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HomeMy WebLinkAboutORD 2004-093 2002-2004 ~tY O(. COUNTY OF HAWAII ~ STATE OF HAWAII o;,~i.,,,~,~. BILL NO. 306 0~ M~ ORDINANCE NO. 9.~, AN ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS OF THE COUNTY OF HAWAII IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEF,D 54,296,400.00 FOR THE PURPOSE OF FINANCING A PORTION OF THE COSTS OF CONSTRUCTING PUBLIC WATER SYSTEM IMPROVEMENTS IN "IMPROVF.MF,NT DISTRICT NO. 18 - KONA COASTV[EW AND KONA WONDERVIEW SUBDIVISIONS"; FIXING THE FORM, DENOMINATION, AND CERTAIN DETAILS OF SUCH BONDS; AND PROVIDING FOR THE SALE OF SUCH BONDS BE lT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAI`1: SEC'"fION I. FINDINGS AND DETERMINATIONS. It is hereby found and determined that: A. Pursuant to Chapter 12, Hawaii County Code (1995 Edition), as amended, Resolution No. 237-02 and Resolution No. 21 I-04, the Council of the County of Hawaii (the "County") has authorized the creation, definition and establishment of a Water System Improvement District ("Improvement District No. 18 -Kona Coastview and Kona Wonderview Subdivisions") for the purpose of undertaking and financing the costs of a project consisting of the consU~uction. acquisition and installation ofa public water system to serve the Kona Coastview and Kona Wonderview Subdivisions (the "Project"). B. The United States of America acting by and through Department of Agriculture ("USDA'") has offered to make two loans to the County (the "USDA Loans') to assist in the financing of the Project, consisting of: (I) a loan in a principal amount not to exceed TWO MILLION SEVEN HUNDRED SEVENTY SIX THOUSAND FOUR HUNDRED AND NO/100 DOLLARS ($2,776,400.00), which is expected to bear interest at a rate not to exceed Four and Three Quarters Percent (4'/4%) per annum; and (2) an additional loan in a principal amount not to exceed NINE HUNDRED TWEN"fY THOUSAND AND NO/100 DOLLARS ($920,000.00), which is expected to bear interest at a rate not to exceed Four and Three Eighths Percent (4 3/8%) per annum. USDA has also offered to make a grant to the County (the "USDA Grant') to provide further assistance for the Project in an amount not to exceed ONE MILLION EIGHT HUNDRED TWENTY THRF.F. THOUSAND SIX HUNDRED AND NO/100 DOLLARS ($1,823,600.00). C. The Department of Water Supply of the County ("DWS") has also offered to make a loan to the County (the "DWS Loan" and, together with the USDA Loans, the "Loans") in a principal amount not to exceed SIX HUNDRED THOUSAND AND NO/ 100 DOLLARS ($600,000.00), which is expected to bear interest at a rate not to exceed Four and One Half Percent (4 ''/z%) per annum. D. It is advisable and desirable for the County to obtain the Loans from USDA and DWS. In order to secure the payment of the Loans, it is necessary, advisable and desirable that the County authorize, issue and dispose of to USDA and DWS general obligation bonds of the County in the respective principal amounts of the USDA Loans and the DWS Loan. E. The costs of the Project, net of the USDA Grant, will be assessed against the "assessment units" within the Improvement District in accordance with Chapter l2, Hawai•i County Code (1995 Edition), as amended. Collections of such assessments will be used to reimburse the County for payments of the principal of and interest on the bonds authorized hereunder and for administrative expenses of the County with respect to the Improvement District. SECTION 2. AUTHORIZATION OF BONDS. There are hereby authorized for issuance and sale general obligation bonds of the County (the "Bonds") in an aggregate principal amount not to exceed FOUR MILLION TWO HUNDRED NINETY SIX THOUSAND FOUR HUNDRED AND NO/ 100 DOLLARS ($4,296,400.00), the proceeds derived from the sale of which shall be used to pay a portion of the costs of the Project and costs incurred by the County in connection with the issuance of the Bonds. SECTION 3. DETAILS OF THE BONDS. The Bonds authorized for issuance and sale in Section 2 hereof shall be issued and sold to USDA and DWS as three (3) separate series of Bonds evidencing and securing the Loans from USDA and DWS, as applicable. Each series of Bonds shall be issued and sold to USDA or DWS, as lender with respect to the Loan evidenced and secured thereby, and shall be in an aggregate principal amount equal to the principal amount of such Loan and shall bear interest and mature upon the applicable terms of such Loan. The Bonds may be issued and sold in their entirety at one time or in portions from time to time, as shall be determined by the Director of Finance to be in the best interest of the County. The Bonds of each series shall be issued in fully registered form without coupons in such denominations or as a single instrument, all as the 2 Director of Finance shall determine. The Bonds of a series shall be numbered from 1 upwards in chronological order of delivery or shall be numbered in any other manner as the Director of Finance shall determine. The Bonds of a series shall mature annually on such day in each year in substantially equal installments of principal or in substantially equal installments of principal and interest, the first of such maturities to be no later than five years from the date of the Bond of such series and the last of such maturities to be not later than thirty-five years from the date of the Bonds of such series, may be redeemable prior to the stated maturity thereof at such times and at such prices not exceeding 103 % of the principal amount thereof, and shall bear interest at such rate or rates per annum, not to exceed Five Percent (5%) per annum, as may be determined by the Director of Finance and aln-eed to by USDA or DWS, as applicable. In accordance with and subject to the provisions of this ordinance, the Director of Finance is hereby authorized to determine with respect to the Bonds of a series, the series designation; the date of the Bonds of such series; the interest rates and interest payment dates of the Bonds of such series; the maturity dates of the Bonds of such series and the principal amount of such Bonds maturing on each maturity date; the registration privileges and place or places at which the Bonds of such series may be paid or registered which may include the office of the Director of Finance; whether or not the Bonds of such series shall be subject to redemption prior to the stated maturities and, if subject to such prior redemption, the times, prices, methods and other provisions for such prior redemption; and all other details of the Bonds of such series. SECTION 4. REDEMPTION OF BONDS. In the event any of the Bonds shall be subject to prior redemption and if any Bond (or portion thereof) is to be redeemed, notice of redemption shall be given in such manner as the Director of Finance shall determine. If any Bond (or portion thereof shall have been duly called for redemption and notice of such redemption duly given in the manner determined by the Director of Finance, and if moneys for the payment of such Bond (or portion thereof) at the then applicable redemption price and the interest accrued on the principal amount thereof to the date of redemption are made or duly provided for by the County, interest on such Bond (or portion thereof) shall cease to accrue and become payable from and after the date fixed for redemption. SECTION 5. PAYMENT OF BONDS. The principal of and interest and premium, if any, on the Bonds shall be payable in any coin or currency of the United States of America which at the time of payment is legal tender for public and private debts. 3 SECTION 6. EXECUTION AND FORM OF FULLY REGISTERED BONDS. The Bonds shall be lithographed or steel engraved, typewritten, printed or other reproduced as the Director of Finance shall determine. The Bonds of a series shall bear the lithographed or engraved facsimile signatures of the Director of Finance and of the Mayor of the County and shall be sealed with the seal or a lithographed or engraved facsimile seal of the County; provided, however, the Director of Finance may, at his/her election, provide for printed or manual signatures and seal on the Bonds. The Director oi• Finance may, at his/her election, prepare such number of blank Bonds of any series executed and scaled as aforesaid as he/she shall determine and deliver such executed blank Bonds to the registrar for such series for safekeeping prior to the time such Bonds are actually issued, exchanged or transferred. In the event the Director of Finance shall elect to appoint a registrar for the Bonds of a particular series pursuant to Section 3, the Director of Finance shall direct the registrar for the Bonds of such series to register and authenticate such Bonds and no such Bond shall be valid or obligatory for any purpose unless and until the certificate of authentication endorsed on such Bonds shall have been manually executed by such registrar. The form of the Bonds, the registrar's certificate of authentication and the assignment shall be substantially in the form of Exhibit "A" attached hereto, with such appropriate insertions, variations and omissions as are required or deemed advisable by the Director of Finance with respect to a particular series of the Bonds, book-entry provisions, single instrument provisions or other provisions. SECTION 7. SALE OF BONDS. To secure the payment of the Loans from USDA and DWS, without any further authorization from or action by this Council but subject to the provisions hereof and of applicable law, the Director of Finance is hereby authorized to issue and sell the Bonds at a negotiated sale to USDA and DWS in accordance with Section 47-8, Hawaii Revised Statutes, as amended, at such price or prices and upon such terms and conditions as he shall approve and determine to be in the best interest of the County. Without limiting the generality of the foregoing, with respect to the issuance and sale of the Bonds to secure the payment of the Loans from USDA and DWS, the Director of Finance is hereby authorized to retain bond counsel, paying agents, registrars and financial and accounting consultants, upon such terms and conditions as he shall deem advisable and in the best interest of the County, to select the date for such sale, to enter into one or more loan agreements with USDA and DWS pursuant to which the Loans shall be made and the Bonds or portions thereof shall be issued to secure the Loans, in each case in such form and containing such terms and conditions as he shall approve and deem advisable, to distribute an 4 Official Statement and such other information relating to the Bonds as he may deem advisable, and to take such other actions as he may deem advisable. Subject to the provisions of Section 3 hereof, without further action of this Council, [he Bonds shall bear interest at the rates per annum as specified in the loan agreement or agreements so approved. The Mayor, Director of Finance and all officials of the County are hereby authorized to take such action and execute such orders, receipts and other documents as may be necessary in order to effectuate the sale of the Bonds, and, i f any loan agreement therefor be approved or any bid therefor be accepted, the preparation execution, and delivery thereof, in accordance with the provisions hereof and applicable law. SECTION 8. SECURITY FOR THE BONDS. The Bonds are general obligations of the County, the full faith and credit of the County is hereby irrevocably pledged to the punctual payment of the principal of and interest on the Bonds according to the terms thereof, and the principal and interest payments on the Bonds shall be a first charge on and shall be paid from the General Fund of the County. SECTION 9. CUSIP IDENTIFICATION NUMBERS. The Director of Finance may authorize the printing of a CUSIP identification number upon the Bonds. Such number and the printing thereof shall be subject in all respects to the provision of Section 47-IQ Hawaii Revised Statutes, as amended. SECTION 10. APPLICATION OF ASSESSMENTS. Collections of assessments against the "assessment units" in the Improvement District shall be applied to reimburse the County for payments of the principal of and interest on the Bonds and for administrative expenses of the County with respect to the Improvement District. Amounts so collected which are not applied or reasonably required to be reserved for such purposes shall be applied in accordance with the provisions of Chapter 12. Hawaii County Code (1995 Edition), as amended. SECTION 1 I. REPEAL OF CONFLICTS. All ordinances and resolutions, and any portions of ordinances and resolutions, heretofore enacted or adopted by the Council which are in conflict or inconsistent with any provision of this ordinance shall be and are hereby repealed to the extent of such conflict or inconsistency. 5 SECTION 12. EFFECTIVE DATE. This ordinance shall take effect upon its approval. INTRODUCES BY. COU CIL~EMBER, C LINTY OF HAWAII ,I Hilo ,Hawaii Date oflntrodaction: August 4, 2004 Date ofls~Reading: August 4, 2004 Date of2~~^Reading: August 18, 2004 F,ffectiveDatc: August 25, 2004 REFERENC E: COMM. 713 6 (FORM OF BOND UNITED STATES OF AMERICA COUNTY OF HAWAII STATE OF HAWAI9 GENERAL OBLIGATION BOND, [SERIES DESIGNATION) (Number) INTEREST MATURITY DATE OF RAPE: DATE: BOND: CUSIP: REGISTERED HOLDER: PRINCIPAL SUM: DOLLARS The COUNTY OF HAWAII, State of Hawaii (the "County"), for value received hereby promises to pay the Registered Holder (named above), or registered assigns, on the Maturity Datc (specified above) (unless this bond shall be subject to prior redemption and shall have theretofore been duly called for prior redemption and payment of the redemption price duly made or provided for), the Principal Sum (specified above), and to pay interest on such Principal Sum semiannually on and on of each year, commencing on (each such date is hereinafter referred to as an "interest payment date"), from the date hereof or from the interest payment date next preceding the date of registration hereof to which interest shall have been paid, unless such date of registration is an interest payment date, in which case, from such interest payment date, or unless such date of registration is within the period from the [sixteenth (16th)] day to the last day of the calendar month next preceding the following interest payment date, in which case from such following interest payment date, such interest to be paid until the maturity or redemption hereof at the Interest Rate (specified above) per annum, by check mailed by the Paying Agent hereinafter mentioned to the holder hereof in whose name this bond is registered upon the Bond Register as of the close of business on the [fifteenth (15th)] day (whether or not a business day) of the calendar month preceding each interest payment date at his address as it appears on the Bond Register hereinafter mentioned. The principal of and premium, if any, on this bond are payable on presentation and surrender hereof at the otlice of the Registrar and Paying Agent, in , or at the office of its successors from time to time appointed by the County. Principal of, and premium, if any, and interest on this bond are payable in any coin or currency of the United States of America which, on the respective dates of payment thereof, shall be Icgal tender for public and private debt. This bond matures on ,but is subject to redemption in whole or in part at the option of the County prior thereto, on and after , at the principal amount thereof; the interest accrued thereon to the date fixed for redemption and the following redemption premiums expressed as a percentage of the principal amount redeemed: (Redemption Provisions). In the event this bond is redeemable, as aforesaid, and shall be called for redemption, notice of the redemption hereof stating the designation, date, number and maturity of this bond, the portion ~ EXHIBIT A of the principal sum hereof to be redeemed, the date fixed for such redemption and the premium payable upon such redemption, shall be mailed, at least once not less than thirty (30) days prior to the date fixed for the redemption hereof, to the holder hereof in whose name this bond is registered upon the Bond Register as of the close of business on the forty-fifth (45th) day (whether or not a business day) next preceding the date fixed for the redemption hereof. The failure of the registered holder hereof to receive such notice by mail or any defect in such notice shall not affect the sutticiency of the proceedings for the redemption of this bond. If this bond (or any portion of the principal sum hereof) be redeemable and shall have been duly called for redemption and notice of such redemption duly given as aforesaid, and if on or before the date fixed for such redemption payment of the principal sum hereof to be redeemed, the premium payable upon such redemption and the interest accrued on the principal sum to be redeemed to the date fixed for such redemption shall have been duly made or provided for, then this bond (or the portion of the principal sum hereof to be redeemed) shall become due and payable upon such date fixed for redemption and interest shall cease to accrue and become payable from and after the date fixed for such redemption on the principal sum hereof to he redeemed. This bond is transferable only upon the Bond Register at the office of Registrar, in the City of , or at the office of its successors from time to time appointed by the County, by the registered holder hereof, or by his duly authorized attorney, upon surrender of this bond (together with a written instrument of transfer satisfactory in form to the Registrar duly executed by the registered holder or his duly authorized attorney, which may be the form endorsed hereon) and subject to the limitations and upon payment of the charges. if any, provided from time to time by the County and the Registrar, and thereupon a new bond or bonds, in the same aggregate principal amount in authorized denominations and of the same series, interest rate and maturity as the bond surrendered, shall be delivered to the transferee in exchange thereof. The County, the Registrar, and the Paying Agent may deem and treat the person in whose name this bond is registered as the absolute owner hereof for the purpose of receiving payment of the principal hereof. premium, if any, and interest due hereon and for all other purposes, and they shall not he affected by any notice to the contrary. This bond is authorized by the Council of the County to be issued to provide funds for payment of a portion of the costs of a public water system fora Water System Improvement District ("Improvement District No. 18 -Kona Coastview and Kona Wonderview Subdivisions") established by the County pursuant to Chapter 12, Hawaii County Code (1995 Edition), as amended. This bond is issued under and pursuant to and in full compliance with the Constitution and laws of the State of Hawaii, including Part I of Chapter 47, Hawaii Revised Statutes, as amended, the Charter of the County, and proceedings of the aforesaid Council duly taken thereunder. This bond is a general obligation of the County, and the payment of the principal and interest hereof is a tirst charge on the general fund of the County. The full faith and credit of the County is irrevocably pledged to the punctual payment of the principal of and interest on this bond according to its terms. This bond shall not be valid or obligatory for any purpose unless the certificate of authentication hereon has been duly executed by the Registrar. It is hereby certified and recited that all the conditions, acts, and things essential to the validity of this bond and the issue of which it forms a part exist, have happened, and have been done; that every requirement of law affecting the issue thereof has been duly complied with; and that the 8 EXHIBIT A amount oC this bond, together with all other indebtedness of the County, is not in excess of any constitutional or statutory limitation on indebtedness. IN WITNESS WHEREOF, the COUNTY OF HAWAII, State of Hawaii has caused this bond to be signed by the facsimile of the signatures of its Director of Finance and of its Mayor, and to be sealed with the facsimile of the seal of the County of Hawaii, and this bond to be dated as of the day of , 20 [FACSIMILE SIGNATURE) Director of Finance )SEAL] [FACSIMILE SIGNATURE] Mayor 9 EXHIBIT A FORM OF CERTIFICATE OF AUTHF,NTICATION~ CERTIFICATE OF AUTHENTICATION This bond is one of the bonds described in the within-mentioned proceedings of the County of Hawaii, State of Hawaii. Date of Registration: Registrar By [MANUAL SIGNATURE,] Authorized Officer or Signatory ~p EXHIBIT A [FORM OF INSTRUMENT OF ASSIGNMENTI INSTRUMENT OF ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto Please insert social security or other tax identifying number of assignee: (name and address of assignee) the within-mentioned bond and hereby irrevocably constitutes and appoints attorney-in-fact, to transfer the same on the Bond Register in the office of the within-mentioned Registrar, or in the office of its successors with full power of substitution in the premises. Date: Signature Guaranteed: (name of assignor) (name of signature guarantor) NOTE: The signature to this assignment must correspond with the name as written on the face of the within bond in every particular, without alteration or enlargement of any change whatsoever. ~ ~ EXHIBIT A OFFICE OF THE COUNTY CLERK County of Hawaii xilo ,Hawaii ~ i I._ ~ ~ " r r.~ Introduced By: J. Curtis Tyler, III ROLL CAL VOTE Date Introduced: August 4, 2009 AYES "NIIE'S ABS EX First Reading; August 9, 2004 Arakaki X Published: August 15, 2009 Chung X Elarionoff X REMARKS: Holschuh X Jacobson X Reynolds X Safarik X Tulang X Tyler X 7 0 2 0 Second Reading: August 18, 2009 To Mayor: August 19, 2009 ROLL CALL VOTE Returned: August 25. 2004 AYES NOES ABS EX Effective: A(~~(,~+ 2F~21104 Arakaki X Published: August 30 2004 Chung X Elarionoff X REMARKS: Holschuh X Jacobson X Reynolds X Safarik X Tulang X Tyler X 6 1 2 0 1 DO HEREBY CERTLFY that the foregoing BILL was adopted by the County Council published as indicated above. APPROVED AS TO ~ FORM AND LEGALITY: j / ' C UNCIL CHA/RMAN DEPUTY C~ PORATION COUNSEL COUNTY ©F HAWAII C' TY C'LERK Date ~ Bill No.: 306 r4- C-713/FC-Waived Appro>~/Disapproved (his a5 day Reference: ~~11 oJ~ ~u St , 20 OBI' Ord: 0'2 9a3 ~.tr-.. l/ A AYOR~TY OF HAWAII !/mvai'i C'm~n(y rs an Equal Oppor(ueiry Provider artd Employer