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HomeMy WebLinkAboutCOM 0526.002 1998-2000 United States Department of Agriculture Rural Utilities Service (RUS) D Rural Development Rural Housing Service (RHS) Rural Business -Cooperative Service (RBS) Hawaii State Office -Western Pacific Region Telephone: (808) 933-8380 Room 31 I Federal Building FAX: (808) 933-8327 154 Waianuenue Avenue Hilo, Hawaii 96720 FRANCIS J. BLANCO State Director NOVember 17, 1999 ci, Mr. Aaron Chung, Chair CO Committee on Finance C-~ c _~-l Hawaii County Council Tea K. Matam 25 Auptmi Street ~ Program Director, RUS H110, HI 96720 -Ll - - ~ Dear Mr. Chung: W Thao Khamoui Crl Program Director, RHS Subject: Resolution Authorizing and Providing for the Incurrence of Indebtedness for the Purpose of Providing a Portion of the Costs of Constructing the East Hawaii Police Detention Facility Steven R. cnapman In response to questions posed by Curtis Tyler, member of the Committee on Finance, to the Program Director, RBS enclosed Form RD 1942-47, Loan Resolution (Public Bodies), we provide the following: • The Government will ordinarily consider any requirements for reserves (Item No. 14) to have been met if general obligation or other bonds which pledge the full faith and credit of the political entity are used. • Item No. 17 is not applicable and pertains only to instances whereby the public body receives a grant under our Community Facilites Grant Program. We have also enclosed amortization tables reflecting the payments based on a loan amount of $1.8 million at 5% with a repayment period of 30 years or 35 years. Terms for repayment are based on the useful life of the facility, but not to exceed State statute (35 years) or 40 years whichever is less. Should you have additional questions, please contact Stephanie Taketa, Loan Specialist, at (808)933-8308 or Thao Khamoui, Community Facilities Program Director, at (808)933-8307. Sincerely, FRANCIS J. BLANCO State Director Enclosures Couun. No.y~~ ~ • 0 O l~le No. FND Rural Development is an Equal Opportunity Lender. Ref, TO! COJ N GI L Complaints of discrimination should be sent to: ~ q ~ Secretary oC Agriculture, Washington, DC 20250 Ref. Date Fi Position 5 USDA LOAN RESOLUTION Form RD 1942-47 FORM APPROVED (Rev. 12-97) (PUb11C BOdICS) OMB NO. 0575-0015 A RESOLUTION OF THE OF THE AUTHORIZING AND PROVIDING FOR THE INCURRENCE OF INDEBTEDNESS FOR THE PURPOSE OF PROVIDING A PORTION OF THE COST OFACQU[RING, CONSTRUCTING, ENLARGING, IMPROVING, AND/OR EXTENDING ITS FACILITY TO SERVE AN AREA LAWFULLY WITHIN ITS JURISDICTION TO SERVE. WHEREAS, it is necessary for the (Puhlir Bodrl (herein after called Association) to raise a portion of the cost of such undertaking by issuance of its bonds in the principal amount of pursuant to the provisions of ;and WHEREAS, the Association intends to obtain assistance from the Rural Housing Service, Rural Business -Cooperative Service, Rural Utilities Service, or [heir successor Agencies with the United States Department of Agriculture, (herein called the Government) acting under [he provisions of [he Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et segJ in [he planning, financing, and supervision of such undertaking and the purchasing of bonds lawfully issued, in the event that no other acceptable purchaser for such bonds is found by [he Association: NOW THEREFORE in consideration of the premises the Association hereby resolves: 1. To have prepared on its behalf and to adopt an ordinance or resolution for [he issuance of its bonds containing such items and in such forms as are required by State statutes and as are agreeable and acceptable to the Government. 2. To refinance [he unpaid balance, in whole or in part, of its bonds upon the request of the Government if at any time it shall appear to the Govemment that the Association is able to refinance its bonds by obtaining a loan for such purposes from responsible cooperative or private sources at reasonable rates and terms for loans for similar puryoses and periods of time as required by section 333(c) of said Consolidated Fartn and Rural Development Act (7 U.S.C. 19R3(c)). 3. To provide for, execute, and comply with Forth RD 400-4, "Assurance Agreemem;' and Forrn RD 400-I, "Equal Opportunity Agreement," including an "Equal Opportunity Clause," which clause is to be incorporated in, or attached as a rider to, each construction contract and subcontract involving in excess of $10,000. 4. To indemnify [he Govemment for any payments made or losses suffered by the Govemment on behalf of the Association. Such indemnitication shall be payable from [he same source of funds pledged to pay the bonds or any other legal permissible source. 5. That upon default in the payments of any principal and accrued interest on [he bonds or in the performance of any covenant or agreement comained herein or in the instruments incident to making or insuring the loan, the Government at its option may (a) declare the entire principal amount then outstanding and accrued interest immediately due and payable, (b) for [he account of the Association (payable from the source of funds pledged to pay the bonds or any other legally permissible source), incur and pay reasonable expenses for repair, maintenance, and operation of [he facility and such other reasonable expenses as may be necessary [o cure the cause of default, and/or (c) take possession of the facility, repair, maintain, and operate or rent it. Default under [he provisions of [his resolution or any instrument incident to the making or insuring of the loan may be construed by the Govemment to constitute default under any other instrument held by the Govemment and executed or assumed by the Association, and default under any such instrument may be construed by the Govemmem to constitute default hereunder. 6. Not to sell, transfer, lease, or otherwise encumber the facility or any portion thereof, or interest therein, or permit others to do so without [he prior written consent of the Govemment. 7. Not to defease [he bonds, or to borrow money, enter into any contract or agreement, or otherwise incur any liabilities for any purpose in connection with the facility (exclusive of normal maintenance) without the prior written consent of the Govemment if such undertaking would involve [he source of funds pledged [o pay the bonds. 8. To place the proceeds of [he bonds on deposit in an account and in a manner approved by [he Government. Funds may be deposited in institutions insured by [he S[a[e or Federal Government or invested in readily marketable severities backed by the full faith and credit of the United Stales. Any income from these accounts will be considered as revenues of the system. 9. To comply with all applicable Stale and Federal Taws and regulations and to continually operate and maintain the facility in good condition. ]0. To provide for the receipt of adequate revenues to meet the requirements of debt service, operation and maintenance, and the establishment of adequate reserves. Revenue accumulated over and above that needed to pay operating and maintenance, debt service and reserves may only be retained or used [o make prepayments on the loan. Revenue cannot be used to pay any expenses which are not directly incurred for the facility financed by the Govemment No free service or use of the facility will be permitted. Aemrding fa the Paperwork Reduefian Acl af7995, nn prrsons are required m respond to a ml(e[non rJmformm~nn unleu it displm's a valid OMB rnnrrnl numher.7he valid OMB rnnlrzrl number for this fnfnrnmtion collection is 0575-08/.5. The Gme required m mmpletr this infmmm~nn ruBenlan is esumared m m~erage 7 hour per respnnae mr[udmg rhr nn,e (nrve yr amp insnucnom~, search(ng extst(ng data sourres. RaMenng and mainmining the data needed, and rnmplenng mid revlevang the ,ol/enran of ml~rmarinn. -2- 11. To acquire and maintain such insurance and fidelity bond coverage as may be required by the Govemment. 12. To establish and maintain such books and records relating to the operation of the facility and its financial affairs and to provide for required audit thereof as required by the Govemment, to provide the Government a copy of each such audit without its request, and to forward [o [he Govemment such additional information and reports as i[ may from time to time require. 13. To provide the Government at all reasonable times access to all books and records relating to the facility and access to the property of the system so [hat the Govemment may ascertain that the Association is complying with the provisions hereof and of the instmments incident to the making or insuring of the loan. 14. That if [he Govemment requires [ha[ a reserve account be established and maintained, disbursements from that account may be used when necessary for payments due on [he bond if sufficient funds are not otherwise available. With [he prior written approval of [he Governmen[,1'unds may be withdrawn for: (a) Paying [he cos[ of repairing or replacing any damage to the facility caused by catastrophe. (b) Repairing or replacing short-lived assets. (e) Making extensions or improvements to the facility. Any time funds are disbursed from the reserve account, additional deposits will be required until the reserve account has reached [he required funded level. ] 5. To provide adequate service to all persons within the service area who can feasibly and legally be served and to obtain [he Government's concurrence prior to refusing new or adequate services to such persons. Upon failure to provide services which are feasible and legal, such person shall have a direct right of action against the Association or public body. 16. To comply with [he measures identified in the Government's environmental impact analysis for this facility for the purpose of avoiding or reducing the adverse environmental impacts of the facility's construction or operation. 17. To accept a grant in an amount not to exceed $ under the terms offered by the Govemment; that the and of the Association are hereby authorized and empowered to take all action necessary or appropriate in the execution of all written instruments as may be required in regard [o or as evidence of such grant; and [o operate [he facility under [he terms offered in said grant agreement(s). The provisions hereof and the provisions of all instruments incident to [he making or [he insuring of [he loan, unless otherwise specifically provided by [he terms of such instrument, shall be binding upon [he Association as long as the bonds are held or insured by the Government or assignee. The provisions of sections 6 through 17 hereof may be provided for in more specific detail in the bond resolution or ordinance; to the extent that the provisions contained in such bond resolution or ordinance should be found to be inconsistent with the provisions hereof, these provisions shall be construed as controlling between the Association and the Govemment or assignee The vote was: Yeas Nays Absent IN WITNESS WHEREOF, the of the has duly adopted [his resolution and caused it to be executed by the officers below in duplicate on this day of , 19 . (SEAL) sy Attest: Title Title -3- CERTIFICATION TO BE EXECUTED AT LOAN CLOSING I, [he undersigned, as of [he hereby certify that [he of such Association is composed of members, of whom , constituting a quorum, were present at a meeting thereof duly called and held on [he day of , 19 ; and [hat the foregoing resolution was adopted at such meeting by [he vote shown above. I further certify that as of - , the date of closing of the loan from the Government, said resolution remains in effect and has not been rescinded or amended in any way. Dated, this day of ,19 Title Amort1.xls 'SUMMARY OF PAYMENTS ' - - Paymenf ~ ~ Beginning ~ (Principal & Principal Remaining Payment Line No. Date Principal Interest)' Reduction Principal Made 1 Year 1 ~ $1,800,00000 ' $]09,929.00 $19,929.00 $1,780,071.00 2 Year2 $1780,07100 $109,929.00 $20,925.45 $1,789145.55 3 Year 3 $1 789,145.55 $109,929.00 $21,971.72 $1,747,173.83 I, I - 4 Year4 $1,737,173.83 $109,929.00 $23,070.31 $1,714,103.52 ~ ~ Year 5 $1,714 103.52 6 Year 6 $1 689 879.69 $109 929.00 $24,223.82 $1,689,879.69 ~ $109,929.00 $25,435.02 $1,664,444.68 7 Yera 7 $1,664,444.68 $109,929.00 $26,706.77 $1,637,737.97 8 Year8 $1,637,737.91 ~ $]09,929.00 $28,042.10 $],609,695.81 9 Year9 $1,609,695.81 $109,929.00 $29,444.21 $1,580,251.60 ]0 Year 10 $1,580,251.60 $109,929.00 $30,916.42 $1,549,335.18 11 Ycar 11 $1,549,835.18 $]09,929.00 $32,46224 $1,516,87L.94 12 Year 12 I $1,576,872.94 $109,929.00 $34,08535 $1,482,787.591 13 ~ Year 13 $1,482 787.59 $109,929.00 $35,789.62 $1,446,997.96 14 ~ Year 14 $1,446,997.96 $109,929.00 $37,579.10 $1,409,4]8.86 I 15 Year 15 $],409,418.86 $109,9L9.00 $39,458.06 $1,369,960.81 16 Year 16 $1,369,960.81 $109,929.00 $41,430.96 $1,328,529.85 17 Year 17 $1,328,5L9.85 ~ $109,929.00 $43,502.51 $1,L85,027.34 IS Year IS $1,285,027.34 $109,929.00 $45,677.68 $1,239,349.71 19 Year 19 $1,239,349.71 $109,929.00 $47,961.51 $1,191,388.19 20 Year 20 $1,191,388.19 $109,929.00 $50,359.59 $1,141,028.60 - -r--------------- - $109,929.00 $52,877.57 $1,088,757.03 21 Year 21 1,141,028.60 22 Year 22 $1 088,151.03 ' $109,929.00 $55,521.45 $1,032,629.58 23 Year ZS $1,032,629.58 ~ $]09,929.00 $58,297.52 $974,332.06 24 Year 24 $974,332.06 ~ $109,929.00 $61,212.40 $973,179.66 25 Year 25 $913,119.66 26 Year 26 $848,846.65 $109,929.00 $64,273.02 $848,846.65 ~ $109,929.00 $67,486.67 _ $781,359.98 ' 27 Year 27 ~ $781,359.98 $109,929.00 $70,861.00 $710,498.98 L8 Year 28 I $710,498.98 $109,929.00 $74,404.05 $636,094.93 ---r--- - - 29 Year 29 $636,094.93 $109,929.00 $78,124.25 $557,970.67 30 ~ Year 30 $557,970.67 $109,929.00 $82,030.47 $475,940.21 31 ~ Year 31 ~ $475,940.21 $109,929.00 $86,131.99 $389,808.22 32 ~I Year 32 $389,808.22 $109,929.00 $90,438.59 $299,369.63 33 ' Year 33 $299,369.63 $109,929.00 ~ $94,960.52 $204,409.11 34 Year 34 $204,409.11 ' $109,929.00 $99,708.54 $104,700.57 ' 35 Year 35 $104,700.57 ~ $709,929.00 $104,693.97 $6.59 Page 1 Amort.xls SUMMARY OF PAYMENTS - _ i - i Payment i Beginning (Principal & Principal Remaining I'nymcn~ Line No. Date Principal Interest)° Reducfion Principal M~du 1 Year 1 ~ $1,800,000.00 $117,092.00 ' $27,092.00 $1,772,908.00 2 ~ Ycar 2 $1,772,908.00 $117,092.00 $28,446.60 $1,744,461.40 3 Year3 $1,744,461.40 $117,092.00 $29,868.93 $1,714,592.47 4 Ycar 4 $],714,592.47 $117,092.00 $31,362.38 $1,683,230.09 _ 5 Year 5 $1,683,230.09 $117,092.00 $32,930.50 $1,650,299.60 6 ~ Year 6 ~ $1,650,299.60 $117,092.00 $44,577 02 $1,615 722.58 9 Yera 7 $],615,722 58 $117,092.00 $46,305.87 $1,579 416.71 YearB $1,579,416.71 $117,092.00 $38,121.]6 $1,541,295.54 8 Ycar9 $],541,295.54 $117,092.00 $40,027.22 $1,501,268.32 10 Year 10 i $1,501,'268.32 _ $117,092.00 $42,028.58 $1,459,239.74 11 Year I1 $1,459,239.74 $117,092.00 $44,130.01 $1,415,109.72 12 ~i Year 12 $1,415,109.72 $]17,092.00 $46,336.51 $1,368,773.21 13 Year 13 , $1,368,773.21 $117 092.00 $48,653.34 $1,320,119.87 14 Year 14 $1,320,119.87 $117,092.00 $51,086.01 $1,269,033.86 15 Year 15 $1,269,033.86 $117,092.00 $53,640.31 $1,215,393.56 16 Year 16 $1,215,393.56 $117,092.00 $56,322.32 $1,159,071.23 17 Year 17 $1,159,07].23 ' $117,092.00 $59,138.44 $1,099,932.79 18 Year 18 $1,099,932.79 ' $117,092.00 $62,095,86 $1,037,837.43 - 19 Year 19 $1 037,837.48 $117,092.00 $65,20013 $972,637.31 20 Year 20 $972,637.31 $117,092.00 I $68,460.18 $904 177.17 21 Year 21 $904,177.17 $117,092.00 $71,883.14 ~ $84L,294.0;3 2L Year 22 $832,294.03 17,092.00 ' $75,477.30 $756,816.73 23 Year 23 $756,816.73 $117,092.00 _$79,251.16 $677,565.57 24 Year 24 $677,565.57 $117,092.00 $88,213.72 $594,351.85 ~ 25 Year 25 _ $594,351.85 I $117,092.00 $87,374.41 $506,977.44 26 Year 26 $506,977.44 ~ $117,092.00 $91,743.13 $415,234.31 - -1-- - ~ - 27 Year 27 $415,234.31 $117,092.00 $96,330.28 $318,904.03 _ 28 Year 28 $318,904 04 $117,092.00 $101,146 80 $217 797.23 29 Year 29 $217,75724 i $117,092.00 $106,20414 $111 993.09 30 Year 30 I $111,553.09 $117,092.00 11,514.35 $38.74 Page 1 Position 5 I USDA Form RD 1942-47 LOAN RESOLUTION FORM APPROVED (Rev. 12-97) (Public Bodies) OMB N0.0575-0015 ARESOLUTIONOFTHE County Council OFTHE County of Hawaii AUTHORIZING AND PROVIDING FOR THE INCURRENCE OF INDEBTEDNESS FOR THE PURPOSE OF PROVIDING A PORTION OF THE COST OF ACQUIRING, CONSTRUCTING, ENLARGING, IMPROVING, AND/OR EXTENDING ITS East Hawaii Police Detention FACILITY TO SERVE AN AREA LAWFULLY WITHIN ITS JURISDICTION TO SERVE. WHEREAS, it is necessary for the County of Hawaii (Public Bodv) (herein after called Association) to raise a portion of the cost of such undertaking by issuance of its bonds in the principal amount of One Million Ei ht Hundred Thousand Dollars pursuant [o the provisions of Chanter 47 of the Hawaii Revised Statutes ;and WHEREAS, the Association intends to obtain assistance from [he Rural Housing Service, Rural Business -Cooperative Service, Rural Utilities Service, or their successor Agencies with the United States Department of Agriculture, (herein called the Govemment) acting under the provisions of the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) in the planning, financing, and supervision of such undertaking and the purchasing of bonds lawfully issued, in the event that no other acceptable purchaser for such bonds is found by the Association: NOW THEREFORE in consideration of the premises the Association hereby resolves: 1. To have prepared on its behalf and to adopt an ordinance or resolution for the issuance of its bonds containing such items and in such forms as are required by State statutes and as are agreeable and acceptable to the Government. 2. To refinance the unpaid balance, in whole or in par[, of its bonds upon the request of the Govemment if at any time it shall appear to the Govemment that the Association is able to refinance its bonds by obtaining a loan for such purposes from responsible cooperative or private sources at reasonable rates and terms for loans for similar purposes and periods of time as required by section 333(c) of said Consolidated Farm and Rural Development Act (7 U.S.C. 1983(c)). 3. To provide for. execute, and comply with Form RD 400-4, "Assurance Agreement," and Form RD 400-I, "Equal Opportunity Agreement," including an "Equal Opportunity Clause," which clause is to be incorporated in, or attached as a rider to, each construction contract and subcontract involving in excess of $(0,000. 4. To indemnify the Govemment for any payments made or losses suffered by the Govemment on behalf of the Association. Such indemnification shall be payable from the same source of funds pledged [o pay the bonds or any other legal permissible source. 5. That upon default in the payments of any principal and accrued interest on the bonds or in the performance of any covenant or agreement contained herein or in the instruments incident to making or insuring the loan, the Govemment a[ its option may (a) declare the entire principal amount then outstanding and accrued interest immediately due and payable, (b) for the account of the Association (payable from the source of funds pledged to pay the bonds or any other legally permissible source), incur and pay reasonable expenses for repair, maintenance, and operation of the facility and such other reasonable expenses as may be necessary to cure the cause of default, and/or (c) take possession of the facility, repair, maintain, and operate or rent it. Default under the provisions of this resolution or any instmment incident to the making or insuring of the loan may be construed by the Govemment to constitute default under any other instrument held by the Govemment and executed or assumed by the Association, and default under any such instrument may be constmed by [he Govemment to constitute default hereunder. 6. Not to sell, transfer, lease, or otherwise encumber the facility or any portion thereof, or interest therein, or permit others to do so without the prior written consent of [he Government. 7. No[ to defease [he bonds, or to borrow money, enter into any contractor agreement, or otherwise incur any liabilities for any purpose in connection with the facility (exclusive of normal maintenance) without the prior written consent of the Government tf such undertaking would involve the source of funds pledged to pay the bonds. 8. To place the proceeds of the bonds on deposit in an account and in a manner approved by the Govemment. Funds may be deposited in institutions insured by the State or Federal Government or invested in readily marketable securities backed by the full faith and credit of [he United States. Any income from these accounts will be considered as revenues of [he system. 9. To comply with all applicable Slate and Federal laws and regulations and to continually operate and maintain the facility in good condition. 10. To provide for the receipt of adequate revenues to meet the requirements of debt service, operation and maintenance, and the establishment of adequate reserves. Revenue accumulated over and above that needed [o pay operating and maintenance, debt service and reserves may only be retained or used to make prepayments on the loan. Revenue cannot be used to pay any expenses which are not directly incurred for the facility financed by the Govemment. No free service or use of the facility will be permitted. ' Anzuding m the Papem~nrk Redunion Aa of 1995. nn peemns are regoved ro respond m a mllenmrz nfinformannn unless rr displms a rand OMB rnnrrnl number Thy rehd OM8 ~.~nrrol numlxr far rhfs mformannn mllerrmn v 0575~OOli The nme regwred m armpfere this iaJnrmannn ealleerton is esnmared m a,~erage 1 how per response. mcludmq the nme Jur rerree~rnp inunn'aonT. semchmq eacnnq rlom Sources. garhenng and mammmm¢ the data needed. and romplennq and reneH~mq the rn//errmn nl mfnr'mannn -2- l 1. To acquire and maintain such insurance and fidelity bond coverage as may be required by the Govemment. 12. To establish and maintain such books and records relating to the operation of the facility and its financial affairs and to provide for required audit [hereof as required by [he Govemment, to provide the Govemment a copy of each such audit without its request, and [o forward to the Government such additional information and reports as it may from time to time require. 13. To provide the Govemment at all reasonable times access to all books and records relating to the facility and access to the property of [he system so [hat the Government may ascertain that the Association is complying with [he provisions hereof and of the instruments incident to the making or insuring of [he loan. 14. That if the Govemment requires that a reserve account be established and maintained, disbursements from that account may be used when necessary for payments due on the bond if sufficient funds are not otherwise available. With the prior written approval of [he Government, funds may be withdrawn for: (a) Paying the cos[ of repairing or replacing any damage [o [he facility caused by catastrophe. (b) Repairing or replacing short-lived assets. (c) Making extensions or improvements [o [he facility. Any time funds are disbursed from the reserve account, additional deposits will be required until [he reserve account has reached the required funded level. 15. To provide adequate service [o all persons within the service area who can feasibly and legally be served and [o obtain the Government's concurrence prior to refusing new or adequate services to such persons. Upon failure to provide services which are feasible and legal, such person shall have a direct right of action against the Association or public body. 16. To comply with [he measures identified in the Government's environmental impact analysis for this facility for the purpose of avoiding or reducing [he adverse environmental impacts of the facility's construction or operation. 17. To accept a gran[ in an amount no[ to exceed $ under the terms offered by the Govemment; that the and of the Association are hereby authorized and empowered to take all action necessary or appropriate in the execution of all written instruments as may be required in regard to or as evidence of such grant, and to operate the facility under the terms offered in said gran[ agreement(s). The provisions hereof and the provisions of all instruments incident to the making or [he insuring of [he loan, unless otherwise specifically provided by [he terms of such instrument, shall be binding upon the Association as long as the bonds are held or insured by the Govemment or assignee. The provisions of sections 6 through 17 hereof may he provided for in more specific detail in the bond resolution or ordinance; [o [he extent that the provisions contained in such bond resolution or ordinance should be found to be inconsistent with the provisions hereof, these provisions shall be construed as controlling between the Association and the Govemment or assignee The vote was: Yeas Nays Absent IN WITNESS WHEREOF, [he of the has duly adopted this resolution and caused it to be executed by the officers below in duplicate on this day of , 19 . (SEAL) By Attest: Title Title CERTIFICATION TO BE EXECUTED AT LOAN CLOSING I, the undersigned, as of the hereby certify [hat the of such Association is composed of members, of whom , constituting a quorum, were present at a meeting thereof duly called and held on [he day of , 19 ;and [hat [he foregoing resolution was adopted at such meeting by the vote shown above. 1 further certify that as of [he date of closing of [he loan from the Govemmen[, said resolution remains in effect and has not been rescinded or amended in any way. Dated, this day of ,19 . Title