HomeMy WebLinkAboutBIL 285 Draft 02 2006-2008COUNTY OF HAWAII
ORDINANCE NO.
STATE OF HAWAII
BILL NO. 2135
(DRAFT 2)
AN ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONllS OF
"1'FIE COUNTY OF HAWAII FOR THE PURPOSE OF FUNDING ALL OR A PORTION OF THE
COS"fS OF VAKIOUS IMPROVEMENT PROJECTS FOR THE COUNTY; FIXING THE FORM,
DENOMINATIONS, AND CERTAIN OTHER DETAILS OF SUCH BONDS AND PROVIDING FOR
'I'IIE SALE 'FHEI2EOF; AND AUTHORIZING THE TAKING OF OTHER ACTIONS RELATING
'I'O 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 hlawai'i
(thc `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 refereed to in Section 2 hereof.
SECTION 2. Authorization of Bonds. There are hereby authorized for issuance and sale, in
one or more scries, Bonds of the County, in an aggregate principal amount not to exceed $I 14,588,700, 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.
SECTION 3. Details of Bonds. The Bonds authorized for issuance and salt in Section 2
hereof shall be issued and sold in one or more or as paR 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 scries, 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 he 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
mahu~ity dates of such series of Bonds; the amount of principal of such series of Bonds maturing on each
mahu•ity 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 ti•om 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
Icgal 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 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-enny system for such
Bonds. "fhe Director of Finance may prepare such number of blank Bonds of any series executed and scaled as
alin•esaid 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.
'fhc 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 terns and conditions as he sha11 approve and deem advisable, to distribute an Official Statement (or other
ollring 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 otlered to the bidder ot7cring the lowest interest cost therefor, in
accordance with the applicable Notice of Sale, if any; provided that the Director of Finance may reserve die
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
Uiercfbr 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 u 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. 'fhe Director of Finance may authorize the
printing of CUSIP identification numbers upon the Bonds. Such number and the printing [hereof 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 he 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 oven[ 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 uny
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 retraining 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 tr•om 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 [o market such Bonds to the greatest
advantage of the County upon such tetms 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.
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, Bcn Franklin Building, 2nd
Flow, Hilo, llawaii 96720, commencing within fifteen (IS) 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:
~r~'c-~-+C ~-'
COUNCIL MEMBER, COUNTY OF HAWAII
Hawaii
Date of Introduction:
Date of 15` Reading:
Date of 2°d Reading:
Effective Date:
ty r: _ {.':~~r c~'.tm: 1168 70
Priority Listed Projects for
Bond Funds Request
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
Exhibit A
Draft 2
$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
Pro ect
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
$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
PRIORITY 3 Addresses environmental/lifestyle
concerns/operational efficiency: and/or
maintains/improves existinst assets
FIRE
Ranking Pro ect
3-1 Makalei Fire Station
3-2 Fire Department Complex
3-3 Captain Cook Fire Station
Requested
Amount
$9,000,000
$8,600,000
$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 Project
3-1 Pahoa Police Station $3,800,000
3-2 Pahoa Police Station, Off-site Impr. $2,000,000
33 Capt. Cook Police Station $1,200,000
$7,000,000
P8R
Rankin Pro ect
3-1 Repairs $1,000,000
3-2 Remove Hazardous Structures $500,000
3-3 Waimea Trails 8 Greenways $2,190,000
3-4 Alae Cemetery $250,000
3-5 Reed's Bay Beach Park $468,000
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
$8,558,000
PUBLIC WORKS
Ranking Pro ect
3-1 Facilities R 8 M
3-2 Facilities Renovation
3-3 VRL Offices
3-4 Sand Gulch Road Access Redesign
3-5 Alii Parkway
3-6 Bridge Repairs Islandwide
3-7 Laaloa Avenue Extension
3-8 Lako Street Extension
3-9 West Hawaii Traffic Baseyard
3-10 Alii Drive Signal Improvements
3-11 Kamanu St Extension (reimbursable)
ENV. MGT.
Ranking Pro ect
3-1 Rurai Transfer Stations
3-2 S Kona/HOVE Transfer Stn/Recycling Cntr
Bond Costs
$1,000,000
$1,000,000
$1,000,000
$aoo,ooo
$1,000,000
$500,000
$900,000
$1,000,000
$680,000
$1,000,000
$1,400,000
$9,880,000
$35,000
$550,000
$585,000
$1,000,000
$1,000,000
Total Project Estimates for Funding
$114,588,700
Page 2 of 2