nome city council · nome city council regular meeting september 12, ... david csiki approval of...

Nome City Council

Nome Council Chambers

Regular Meeting

September 12, 2016

7:00 P.M.

of 2

Mayor Richard Beneville

Manager Tom Moran

Clerk Bryant Hammond

Nome City Council Stan Andersen

Jerald Brown Matt Culley

Louie Green, Sr. Tom Sparks

Lew Tobin

102 Division St. ▪ P.O. Box 281 Nome, Alaska 99762

Phone (907) 443-6663 Fax (907) 443-5345

NOME COMMON COUNCIL REGULAR MEETING AGENDA

MONDAY, SEPTEMBER 12, 2016 @ 7:00 PM COUNCIL CHAMBERS IN CITY HALL

I. ROLL CALL II. APPROVAL OF AGENDA III. APPROVAL OF MINUTES

A. August 22, 2016 City Council Regular Meeting Minutes, PAGE 1

B. September 6, 2016 City Council Special Meeting Minutes, PAGE 7

IV. COMMUNICATIONS

A. Letter August 16, 2016 from Nome Community Center to City Council re: Change Request for 2016 NSEDC Community Benefit Share Funds, PAGE 9

B. Email of August 23, 2016 from AMLJIA to Manager Moran re: Appointment to AMLJIA Board of Trustees, PAGE 11

C. Notice from AML to City of Nome re: Newly Elected Officials Training, November 14, 2016, PAGE 13

D. Notice From City of Nome re: Fall Clean Up Week October 10 – 15, 2016, PAGE 15

V. CITIZENS’ COMMENTS VI. PLANNING AND ZONING

A. August 2, 2016 Planning Commission Regular Meeting Minutes, PAGE 17

VII. UNFINISHED BUSINESS

A. O-16-09-01 An Ordinance Amending Section 2.45.010 of the Nome Code of Ordinances to Establish a Policy on Paying Elected or Appointed Officials While They are Employed by the City of Nome, SECOND READING/PUBLIC HEARING/FINAL PASSAGE, PAGE 23

Nome City Council Regular Meeting September 12, 2016

Page 2 of 2

VIII. NEW BUSINESS

A. Public Hearing: Consideration of a Request from Norton Sound G-O Development to Rezone Portions of Blocks 109, 110, 125, 126, and 127 from General Use to Commercial Use, and a Portion of Block 111 from General Use to Residential Use,

PAGE 25 B. O-16-09-02 An Ordinance Amending Section 3.05 of the Nome Code of

Ordinances to Prohibit the Sale of Liquor Products in Containers Smaller than 750 ML at All Locations South of 3rd Ave, FIRST READING, PAGE 35

C. R-16-09-02 A Resolution Appointing Election Judges and Clerks for the 2016 Municipal Election and Setting Their Compensation, PAGE 37

D. R-16-09-03 A Resolution Authorizing the City of Nome, Alaska to Issue General Obligation Refunding Bonds in the Principal Amount of Not to Exceed $800,000 to Refund Certain Outstanding General Obligation Refunding Bonds of the City, Fixing Certain Details of Such Bonds and Authorizing Their Sale,

PAGE 39 IX. CITY ATTORNEY’S REPORT

A. Memorandum of August 19, 2016 re: Nuisance Abatement Ordinance, PAGE 49

X. UTILITY MANAGER’S REPORT

A. Activity Report: August 23 – September 9, 2016, VERBAL

XI. CITY MANAGER’S REPORT

A. Activity Report: August 23 – September 9, 2016, PAGE 55

XII. CITIZENS’ COMMENTS XIII. COUNCILMEN’S COMMENTS XIV. MAYOR’S COMMENTS AND REPORT

A. Activity Report: August 23 – September 9, 2016, VERBAL

B. Appointment of Museum/Library Commission Seat “H,” PAGE 83

XV. EXECUTIVE SESSION

A. Annual Performance Review of City Manager, VERBAL

XVI. ADJOURNMENT

MINUTES – NOME CITY COUNCIL PAGE 1 REGULAR MEETING August 22, 2016

MINUTES NOME CITY COUNCIL REGULAR MEETING

August 22, 2016

The regular meeting of the Nome City Council was called to order at 7:00 PM by Mayor Beneville in Council Chambers of City Hall, located at 102 Division Street.

ROLL CALL

Members Present: Stan Andersen; Louie Green; Tom Sparks; Lew Tobin; Matt Culley; Jerald Brown

Members Absent:

Also Present: Richard Beneville, Mayor; Tom Moran, City Manager; Bryant Hammond City Clerk; John Handeland, NJUS Manager; Cheryl Thompson

In the audience: Davis Harvey, KNOM; Sandra Medearis, Arctic News; Nate Perkins; Mark Sackett; Earl Merchant III; Tim Brown; Jake Kenick; Emory C. Wheeler; David Csiki

APPROVAL OF AGENDA

Mayor Beneville asked if there were any changes to the agenda.

A motion was made by C. Green and seconded by C. Tobin to approve the agenda as presented.

At the roll call: Aye: Green; Andersen; Tobin; Sparks; Culley; Brown Nay: Abstain:

The motion CARRIED.

APPROVAL OF MINUTES

A. August 8, 2016 City Council Regular Meeting Minutes.

A motion was made by C. Sparks and seconded by C. Brown to approve the minutes.

Discussion: - Councilman Brown noted a roll call vote was not recorded for New Business B.- Clerk Hammond noted the correction.

At the roll call: Aye: Green; Tobin; Andersen; Sparks; Brown; Culley Nay:

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Abstain: The motion to approve the minutes as corrected CARRIED.

COMMUNICATIONS A. E-mail of August 9, 2016 from Alcohol & Marijuana Control Office to City Manager re:

Specific Prohibitions on Alcohol Sales. - Councilman Brown asked where the demarcation line would be. - Manager Moran suggested 3rd or 4th Ave. - The Council requested an ordinance be drafted for the September 12th regular meeting.

B. Letter of August 18, 2016 from Alaska Congressional Delegation to Secretary Darcy re: Deep Draft Port Study.

C. Thank You Card from Nome Nordic 2016. CITIZENS’ COMMENTS 1) Tim Brown, a 23 year resident of Nome, explained that small bottles were not the issue

stating that 9/10 of all bottles sold at the AC store on Front St were liters or fifths. Mr. Brown felt the issue was drinking, rather than bottle size, and felt an ordinance would not resolve the issue.

2) Dave Csiki explained he owned the property adjacent to the Visitor’s Center and described

the conditions between his property and the AC store as deplorable. He noted cleaning up fifths and liters by the bagful and feeling unsafe while working on his property. Mr. Csiki asked the Council to rethink the ordinance, saying it would impact citizens like himself more than it would address concerns of inebriates drinking to excess in public.

PLANNING AND ZONING N/A UNFINISHED BUSINESS N/A NEW BUSINESS A. O-16-09-01 An Ordinance Amending Section 2.45.010 of the Nome Code of Ordinances to

Establish a Policy on Paying Elected or Appointed Officials While They are Employed by the City of Nome, FIRST READING.

A motion was made by C. Andersen and seconded by C. Tobin to advance O-16-09-01. At the roll call: Aye: Sparks; Tobin; Andersen; Brown; Culley; Green

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Nay: Abstain:

The motion CARRIED.

B. R-16-08-02 A Resolution Declaring Certain Properties in the City of Nome to be FireHazards, Health Hazards, or Public Nuisances, and Authorizing Their Remediation,Removal, or Demolition.

A motion was made by C. Andersen and seconded by C. Brown to adopt R-16-08-02.

A motion to amend R-16-08-02 by removing 245 A, B Front St was made by C. Andersen and seconded by C. Culley.

Discussion: - Councilman Andersen noted that 245 A, B Front St could be added to the next abatement

process if progress promised in the work session was not achieved.- Councilman Culley noted the Fire Marshall’s correction notice.- Councilman Andersen suggested beginning another abatement process after Christmas.

At the roll call: Aye: Green; Sparks; Tobin; Andersen; Brown, Culley Nay: Abstain:

The motion to amend CARRIED.

Returning to the main motion:

At the roll call: Aye: Brown, Green; Sparks; Tobin; Andersen; Culley Nay: Abstain:

The motion as amended CARRIED.

C. R-16-08-03 A Resolution Authorizing the City Clerk to File a Formal Protest with the Stateof Alaska Alcohol and Marijuana Control Office on the Commercial Marijuana LicenseApplications from Tundra Fire LLC.

A motion was made by C. Andersen and seconded by C. Brown to adopt R-16-08-03.

Discussion: - Manager Moran summarized the Marijuana Control Board’s request for formal protest at

the prior week’s meeting of municipal managers and mayors. He noted the protest wouldultimately save the applicants money by avoiding the non-refundable application fee.

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- Councilman Sparks clarified that the distance issue was the State’s purview and that theCity was formally noting the distance between the two.

- Councilman Andersen asked what difference it makes if the operation is in the basement.- Manager Moran stated the City was not trying to stifle industry and the protest would

allow the applicant to correct the deficiency.- Councilman Green asked the number of licenses were limited based on population size.- Manager Moran explained that was not yet determined.- Councilman Brown asked if City Staff had had a conversation with the owner of Tundra

Fire, LLC.- Manager Moran replied affirmatively, stating the owner would be working with the City

and State to address their concerns.

At the roll call: Aye: Green; Sparks; Tobin; Andersen; Culley; Brown Nay: Abstain:

The motion CARRIED.

CITY ATTORNEY’S REPORT

N/A

UTILITY MANAGER’S REPORT

• Utility Manager Handeland noted his written report in the packet and asked if there wereany questions.- Councilman Andersen clarified NJUS had until November 30th to tie up the Moonlight

Springs Project.- Manager Handeland stated they were working hard to achieve that deadline.- Councilman Andersen asked for a copy of the financial reports.- Mayor Beneville requested the minutes and financials be regularly placed in the

Council packet.

CITY MANAGER’S REPORT

• Manager Moran presented his written report and thanked the Coast Guard for painting theold museum and library building and the fire hall.- Councilman Tobin asked for clarification on the Cape Nome Jetty project bid.- Manager Moran explained the rebid process.- Councilman Andersen asked for clarification on the NEC / Sitnasuak partnership

mentioned in the Port Commission minutes.- Port Director Baker stated that was the old Cemetery site.- Councilman Andersen asked for an aerial photo and a map of the proposed area for the

Snake River Floats.- Councilman Andersen requested a clean master abatement list.

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CITIZENS’ COMMENTS 1) John Handeland thanked community members that participated in hosting passengers

from the Crystal Serenity on Sunday. He felt the day was a success and reported seeing lots of smiling faces getting on and off the cruise ship.

COUNCILMEN’S COMMENTS 1) Councilman Brown – no comments.

2) Councilman Culley suggested the City look to completing some deferred construction and

maintenance projects with the funds earned from the sale of Block 85 lot 3a. He recommended the winter sports complex behind the Rec Center be one such project.

3) Councilman Green asked how much funds would be needed for a winter sports complex.

- Councilman Culley stated it wouldn’t be very expensive and explained an asphalt floor with a roof and a fence would work well for multi-use purposes in the summer. He noted that the current rink was primarily built and maintained by the people that use it. The current rink could be used for other municipal purposes or sold.

4) Councilman Sparks stated he didn’t agree with putting all the funds into the one project,

but felt the project had merit and that it had been discussed for a while now. He agreed with Mr. Handeland that Sunday was a success.

5) Councilman Tobin asked for an update on the progress of LED light installation across the City and explained he was pleased with how things went for the cruise ship visit.

- Manager Handeland stated the project was complete. In a few places around town incandescent lights replaced LEDs because walking routes required more illumination.

6) Councilman Andersen suggested a long work session to determine which projects might

have the most merit for the proceeds of the Block 85 Lot 3A sale. He also asked that commission chairs be given a chance a weigh in on commission applications before they went into the packet.

MAYOR’S REPORT • Mayor Beneville noted the Municipal Campground was used and the City should continue

its efforts to develop it. He asked that children pay attention to safety during the back-to-school transition out of the summer. He noted there are a lot of good ideas being discussed around the state, yet the legislators were not acting on them. He noted his frustration.

• Mayor Beneville spoke on the benefits of tourism to Nome, the speedy pace of change, and the positive feeling in the community. He commented on the Chamber of Commerce’s deft attention to the details of customer service in Nome.

• Mayor Beneville appointed Marie Katcheak to the Museum and Library Commission. A motion was made by C. Andersen and seconded by C.

Brown to accept Mayor Beneville’s appointment of Marie Katcheak to the Museum and Library Commission.

At the roll call:

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Aye: Green; Sparks; Tobin; Andersen; Culley; Brown Nay: Abstain:

The motion CARRIED. EXECUTIVE SESSION

A motion was made by C. Andersen and seconded by C. Sparks to adjourn into executive session to discuss Nome’s abatement procedures and employee conflicts of interest. The Council recessed at 8:01 PM. The Council reconvened at 8:36 PM.

ADJOURNMENT

A motion was made by C. Sparks and seconded by C. Culley that the meeting be adjourned.

Hearing no objections, the Nome Common Council adjourned at 8:36 PM.

APPROVED and SIGNED this 12th day of September, 2016.

_________________________ RICHARD BENEVILLE

Mayor ATTEST: _________________________ BRYANT HAMMOND City Clerk

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MINUTES – NOME CITY COUNCIL PAGE 1 SPECIAL MEETING September 6, 2016

MINUTES NOME CITY COUNCIL

SPECIAL MEETING September 6, 2016

The special meeting of the Nome City Council was called to order at 12:02 PM by Mayor Beneville in Council Chambers of City Hall, located at 102 Division Street. ROLL CALL Members Present: Stan Andersen; Tom Sparks; Lew Tobin; Matt Culley; Jerald Brown Members Absent: Louie Green (excused) Also Present: Richard Beneville, Mayor; Tom Moran, City Manager; Bryant Hammond

City Clerk; Joy Baker, Port Director In the audience:

APPROVAL OF AGENDA Mayor Beneville asked if there were any changes to the agenda.

A motion was made by C. Sparks and seconded by C. Brown to approve the agenda as presented.

At the roll call:

Aye: Andersen; Tobin; Sparks; Culley; Brown Nay: Abstain: The motion CARRIED. CITIZENS’ COMMENTS 1) City Manager Tom Moran addressed the Council concerning the theft of a City Vehicle in

his care the previous night. He took responsibility, stating he had left the keys in his center console overnight.

- Councilman Tobin asked if anyone was hurt. - Manager Moran noted that the vehicle was unattended when found, though NVAD

medics stated the accident should have caused at least minor injury. He noted an insurance claim has already been filed.

NEW BUSINESS A. R-16-09-01 A Resolution Awarding the Cape Nome Jetty Repair Project Base Bid and

Additive Alternate No. 1 to Knik Construction.

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MINUTES – NOME CITY COUNCIL PAGE 2 SPECIAL MEETING September 6, 2016

A motion was made by C. Andersen and seconded by C. Tobin to adopt R-16-09-01.

Discussion: - Councilman Brown noted a potential conflict of interest and passed a completed conflict of interest form to Mayor Beneville. - Councilman Andersen stated that the City of Nome should either dispose of the Cape

Nome Jetty or figure out a way to make money from it. Administration of repairs takes time away from more important priorities.

- Mayor Beneville asked how the Port of Nome’s Tariff related to it. - Port Director Baker explained that material moving out of the quarry and equipment

coming in to work the quarry were not charged per a tri-party agreement. - Manager Moran called attention to the issue at hand and suggested the Council discuss

operations of the Jetty at a later date. - Mayor Beneville asked what role the Jetty plays in the greater Port of Nome, as seen from

the outside. - Councilman Culley noted that a significant amount of material is exported from the quarry

and not moving it through the Port of Nome saves the owners money. - Councilman Tobin asked for clarification on Section 7.2. - Manager Moran stated that it was the interest rate.

At the roll call: Aye: Sparks; Tobin; Andersen; Culley Nay: Abstain: Brown The motion CARRIED.

ADJOURNMENT

A motion was made by C. Andersen and seconded by C. Sparks that the meeting be adjourned.

Hearing no objections, the Nome Common Council adjourned at 12:23 PM.


_________________________ RICHARD BENEVILLE

Mayor ATTEST: _________________________ BRYANT HAMMOND City Clerk

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Service to the People of the Bering Strait Region since 1910

Nome Community Center, Inc. _________________________________________________

�

Dear City Councilmen, The Nome City Council voted to award the Nome Children’s Home $10,000 for a flooring project to put carpeting in the bedrooms of the building. I am requesting to utilize these funds in an alternate matter due to urgency and need. Our vehicle for the Children’s Home recently was diagnosed as having a bad transmission that needs to be replaced within the next month. In addition to the transmission, it also needs replacement of the instrument cluster to ensure functional operation of the airbag system and signal indicator. Replacing these two items will cost a total of $6400 to ensure the vehicle remains operational and safe. Secondly, our washing machine has become defunct. We are currently researching ways to fix it and salvage the machine, but it’s possible we will need a full replacement. It is estimated to cost $1500 for a replacement. These projects would total and estimated $7900 out of the allotted $10,000. The remaining funds would still be utilized for flooring, and we would seek additional funding from other sources as well. Thank you for your time and consideration. Sincerely, Danielle M Slingsby, Executive Director

Post Office Box 98 Phone: 907-443-5259 Nome, Alaska 99762 Fax: 907-443-2990 Website: www.nomecc.org E-mail: [email protected]

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1st Reading: August 22, 2016 2nd Reading: September 12, 2016

Presented By:

City Clerk

Action Taken: Yes____ No____

Abstain____

CITY OF NOME, ALASKA

ORDINANCE NO. O-16-09-01

AN ORDINANCE AMENDING SECTION 2.45.010 OF THE NOME CODE OF ORDINANCES

TO ESTABLISH A POLICY ON PAYING ELECTED OR APPOINTED OFFICIALS WHILE THEY ARE EMPLOYED BY THE CITY OF NOME

Section 1. Classification. Section 3 of this ordinance shall become a part of the Nome Code of Ordinances. All other sections are non-Code provisions. Section 2. Legislative Findings. The Nome Common Council expressly makes the following findings for the basis of this ordinance: 1. The City of Nome is governed by six members the Common Council, chosen at-large by the Nome electorate, with members of the Planning Commission, Port Commission, and Museum and Libraries Commissions being appointed by the Mayor and confirmed by Common Council, and serving in advisory capacity. 2. Nome Joint Utilities System is governed by the Utility Board, constituted by five members chosen at-large by the Nome electorate. 3. Nome Public Schools is governed by the School Board, constituted by five members chosen at-large by the Nome electorate. 4. The City of Nome and its subsidiary municipal corporations recognize that qualified policy makers and staff are vital to the efficient, fair, and transparent operation of municipal business. 5. Alaska Statute specifically states that “an elected official may not receive compensation for service to the municipality in addition to the salary received as an elected official, unless otherwise provided by ordinance.”

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Section 3. Amendment of Title 2. Title 2, Chapter 45 of the Nome Code of Ordinances is hereby amended by adding a new section 2.45.010(h) to read as follows: 2.45.010(h) An employee of a municipal corporation or department who holds elected or appointed office shall be paid their regular wage for that employment, in addition to the monthly stipend for that elected or appointed office, throughout their term. The employee shall not, however, be entitled to duplicate fringe benefits, such as retirement and insurance packages. Section 4. Effective Date. This ordinance is effective upon passage.


______________________________ RICHARD BENEVILLE,

Mayor ATTEST: ________________________ BRYANT HAMMOND, Clerk

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MINUTES NOME PLANNING COMMISSION

RESCHEDULED REGULAR MEETING August 30, 2016

The rescheduled regular meeting of the Nome Planning Commission was called to order at 7:02 PM by Chairman Pederson in Council Chambers of City Hall, located at 102 Division Street. ROLL CALL Members Present: Ken Hughes; Chris Williamson; Derek McLarty; Larry Pederson Members Absent: Robert Cahoon; Sara Lizak (excused); John Odden (excused) Also Present: Eileen Bechtol, City Planner; Jill Nederhood, Deputy City Clerk In the audience: Sandra Medearis, Arctic News; Donny Olson; Willow Olson; Davis Hovey,

KNOM; Pat Hahn; Megan Hahn; John Handeland APPROVAL OF AGENDA Chairman Pederson asked if there were any changes to the agenda. A motion was made by C. Hughes and seconded by C.

McLarty to accept the agenda as presented. At the roll call: Aye: Hughes; Williamson; McLarty; Pederson Abstain: The motion CARRIED.

NEW BUSINESS A. Consideration of a Request from Norton Sound G-O Development to Rezone Portions of

Blocks 109, 110, 125, 126 and 127 from General Use to Commercial Use, and a Portion of Block 111 from General Use to Residential Use.

For the purpose of holding a public hearing the Planning Commission recessed at 7:40 PM.

Discussion: - Donald Olson took to the podium to clarify the request for rezoning the area

containing the old hospital. He said the current owners have been actively trying to sell the property for 3 years and have enlisted the help of people in Anchorage and the help of real estate attorneys to figure out why they have not have any luck

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yet. He said the consensus was the zone it was in. It is zoned as general and they feel it would be better zoned as commercial, although there is only a small difference between the two. He added that empty buildings were a magnet for vandalism, and mold becomes an issue when left unoccupied. Mr. Olson said that he would like to see this property made into a revenue-generating building to create jobs and income for the community.

The Planning Commission reconvened at 7:51 PM. A motion was made by C. Hughes and seconded by C. Williamson to approve the zoning map amendment. Discussion: - Chairman Pederson noted that all of the neighborhood properties had been

notified and the City received no objections. - C. Williamson inquired about some of the other areas that had been discussed for

rezoning. - Chairman Pederson said that the Commission would move forward with this

particular request for now and would continue looking at other areas of interest in the future.

At the roll call: Aye: Pederson; Hughes; Williamson; McLarty Nay: Abstain: The motion CARRIED.

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1st Reading: September 12, 2016 2nd Reading: September 26, 2016

Presented By:

City Clerk

Action Taken: Yes____ No____

Abstain____


ORDINANCE NO. O-16-09-02

AN ORDINANCE AMENDING SECTION 3.05 OF THE NOME CODE OF ORDINANCES TO PROHIBIT THE SALE OF LIQUOR PRODUCTS IN CONTAINERS SMALLER THAN 750 ML

AT ALL LOCATIONS SOUTH OF 3RD AVE Section 1. Classification. Section 2 of this ordinance shall become a part of the Nome Code of Ordinances. All other sections are non-Code provisions. Section 2. Amendment of NCO Title 3.05. Title 3, Chapter 05 of the Nome Code of Ordinances is hereby amended to read as follows [added language is underslined]: 3.05.45 Locations of Sale. (a) No liquor products less than 750 milliliters shall be sold south of 3rd Ave. 3.05.080 Definitions

As used in this chapter:

“Intoxicating liquor” means whiskey, brandy, rum, gin, wine, ale, porter, beer and all other spirituous, venous, malt or other fermented or distilled liquors intended for human consumption and containing more than one percent alcohol by volume.

“Licensed premises” means premises licensed under AS 04.11.080.

“Licensee” means the holder of any type of license classified by AS 04.11.080, any person responsible for the lawful conduct of the business licensed and all persons acting as agents or employees on the licensed premises.

“Liquor products” means whisky, brandy, rum, gin, vodka, and any other distilled liquor containing more than 20 percent alcohol by volume.”

“Minor” means any person under twenty-one years of age.

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“Open container” means any original container or package without the internal revenue strip stamp intact upon the container or package; any original container or package that has been opened at least once since retaining purchase; and any container or package other than the original container or package. (Ord. O-93-6-6 § 1 (part), 1994)

Section 4. Effective Date. This ordinance is effective upon passage.


______________________________ RICHARD BENEVILLE,

Mayor ATTEST: ________________________ BRYANT HAMMOND, Clerk

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Presented By: City Clerk

Action Taken:

Yes____ No____

Abstain____


RESOLUTION NO. R-16-09-02

A RESOLUTION APPOINTING ELECTION JUDGES AND CLERKS FOR THE 2016 MUNICIPAL ELECTION AND SETTING THEIR COMPENSATION

WHEREAS, Nome Code of Ordinances, 7.20.010(a) requires that for each municipal election

“the City Council shall appoint from among qualified electors an election board comprised of three judges for each polling place”; and, WHEREAS, one of the elections judges is to be designated as chairperson, one is to be designated as inspector and one does not have a title other than judge; and,

WHEREAS, the Council shall appoint two qualified electors to act as clerks of the election; and,

WHEREAS, the Nome City Council hereby authorizes the following qualified electors:

James White, Chairperson/Judge Erin Lillie, Inspector/Judge

Julia Farris, Judge Shirley Tisdale, Clerk Francis Alvanna, Clerk

WHEREAS, the City Clerk may appoint not more than three additional election clerks if such

appointments are necessary to facilitate the orderly conduct of the election or to relieve the appointed clerks of undue hardship; and,

WHEREAS, many municipalities set the wages of their election workers at the same rate of pay as the State of Alaska pays its election personnel, which is currently $10.00 per hour for Judges and $9.50 per hour for Clerks. NOW, THEREFORE, BE IT RESOLVED that the City Council approves these electors and, by this resolution, hereby sets the compensation for the election personnel of the 2016 Municipal Election at $1.00 per hour higher than the State of Alaska’s rate of pay ($11.00 per hour for Judges and $10.50 per hour for Clerks).


______________________________

RICHARD BENEVILLE, Mayor

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ATTEST: ______________________________ BRYANT HAMMOND, Clerk

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Presented By: City Manager

Action Taken:

Yes____ No____

Abstain____


RESOLUTION NO. R-16-09-03

A RESOLUTION AUTHORIZING THE CITY OF NOME, ALASKA TO ISSUE GENERAL OBLIGATION REFUNDING BONDS IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $800,000 TO REFUND CERTAIN OUTSTANDING GENERAL OBLIGATION REFUNDING BONDS OF THE CITY, FIXING CERTAIN DETAILS OF SUCH BONDS AND AUTHORIZING THEIR SALE.

WHEREAS, there are now outstanding General Obligation Refunding Bonds, 2007 Series A

of the City of Nome (the "City") maturing on December 1 in the years 2017 through 2020 in the aggregate principal amount of $665,000 (the "2007 Bonds") issued under Resolution No. R-06-12-02 of the City and originally issued under Ordinance No. O-00-11-B of the City; and

WHEREAS, the Council finds that it is in the best interest of the City to provide for the refunding, including the payment of principal of, and premium and interest on, those maturities of the 2007 Bonds (the "Refunded Bonds") whose refunding the Manager or the Finance Director determines will produce the percentage debt service savings specified in this resolution, by the issuance of general obligation refunding bonds (the "Bonds") in the aggregate principal amount of not to exceed $800,000; and

WHEREAS, Section 29.47.320 of the Alaska Statutes provides that general obligation refunding bonds may be issued without an election, Section 29.47.300 of the Alaska Statutes provides that their issuance may be authorized by resolution, and Section 29.47.410 of the Alaska Statutes provides that the Council by resolution may provide for the form and manner of sale of bonds and notes; and

WHEREAS, the Alaska Municipal Bond Bank and the City intend to enter into an Amendatory Loan Agreement, which amends the Loan Agreement dated as of November 15, 2000, as amended by the Amendatory Loan Agreement dated as of January 1, 2007, between the Alaska Municipal Bond Bank and the City to provide for the refunding of the Refunded Bonds through their exchange for the Bonds, and related matters; and

WHEREAS, the Council finds that it is necessary and appropriate to delegate to the Manager and the Finance Director authority to determine the maturity amounts, interest rates and other details of the Bonds, and to determine other matters that are not provided for in this resolution;

NOW, THEREFORE, BE IT RESOLVED:

Section 1. Definitions. The following terms shall have the following meanings in this resolution:

A. "Amendatory Loan Agreement" means the Amendatory Loan Agreement between the City and the Bond Bank, amending the 2000 Loan Agreement, as amended by the

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2007 Amendatory Loan Agreement, to provide for the refunding of the Refunded Bonds through their exchange for the Bonds, and related matters.

B. "Bond" or "Bonds" means any of the "General Obligation Refunding Bonds" of the City of Nome, the issuance and sale of which are authorized herein.

C. "Bond Bank" means the Alaska Municipal Bond Bank, a public corporation of the State of Alaska.

D. "Bond Bank Bonds" means general obligation bonds issued by the Bond Bank to refund all or part of its outstanding General Obligation Bonds, 2007 Series One.

E. "Bond Register" means the registration books maintained by the Registrar, which include the names and addresses of the Registered Owners of the Bonds or their nominees.

F. "City" means the City of Nome, a municipal corporation of the State of Alaska, organized as a first class city under Title 29 of the Alaska Statutes.

G. "Code" means the Internal Revenue Code of 1986, as amended from time to time, together with all regulations applicable thereto.

H. "Council" means the Council of the City of Nome, as the general legislative authority of the City of Nome, as the same shall be duly and regularly constituted from time to time.

I. "Government Obligations" means obligations that are either (i) direct obligations of the United States of America, or (ii) obligations of an agency or instrumentality of the United States of America the timely payment of the principal of and interest on which are unconditionally guaranteed by the United States of America

J. "Loan Agreement" means the 2000 Loan Agreement, as amended by the 2007 Amendatory Loan Agreement and the Amendatory Loan Agreement.

K. "Refunded Bonds" means the maturities of the 2007 Bonds whose refunding is approved by the Manager or the Finance Director under Section 12.

L. "Registered Owner" means the person named as the registered owner of a Bond in the Bond Register.

M. "Registrar" means the Finance Director, or any successor that the City may appoint by resolution.

N. "Resolution" means this Resolution No. R-16-09-03 of the City.

O. "2000 Loan Agreement" means the Loan Agreement dated as of November 15, 2000 between the City and the Bond Bank.

P. "2007 Amendatory Loan Agreement" means the Amendatory Loan Agreement dated as of January 1, 2007 between the City and the Bond Bank.

Section 2. Authorization of Bonds and Purpose of Issuance. For the purpose of effecting the refunding by exchange of the Refunded Bonds in the manner set forth in this Resolution and the Amendatory Loan Agreement, and to pay all costs incidental thereto and to the issuance of

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the Bonds, the City hereby authorizes and determines to issue and sell the Bonds in the aggregate principal amount of not to exceed $800,000.

Section 3. Obligation of Bonds. The Bonds shall be direct and general obligations of the City and the full faith and credit of the City are hereby pledged to the payment of the principal of and interest on the Bonds. The City hereby irrevocably pledges and covenants that it will levy and collect taxes upon all taxable property within the City without limitation as to rate or amount, in amounts sufficient, together with other funds legally available therefor, to pay the principal of and interest on the Bonds as the same become due and payable.

Section 4. Designation, Maturities, Interest Rates, and Other Details of Bonds. The Bonds shall be designated "City of Nome, Alaska, General Obligation Refunding Bonds." The Bonds shall be in the denomination of $5,000 or any integral multiple thereof, shall be numbered separately in the manner and with such additional designation as the Registrar deems necessary for purposes of identification, and may have endorsed thereon such legends or text as may be necessary or appropriate to conform to the rules and regulations of any governmental authority or any usage or requirement of law with respect thereto.

The Bonds shall mature in one or more years commencing no earlier than 2016 and ending no later than 2021. The Bonds shall bear interest from their date, payable commencing on or after December 1, 2016, and semiannually thereafter. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months.

Subject to Section 2 and the remainder of this section, the aggregate principal amount, the principal amount of each maturity, the interest rates, the dated date, the principal and interest payment dates and the record dates for principal and interest payments on the Bonds shall be determined at the time of execution of the Amendatory Loan Agreement under Section 16.

Section 5. Optional Redemption. The Bonds shall not be subject to option redemption by the City prior to maturity.

Section 6. Form of Bond. Each Bond shall be in substantially the following form, with such variations, omissions and insertions as may be required or permitted by this Resolution:

UNITED STATES OF AMERICA STATE OF ALASKA

CITY OF NOME

(A Municipal Corporation of the State of Alaska) NO. _____ $_______

GENERAL OBLIGATION REFUNDING BOND, 2016 SERIES __ Registered Owner Principal Amount DOLLARS

The City of Nome (the "City"), a municipal corporation of the State of Alaska, hereby acknowledges itself to owe and for value received promises to pay to the Registered Owner identified above, or registered assigns, the principal amount shown above in the following installments on _______ 1 of each of the following years, and to pay interest on such installments

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from the date hereof, payable on December 1, 2016 and semiannually thereafter on the ___ days of __________ and ___________ of each year, at the rates per annum as follows:

Year Principal Amount Interest Rate Year Principal Amount Interest Rate

When this Bond is owned by the Alaska Municipal Bond Bank (the "Bond Bank"), payment

of principal and interest shall be made as provided in the Loan Agreement between the Bond Bank and the City dated as of November 15, 2000, as amended. When this Bond is not owned by the Bond Bank, installments of principal and interest on this Bond shall be paid by check or draft mailed by first class mail to the Registered Owner as of the close of business on the 15th day of the month preceding each installment payment date; provided that the final installment of principal and interest on this Bond shall be payable upon presentation and surrender of this Bond by the Registered Owner at the office of the Registrar. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months. Both principal of and interest on this Bond are payable in lawful money of the United States of America which, on the respective dates of payment thereof, shall be legal tender for the payment of public and private debts.

This Bond is one of the General Obligation Refunding Bonds, 2016 Series __ of the City of Nome, Alaska, of like tenor and effect except as to interest rate, serial number and maturity, aggregating $__________ in principal amount, and constituting Bonds authorized for the purpose of refunding certain general obligation bonds issued by the City, and is issued under Resolution No. R-16-09-03 of the City entitled:

A RESOLUTION AUTHORIZING THE CITY OF NOME, ALASKA TO ISSUE GENERAL OBLIGATION REFUNDING BONDS IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $800,000 TO REFUND CERTAIN OUTSTANDING GENERAL OBLIGATION BONDS OF THE CITY, FIXING CERTAIN DETAILS OF SUCH BONDS AND AUTHORIZING THEIR SALE.

(the "Resolution"). Installments of principal of this Bond shall not be subject to prepayment at the option of the City prior to maturity.

This Bond is transferable as provided in the Resolution, (i) only upon the bond register of the City, and (ii) upon surrender of this Bond together with a written instrument of transfer duly executed by the Registered Owner or the duly authorized attorney of the Registered Owner, and thereupon a new fully registered Bond or Bonds in the same aggregate principal amount and maturity shall be issued to the transferee in exchange therefor as provided in the Resolution and upon the payment of charges, if any, as therein prescribed. The City may treat and consider the person in whose name this Bond is registered as the absolute owner hereof for the purpose of receiving payment of, or on account of, the principal or redemption price, if any, hereof and interest due hereon and for all other purposes whatsoever.

This Bond is a general obligation of the City of Nome and the full faith and credit of the City are pledged for the payment of the principal of and interest on this Bond as the same shall become due.

IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts or things required by the constitution or statutes of the State of Alaska to exist, to have happened or to have been performed precedent to or in the issuance of this Bond exist, have happened and have been

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performed, and that the series of Bonds of which this is one, together with all other indebtedness of the City, is within every debt and other limit prescribed by said constitution or statutes.

IN WITNESS WHEREOF, THE CITY OF NOME, ALASKA, has caused this Bond to be signed in its name and on its behalf by the manual or facsimile signature of its Mayor and its corporate seal (or a facsimile thereof) to be impressed or otherwise reproduced hereon and attested by the manual or facsimile signature of its Clerk, all as of the ____ day of ____________ 2016. ______________________________ Mayor A T T E S T: _______________________________ Clerk [ S E A L ]

ASSIGNMENT

For value received, the undersigned sells, assigns and transfers to (print or typewrite name, address, zip code and Social Security number or other tax identification number of Transferee) this Bond and irrevocably constitutes and appoints attorney to transfer this Bond on the Bond Register, with full power of substitution in the premises. Dated: Signature Guaranteed: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of this Bond.

Section 7. Execution. The Bonds shall be executed in the name of the City by the manual or facsimile signature of the Mayor, and its corporate seal (or a facsimile thereof) shall be impressed or otherwise reproduced thereon and attested by the manual or facsimile signature of the City Clerk. The execution of a Bond on behalf of the City by persons who at the time of the execution are duly authorized to hold the proper offices shall be valid and sufficient for all purposes, although any such person shall have ceased to hold office at the time of delivery of the Bond or shall not have held office on the date of the Bond.

Section 8. Payment of Principal and Interest. The Bonds shall be payable in lawful money of the United States of America which at the time of payment is legal tender for the payment of public and private debts. When the Bond Bank is the Registered Owner of the Bonds, payment of principal and interest on the Bonds shall be made as provided in the Loan Agreement. When the Bond Bank is not the Registered Owner of the Bonds, installments of principal and interest on the Bonds shall be paid by check mailed by first class mail to the Registered Owner as of the record

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date for the installment payment at the address appearing on the Bond Register; provided that the final installment of principal and interest on a Bond shall be payable upon presentation and surrender of the Bond by the Registered Owner at the office of the Registrar.

Section 9. Registration. The Bonds shall be issued only in registered form as to both principal and interest. The City designates the Finance Director as Registrar for the Bonds. The Registrar shall keep, or cause to be kept, the Bond Register at the principal office of the City. The City covenants that, until all Bonds have been surrendered and canceled, it will maintain a system for recording the ownership of each Bond that complies with the provisions of Section 149 of the Code. The City and the Registrar may treat the person in whose name any Bond shall be registered as the absolute owner of such Bond for all purposes, whether or not the Bond shall be overdue, and all payments of principal of and interest on a Bond made to the Registered Owner thereof or upon its order shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid, and neither the City nor the Registrar shall be affected by any notice to the contrary.

Section 10. Transfer and Exchange. Bonds shall be transferred only upon the books for the registration and transfer of Bonds kept at the office of the Registrar. Upon surrender for transfer or exchange of any Bond at such office, with a written instrument of transfer or authorization for exchange in form and with guaranty of signature satisfactory to the Registrar, duly executed by the Registered Owner or the duly authorized attorney of the Registered Owner, the City shall execute and deliver an equal aggregate principal amount of Bonds of the same maturity of any authorized denominations, subject to such reasonable regulations as the City may prescribe and upon payment sufficient to reimburse it for any tax, fee or other governmental charge required to be paid in connection with such transfer or exchange. All Bonds surrendered for transfer or exchange shall be canceled by the Registrar.

Section 11. Bonds Mutilated, Destroyed, Stolen or Lost. Upon surrender to the Registrar of a mutilated Bond, the City shall execute and deliver a new Bond of like maturity and principal amount. Upon filing with the Registrar of evidence satisfactory to the City that a Bond has been destroyed, stolen or lost and of the ownership thereof, and upon furnishing the City with indemnity satisfactory to it, the City shall execute and deliver a new Bond of like maturity and principal amount. The person requesting the execution and delivery of a new Bond under this section shall comply with such other reasonable regulations as the City may prescribe and pay such expenses as the City may incur in connection therewith.

Section 12. Designation of Refunded Bonds. The Manager and the Finance Director each is authorized to designate which, if any, maturities of the 2007 Bonds authorized to be refunded in this Resolution shall be refunded, provided that the refunding of the 2007 Bonds so designated shall realize a debt service savings in the aggregate of at least three percent of their principal amount, net of all issuance costs and underwriting discount, on a present value basis.

Section 13. Tax Covenants. The City covenants to comply with any and all applicable requirements set forth in the Code in effect from time to time to the extent that such compliance shall be necessary for the exclusion of the interest on the Bonds from gross income for federal income tax purposes. Without limiting the generality of the foregoing, the City covenants that it will make no use or investment of the proceeds of the Bonds that will cause the Bonds to be "arbitrage bonds" subject to federal income taxation by reason of section 148 of the Code, and that it will not take or permit any action that would cause the Bonds to be "private activity bonds" as defined in Section 141 of the Code.

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Section 14. Amendatory and Supplemental Resolutions.

A. The Council from time to time and at any time may adopt a resolution or resolutions supplemental hereto, which resolution or resolutions thereafter shall become a part of this Resolution, for any one or more of the following purposes:

1. To add to the covenants and agreements of the City in this Resolution other covenants and agreements thereafter to be observed, or to surrender any right or power herein reserved to or conferred upon the City.

2. To make such provisions for the purpose of curing any ambiguities or of curing, correcting or supplementing any defective provision contained in this Resolution or in regard to matters or questions arising under this Resolution as the Council may deem necessary or desirable and not inconsistent with this Resolution and which shall not adversely affect the interests of the Registered Owners of the Bonds.

Any such supplemental resolution may be adopted without the consent of the Registered Owner of any of the Bonds at any time outstanding, notwithstanding any of the provisions of subsection B of this section.

B. With the consent of the Registered Owners of not less than 60 percent in aggregate principal amount of the Bonds at the time outstanding, the Council may adopt a resolution or resolutions supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Resolution or of any supplemental resolution; provided, however, that no such supplemental resolution shall:

1. Extend the fixed maturity of any of the Bonds, or reduce the rate of interest thereon, or extend the time of payments of interest from their due date, or reduce the amount of the principal thereof, or reduce any premium payable on the redemption thereof, without the consent of the Registered Owners of each Bond so affected; or

2. Reduce the aforesaid percentage of Registered Owners of Bonds required to approve any such supplemental resolution without the consent of the Registered Owners of all of the Bonds then outstanding.

It shall not be necessary for the consent of the Registered Owners of the Bonds under this subsection to approve the particular form of any proposed supplemental resolution, but it shall be sufficient if such consent approves the substance thereof.

C. Upon the adoption of any supplemental resolution under this section, this Resolution shall be deemed to be modified and amended in accordance therewith, and the respective rights, duties and obligations under this Resolution of the City and all Registered Owners of outstanding Bonds shall thereafter be subject in all respects to such modification and amendment, and all the terms and conditions of the supplemental resolution shall be deemed to be part of the terms and conditions of this Resolution for any and all purposes.

D. Bonds executed and delivered after the execution of any supplemental resolution adopted under this section may bear a notation as to any matter provided for in such supplemental resolution, and if such supplemental resolution shall so provide, new Bonds modified so as to conform, in the opinion of the City, to any modification of this Resolution contained in any such supplemental resolution may be prepared by the City and delivered without cost to the Registered Owners of the Bonds then outstanding, upon surrender for cancellation of such Bonds in equal aggregate principal amounts.

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Section 15. Defeasance. In the event money and/or non-callable Government Obligations maturing at such times and bearing interest to be earned thereon in amounts sufficient to redeem and retire any or all of the Bonds in accordance with their terms are set aside in a special trust account to effect such redemption or retirement and such moneys and the principal of and interest on such Government Obligations are irrevocably set aside and pledged for such purpose, then no further payments need be made to pay or secure the payment of the principal of and interest on such Bonds and such Bonds shall be deemed not to be outstanding.

Section 16. Exchange of Bonds; Amendatory Loan Agreement. The Bonds shall be delivered to the Bond Bank in exchange for the Refunded Bonds. Subject to the limitations provided in Sections 2 and 4, each of the Manager and the Finance Director is hereby authorized to determine the aggregate principal amount, maturity amounts, interest rates, yields, dated date, principal and interest payment dates, record dates for principal and interest payments, and other details of the Bonds; provided that: (i) the principal amount of each maturity of the Bonds shall not exceed the principal amount of the portion of the corresponding maturity of the Bond Bank Bonds that is allocated to the making of a loan to the City; and (ii) the interest rate on each maturity of the Bonds shall not exceed the interest rate on the corresponding maturity of the Bond Bank Bonds. Based upon the foregoing determinations, the Manager and the Finance Director are each authorized to negotiate and execute the Amendatory Loan Agreement.

Section 17. Authority of Officers. The Mayor, the acting Mayor, the Manager, the acting Manager, the Finance Director, the acting Finance Director, the Clerk and the acting Clerk each is authorized and directed to do and perform all things and determine all matters not determined by this Resolution, to the end that the City may carry out its obligations under the Bonds, the Loan Agreement and this Resolution.

Section 18. Prohibited Sale of Bonds. No person, firm or corporation, or any agent or employee thereof, acting as financial consultant to the City under an agreement for payment in connection with the sale of the Bonds, is eligible to purchase the Bonds as a member of the original underwriting syndicate either at public or private sale.

Section 19. Ongoing Disclosure. The City acknowledges that, under Rule 15c2-12 of the Securities and Exchange Commission (the "Rule"), the City may 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 City shall enter into a continuing disclosure agreement and undertake to provide certain annual financial information and operating data as shall be set forth in the Amendatory Loan Agreement.

Section 20. Miscellaneous.

A. All payments made by the City of, or on account of, the principal of or interest on the Bonds shall be made on the several Bonds ratably and in proportion to the amount due thereon, respectively, for principal or interest as the case may be.

B. No recourse shall be had for the payment of the principal of or the interest on the Bonds or for any claim based thereon or on this Resolution against any member of the Council or officer of the City or any person executing the Bonds. The Bonds are not and shall not be in any way a debt or liability of the State of Alaska or of any political subdivision thereof, except the City, and do not and shall not create or constitute an indebtedness or obligation, either legal, moral or otherwise, of said state or of any political subdivision thereof, except the City.

Section 22. Severability. If any one or more of the provisions of this Resolution shall be declared by any court of competent jurisdiction to be contrary to law, then such provision shall be

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null and void and shall be deemed separable from the remaining provisions of this Resolution and shall in no way affect the validity of the other provisions of this Resolution or of the Bonds.

Section 23. Effective Date. This Resolution shall take effect upon adoption. APPROVED and SIGNED this this 12th day of September, 2016. __________________________________ RICHARD BENEVILLE, Mayor ATTEST: ______________________________ BRYANT HAMMOND, City Clerk

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Mayor Richard Beneville

Manager Tom Moran

Clerk Bryant Hammond

102 Division St. • P.O. Box 281 Nome, Alaska 99762

(907) 443-6663 Fax (907) 443-5349

Nome Common Council Stan Andersen Jerald Brown

Matt Culley Louie Green, Sr

Tom Sparks Lew Tobin

AGENDA STATEMENT

Meeting Date: September 12, 2016 To: Mayor and Council From: Tom Moran, City Manager and Julie Liew, Finance Director Subject: Nome General Obligation (Series 2000E/2007A) Refunding Bonds BACKGROUND & JUSTIFICATION: In November 2000, the City of Nome issued General Obligation Bonds of $2.26 million for the purpose of financing certain improvements at the Nome schools and accepted the opportunity for refunding (or exchange) of the bonds at a lower interest rate in December 2006. The City now has another opportunity for refunding the bonds at a lower interest rate, thus saving the City and taxpayers money. The Alaska Municipal Bond Bank Authority (AMBBA) is making arrangements for the refunding of over $114 million in bonds to fifteen Alaskan communities. AMBBA recommends refunding if (1) there is greater than 3% savings to the community; (2) there are savings every year; and (3) there are savings in year 1 (to cover the bond issuance costs). In the proposed refunding, all three components are met; thus, AMBBA is recommending the refunding. Under current market conditions, the City should realize about $44,900 in savings over the current bond repayment schedule (which ends in December 2020). The amount of potential savings will fluctuate until the day of closing, November 3, 2016. RECOMMENDATION: That the Nome Common Council adopt Resolution No.16-09-03 to issue General Obligation Refunding Bonds in the principal not to exceed $800,000 to refund certain outstanding general obligation refunding bonds of the City, fixing certain details of such bonds and authorizing their sale.

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nome city council · nome city council regular meeting september 12, ... david csiki approval of...

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