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MUNICIPALITY of ANCHORAGE ORDINANCE No. 2019-145 AN

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MUNICIPALITY of ANCHORAGE ORDINANCE No. 2019-145 AN Municipal Clerk's Office Approved Date: January 14, 2020 MUNICIPALITY OF ANCHORAGE ORDINANCE No. 2019-145 AN ORDINANCE PROVIDING FOR THE SUBMISSION TO THE QUALIFIED VOTERS OF ANCHORAGE, ALASKA, THE QUESTION OF THE ISSUANCE OF NOT TO EXCEED $82,833,000 OF GENERAL OBLIGATION BONDS OF THE MUNICIPALITY OF ANCHORAGE TO PAY THE COSTS OF CAPITAL IMPROVEMENTS FOR THE ANCHORAGE SCHOOL DISTRICT AT THE ELECTION TO BE HELD IN THE MUNICIPALITY ON APRIL 7, 2020. Prepared by K&L GATES LLP MUNICIPALITY OF ANCHORAGE ORDINANCE No. 2019-145 TABLE OF CONTENTS* Page Section 1. Purpose ........................................................................................... 1 Section 2. Details of Bonds .............................................................................. 3 Section 3. Ballot Proposition ............................................................................. 3 Section 4. Effective Dates ................................................................................ 4 * This Table of Contents and the cover page are for convenience of reference and are not intended to be a part of this ordinance. 502637066 v1 1 Requested by: Chair of the Assembly at 2 the Request of the 3 Anchorage School District 4 Prepared by: Cynthia M. Weed, Bond 5 Counsel 6 K&L Gates LLP 7 For Reading: December 17, 2019 8 9 10 MUNICIPALITY OF ANCHORAGE, ALASKA 11 ORDINANCE No. 2019-145 12 13 AN ORDINANCE PROVIDING FOR THE SUBMISSION TO THE QUALIFIED 14 VOTERS OF ANCHORAGE, ALASKA, THE QUESTION OF THE ISSUANCE OF 15 NOT TO EXCEED $82,833,000 OF GENERAL OBLIGATION BONDS OF THE 16 MUNICIPALITY OF ANCHORAGE TO PAY THE COSTS OF CAPITAL 17 IMPROVEMENTS FOR THE ANCHORAGE SCHOOL DISTRICT AT THE 18 ELECTION TO BE HELD IN THE MUNICIPALITY ON APRIL 7, 2020. 19 20 WHEREAS, the existing educational facilities serving the Municipality of 21 Anchorage, Alaska (the “Municipality”) are in need of building systems renewal, 22 and replacements, planning and design, renovations, earthquake recovery and 23 construction projects; and 24 25 WHEREAS, the Assembly of the Municipality and School Board have identified 26 necessary construction, renovations, replacements, upgrades, planning and 27 design and improvements to school facilities; and 28 29 WHEREAS, in order to provide funds to perform the necessary construction, 30 renovations, replacements, upgrades, planning and design and improvements as 31 further described in Section 1 of this ordinance (the “Projects”), it is deemed 32 necessary and advisable that the Municipality issue and sell its general obligation 33 bonds in the principal amount of not to exceed $82,833,000 (the “Bonds”); now, 34 therefore, 35 36 THE ANCHORAGE ASSEMBLY ORDAINS: 37 38 Section 1. Purpose. The Assembly hereby determines that the education 39 facilities and building systems are in need of construction, renewal, replacement, 40 planning, design, renovation and earthquake recovery (the “Projects”). 41 Specifically, the Projects include design funding to replace Inlet View Elementary 42 School, design and construction funding for infrastructure capital improvements at 43 Aquarian Charter School, design and construction of building wide earthquake 44 damage repairs, seismic upgrades and building improvements at Bartlett, East, 45 King Tech, Chugiak, Eagle River, and Dimond High Schools, Mirror Lake and 46 Central Middle Schools, Fire Lake, Chugiak, and Bear Valley Elementary Schools 47 and Whaley School, design and construction of building wide earthquake damage AO – 2020 G.O. School Bonds Prop. Page 2 of 4 1 repairs, seismic upgrades, building, security and educational improvements at 2 Gruening Middle School and Eagle River Elementary School, and planning and 3 design projects for 2022 deferred capital requirement projects. 4 5 The Projects are described in more detail in the Assembly Memorandum 6 accompanying this ordinance. The cost of all necessary planning, acquisition of 7 property for, site preparation, construction, installing and equipping of the Projects, 8 architectural, engineering, design, and other consulting services, inspection and 9 testing, administrative and relocation expenses, costs of issuance of the Bonds 10 (hereinafter defined) and other costs incurred in connection with the Projects shall 11 be deemed to be costs of the approved Projects. The approved Projects may be 12 completed with all necessary equipment and appurtenances. The District is 13 currently working with the State of Alaska Division of Homeland Security and 14 Emergency Management and the Federal Emergency Management Agency 15 (FEMA) on potential reimbursement of earthquake damages for the Projects, as 16 well as other District facilities. Any reimbursement is subject to FEMA approval. 17 18 The School District shall determine the application of available money as 19 between the various Projects set forth above so as to accomplish, as nearly as 20 may be, all of the Projects described or provided for in this section. 21 22 If the School District shall determine that it has become impractical to 23 accomplish any portion of the approved Projects by reason of changed conditions 24 or needs, incompatible development or costs substantially in excess of those 25 estimated, the School District shall not be required to accomplish such portions 26 and shall apply Bond proceeds as set forth in this section. 27 28 If the approved Projects have been completed in whole or in part, or their 29 completion duly provided for, or their completion found to be impractical, the 30 School District may apply Bond proceeds or any portion thereof to other School 31 District capital improvements as the School Board in its discretion shall determine 32 and, if otherwise, then solely to payment of principal or interest on the Bonds, as 33 provided in the Home Rule Charter. In the event that the proceeds of sale of the 34 Bonds, plus any other money of the School District legally available, are 35 insufficient to accomplish the approved Projects, the School District shall use the 36 available funds for paying the cost of those portions of the approved Projects for 37 which the Bonds were approved deemed by the School Board most necessary 38 and in the best interest of the School Board. No Bond proceeds shall be used by 39 the Municipality for any purpose other than a capital improvement of the 40 Municipality. 41 42 For the purpose of providing funds for the undertaking of the Projects, which are 43 hereby found to be a public purpose and in the public interest, the Municipality 44 hereby proposes to issue general obligation bonded indebtedness in an amount 45 not to exceed Eighty-Two Million Eight Hundred Thirty-Three Thousand Dollars 46 ($82,833,000) (the “Bonds”). 502637066 v1 AO – 2020 G.O. School Bonds Prop. Page 3 of 4 1 2 Section 2. Details of Bonds. The Bonds shall be sold in such amounts and at 3 such time or times as deemed necessary and advisable by the Assembly and as 4 permitted by law and shall mature over a period of not to exceed 20 years from 5 date of issue. The Bonds shall be issued in an aggregate principal amount of not 6 to exceed $82,833,000. The Bonds shall bear interest to be fixed at the time of 7 sale or sales thereof. The exact form, terms, conditions, contents, security, 8 options of redemption, and such other matters relating to the issuance and sale of 9 said Bonds as are deemed necessary and advisable by the Assembly shall be as 10 hereinafter determined and/or delegated by ordinance and/or resolution of the 11 Assembly. 12 13 The full faith and credit of the Municipality is pledged for the payment of the 14 principal of and interest on the Bonds, and ad valorem taxes upon all taxable 15 property in the Municipality shall be levied without limitation as to rate or amount to 16 pay the principal and interest on the Bonds when due. 17 18 Section 3. Ballot Proposition. The Assembly hereby submits to the qualified 19 voters of the Municipality the proposition of whether or not the Municipality should 20 issue the Bonds for the purpose of financing the costs of the approved Projects at 21 the regular municipal election to be held on April 7, 2020. 22 23 The Clerk shall prepare the ballot proposition to be submitted to the voters 24 as provided by this ordinance and the Municipal Code and shall perform all 25 necessary steps in accordance with law to place this proposition before the voters 26 at the regular election. The proposition must receive a majority vote of those in 27 the Municipality voting on the question to be approved. The proposition shall be 28 substantially in the following form: 29 30 PROPOSITION NO. _____ 31 CAPITAL IMPROVEMENTS FOR THE ANCHORAGE 32 SCHOOL DISTRICT BONDS 33 34 For the purpose of providing educational capital 35 improvements, construction, upgrades, design, planning, 36 renovation and earthquake recovery of school facilities and 37 educational facility building life extension projects within 38 Anchorage, as provided in AO 2019-145, shall Anchorage 39 borrow money and issue up to $82,833,000 in principal 40 amount of general obligation bonds? 41 42 The general obligation bond proceeds will be used to pay 43 costs of constructing, renovating, installing, designing, 44 planning, acquiring and equipping educational capital 45 improvement projects including, but not limited to, design 502637066 v1 AO - 2020 G.O. School Bonds Prop. Page 4 of 4 I funding to replace Inlet View Elementary School, design and 2 construction funding for infrastructure capital improvements at 3 Aquarian Charter School, designing and constructing building 4 wide earthquake damage repairs, seismic upgrades and 5 building improvements at Bartlett, East, King Tech, Chugiak, 6 Eagle River, and Dimond High Schools, Mirror Lake and 7 Central Middle Schools, Fire Lake, Chugiak, and Bear Valley 8 Elementary Schools and Whaley School, designing and 9 constructing building wide earthquake damage repairs, 10 seismic upgrades, building, security and educational 11 improvements at Gruening Middle School and Eagle River 12 Elementary School, and planning and design projects for 2022 13 deferred capital requirement projects.
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