HomeMy WebLinkAboutBIL 079 Draft 01 2004-2006 COUNTY OF HAWAII STATE OF HAWAII
BILL NO. ~9
ORDINANCE NO.
AN ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS
OF THE COUNTY OF HAWAII FOR THE PURPOSE OF ACQUIRING LAND FOR PUBLIC
ACCESS, OPEN SPACE AND NATURAL RESOURCF. PRESERVATION; FIXING THE
FORM, DENOMINATIONS, AND CERTAIN OTHER DETAILS OF SUCH BONDS AND
PROVIDING FOR THEIR SALE TO THE PUBLIC; AND AUTHORIZING THE ISSUANCF,
AND SALE OF A LIKE PRINCIPAL AMOUNT OF GF,NERAL OBLIGATION BOND
ANTICIPATION NOTES IN ANTICIPATION OF THE ISSUANCE AND SALE OF SUCH
BONDS.
BF; IT ORDAINF,D BY THE COUNCIL, OF THE COUNTY OF HAWAI`L•
SEC'"LION I . Finding and Determinations. The County Council has determined to
authorize the issuance and sale of general obligation bonds (the "Bonds") of the County in a principal
amount not to exceed $10,000,000, the proceeds derived from the sale of which are to be cxpcndcd by
the County to finance the acquisition of open space in the County as set forth in Section 14. 'I~he County
Council has further determined that this authorization for the purpose described herein will address
longstanding needs for. the preservation of coastal areas, open space, cultural and historic sites,
recreation areas, and natural resources; and the provision of public access to the ocean, mountains,
recreation, hunting and gathering areas. The County Council has determined that acquisition of such
property is in the best interest of the County.
SECTION 2. Purpose. In selecting property to be acquired, priority shall he given to
coastal lands.
SECTION 3. Authorization of Bonds. "there are hereby authorized fir issuance and
sale Bonds of the County in a principal amount not to exceed $10,000.000 in the aggregate, the proceeds
derived from the salt of which shal I be used and cxpcndcd by the County to pay all or a part of the costs
of the authorized public acquisitions referred to in Section 14 hereof and all or a part of the costs
incurred by the County in connection with the issuance ofthc Bonds.
SEC'I~ION 4. Details of Bonds. The Bonds authorized for issuance and sale in Section
3 hereof shall be issued and sold in one or more or as part of a series of other general obligation bonds of
the County, all as shall be determined by the Director of Finance to be in the best interest of the County.
I~he Bonds of a serics shall he issued in fully registered form without coupons in the denomination of
$5,000 or any integral multiple of $5.000, or in such other denominations as the Director of Finance
shall determine. "fhe Bonds of a serics shall be numbered from I upwards in chronological order of
delivery or shall be numbered in any other manner as the Director of Finance shall determine. "fhe
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 ofsuch maturities to be
no later than five years li-om the date of the Bonds ofsuch series and the last ofsuch maturities to be not
later than twenty-tivc years from the date of the Bonds of such series, may be redeemable prior to [he
stated maturity thereof at any time at prices not exceeding 105% of the principal amount thereof. and
shall bear interest at such rate or rates per annum, not exceeding seven percent (7%) per annum, as shall
be specified in the contract approved or the bid accepted for the purchase of the Bonds ofsuch series if
any contract therefor be approved or any bid therefor be accepted. In accordance with and subject to the
provisions of this ordinance, the Director of Ninance is hereby authorized to determine with respect to
the Bonds of a series, the aggregate principal amount ofsuch series of Bonds; the series designation of
such series of Bonds; the date ofsuch series of Bonds; the interest payment dates and maturity dates of
such series of Bonds; the amount of principal ofsuch series of Bonds maturing on each maturity date;
the registration privileges and place or places at which such series of Bonds may be paid or registered
which may include the office of the Director of Finance; whether or not such series of Bonds shall be
subject to redemption prior to the stated maturity thereof and, if subject to such prior redemption, the
times, prices, methods and other provisions for such prior redemption; whether such serics of Bonds
shall bear interest at tixcd rates or at a rate or rates which vary from time to time and the methodology
for determining such variable rate or rates; the rights, if any, of the holders ofsuch Bonds of a series to
tender for purchase and the price or prices and time or times and terms and conditions upon which those
rights may be exercised; the rights of the County to purchase the Bonds of a series and price or prices
and the time or times and tcnns and conditions upon which those rights may be exercised and the
purchase may he made; and all other details of such series of Bonds.
SEC"PION 5. Redemption of Bonds. In the event any of the Bonds shall be subject to
prior redemption and if any Bond (or portion thereof in installments which are integral multiples of the
smallest denomination thereof) is to be redeemed, notice of redemption shall be given in such manner as
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the Director of Finance shall determine. If any Bond 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 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 shall cease to accrue and become payable from and after the date fixed for
redemption.
SGC'I'ION 6. moment 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.
SECTION 7. Execution and Form of Fully Registered Bonds. "fhe Bonds of a series
shall be lithographed, steel cngraved_ typewritten, printed or in other reproduced form as the Director of
1~ inancc may determine. "I'he 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
provide for printed or manual signatures and seals on the Bonds of a series; and provided further,
however, the Director of Finance may provide for the Bonds of a series to be issued in and effect abook-
entry system for such Bonds. The Director of Finance may prepare such number of blank Bonds of any
series executed and sealed as aforesaid as he 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. "fhe Director of Finance shall direct the registrar for the Bonds of a 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 Bond shall have been manually executed by such
registrar.
The Bonds of a series shall be designated and the form of such Bonds, including the
registrar's certificate of authentication and the assignment, shall be substantially in the form of general
obligation bonds heretofore issued by the County with such insertions, variations and omissions as arc
required with respect to a patticular series oflhe Bonds, book-entry provisions. variable rate provisions
or other provisions as the Director of Finance may determine.
SECTION A. Sale of Bonds. W ithout any further authorization from or action by the
Council but subject to the provisions hereof and of applicable law, the Director of Finance is hereby
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authorized to issue and sell the Bonds in their entirety atone time, or from time to time in two or more
separate series, or as part of a series of other general obligation bonds of the County, at competitive sale
or at negotiated sale to qualified purchasers in accordance with Section 47-8, i Iawai'i Revised Statutes,
as amended, in each case 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 sale of the Bonds or of portions of the Bonds, 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, to select the date for such sale, to publish
and distribute a Notice of Sale or to enter into a negotiated contract for the sale of the Bonds or portions
thereof, in each case in such form and containing such terms and conditions as he shall approve and
deem advisable, to distribute an Official Statement and such other information relating to the County and
the Bonds as he may deem advisable, to receive bids for the sale of the Bonds or [he portion thereof
being offered and to award the sale of the Bonds or the portion thereof being offered to the bidder
offering the lowest interest cost therefor, in accordance with the applicable Notice of Sale, if any;
provided that the Director of Finance may reserve the right to reject any and all bids. Subject to the
provisions of Section 4 hereof, without further action of the Council, the Bonds shall bear interest at the
rates per annum as specified in the contract or contracts approved or in the bid or bids accepted. "I'he
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 et~tectuate the sale of the
Bonds or any portion thereof; and, if any contract therefor be approved or any bid therefor be accepted,
the preparation execution, and delivery thereof, in accordance with the provisions hereof and applicable
law.
Subsequent to the sale of any of the Bonds, the Director of Finance shall report the results of
such sale to the Council by letter.
Prom and alter the date the Director of Finance shall have accepted a bid for a series of Bonds,
or shall have entered into a negotiated contract for the sale and purchase of a series of Bonds, the
Council will take no action to modify, supplement, amend or repeal the provisions of [his ordinance in a
manner which would have an adverse effect on the ability of the County [o perform its obligations under
such accepted bid or contract.
SECTION 9. Authorization of Bond Anticipation Notes. General obligation bond
anticipation notes arc hereby authorized for issuance and sale by the Director of Finance in anticipation
of the issuance and sale of the Bonds authorized herein and of the receipt of the proceeds of the sale
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thereof, for the purposes for which the Bonds have been authorized herein. The issuance. sale and details
of the Notes shall be governed by the provisions of Section 47- 16, Hawaii Revised Statutes, as
amended. Bonds in anticipation of which the Notes are authorized and issued pursuant to this section
may he issued and sold in accordance with the provisions of this ordinance at anytime within five years
of the date of issuance of the first Notes issued in anticipation of such Bonds.
SF,C"LION 10. Security for the Bonds and the Notes. l~he full faith and credit of the
County is hereby pledged to the payment of the principal of and interest on the Bonds and the Notes. and
the principal and interest payments shall be a first charge on the General Fund of the County.
SECTION I I . CUSIP Identification Numbers. The Director of Finance may authorize
the printing of CUSIP identification numbers upon the Bonds. Such number and the printing thereof
shall be subject in all respects to the provisions of Section 47-I Q Hawaii Revised Statutes, as amended.
SEC"PION 12. Bond Insurance. The Director of Finance is hereby authorized to
determine and provide for any insurance provisions respecting the Bonds of a series as he shall deem to
be in the best interest of the County, including, without limitation, selection of the bond insurer, payment
of the insurance premium and printing of any insurance statement on the Bonds. In the event that
insurance is obtained by the purchaser of such Bonds, (a) such insurance shall not constitute a part of the
contract by and with the County evidenced by a particular Bond or constitute a part of the proceedings
providing for the issuance Ihercof; and (b) no liability or responsibility shall attach to the County or any
officer or agent thereof in any way by reason of any such insurance, including, without limiting the
foregoing, with respect to the procuring, maintenance, enforcement or collection thereof. The County
shall be under no obligation to take or refrain Isom taking any action by reason of the existence of such
insurance or any of the provisions thereof, even though the taking or refraining from taking of such
action may result in or he cause for cancellation or cessation of such insurance.
SECTION 13. Support Facilityfor Variable Rate Bonds. If the Director of Finance
shall determine to issue the Bonds of a series bearing interest at a rate or rates which vary from time to
time or with a right of holders to tender such Bonds for purchase, or both, the Director of Finance may
contract for such support facility or facilities and remarketing arrangements as are required to market
such Bonds to the greatest advantage of die County upon such terms and conditions as the Director of
Finance deems necessary and proper; provided, however, that all such contracts shall be approved by a
resolution of the County Council and shall comply with the requirements of Section 47-I 1, Hawaii
Revised Statutes.
SEC"PION 14. Authorization of Proceeds for Public Improvements. The proceeds from
the issuance and sale of General Obligation Bonds of the County of Hawaii in the principal amount of
$ 10,000,000 shall be used for the sole purpose of acquiring property in the County for: the preservation
of coastal areas, open space, cultural and historic sites, recreation areas, and natural resources; and the
provision of public access to the ocean, mountains, recreation, hunting and gathering areas.
SEC"1lON I5. 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.
SEC'T'ION 16. Severability. If any provision of this ordinance or application thereof to
any person or circumstance is held invalid, such invalidity shall not affect other provisions a'
applications of this ordinance which can be given effect without the invalid provision or application, and
to this end, the provisions of this ordinance are declared to be severable.
SECTION I Z Effective Date. 'This ordinance shall take effect upon its approval.
INTRODUCED E3Y:
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COON L EMBER, COUNTY OF HAWAII
Ilawai'i
Date of Introduction
Date of I st Reading
Date of 2nd Reading
h;tfcctive Date:
R E i=EREi dCE: lorotn. 209
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