificate” means the certificate with respect to federal tax matters relating to the
Bond authorized to be executed by the Finance Director pursuant to the provisions of Section7
of this resolution.
Words of the masculine gender will be deemed and construed to include correlative
words of the feminine and neuter genders. Words imparting the singular number include the
plural numbers and vice versa unless the context otherwise indicates. Reference to sections and
other subdivisions of this resolution are to the sections and other subdivisions of this resolution
as originally adopted unless expressly stated to the contrary. The headings or titles of the
sections hereof, and the table of contents appended hereto, are for convenience of reference only
and do not define or limit the provisions hereof.
Section 2.Authorization of the Bond. The Cityshall now issue and sell not to
exceed $3,000,000principal amount of the general obligation bonds authorized by the Election
Legislation and approved by the City’s voters at an election held on October 4, 2016, to finance a
portion of the cost of capital improvements to roads located in the City and as described in the
Election Legislationand to pay costs of issuance of the bonds, all as authorized by the Election
Legislation. The bonds shall be issued and sold to the Bond Bank as a single bond in a principal
amount not toexceed $3,000,000, designated as the “City of Seward, Alaska, General Obligation
Road Bond, 2017” (the “Bond”). The Bond shall be fully registered as to both principal and
interest, shall be numbered separately in such manner as the Registrar determines, shall be dated
as of the date to be established in accordance with Section 12 hereof, and shall mature on the
date or dates, bear interest at the rate or rates, and be payable on the dates and in the principal
amounts to be established in accordance with Section 12 hereof. Interest on the Bond shall be
computed on the basis of a 360-day year consisting of twelve 30-day months.
Section 3.Registration, Payment and Transfer. The Finance Director will act as
authenticating agent, transfer agent, paying agent and registrar for the Bond (collectively, the
“Registrar”). Both principal of and interest on the Bond are payable in lawful money of the
United States of America. Interest on the Bond will be paid by check or draft of the Registrar
mailed (on the date such interest is due) to the Registered Owner or nominee at the addresses
appearing on the Bond Register on the fifteenth day of the month preceding each interest
payment date. Principal of the Bond is payable upon presentation and surrender of the Bond to
the Registrar by the Registered Owner or nominee at the office of the Registrar in Seward,
Alaska. Notwithstanding the foregoing, if the Bond issold to the Bond Bank pursuant to the
provisions of Section 12 of this resolution, and for so long as the Bond Bank is the owner of the
Bond, payments of principal of and interest on the Bond will be made to the Bond Bank in
accordance with the Loan Agreement.
78
CITY OF SEWARD, ALASKA
RESOLUTION 2017-003
____________________________
The Bond may be transferred only on the Bond Register maintained by the Registrar for
that purpose upon the surrender thereof by the Registered Owner or nominee or his or her duly
authorized agent and only if endorsed in the manner provided thereon, and thereupon a new fully
registered Bond of like principal amount, maturity and interest rate will be issued to the
transferee in exchange therefor. Upon surrender thereof to the Registrar, the Bond is
interchangeable for a bond or bonds (in denominations of $5,000 or any integral multiple
thereof) of an equal aggregate principal amount and of the same interest rates and principal
payment amounts as the Bond. Such transfer or exchange will be without cost to the Registered
Owner or transferee.
The Citymay deem the person in whose name theBond is registered to be the absolute
owner thereof for the purpose of receiving payment of the principal of and interest on the Bond
and for any and all other purposes whatsoever.
Section 4.Prepayment. Provisions for the optional prepayment of some or all
principal installments of the Bond may be established pursuant to Section 12 and will be set forth
in the Loan Agreement. Portions of the principal amount of the Bond, in increments of $5,000 or
any integral multiple of $5,000, may be prepaid.
So long as the Bond Bank is the owner of the Bond, notice of prepayment will be given
according to the terms of the Loan Agreement. If the Bond Bank is not the owner of the Bond,
notice of prepayment thereof will be given not less than 20 nor more than 60 days prior to the
date fixed for prepayment by first class mail, postage prepaid, to the Registered Owner of the
Bond at the address appearing on the Bond Register. The requirements of this section will be
deemed complied with when notice is mailed as herein provided, regardless of whether it is
actually received by the owner of the Bond. Each official notice of prepayment will be dated and
state: (i)the prepayment date, (ii) the prepayment price or prepayment premium, if any, payable
upon prepayment; (iii)if less than all of an installment of principal is to be prepaid, the principal
amount to be prepaid (which must be an integral multiple of $5,000); (iv)that the interest on the
Bond, or on the principal amount thereof to be prepaid, designated for prepayment in the notice,
will cease to accrue from and after the prepayment date; and (v)that on that date there will
become due and payable on the Bond the principal amount thereof to be prepaid and the interest
accrued on that principal amount to the prepayment date.
Section 5.Bond Fund; Pledge of Taxes. A special fund of the Cityknown as the
“Cityof Seward General Obligation Bond Redemption Fund, 2017” (the “Bond Fund”), is
hereby authorized to be created in theoffice of the Finance Director. The Bond Fund may only
be drawn upon for the purpose of paying principal of and interest on the Bond.
The Bond is a general obligation of the City. As authorized by the Election Legislation,
the Cityhereby irrevocably covenants that, unless the principal of and interest on the Bond are
paid from other sources, it will make annual levies of property taxes without limitation as to rate
or amount, and in amounts sufficient, together with other legally available funds, to pay such
principal and interest as the same become due. The full faith and credit of the Cityare hereby
79
CITY OF SEWARD, ALASKA
RESOLUTION 2017-003
____________________________
irrevocably pledged for the annual levy and collection of such property taxes and for the prompt
payment of such principal and interest.
ection 6.Defeasance
S. If money and/or Government Obligations, maturing at such
time or times and bearing interest to be earned thereon in amounts sufficient to redeem and retire
the Bond or a portion thereof in accordance with its terms, are set aside in a special account to
effect such prepayment and retirement, and such money and the principal of and interest on such
obligations are irrevocably set aside and pledged for such purpose, then no further payments
need be made into the Bond Fund for the payment of the principal of and interest on the Bond or
portion thereof so provided for, and the Bond or portion thereof will cease to be entitled to any
lien, benefit or security of this resolution except the right to receive the money so set aside and
pledged, and the Bond or portion thereof will be deemed not to be outstanding hereunder.
Section 7.Tax Covenants.
(a)General. The Citycovenants not to take any action, or knowingly to omit
to take any action within its control, that if taken or omitted would cause the interest on the Bond
to be includable in gross income, as defined in section 61 of the Code, for federal income tax
purposes.
(b)Tax Certificate. Upon the issuance of the Bond, the Finance Directoris
authorized to execute a federal tax certificate (the “Tax Certificate”), which will certify to
various facts and representations concerning the Bond, based on the facts and estimates known
or reasonably expected on the date of their issuance, and make certain covenants with respect to
the Bond as may be necessary or desirable to obtain or maintain the benefits conferred under the
Code relating to tax-exempt bonds.
The Citycovenants that it will comply with the Tax Certificate unless it receives advice
from nationally recognized bond counsel or the Internal Revenue Service that certain provisions
have been amended or no longer apply to the Bond.
Section 8.Lost or Destroyed Bond. If a Bond is lost, stolen or destroyed, the
Registrar may authenticate and deliver a new Bond of like amount, date, and tenor to the
Registered Owner upon such owner’s paying the expenses and charges of the Cityin connection
with preparation and authentication of the replacement Bond and upon his or her filing with the
Registrar evidence satisfactory to the Registrar that the Bond was actually lost, stolen or
destroyed and of his or her ownership, and upon furnishing the Citywith indemnity satisfactory
to the Registrar.
80
CITY OF SEWARD, ALASKA
RESOLUTION 2017-003
____________________________
Section 9.Form of the Bond. The Bond will be in substantially the following form:
NO. R-1 $_______
UNITED STATES OF AMERICA
STATE OF ALASKA
CITYOF SEWARD, ALASKA
GENERAL OBLIGATION ROAD BOND, 2017
INTEREST RATE:FINAL MATURITY DATE:
SEE BELOW
REGISTERED OWNER:ALASKA MUNICIPAL BOND BANK
PRINCIPAL AMOUNT: ________________ DOLLARS
The City of Seward, Alaska (the “City”), a first class home rule municipal corporation
organized and existing under and by virtue of the laws and Constitution of the State of Alaska
and its Charter, hereby acknowledges itself to owe and for value received promises to pay to the
Registered Owner identified above, or registered assigns, the principal amount specified above,
in installments payable as set forth below, together with interest on such installments fromthe
date hereof or the most recent date to which interest has been paid or duly provided for, at the
interest rates set forth below, on _______, 20__, and on each _______1 and _______1
thereafter until payment of the principal sum has been made or duly provided for.
Principal Installment
Payment YearPrincipal InstallmentInterest
(______ 1) Amount Rate
Both principal of and interest on this bond are payable in lawful money of the United
States of America. Installments of principal of and interest on this bond are payable by check or
draft of the Finance Directorof the City(the “Registrar”) mailed on the date such interest is due
to the Registered Owner at the address appearing on the Bond Register as of the fifteenth day of
the month preceding the interest payment date. The final installment of principal of and interest
on this bond will be paid to the Registered Owner upon presentation and surrender of this bond
at the office of the Registrar. Notwithstanding the foregoing, so long as the Bond Bank is the
81
CITY OF SEWARD, ALASKA
RESOLUTION 2017-003
____________________________
Registered Owner of this bond, payments of principal of and interest on this bond will be made
to the Bond Bank in accordance with the Loan Agreement.
This bond is a general obligation bond of the City, as authorized by Resolution 2016-045
of the City, which was approved by the voters of the City, and issued pursuant to Resolution
2017-___, adopted by the City Council on __________ __, 20__ (the “Bond Resolution”), to
finance capital improvementsto roads located in the City. Capitalized terms used in this bond
and not otherwise defined herein have the meanings given those terms in the Bond Resolution.
Principal installments of this bond are subject to prepayment as provided in the Loan
Agreement.
The Cityhereby irrevocably covenants that, unless the principal of and interest on this
bond are paid from other sources, it will make annual levies of property taxes without limitation
as to rate or amount, and in amounts sufficient, together with other legally available funds, to pay
such principal and interest as the same becomes due. The full faith and credit of the Cityare
hereby irrevocably pledged for the annual levy and collection of such property taxes and for the
prompt payment of such principal and interest.
The pledge of tax levies for payment of principal of and interest on this bond may be
discharged prior to maturity of the bond by making provision for the payment thereof on the
terms and conditions set forth in the Bond Resolution.
This bond will not be valid or become obligatory for any purpose or be entitled to any
security or benefit under the Bond Resolution until the Certificate of Authentication hereon has
been manually signed by the Registrar.
It is hereby certified and declared that this bond is issued pursuant to and in strict
compliance with the Constitution and laws of the State of Alaska and the charter, ordinances, and
resolutions of the City, that all acts, conditions and things required to be done precedent to and in
the issuance of this Bond have happened, been done and performed, and that this bond does not
exceed any Constitutional or statutory limitations.
IN WITNESS WHEREOF, Cityof Seward, Alaska, has caused this bond to be signed on
behalf of the Citywith the manual or facsimile signature of the Mayor, attested by the manual or
82
CITY OF SEWARD, ALASKA
RESOLUTION 2017-003
____________________________
facsimile signature of the CityClerk, and the seal of the Cityto be imprinted or impressed
hereon, as of this ___ day of ___________, 2017.
CITYOF SEWARD, ALASKA
By /s/
Mayor
\[SEAL\]
ATTEST:
/s/
CityClerk
CERTIFICATE OF AUTHENTICATION
Date of Authentication: ___________________
This is the CityOF Seward, Alaska, General Obligation Road Bond, 2017, dated
_____________, 2017, as described in the Bond Resolution.
Finance Director,Cityof Seward, Alaska, as
Registrar
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
PLEASE INSERT SOCIAL SECURITY OR TAXPAYER IDENTIFICATION NUMBER OF
TRANSFEREE
(Please print or typewrite name and address, including zip code of Transferee)
83
CITY OF SEWARD, ALASKA
RESOLUTION 2017-003
____________________________
the within bond and all rights thereunder and does hereby irrevocably constitute and appoint
of , or its
successor, as agent to transfer said bond on the books kept by the Registrar for registration
thereof, with full power of substitution in the premises.
DATED: ________________, ______.
SIGNATURE GUARANTEED:
NOTE: The signature of this Assignment
must correspond with the name of the
Registered Owner as it appears upon the
face of the within bond in every particular,
without alteration or enlargement or any
change whatever.
Section 10.Execution of the Bond. The Bond will be signed on behalf of the Cityby
the manual or facsimile signature of the Mayor, attested by the manual or facsimile signature of
the City Clerk, and the seal of the City will be impressed or imprinted thereon.
Only a Bond that bears thereon a Certificate of Authentication in the form set forth in
Section9 hereof, manually executed by the Registrar, will be valid or obligatory for any purpose
or entitled to the benefits of this resolution. The executed Certificate of Authentication will be
conclusive evidence that the Bond so authenticated has been duly executed, authenticated,
registered, and delivered hereunder and is entitled to the benefits of this resolution.
If any officer who has signed or attested the Bond ceases to be an officer of the City
authorized to sign bonds before the Bond bearing his or her signature is authenticated or
delivered by the Registrar or issued by the City, that Bond nevertheless may be authenticated,
issued and delivered and, when authenticated, issued and delivered, will be as bindingon the
Cityas though that person had continued to be an officer of the Cityauthorized to sign bonds.
The Bond also may be signed on behalf of the Cityby any person who, on the actual date of
signing of the Bond, is an officer of the Cityauthorized tosign bonds, although he or she did not
hold the required office on the date of issuance of the Bond.
Section 11.Application of Bond Proceeds. A special fund of the Cityknown as the
“Road Project Fund, 2017” (the “Project Fund”) is hereby authorized tobe created in the office
of the Finance Director. At the time of delivery of the Bond, the proceeds of the sale of the Bond
will be deposited as follows:
84
CITY OF SEWARD, ALASKA
RESOLUTION 2017-003
____________________________
(a)The accrued interest, if any, to the date of delivery will be deposited in the
Bond Fund and used to pay a portion of interest on the Bond on the first interest payment date;
and
(b)The remaining Bond proceeds will be deposited in the Project Fund and
used to pay costs of the Project and costs of issuance of the Bond, as authorized by the Election
Legislation; provided, however, that any Bond Premium exceeding the costs of issuing the Bond
must be deposited in the Bond Fund or other purpose set forth in the Tax Certificate.
Money remaining in the Project Fund after all such costs have been paid or reimbursed
will be deposited in the Bond Fund. Money in the Project Fund may be invested as permitted by
law. All interest earned and profits derived from such investments will be retained in and
become a part of the Project Fund.
Section 12.Sale of the Bond.The CityManager and Finance Director are authorized
to complete the sale of the Bond to the Bond Bank on terms and conditions consistent with this
resolution and a loan agreement in the form set forth on Exhibit A attached to this resolution (the
“Loan Agreement”). Following the sale of the Bond Bank Bonds, such terms and conditions,
including the final principal amount, date, principal installment payment schedule, interest rates
and prepayment provisions for the Bond, all as provided forin this resolution, will be set forth in
the Loan Agreement, subject to the CityManager’s or Finance Director’s approval, which
approval will be conclusively evidenced by his or her signing and delivering the Loan
Agreement to the Bond Bank. Provided, however, in no event shall the term of the Bond exceed
twenty-five (25) years.
Section 13.Ongoing Disclosure. The Cityacknowledges that, under Rule 15c2-12 of
the Securities and Exchange Commission (the “Rule”), the Citymay now or in the future be an
“obligated person” with respect to the Bond Bank Bonds. In accordance with the Rule and as the
Bond Bank may require, the Citywill undertake to provide certain annual financial information
and operating data as set forth in the Loan Agreement.
Section 14.General Authorization; Prior Acts. The Mayor, City Manager, Finance
Director and CityClerk and any other appropriate officers of the Cityare each hereby authorized
and directed to take such steps, to do such other acts and things, and to execute such letters,
certificates, agreements, papers, financing statements, assignments or instruments as in their
judgment may be necessary, appropriate or desirable to carry out the terms and provisions of,
and complete the transactions contemplated by, this resolution. All acts taken pursuant to the
authority of this resolution but prior to its effective date are hereby ratified and confirmed.
Section 15.Severability. If any covenant or agreement provided in this resolution to
be performed on the part of the Cityis declared by any court of competent jurisdiction to be
contrary to law, then that covenant or agreements will be null and void and deemed separable
from the remaining covenants and agreements of this resolution and shall in no way affect the
validity of the other provisions of this resolution or of the Bond.
85
CITY OF SEWARD, ALASKA
RESOLUTION 2017-003
____________________________
Section 16.Effective Date. This resolution will be in full force and effect
immediately following approval by the Council.
th
PASSED AND APPROVEDby the City Council of the City of Seward, Alaska, this 9
day of January, 2017.
CITYOF SEWARD, ALASKA
Jean Bardarson, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Johanna Kinney, CMC
City Clerk, City of Seward
(City Seal)
86
EXHIBIT A
\[Attach here the form of Bond Bank Loan Agreement\]
A-1
87
88
89
FORM OF
LOAN AGREEMENT
THIS LOAN AGREEMENT, dated as of the ___ day of ____________ 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 the City of Seward,
Alaska, a duly constituted City of the State (the “City”):
W I T N E S S E T H:
WHEREAS, pursuant to the Act, the Bank is authorized to make loans of money (the
“Loan” or “Loans”) to governmental units; and
WHEREAS, the Cityis 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 Citydesires 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 Cityhas 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 Citycontains 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. 20__-__, approved on ____ __, 20__ (together with the General Bond Resolution, the “Bond
Resolution”), authorizing the making of such Loan to the Cityand 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 Bankhereby makes the Loan and the Cityaccepts the Loan in the aggregate
principal amount of $_________. As evidence of the Loan made to the Cityand such money
borrowed from the Bank by the City, the Cityhereby 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.
90
2.The Cityrepresents that it has duly adopted or will adopt all necessary ordinances
or resolutions, including Resolution 2017-___, adopted onJanuary 9, 2017 (the “City
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 of the City, all duly
authorized by the City Resolution.
3.Subject to any applicable legal limitations,the amounts to be paid by the City
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 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 tobe paid by the City 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 pursuant tothis Loan Agreement are not made available at any time specified herein, the
City 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, 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 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 Bond as
previously established under this Loan Agreement. In the event of such a refunding of Loan
Obligations, the Bank shall present to the Cityfor the City’s approval, a revised schedule of
principal installment amounts and interest rates for the Municipal Bond. If approved by the City
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.
Page 2
91
7.The City is obligated to pay to the Bank Fees and Charges. Such Fees and
Charges actually collected from the City shall be in an amount sufficient, together with the City’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 Allocable Proportion of the
Administrative Expenses of the Bank; and
(b)to pay, as the same become due, the City’sAllocable Proportion of the
fees and expenses of the Trustee and paying agent for the Loan Obligations.
The City’sAllocable 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.
8.The City 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 Cityis 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 Cityshall 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 suchsale 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 of the
Municipal Bond (or portion thereof) to be redeemed. The Citygive 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 shall be obligated to pay
or the Bank shall receive under item (i) above shall be the principal amount of such refunding
bonds outstanding.
Page 3
92
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 Cityshall 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 Cityshall 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 Cityfrom 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
shall furnish to the Bank evidence satisfactory to the Bank which shall set forth, among other
things, that the Municipal Bond will constitutea valid and binding general obligation of the City,
secured by the full faith and credit of the City.
11.Invoices for payments under this Loan Agreement shall be addressed to the City,
Attention: ________, ________, ________, Alaska 99___. The City 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.\[The City hereby agrees that it shall fully fund, at the time of loan funding, its
debt service reserve fund (in an amount equal to $ _______________) which secures payment
of principal and interest on its Municipal Bond, that such fund shall be held in the name of the
City with the Trustee, and that the yield on amounts held in such fund shall be restricted to a
yield not in excess of ___________ percent.
(Applies to revenue bonds only.)\]
13.\[Rate covenant language – if applicable.\]
14.The Cityhereby 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 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 Cityagrees 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:
Page 4
93
(a)Any representation, warranty or other statement made by the City 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 Cityhas violated commitments made by it in the terms of this Loan
Agreement.
(c)The financial position of the Cityhas, 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 Cityagrees that it will provide the Bank with written notice of any default in
covenants under the City Resolution within thirty (30) days from the date thereof.
18.The City 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 Cityfor the term ofthe Municipal Bond. The Cityfurther agrees that filings
under this Section 18 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. The Cityagrees that if it shall receive from the Bank CUSIP
number(s) in addition to those set forth in this Section thenit shall make its filings using both
CUSIP numbers herein stated and any additional CUSIP number(s).
19.The Cityagrees 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.
The Cityshall 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 Cityshall 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 Cityshall 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 Cityshall indemnify
and hold harmless the Bank from any obligation of the Cityto make rebate payments to the
UnitedStates under said Section 148 arising from the City’suse or investment of the proceeds of
the Municipal Bond.
20.Upon request of the Bank, the Cityagrees that if its bonds constitute ten percent
(10%) or more of the outstanding principal of municipal bondsheld by the Bank under its
General Bond Resolution, it shall execute a continuing disclosure agreement prepared by the
Page 5
94
Bank for purposes of Securities and Exchange Commission Rule 15c2-12, adopted under the
Securities and Exchange Act of 1934.
21.The Cityagrees 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 whichconstitute 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 term 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.
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.
Page 6
95
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: ____________________________________
Page 7
96
EXHIBIT A
$____________
\[City\] \[Borough\], Alaska
\[General Obligation\] \[Revenue\] Bond, 20__\[__\]
(“Municipal Bond”)
DuePrincipalInterest
_________1Amount Rate
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 ___________ 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.
OHSUSA:766245999.1
Page A-1
97
98
99
100
101
102
103
104
105
106
107
City of Seward, AlaskaCity Council Minutes
December 12, 2016 Volume 40, Page
CALL TO ORDER
The December 12, 2016 regular meeting of the Seward City Council was called to order at
7:00 p.m. by Mayor Jean Bardarson.
OPENING CEREMONY
Police Chief Tom Clemonsled the Pledge of Allegiance to the flag.
ROLL CALL
There werepresent:
Jean Bardarson, presiding and
Marianna Keil Ristine Casagranda
Dave Squires Sue McClure
Deborah Altermatt ErikSlater
comprising a quorum of the Council; and
Jim Hunt,City Manager
Johanna Kinney, City Clerk
Will Earnhart, City Attorney
Absent – None
CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR
PUBLIC HEARING
LutherFreemansaid the AVTEC gym contract needed improvement and wished the public
had been able to provide input in the negotiations of the facility use agreement between the city and
AVTEC.He didn’t think AVTEC should have ever been closed to begin withbecause it was too
important to the community.The current schedule was unsettling and he hoped the city would get
this matter would get better resolved.
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion (Keil/Casagranda) Approval of Agenda and Consent Agenda
Bardarson stated Chugach Electric was unable to attend tonight’s meeting and removed
“Presentation of capital credit check and update on TRANSCO/USO by Chugach Electric”from the
agenda.
Bardarson took the Introduction of Ordinance 2016-009 off the consent agenda.
108
City of Seward, AlaskaCity Council Minutes
December 12, 2016 Volume 40, Page
Assistant City Manager Ron Long requested to add a discussion item regarding consolidated dispatch
be added under Other New Business Items.
Motion Passed Unanimous
The clerk read the following approved consent agenda items:
Approval of the October 24, 2016 and the November 21, 2016 City Council Meeting Minutes.
Cancel the December 27, 2016 City Council Meeting.
Non-objection to the renewal of Beverage Dispensary Liquor License #1245 for Yukon Bar.
SPECIAL ORDERS, PRESENTATIONS AND REPORTS
Proclamations & Awards
Proclamation recognizing Katelyn Correa for designing the Seward City Flag.
Retrieving the Colors of Seward City logo flag and the raising of the new Official
Seward City Flag in Council Chambers.
Recognition of citizen Dano Michaud for volunteer work in repairing the city’s
Christmas Tree on Bear Mountain.
Chamber of Commerce Report. Cindy Clocksaid the chamber had recently finished a
social media course. The chamber’s website, Seward.com,was temporarily down Saturday.There
were 3,500 Seward destination guides going out for distributionand the 2017 guides would print
mid-January.The chamber would be closed between Christmas and New Year’s.Clock announced
the annual Community Awards Banquet would be February 3, 2017at the Seward Resort. As a voice
of business, Clock asked the city be cognizant of competing with businesses when discussing the
services provided at AVTEC.
City Manager Report. Jim Huntstated nopurchase ordersbetween $10,000 and $50,000
were authorized by him since the last meeting.Public Works had been busy with the cold weather.
Long thanked Dano Michaud for his efforts with the Christmas treeon Bear Mountain and noted the
tree was not lit immediately because it had been vandalized.December 13, 2016 would be the last of
the public sessions on the Comprehensive Plan.The first draft should be delivered mid-January by
the contractors.Administration had received multiple visits from the Army Corps of Engineers
regarding Lowell Canyon Tunnel.Long stated he attended the North Pacific Fishery Management
Council anniversary banquet along with Council Member Casagranda.
Regarding the facility use agreement with AVTEC, Long stated negotiations had gone well
and he thought the city was close to doing everything that they agreed upon. He explained the city
was operating on a modest schedule and obtaining public feedback on the hours of the public usage.
109
City of Seward, AlaskaCity Council Minutes
December 12, 2016 Volume 40, Page
The schedule would change based on public needs and as funds allowed.Hunt added the council may
remember the dozens of people providing testimony earlier this year as to which services and hours
they would like to see.
Keil was concerned with some deficiencies at the animal shelter and had heard funds for
supplies was not enough for the duration of the year as they were taking donations of materials such
as blankets, food, etc. Long added there was a donation drop box at City Hall as well.
Casagranda emphasized the importance of the Seward Comprehensive Plan and that this
document forecasted the future of the city.She invited the public to come and give input on what
they wanted Seward to look like in twenty years. She was concerned there wasn’t enough public
input on this planand wished the public session tomorrow night was not the last.Keil disagreed and
thought there was a lot of notice of the meetings.
City Attorney Report, Will Earnhart said it had been quiet.The Orionlitigation was on
appeal and Orion had posted a bond so perhaps the city would be getting their money back. Orion
had shown no interest in coming to an agreement on a rational settlement amount.Earnhart advised
that as a general thought, any time an outside entity approachedthem business-wise, to use caution,
listen and don’t take a position.This month the City Attorney worked on ordinances, contracts, and
on public records.
Other Reports, Announcements and Presentations
Presentation on the 2015 Comprehensive Annual Financial Report (CAFR) by BDO,
LLC.
Kenai Peninsula Economic Development District Presentation by Tim Dillon.
Presentation on the upcoming Rockwell Kent Centennial by Doug Capra.
Presentation of capital credit check and update on TRANSCO/USO by Chugach
Electric.(pulled from agenda)
PUBLIC HEARINGS
Resolution 2016-083, Authorizing A 200-Day Extension To The Lease With The U.S.
Department Of Army For Lot 9A, Fort Raymond Subdivision Replat No. 1 (US Army Rec
Camp).
Motion (Keil/Casagranda) Approve Resolution 2016-083
Long said they were having difficulty communicating with the United StatesArmy on this
lease.The lease which expiredneeded some additions and negotiations.The proposed extension put
this agreement through the middle of 2017.
110
City of Seward, AlaskaCity Council Minutes
December 12, 2016 Volume 40, Page
Notice of the public hearing being posted and published as required by law was noted and the public
hearing was opened.
Kelley Lanewas curious about if summer was an ideal time to negotiate a lease.She was
curious as to what the challenges were and what the city would like to change.
No one else appeared to address the Council and the public hearing was closed.
Hunt stated they would like address Consumer Price Index (CPI) issues, rental issues,
property size issues, and the charter business associated with the camp.A key factor was the
performance clause,which was now being written into all new leasesof the city. It had been difficult
to get in touch with someone at the U.S. Army, and when working with government entities, things
took time.
Long clarified this lease extension was for the Army Rec Camp, and not the recently vacated
Air Force Rec Camp, which the city had not yet decided what to do with.
In response to Altermatt, Long said they would be renegotiating the Army’s leases in the
harbor as well.
Motion Passed Unanimous
UNFINISHED BUSINESS –None
NEW BUSINESS
Ordinance 2016-009, Amending Seward City Code 15.10.220 Development Requirements –
Notes, To Allow The Minimum Lot Size Platting Of 3,000 Square Feet And Clarification Of
Lot Size For Duplex Development.
Motion (Keil/Casagranda) Introduce Ordinance 2016-009
Bardarson was concerned if the cityhad room for utilities for this lot size.It seemed like the
objective was to make space for these utilities.She didn’t understandwhy the line designating 3,000
square foot lots and 6,000 square foot lots was drawn at Van BurenStreet. Long said they would find
a way to incorporate utilities as needed.
Squires stated the original town sitehad these size lots authorized already. If this was
authorized, would some of the same requirements carry over? Long stated he would look up that
provision.
Motion Passed Unanimous
(Clerk’s Note: this introduced ordinance would come back to the City Council for public hearing
and enactment on January 9, 2017)
111
City of Seward, AlaskaCity Council Minutes
December 12, 2016 Volume 40, Page
Resolution 2016-084,Authorizing A One-Time, One Percent Bonus For The City Clerk In
2016, As Previously Issued To Non-Union Regular Employees, And Appropriating Funds.
Motion (Keil/Casagranda) Approve Resolution 2016-084
Motion PassedUnanimous
Other New Business Items
Schedule Work Sessions to discuss Road Bond Funding and Police Wage Issues. (Suggested
date: January 9, 2017)Councilscheduled a work session to discuss these topics for December
19, 2016 at 5:00 p.m.
Discuss and schedule a work session on new evaluation forms for City Manager, City Clerk,
and City Attorney.Council scheduled a work session on this topic for January 10, 2017 at 5:00
p.m.
Discussion on the roles and duties of the Mayor and Council.(Casagranda)
Discussion ensued relating to how council should receive information, either as a body or as
individual members of the body. There was no objection to the continuance of the mayor meeting
with the City Manager and the City Clerk on an individual basis.
Discussion of the city’s use of the AVTEC Facility. (Casagranda)
Long explained that staff was working on the schedule based on public input.Casagranda
requested better notice to the public when the schedule changed.
Discussion on consolidated dispatch services.
Long stated earlier this year a public meeting was held regarding consolidating city dispatch
services to the Kenai Peninsula Borough, based in Soldotna. He said there were a lot of unknowns
and unanswered questions. He wanted to encourage the borough to respond to the city’s concerns.
Bardarson concurred more information was better to make a decision.Council agreed with
administration’srequest to ask for more information.
INFORMATIONAL ITEMS AND REPORTS– None
COUNCIL COMMENTS
Keil thanked the high school government students for attending tonight. She wished everyone
aMerry Christmas and a Happy New Year.Tonight was an interesting meeting and it showed
democracy at work.
112
City of Seward, AlaskaCity Council Minutes
December 12, 2016 Volume 40, Page
Squiresstated he would be out of state for the January 9, 2017 meeting.He thanked the local
government class for attending tonight. It was good to have agreements and disagreements with
elected officials in the public light.He wished everyone a Merry Christmas and a Happy New Year.
McClurethanked the government students for attendingand also wished everyone a Merry
Christmas.
Casagrandaclarified that regarding the Seward Comprehensive Plan, she didn’t recall seeing
an email noticing the November 14, 2016 public session.In the future when the city worked on a
comprehensive plan she thought it was important to really notice the planning meetings.
Altermattthanked the high school class for staying around. She reminded the public this
Saturday was Breakfast with Santa, hosted by the Teen and Youth Center and Rotary.She gave her
condolences to Jackie Wilde’s family, whose mother recently passed away.She wished everyone a
safe and happy holiday season.
Slaterthanked the class for coming tonight.He said Happy Holidays and told everyone to be
safe. Slater thanked staff for plowing the bike path and hoped they could do the boardwalk too.
Hunt thanked Dillon for coming over and trying to keep his presentation to ten minutes.
Longsaid Happy Holidays and safe travels.
Bardarsonalso thanked the students for coming.She encouraged the students to please
contact council if they had any questions regarding city government.She wished everyone a happy
holiday season.
CITIZEN COMMENTS
Luther Freemanspoke on the hours and rates for AVTEC gym usage.He noted in the
morning hours, very few public used the facility, which seemed like a lot of expenses for little to no
attendance.There was more usage from 11:00 a.m. and on.He didn’t feel like the new gym area
needed to be included in the contract.Perhaps if that was eliminated the rates could be lowered and
the city wouldn’t be competing with other local gyms.Freeman also noted because there was no set
schedule, no one wanted to purchase an annual pass because there was no certainty of what would be
provided. He askedcouncil and administration to listen to the input given by the community. The
community should tell the city what it wanted, not the other way around.
Andy Wilderappreciated the administration noting the new added hours.AVTEC had been
open to thepublic for many years and the city should have that usage data.He didn’t know how the
situation got to where it was.It seemed like the facility was well attended in the past, and didn’t
understand why that had to change.Wilder alsodidn’t understand why the contract lapsing had
anything to do with the hours that had been in place for the last decade.Alot of the citizens were
wanting the schedule back the way it was.
113
City of Seward, AlaskaCity Council Minutes
December 12, 2016 Volume 40, Page
COUNCIL ANDADMINISTRATIONRESPONSE TO CITIZEN COMMENTS
Longsaid they had a lot of historic data but it was not complete.They weren’t ignoring that
data, they were using old data combined with the new patterns they were seeing.
ADJOURNMENT
The meeting was adjourned at 9:50 p.m.
____________________________________ ____________________________________
Johanna Kinney, CMC Jean Bardarson
City Clerk Mayor
(City Seal)
114
Agenda Statement
Meeting Date: January 9, 2017
From: Johanna Kinney, City Clerk
Agenda Item: Continuation of the Port and Commerce Advisory Board
BACKGROUND & JUSTIFICATION:
This is an annual formality. Seward City Code 2.30.330 states that at the first meeting of each fiscal
year, the City Council may continue by affirmative vote the existence of the Port and Commerce
Advisory Board. If it fails to do this, the Board will cease to exist within thirty (30) days.
RECOMMENDATION:
Council approve this continuation and renewthe Port and Commerce Advisory Board through
January 2018.
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
MEMORANDUM
October
o
o
November
o
o
144
December
o
145
January 2017February 2017
SuMoTuWeThFrSaSuMoTuWeThFrSa
January 2017
12345671234
891011121314567891011
1516171819202112131415161718
2223242526272819202122232425
293031262728
MondayTuesdayWednesdayThursdayFriday
Jan 23456
6:00pm 9:30pm P&Z WS
(Library Community
Room)
Jan 2 - 6
910111213
7:00pm 10:30pm CC 5:00pm 8:00pm CC WS
Mtg (Chambers)(Chambers)
Jan 9 - 13
1617181920
6:00pm 9:30pm P&Z WS6:30pm 10:00pm HP
(City Annex Building)Mtg & WS
(Chambers)
Jan 16 - 20
2324252627
7:00pm 10:30pm CC
Mtg (Chambers)
Jan 23 - 27
3031Feb 123
Jan 30 - Feb 3
Nanci Richey11/4/2017 8:56 AM
146
February 2017March 2017
SuMoTuWeThFrSaSuMoTuWeThFrSa
February 2017
12341234
567891011567891011
1213141516171812131415161718
1920212223242519202122232425
262728262728293031
MondayTuesdayWednesdayThursdayFriday
Jan 3031Feb 123
12:00pm 2:00pm PACAB
Mtg
Jan 30 - Feb 3
678910
7:00pm 10:30pm P&Z
Mtg (City Annex
Building)
Feb 6 - 10
1314151617
7:00pm 10:30pm CC 12:00pm 2:00pm PACAB
Mtg (Chambers)Work Session
(Chambers)
6:30pm 10:00pm HP
Mtg & WS
Feb 13 - 17
2021222324
6:00pm 9:30pm P&Z WS
(City Annex Building)
Feb 20 - 24
2728Mar 123
7:00pm 10:30pm CC
Mtg (Chambers)
Feb 27 - Mar 3
Nanci Richey11/4/2017 8:56 AM
147