HomeMy WebLinkAboutCOM 1168.009 2006-2008
K Angel Pilago ,~of Phone No.: (808) 327-3642
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Vice Chair cP:~'~ Fax No.: (808) 329-4786
District 8 -North Kona : ~ y ~~'~'~f E-Mail: kapilago@co.hawaii.hi.us
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HAWAII COUNTY COUNCIL
County of Hawai `i
Kailua Trade Center
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75-5706 Hanama Place, Suite 109 ,
Kailua-Kona, Hawai `i 96740
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DATE: May 16, 2008 ~,V: ~ ` ~
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T0: Pete Hoffmann, Chairperson
And Members of the Hawaii County Council ~ ~
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FROM: K. An el Pila o, Vice Chair a
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SUBJECT; Pro osed Amendments to Bi11285, Relatin to the Issuance of General
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Obligation Bonds for Various Improvement Projects
Attached please find a proposed amendment to Bill 285, relating to the Issuance of General Obligation
Bonds for Various Improvement Projects. The amendment increases the bond amount to $114,000,000.
Section 2 and Section 6 are 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
[ ] $114,_000,000, 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, D raft 2. [ ' ~-a-nee
"...SECTION 6. Execution and Form of Full~egistered 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 [~~e-bear] the seal of the
County or a facsimile of such seal....."
Also, EXlllblt A, Draft 2, amends Exhibit A, by replacing Kealakehe WWTP Sludge Removal for
$4,000,000 with Kealakehe WWTP Aeration Update for $6,000,000.
Aversion of the bill that incorporates the proposed amendments is attached.
KAP/ke
Att.
Comm. No. •
Ref. To: +j
G
Ref. Qate ~ 21
Hawai `i County Is An Edual Opportunity Provider And Employer
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
[~~l-~8;~8~J$114,000,000, 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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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
re emptlon.
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 Ful1X Re istered 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 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 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. 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-
entryprovisions, 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 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 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 t11e
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. Securit, f~ or 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 47-1 1, Hawai `i
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. Severabili . 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 ME , COUNTY OF AI`I
Hawaii
Date of Introduction
Date of 1 st Reading
Date of 2nd Reading
Effective Date:
Priority Listed Projects for ExhibitA
Draft 2
Bond Funds Request
Requested
Project Amount
PRIORITY ~ Addresses le~cal mandate
Pr, oject
ADA Compliance - P&R $2,000,000
ADA Curb Cuts $750,000
ADA Facilities -DPW $2,100,000
Honokaa LCC Replacement $695,000
Queen Liliuokalani LCC Replacement $631,000
NaalehulPahala LCC Replacement $850,000
DWS Water Connection Compliance $800,000
DWS Water Connection Backflow $500,000
$8~326~000
PRIORITY 2 Corrects mayor deficien ~~an,dlor ar„e critical for
ublic safety.or h__ea h
Project
County Building Repairs $23,000,000
West Hawaii Civic Center $17,100,000
Hazmat - P&R $500,000
Earthquake Repairs - P&R $1,000,000
Kealakehe WUVi'P Aeration Upgrade $6,000,000
N. Kona Sewer /Effluent Reuse $8,500,000
Haz. Mat. Abatement to Facilities $1,000,000
Keopu Heights Flood Channel $1,000,000
Pahoa Transfer Station $3,700,000
Police Microwave System $49,700
$61,849,700
PRIORITY 3 Addresses environmentalllifestyle
concernsloperational efficiency;,,,andlor
maintainslim~roves existing assets
FIRE
Rankin Project
3-1 Makalei Fire Station $9,000,000
3-2 Fire Department Complex $8,600,000
3-3 Captain Cook Fire Station $690,000
$18,290,000
Page 1 of 2
Priority Listed Projects for ExniaitA
Draft 2
Bond Funds Request
Requested
Project Amount
POLICE
Ranking Project
3-1 Evidence Warehouse $1,100,000
3-2 Pahoa Police Station $3,800,000
3-3 Pahoa Police Station, Off-site Impr. $2,000,000
3-4 Capt. Cook Police Station $1,200,000
$8100,000
P&R
Ranking Project
3-1 Repairs $1,000,000
3-2 Remove Hazardous Structures $500,000
3-3 Waimea Trails & Greenways $2,190,000
3-4 Alae Cemetery $250,000
3-5 Reed's Bay Beach Park $4fi8,000
3-6 Waimea District Park $750,000
3-7 Hilo Bayfront Beach Park Design $500,000
3-8 Old Kona Airport Park MP $500,000
3-9 New HOVE Community Center $400,000
$6,558x000
PUBLIC WORKS
Ranking Project
3-1 Facilities R & M $1,000,000
3-2 Facilities Renovation $1,000,000
3-3 VRL Offices $1,000,000
3-4 Sand Gulch Road Access Redesign $400,000
3-5 Alii Parkway $1,000,000
3-6 Bridge Repairs Islandwide $500,000
3-7 Laaloa Avenue Extension $900,000
3-8 Lako Street Extension $1,000,000
3-9 West Hawaii Traffic 6aseyard $680,000
3-10 Alii Drive Signal Improvements $1,000,000
3-11 Kamanu St Extension (reimbursable) $1,400,000
$9,880,000
ENV. MGT.
Rankin Project
3-1 Rural Transfer Stations $35,000
3-2 S KonaIHOVE Transfer Stn/Recycling Cntr $550,000
$585,000
Total Project Estimates for Funding $113s588r700
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