HomeMy WebLinkAboutCOM 1168.071 2006-2008
M{V Of
STACY K. H[GAPhone: (808) 961-8396
td,
Council Xlember Fax: (808) 961-8912
Di.ciict J Ismail: shiga(hko.hawaii.hi.us
X11 pj'M~~
HAWAII COUNTY COUNCIL
Count), of'Harrai'i
n~
Hawaii County Building
c
15 Aupuni Strzet, Suite 209
Hilo, Hawaii 96710
0 t
C-=: r7`,
r .l
DATE: June 2, 2008
TO: Pete Hoffmann, Chairperson N
And Members of the Hawaii County Council
r\3
FROM: K. Stacy Higa, Council Member
SUBJECT: Proposed Amendments to Bill 285, Relating to the Issuance of General
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 $114,588,700.
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 [S1-1-2,000, A)O]
$114.588.700, 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.[or the County
(the "Projects") authFjr'zpd --nder Opillannee Nov 03 90, Ordinance No. 04 75, Ordinance No. 04-8-7,
Ordinance No. 06 80 and Ordinance No. 07 93 ef the Count),, being the capital budget -ordinwwes-of
the County for the fiscal years ending june jO, 2004 through june 30, 2008, as heretofore or-hereafter
amended4rflnrtim ubseyuent
tlseal year.....]"
"...SECTION 6. Execution and Form of Fully Registered 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 bend the seal of the County or a facsimile oh such
seal.....,,
Also, Exhibit A, Draft 2, amends Exhibit A, by replacing Kealakehe WWTP Sludge Removal for $4,000,000 with
Kealakche W WTP Aeration Upgrade for $6,000,000; deleting the Police Evidence Warehouse Project, deleting
P&R 1 lazmat for $500,000, increasing the West Hawaii Civic Center to $18,700,000; and added tine item "Bond
Costs" in the amount of $1,000,000.
A version of the bill that incorporates the proposed amendments is attached. M6 9 71 GOMM ~a
Ref. Ta
Hawaii County is an Equal O Ref. ate-:W
p/torlunity Provider and Employer
AN ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS OF TILE
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 '1'O
THE ISSUANCE AND SALE. OF THE BONDS.
BE I'1' ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAPI:
SECTION 1. Findings and Determinations. The County Council of the County of I-lawai'i (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 IS142 O AMM)l
$114,588,700, 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 2.1of the Go nty4the
TliYljec ,fS-'-)--ant} nr,. nc u-r
Ordininsee No. 06 80 and Ordinanee No. 07 83 of the County, being ithe eapital budget nanees of-the
County 114 tl le fiseal year-s ending june 30, 2004 through June 30, 2008, as heretufor. or- reafter
tnnended--frorn--tin tome, or- under the espital budget or-dinanee of the County fOF Orly --tiubtiegnent
fisetll-year,l
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
2
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 Fully Registered 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 ben I 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
3
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 fbr
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
pail 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
4
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 S. 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
5
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. Severabilitv. 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.
6
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 1 st Reading
Date of 2nd Reading
Effective Date:
7
Priority Listed Projects for ExhibitA
Bond Funds Request Draft 2
Requested
Project Amount
PRIORITY 1 Addresses legal mandate
Pro ect
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
Naalehu/Pahala LCC Replacement $850,000
DWS Water Connection Compliance $800,000
DWS Water Connection Backflow $500,000
$8,326,000
PRIORITY 2 Corrects major deficiency and/or are critical for
public safety or health
Pro ect
County Building Repairs $23,000,000
West Hawaii Civic Center $18,700,000
Hazmat - P&R $500,000
Earthquake Repairs - P&R $1,000,000
Kealakehe WWTP 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
$63,449,700
PRIORITY 3 Addresses environmental/lifestyle
concernsloperational efficiency: and/or
maintains/improves existing assets
FIRE
Ranking Pro ect
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 Exhibit A
Bond Funds Request Draft 2
Requested
Project Amount
POLICE
Ranking Pro ect
3-1 Pahoa Police Station $3,800,000
3-2 Pahoa Police Station, Off-site Impr. $2,000,000
3-3 Capt. Cook Police Station $1,200,000
$7,000,000
P&R
Ranking Pro ect
3-1 Repairs $1,000,000
3-2 Waimea Trails & Greenways $2,190,000
3-3 Alae Cemetery $250,000
3-4 Reed's Bay Beach Park $468,000
3-5 Waimea District Park $750,000
3-6 Hilo Bayfront Beach Park Design $500,000
3-7 Old Kona Airport Park MP $500,000
3-8 New HOVE Community Center $400,000
$6,058,000
PUBLIC WORKS
Ranking Pro ect
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 Hawai'i Traffic Baseyard $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 Pro ect
3-1 Rural Transfer Stations $35,000
3-2 S Kona/HOVE Transfer Stn/Recycling Cntr $550,000
$585,000
Bond Costs $1,000,000
$1,000,000
Total Project Estimates for Funding $114,588,700
Page 2 of 2