HomeMy WebLinkAboutCOM 1168.013 2006-2008Dominic Yagong
Councilmember
District of Hamdkua
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HAWAI `I COUNTY COUNCIL
County of Hawai `i
Hawai 'i County Building
25 Aupuni Street
Hilo, Hawaii 96720
DATE:
May 22, 2008
Phone: (808) 961-8538
Faz: (808) 961-8912
Email: dyagong@co.hawaii.hi.us
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TO: Pete Hoffmann, Chairperson ~
and Members of the Hawaii County Council ~ -'
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FROM: Dominic Yagong, Council Member `~
SUBJECT: Proposed Amendments to Bi11285, Draft 1, Relating to the Issuance of
General Obligation Bonds for Various Improvement Projects
Attached please find a proposed amendment to Bill 285, Draft 1, relating to the Issuance of
General Obligation Bonds for Various Improvement Projects. The proposed amendment
decreases the bond amendments to $72,275,700 which includes the cost of issuance of the
bonds.
SECTION 2 is amended to read as follows:
SECTION 2. Authorization of Bonds. There are hereby authorized for issuance and
sale, in one or more series, Bonds of the County, in an aggregate principal amount not to exceed
[~2;AAA;ABA] $72,275,700, for the purpose of funding all or a portion of the costs (including
costs of issuance of the Bonds) of the public improvement projects authorized and set forth in
Exhibit A, Draft 2.[
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Also, Exhibit A, Draft 2, amends Exhibit A to include Priority 1 and 2. The proposed amendment
removes the Kealakehe WWTP Sludge Removal project for $4,000,000 and replace it with the
Kealakehe WWTP Aeration Upgrade project in the amount of $6,000,000; and increases the West
Hawaii Civic Center in the amount of $1,100,000.
A version of Bill 285, Draft 2, which incorporates the proposed amendments, is attached.
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Ref. 1~ate t~"AY 22 2~~ -
AN ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL
OBLIGATION BONDS OF THE COUNTY OF HAWAII FOR THE PURPOSE
OF FUNDING ALL OR A PORTION OF THE COSTS OF VARIOUS
IMPROVEMENT PROJECTS FOR THE COUNTY; FIXING THE FORM,
DENOMINATIONS, AND CERTAIN OTHER DETAILS OF SUCH BONDS
AND PROVIDING FOR THE SALE THEREOF; AND AUTHORIZING THE
TAKING OF OTHER ACTIONS RELATING TO THE ISSUANCE AND SALE
OF THE BONDS.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. Findings and Determinations. The County Council of the
County of Hawaii (the "County") hereby determines and finds that it is advisable,
expedient and in the best interest of the County to authorize the issuance, sale and
delivery of general obligation bonds of the County (the "Bonds") for the purpose of
funding all or a portion of the costs of the Projects referred to in Section 2 hereof.
SECTION 2. Authorization of Bonds. There are hereby authorized for
issuance and sale, in one or more series, Bonds of the County, in an aggregate principal
amount not to exceed [$112,000,000] $72,275,700, for the purpose of funding all or a
portion of the costs (including costs of issuance of the Bonds) of the public improvement
projects authorized and set forth in Exhibit A, Draft 2.[~tl~~~olects"~
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SECTION 3. Details of Bonds. The Bonds authorized for issuance and
sale in Section 2 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. The Bonds of a series shall be 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. 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 Bonds of such series and the last of such maturities to be not later than
twenty-five years from the date of the Bonds of such series, may be redeemable prior to
the 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 an
average of seven percent (7%) per annum, as shall be specified in the contract approved
or the bid accepted for the purchase of the Bonds of such 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 Finance is hereby authorized to determine,
with respect to the Bonds of a series, the aggregate principal amount of such series of
Bonds; the series designation of such series of Bonds; the date of such series of Bonds;
the interest payment dates and maturity dates of such series of Bonds; the amount of
principal of such 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 series of Bonds shall bear interest at fixed 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 of such 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 terms and conditions upon which those
rights may be exercised and the purchase may be made; and all other details of such
series of Bonds.
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 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 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.
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.
SECTION 6. Execution and Form of Full~gistered Bonds. The
Bonds of a series shall be lithographed, steel engraved, typewritten, printed or in other
reproduced form as the Director of Finance may determine. The Bonds of a series shall
bear the manual or facsimile signatures of the Director of Finance and of the Mayor of
the County, and shall also bear the bear the seal of the County or a facsimile of such seal.
The Director of Finance may provide for the Bonds of a series to be issued in and effect a
book-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. The 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, provided that a certificate of authentication shall not be
required for any Bond if the Director of Finance is the registrar and if such Director
has manually signed the Bond in question.
The Bonds of a series shall be designated and the form of such Bonds,
including the registrar's certificate of authentication (if required) 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 are required with respect to a
particular series of the Bonds, book-entry provisions, variable rate provisions or other
provisions as the Director of Finance may determine.
SECTION 7. Sale of Bonds. Without any further authorization from or
action by the County Council, but subject to the provisions hereof and of applicable law,
the Director of Finance is hereby authorized to issue and sell the Bonds in their entirety at
one 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 or
placement to qualified purchasers in accordance with Section 47-8, Hawaii 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 (or
other offering document, as applicable) 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 the
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 3 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. The
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 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 County Council by letter. From and after 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 County Council will take no action to modify, supplement, amend or repeal the
provisions of this ordinance in a manner which would have an adverse effect on the
ability of the County to perform its obligations under such accepted bid or contract.
SECTION 8. Authorization of Bond Anticipation Notes. General
obligation bond anticipation notes are hereby authorized for issuance and sale by the
Director of Finance in anticipation of the issuance and sale of the Bonds authorized
herein and the receipt of the proceeds of the sale thereof, for the purposes for which
the Bonds have been authorized herein. The issuance, sale and details of the Notes
shall be governed by Section 47-16, Hawaii Revised Statutes, as amended. Bonds in
anticipation of which the Notes are authorized and issued hereunder may be issued and
sold in accordance with the provisions of this Ordinance at any time within five years
of the date of issuance of the first Notes issued in anticipation of such Bonds.
SECTION 9. Security for the Bonds and the Notes. The 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 10. 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 47-10, Hawaii Revised Statutes, as amended.
SECTION 11. 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 bond 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 thereof, 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 from 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 be cause for cancellation or cessation of such insurance.
SECTION 12. Support Facility for 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 the 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 47-11, Hawaii Revised Statutes.
SECTION 13. Reimbursement of Expenditures. The County expects
that it may pay certain capital expenditures for the Projects prior to the issuance of the
Bonds, and reasonably expects to reimburse such expenditures from the proceeds of
the Bonds. The County hereby declares its official intent to use proceeds of the Bonds
to reimburse itself for future expenditures in connection with such Projects. This
ordinance is adopted in part for the purpose of establishing compliance with the
requirements of Section 1.150-2 of the U.S. Treasury Regulations. This ordinance
shall be reasonably available for inspection at the office of the County Clerk, located
at 333 Kilauea Avenue, Ben Franklin Building, 2nd Floor, Hilo, Hawaii 96720,
commencing within fifteen (15) days after its adoption by the Council.
SECTION 14. 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.
SECTION 15. 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 or 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 16. Effective Date. This ordinance shall take effect upon its
approval.
INTRODUCED BY:
COUNCIL MEMBER, COUNTY OF HAWAII
Hawaii
Date of Introduction
Date of 1st Reading
Date of 2nd Reading
Effective Date:
Priority Listed Projects for Exhibit A
Bond Funds Request Draft 2
Project
PRIORITY 1 Addresses legal mandate
Project
ADA Compliance - P&R
ADA Curb Cuts
ADA Facilities -DPW
Honokaa LCC Replacement
Queen Liliuokalani LCC Replacement
Naalehu/Pahala LCC Replacement
DWS Water Connection Compliance
DWS Water Connection Backflow
Requested
Amount
$2,000,000
$750,000
$2,100,000
$695,000
$631,000
$850,000
$800,000
$500,000
$8,326,000
PRIORITY 2 Corrects major deficiency and/or are critical for
public safety or health
Project
County Building Repairs
West Hawaii Civic Center
Hazmat - P&R
Earthquake Repairs - P&R
Kealakehe WWTP Aeration Upgrade
N. Kona Sewer /Effluent Reuse
Haz. Mat. Abatement to Facilities
Keopu Heights Flood Channel
Pahoa Transfer Station
Police Microwave System
TOTAL PRIORITY 1 AND 2
$23,000,000
$18,200,000
$500,000
$1,000,000
$6,000,000
$8,500,000
$1,000,000
$1,000,000
$3,700,000
$49,700
$62,949,700
$71,275,700
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