HomeMy WebLinkAboutRES 419 Draft 01 2006-2008 ~Mtr os M4
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COUNTY OF HAWAII STATE OF HAWAII
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RESOLUTION NO. 419 0'7
A RESOLUTION AUTHORIZING THE ADOPTION OF USDA FORM RESOLUTION 1780-27
PROVIDING FOR THE INCURRENCE OF INDEBTEDNESS FOR THE FINANCING OF A
WATER DEPARTMENT PROJECT REFERRED TO AS THE ANDRADE CAMP WATERLINE
IMPROVEMENTS; TO ENTER INTO AN AGREEMENT WITH THE UNITED STATES OF
AMERICA, PURSUANT TO HRS 46-7, FOR THE USDA GRANT PORTION OF THE COSTS OF
THE PROJECT; AND TO AUTHORIZE THE MAYOR, MANAGER OF THE DEPARTMENT OF
WATER SUPPLY, FINANCE DIRECTOR AND THE CHAIR OF THE COUNTY COUNCIL TO
TAKE ALL ACTION(S) NECESSARY TO FACILITATE AND EXECUTE SUCH LOAN AND
GRANT AGREEMENTS
BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII:
WHEREAS, the United States Department of Agriculture ("USDA") has approved an application for
financing assistance for a waterline improvement project referred to as the Andrade Camp Waterline
Improvements in Pepeeke`o, County of Hawaii (the "Project"), such assistance to be provided in the form of
a loan, secured by a bond of the County, in the amount of ONE HUNDRED FORTY-SEVEN THOUSAND
AND NO/100 DOLLARS ($147,000) and a grant in the amount of FIVE HUNDRED TEN THOUSAND
FIVE HUNDRED AND NO/100 DOLLARS ($510,500); and
WHEREAS, in order to proceed with the loan, grant and bond closing process, the USDA requires
that the Loan Resolution attached as Exhibit A ("RUS Bulletin 1780-27, Loan Resolution"), or similar
resolution, be adopted; and
WHEREAS, other documents may be required to be submitted by the County of Hawaii to the
USDA to complete the loan and grant being offered by the USDA; and
WHEREAS. Hawaii Revised Statutes, Section 46-7, requires that county deparhnents obtain the
consent of the County Council to enter into agreements with the federal or state governments respecting
action(s) to be taken pursuant to any of the powers granted by law to furnish, expend and receive any funds
or other assistance in connection with projects being undertaken pursuant to those powers.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF
HAWAII, that the Council hereby adopts the USDA Form Loan Resolution ("RUS Bulletin 1780-27, Loan
Resolution") attached as Exhibit A to this resolution, to include the Certification To Be Executed At Loan
Closing; and
BE IT FURTHER RESOLVED that the Office of the Mayor is authorized to enter into a grant
agreement with the United States Department of Agriculture for a grant in the amount of $510,500 to be
applied to the costs of the Project and is authorized to sign the above-referenced agreement and any related
documents on behalf of the Office of the Mayor and the County of Hawaii pursuant to the Hawaii County
Charter; and
M.~ _
BE IT FURTHER RESOLVED that the Mayor of the County of Hawaii, Manager of the
Department of Water Supply, Finance Director, and the Chairman of the Council of the County of Hawaii
are hereby authorized and empowered to take all action(s) necessary or appropriate in the execution of all
written instruments as may be requested to facilitate the loans and grant and the terms of the loan and grant
agreements, the provisions of which shall be incorporated upon such execution.
BE IT FURTHER RESOLVED that the Clerk of the County of Hawaii shall transmit copies of this
resolution to: (1) Mayor Harry Kim; (2) Director of Finance William Takaba; (3) Milton Pavao, Manager,
Department of Water Supply; (4) Brian Hirai, McCorriston Miller Mukai MacKinnon, LLP, P.O. Box 2800,
Honolulu, Hawaii 96803-2800; (5) Ted K. Matsuo, Rural Utilities Services Program Director, United States
Department of Agriculture, Hilo State Office; Federal Building, Room 327, Hilo, Hawaii 96720; (6)
Lawrence Hom, Esq., Office of the General Counsel, United States Department of Agriculture, Pacific
Region-San Francisco Office, 33 New Montgomery 17`h Floor, San Francisco, California 941 05-45 1 1; and
(7) Casey Jarman, County Clerk.
Dated at Hilo , Hawaii, this 5th day of December , 2007.
INT ODUCED BY:
COUNCIL MEMB R, O F HAWAII
COUNTY COUNCIL ROLL CALL VOTE
County of Hawal`I AYES NOES ABS EX
Hilo, Hawaii FORD X
I hereby certify that the foregoing RESOLUTION was by x1GA g
the vote indicated to the right hereof adopted by the HOEEMANN X
COUNCIL of the County of Hawaii on December 5, 2007. IKEDA g
JACOBSON X
ATTEST: NAEOLE
X
PILAGO g
YAGONG X
YOSIIIMOTO g
8 0 1 0
Reference C- 802/FC-203
419 4'7
CO~IJ~'fY CLERK CH z ~ SIDII ~ G O RESOLUTION NO.
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Position S
RUS BULLETIN 1780-27 pPPROVEn
OMB. No. 0572-0121
LOAN RESOLUTION
(Public Bodies)
A RESOLUTION OF THE COUNTY COUNCIL
Opp COUNTY OF HAWAII
AUTHORIZING AND PROVIDING FOR THE INCURRENCE OF INDEBTEDNESS FOR THE PURPOSE OF PROVIDING A
PORTION OF THE COST OF ACQUIRING, CONSTRUCTMG, ENLARGING, IMPROVING, AND/OR EXTBNDING ITS
PUBLIC WATERLINE (ANDRADE CAMP)
FACILITY TO SERVE AN AREA LAWFULLY WITHIN ITS Jt1RISDICTION TO SERVE.
WHEREAS, it is necessary for the COUNTY OF HAWAII
(Public Body)
(herein after called Association) to raise a portion of the wst of such undertaking by issuance of its bonds in the principal amount of
ONE HUNDRED FORTY-SEVEN THOUSAND AND NO/100 DOLLARS ($147,000)
pursuant to the provisions of PART 1, CHAPTER 47, HAWAII REVISED STATUTES, AS AMENDED.and
WHEREAS, the Association intends to obtain assistance from the United States Deparunent of Agriculture,
(herein called the Govemmmt) acting under the provisions of the Consolidated Farm and Rural Development Act (7 U.S.C. 1921
U seq.) in the plamdng. 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 Iffi behalf and to adapt m ordinance or resolution far the issuance of its bonds containing Such
items and in such forms as are requred by State statutes sad as are agreeable and acceptable to the Govemmmt.
2. To re5ffirrce the unpaid balance, in whole or in part, of ip bonds upon the request of the Govemmmt if at any time
it shall appear to the Govemmmt that the Association is able m refinance ifs bonds by obtaining a loan for such purposes
from responsrble cooperative or private sources at reasonable rates and terms for loans far similar purposes and periods
of tune as required by swtion 333(c) of said Consolidated Parm and Aural Development Act (7 U.S.C, 1983(c)).
3. To provide for, execute, and comply with Forrrt RD 400-0, "Assurance Agreement," and Fomt RD 400-I, "Equal
Opportunity Agreement," including an "Equal Opportunity Clause," which clause is ro be incorporated in, or attached
as a rider to, each mnsWction wntract and subcontract involving in excess of 0,000.
4. To indemnify the Govemmmt for any payments made or losses suffered by the Govemrnent on behalf of the Associaion.
Such indeamification shall be payable from the same source of funds pledged to pay the bonds or any other legal ly per-
missible source.
5. That upon default m the payments of any principal and accrued interest on the bonds or in the perfomumce of any
wvena¢t or agreement contained herein oz in the instrumenp incident to making or insuring the loan, the Government at
its opfion may (a) declare the entire principal amount [hen outstanding and accmed interest immediately due and
payable, (b) for the aaoum of the Association (payable from the source of funds pledged to pay the bonds or any other
legally pemrissible source), incur and pay reasonable expenses for repair, maintenance, and operation of the facility
and such other reasonable ezpmses as may be necessary to cure the cause of default, and/or (c) take possession of the
facility, repaiy maintain, and operate or rent it. Default under the provisions of Wis resolution or any instrument incident to
the making or insuring of the loan may be construed by the Government to constitute default under any other instrument
held by the Government and executed or assumed by the Association, and default under any such instrument may be
mnsWed by the Government to consfitute defatilt hereunder.
6, No[ to sell, trans$r, lease, or otherwise encumber the faci]iTy or any portion thereof, or interest therein, or pemdt others
to do so, without the prior written consent of the Govemmmt.
7. Not to defease the bonds, or to borrow money, enter into any co¢tractor agreement, or otherwise incur any liabilities
for any purpose in cemection with [he facility (exclusive of normal maintenance) without the prior written consent of the
Govemmmt if such undertaking would involve the source of funds pledged ro pay the bonds.
8. To place the proceeds of the bonds on deposit in an account and in a manner approved by the Govemmmt. kLnds may be
deposited in institutions insured by the State or Federal Govemmmt 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 goad condition.
10. To provide for the receipt of adequate revenues to meet the requirements of debt service, operation and maintenance, and
We establishment of adequate reserves. Revenue accumulated over and above that needed to pay operating and mainta
nonce, debt service and reserves may only be repined 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
facility will be pemtitted.
According m the Paprrwork ReducHOn Act ojl995, an agency may not conduct ar aponrar, and a person is not required to respond to. a coll¢<tion oJin/ormarion unless
it displays a wlld OMB cono-o! rmmber. The valid OMB cono-o(numberJ r lhir mJarmalian collection is 0512-0/Il. The time required ro complerc this informatlan
collection is evtimaled ro average / hourper res?anse, ineluding the lime jor reviewi"g inrnuceions, searching e+islirµ data rources, gathering and maintaining the
d¢ta needed, and completing and rzviewing the cotfeatwn aftnJormatian. '
Exhibit A
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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 m the operaton of the facility and its financial affairs and to
provide for required audit therwf as required by the Govemment, to provide the Govemment a copy of each such audit
without its request, and m forward ro the Govemment such additional information and reports as it may from time W
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 the system so that the Government may ascertain that the Association is wmplying with the provisions
hereof and of the instrmments incident to the making or insuring of the loan.
14. That if the Govemmrnt requires [hat a reserve acwunt 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
Govemment is obtained. Also, with the prior written approval of [he Govemment, Tunds may be withdrawn and
used for such things as emergency maintenance, extensions to facilities and replacement of short lived assets.
I5. To provide adequate service to all persons within the service area who can feasibly and legally be served and to obtain
USDA's wncurrence 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 Government's environmental impact analysis for this facility for the pur-
pose of avoiding or reducing the adverse environmental impacts of the facility's wnstmction or operation.
17. To accept a grant in an amount not to exewd $ 510 , 500
under the terms offered by the Governmeng that the Mayor, Manager of Department of Water Supply,
Finance Director
and CounC it Chair of the Association aze hereby authorized and empowered to take a1V action necessary
or appropriate in the execution of all written instruments as maybe requred in regard to or as evidence of such grant, and
m operate the facility under the terms offered in said grant agreement(s).
The provisions herwf 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 herwf may be provided for m more spwific
detail in the bond resolution or ordinance; to the extort that the provisions wntained in such bond resolution or ordinance
should be found to be inwnsistrnt with the provisions hereof, these provisions shall be wnstmed as wntrolling between the
Association and the Government or assignee.
The vote was: Yeas $ Nays 0 Absent l
IN WITNESS WHEREOF, the COUNTY COUNCIL of the
COUNTY OF IL4WAI' I has duly adopted this resolution end caused it
m be executed by the officers below in duplicate on this 5t11 T->P_~1
WT_ day of 2007
(SHAL) By ~ ~
Attest: Title COLl[1C11 C11d7S'
l~l~.w/.tn-~-
Tide Co Clerk
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CERTIFICATION TO BE EXECUTED AT LOAN CLOSING
I, the undersigned, as of the
hereby certify that the_ of such Association is composed of
members, of whom , constituting a quomm, were present at a meeting thereof duly called and
held on [he day of ;and that the foregoing resolution was adopted at such meeting
by the vote shown above,l further certify that as of ,
the date of closing of the loan from the United States Dcpartrnent of Agriculture, said resoluton remains in effect end has not been
rescinded or amended in any way.
Dated, this day of
Title