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HomeMy WebLinkAboutRES 252 Draft 01 2024-2026J�ZY OF H,L' COUNTY OF HAWAI`I STATE OF HAWAII TE OF•NF'� RESOLUTION NO. 252 25 A RESOLUTION ADOPTING USDA FORM RESOLUTION 1780-27 TO PROVIDE FOR A LOAN FROM THE UNITED STATES OF AMERICA, DEPARTMENT OF AGRICULTURE, TO FINANCE CERTAIN PUBLIC WATER SYSTEM IMPROVEMENTS FOR IKI PLACE, KOHANAIKI HOMESTEADS, NORTH KONA, HAWAI`I; AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH THE UNITED STATES OF AMERICA, DEPARTMENT OF AGRICULTURE, FOR A GRANT FOR COSTS OF SUCH PUBLIC WATER SYSTEM IMPROVEMENTS; AND AUTHORIZING THE MAYOR, THE MANAGER -CHIEF ENGINEER OF THE DEPARTMENT OF WATER SUPPLY, THE DIRECTOR OF FINANCE, AND THE CHAIR OF THE COUNTY COUNCIL TO TAKE ALL ACTIONS NECESSARY TO FACILITATE SUCH LOAN AND GRANT. WHEREAS, the .County of Hawaii proposes to issue its general obligation bonds to evidence its repayment obligations for a loan to be obtained from the United States of America, acting by and through the United States Department of Agriculture, Rural Development, on behalf of the Rural Utilities Service (hereinafter "USDA"), in an amount not to exceed TWO HUNDRED SEVENTY-FIVE THOUSAND AND NO/100 DOLLARS ($275,000.00), to fund a portion of the costs of certain public water system improvements (hereinafter "the Project") for the Iki Place, Kohanaiki Homesteads, North Kona, Hawaii; and WHEREAS, in connection with such loan, USDA has offered a grant to fund costs of the Project in an amount not to exceed EIGHT HUNDRED TWENTY-FIVE THOUSAND AND NO/100 DOLLARS ($825,000.00); and WHEREAS, USDA requires, as part of the loan, grant, and bond closing process for the Project, that a USDA Loan Resolution, in the form of RUS Bulletin 1780-27, or similar resolution, be adopted, and that certain other documents be executed and actions be taken; and WHEREAS, Section 46-7 of the Hawaii Revised Statutes requires the consent of the Council in order for the County to enter into an agreement with the federal government or any other public body respecting action to be taken pursuant to any of the powers granted to the County by law and furnish, expend, and receive any funds or other assistance in connection with projects being or to be undertaken pursuant to those powers; now, therefore, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAI`I that this body hereby adopts the USDA Loan Resolution, attached hereto as Exhibit A and incorporated herein by reference, including the Certification To Be Executed At Loan. Closing. BE IT FURTHER RESOLVED that, pursuant to section 46-7 of the Hawaii Revised Statutes, the Mayor is hereby authorized to enter into a grant agreement with USDA for a grant in the amount no more than $825,000.00 to be applied to the costs of the Project and is further authorized to sign the above-referenced agreement and any related documents. BE IT FURTHER RESOLVED that the Mayor, the Manager-Chief Engineer of the Department of Water Supply, the Director of Finance, and the Chair of the Council of the County of Hawai`i are hereby authorized and empowered to take all actions necessary or appropriate in the execution of all written instruments as may be requested or required to facilitate the loan and grant and the terms of the agreements therefor,the provisions of which shall be incorporated upon such execution. BE IT FINALLY RESOLVED that the County Clerk shall transmit a copy of this resolution to the Honorable C. Kimo Alameda, Mayor of the County of Hawai`i; Diane T. Nakagawa, Director of Finance; Renee N. C. Schoen, Corporation Counsel; Keith K. Okamoto, Manager-Chief Engineer of the Department of Water Supply; Lisa Miura, Administrator, Real Property Tax Division, Department of Finance; Bryan Anguiano, Acting Director, Hawaii and Western Pacific Rural Development State Office, United States Department of Agriculture, 154 Waianuenue Avenue, Suite 311, Hilo, Hawai`i 96720; and Brian T. Hirai, Bond Counsel, McCorriston Miller Mukai MacKinnon LLP. Dated at Hilo , Hawai`i, this 6th day of August , 2025 . INTRODUCED BY: 111. 13 Ire. COUNCIL M' . BER, COI TY OF HAWAI`I COUNTY COUNCIL ROLL CALL VOTE County of Hawaii AYES NOES ABS EX Hilo, Hawai`i GALIMBA X HUSTACE X I hereby certify that the foregoing RESOLUTION was by INABA X the vote indicated to the right hereof adopted by the COUNCIL of the KAGIWADA X County of Hawaii on August 6, 2025 KANEALI`I-KLEINFELDER X KIERKIEWICZ X ATTEST: KIMBALL X ONISHI X VILLEGAS X 8 0 1 0 Reference: C-410/Waived FC CO CHAIRPERSON&PRESIDING OFFICER RESOLUTION NO. 52 S HI I IHIlI U 1111 2 LRB 25-009 ADM EXHIBIT A RUS BULLETIN 1780-27 LOAN RESOLUTION A-1 Position 5 EXHIBIT A 'RUS BULLETIN 1780-27 APPROVED OMB. No. "0572-0121 LOAN RESOLUTION (Public Bodies) ARESOLUTIONOFTHE COUNTYCOUNCIL OF THE COUNTY OF HAWAII AUTHORIZING AND PROVIDING FOR THE INCURRENCE OFINDEBTEDNESS FOR THE PURPOSE OF PROVIDING A PORTION OF THE COST.OF ACQUIRING, CONSTRUCTING, ENLARGING, IMPROVING, AND/OR.EXTENDING ITS PUBLIC WATER DELIVERY SYSTEM FOR IKI PLACE, KOHANAIKI HOMESTEADS FACILITY TO SERVE AN AREA LAWFULLY WITHIN ITS JURiSD1CTION TO SERVE. WHEREAS, itis necessary for the COUNTY OF HAWAII (P.ublic.Body) (hereinafter called Association) to raise a portion of the cost of such undertaking by issuance ofits bonds in. the principal amount of TWO HUNDRED SEVENTY FIVE THOUSAND AND NOII00 DOLLARS ($275,000) pursuant to the provisions of PART I, CHAPTER 47, HAWAII REVISED STATUTES ; and 'WHEREAS, the Association'intends to obtain assistance from the United States Department of Agriculture, (herein called the Government) acting under the provisions of the Consolidated Farm and Rural DevelopmentAct (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, inconsideration ofthe premises the Association hereby resolves: 1. To.have prepared on its behalf and to adopt an ordinance or resolution for the issuance ofits 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 part, ofits bonds upon the request of the Government if at any time it shall appear to the Government thatthe 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 DevelopmentAct (7 U.S.C. 1983(c)). 3. To provide for, execute, and comply with Form RD 400-4, "Assurance Agreement," and Form RD 400-1, "Equal Opportunity,Agreement,"' including an "Equal Opportunity Clause," which clause is -to be incorporated in; or attached as arider to, each construction contract and subcontract involving in excess of Sl0,000. 4. To indemnify the Government for any payments made oF losses suffeized by the Gavem-m-ent gn behalf fthA A ssepinflan Sueh iftdefriftifieatien shall be payable frem the same seuree effitads pledged to pay the bands or any other legal ly per foissiblesemee. See Rider A. 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 Government at 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 orient it. Default under the provisions ofthis resolution or any instrument incident to the making or insuring.ofthe loan may be construed by the Government to constitute default under any other instrument held by the Govemment'and executed or assumed by the Association, and default under any such instrument maybe construed by the Government 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 the Government. 7. Not to defease the bonds, or to borrow money, enter into any contractor agreement, or otherwise incur any liabilities for any purpose in connection with the facility (exclusive ofnormal maintenance) without the prior written consent of the Government if 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 Government. 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 the United States. Any income: from these accounts will be considered as revenues of the system. 9. To comply with all applicable State 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 to pay operating and mainte- nance, 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 USDA. No free service or use of the facilitywill be permitted. According to the Paperwork Reduction Acl of 1995, an agency may not conduct or sponsor, and a perdon is not required to respond lo, a collection of informalion unless it displays a valid OMB cantrol number. The wild OMB control numberfor this information colleciion.is 0572.0121. The time required to complete this information collection is estimated'to averagel hourper response,, including the tlmefor'reviewing instructions, searching existing data sources, gathering and maintaining the. data needed, and completing and reviewing the collection ofinformatton. A-2 -2- 11. To acquire and maintain such insurance and fidelity bond coverage as may be required by the Government. 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 Government, to provide the Government a copy of each such audit without its request, and'to forward to the Government such additional information and reports as it 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 ofthe system so that the Government may ascertain that the Association is complying with the provisions hereof and of the instruments incident to the making or insuring of the loan. 14: That if the Government requires that a reserve account be established, disbursements from that account(s) may be used when necessary for payments due on the bond if sufficient funds are not otherwise available and prior approval of the Government is obtained. Also, with the prior written approval ofthe Government, funds may be withdrawn and used for such things as emergency maintenance, extensions to facilities and replacement of short.lived assets. 15. To provide adequate service to all persons within the service area who can feasibly and legally be served andto obtain USDA'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 the measures identified in the Govemmenes environmental impact analysis for this facility for the pur- pose of avoiding or reducing the adverse environmental impacts ofthe facility's construction or operation. 17. To accept a grant in an amount not to, exceed $ EIGHT HUNDRED TWENTY FIVE THOUSAND AND NO/100 DOLLARS ($825,000) under the terms offered by the Government; that the MAYOR, MANAGER -CHIEF ENGINEER OF THE DEPARTMENT OF WATER SUPPLY', FINANCE DIRECTOR and COUNCIL CHAIR ofthe Association are hereby authorized and empowered to take all action necessary or appropriate in the execution of all written instruments as maybe required in regardto or as evidence of such grant; and to operate the facility under the terms offered in said grant agreement(s). The provisions hereof and the provisions of all instruments incident to the making or the insuring of the loan, unless otherwise specifically provided by the terms of such instrument, shall be binding upon, the 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 Government or assignee. The vote was: Yeas Nays Absent .IN WITNESS W.HEREOF,the COUNTY COUNCIL ofthe COUNTY OF HAWAII has duly adopted this resolution and caused it to be executed by the officers below in duplicate on this day of 2025' (SEAL) By Attest: Title COUNCIL CHAIR Title COUNTY CLERK A-3 -3- CERTIFICATION TO BE EXECUTED AT LOAN CLOSING 1', the undersigned, as COUNTY CLERK of the COUNTY OF HAWAII hereby certify, that the of such Association is composed of members, of whom , constituting a quorum, were present at a meeting thereof duly called and held on the day of Viand that the foregoing resolution was adopted at such meeting by the vote shown above,1, further certify thatas of the date of closing of the Ioan from the United States Department of Agriculture, said resolution remains in effect and has not been rescinded or amended in any way. Dated, this day of Title COUNTY CLERK FEW Rider A (USDA,Form RUS Bulletin 1780-27) 4. The Association shall be responsible for damage or personal injury resulting from acts or omissions of Association employees while acting within the scope of their employment to the extent that the Association's liability for such damage or injury has been determined by a court or otherwise agreed to by the Association. The Association shall pay for such damages and injury to the extent that funds have been authorized and appropriated by the County Council. of the Association for such purpose, and the funds have been allocated by the executive budget process. 746300.1 A-5