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HomeMy WebLinkAboutORD 1974-037Bill No. 22 ~- COUNTY OF HAWAII - STATE OF HAWAII ORDINANCE N0. a3 AN ORDINANCE AMENDING CH~PTER 16, OF THE HAWAII COUNTY CODE RELATING TO IMPROVE ENT BY ASSESSMENT. BE IT ORDAINED BS' THE CODNCIL OF THE COUNTY OF HAWAII: SECTION 1. Article 4, of Chapter 16, is amended by adding a new section thereto to read as follows: "SEC. 1.01 AMENDED ASSESSMENTS. In the event that a lot previously assessed is sub- sequently subdivided or consolidated with any other lot within the improvement district, the Council, upon petition by the ownez-s of such lots as may be subdivided or consol- idated, or upon petition by the lessees of such lots as may be subdivided or consolidated who by the express terms of their lease:; are ob~gated to pay the kind of assessments covered by this Chapter, may prorate the original assessment among the lots resuiting from the subdivision, or consolidate the assessments upon the component lots and assess the consolidated lot therefor, by an appropriate amendment to the ordinance declaring the assessment; provided that prior to the introduction of the amendment to the ordinance declaring the assessment (a) the subdivider or consolidators shall deposit with the county leg~l tender or a certified check in an amount suff~Lcient t~ be used to cover the cost of making such allocation, an~ to cover the assessment allocable to areas used or to be ~ sed for purposes that are public in nature, such as, bui not limited to, roadways, parks, school sites, sewage treatment plant sites and reservoir sites, developed in connection with the subdivision or consolidation (together with any interest and premium payable thereon pursuant to section 8 of this Article by reason of prepayment: of unpaid principal), and (b) the Chief Engineer shall send notice of the proposed proration or consolidation by certified mail to the original purchaser of any bonds which rlay be outstanding for the improvement district involved, Together with a notice that unless a written request for a hearing thereon is received within fourteen days from i:he date of mailing of such notice said proration or consolidation will be presented to the Council for approval and amendment of the original assessment ordi- nance in accordance therewith. If a written request for a hearing is so recei~~ed, the Council shall fix a date, time and place of such hearing, notice of which shall be mailed by certified mail to each person making such request. Such notice shall be so mailed at least fourteen days prior to the hearing. An affidavit of so mailing same shall be filed with the County Clerk. The cost of making the reallocation of assessments, when determined by the Chief Engineer and approved by the Council, shall be paid into the general fund of the county. The amount of the assessment allocable to areas used or to be used for purposes that are public in nature, and developed in connection with the subdivision or conso- lidation, together with the above specified premium and interest, as recommended by the Chief Engineer and approved by the Council, shall be credited to the special fund described in Article 5, Section 2. The amended assessments shall be a lien upon the subdivided lots or consolidated -2- lot as of the date of the first publication of the original ordinance declaring the assessment. Said amended assess- ments shall be paid in installments equal in number to that remaining under the original assessment, at the same rates of interest, and earh of such installments for the respective amended assessments shall be its pro rata share of the corresponding installment that would have been payable upon the original. assessment, or, in the case of consolidation the total oi` the corresponding installments that would have been payable upon the original assessments, if proration of the original assessment or consolidation of the original assessments had not been made." SECTION 2. Section 2, Article 4, of Chapter 16, is amended to read as follows: "SF,C. 2. NOTICE ANll COLLECTION OF ASSESSMENTS. The Director of Finance shall forthwith [post] publish notice of a:ssessmen•t (upon the land assessed] once in a daily newspaper of general circulation in the county, and notify the several owners (,] and lessees (or occupants, respectively, by registera~d letter] of the land assessed, respectively, by registered :Letter or certified mail with request for a return receipt, of the sev=_ral amounts assessed on the respective properties ~snd of the date when and the place where such assessments are payable. Such mailed notice shall be addressed to the owners and lessees of said lands as same appear in the records of the Department of Taxation, State of Hawaii, as the addresses appear in said records, or as otherwise known to the Director of Finance if not shown in said records. [He] The Director of Finance shall also collect such assessments and set aside all moneys so collected in a special fund or funds for the frontage improvement or improvement district, -3- as the case may be." SECTION 3. Section 5, Article 4, of Chapter 16 is amended to read as follows: "SEC. 5. INSTALLMEPdTS PAYABLE WHEN. In case of an election to pay any assessment in installments, the assessment shall be payable in not less than five nor more than twenty annual installments of principal, provided that the Council may, in its discretion, determine the date on which payment of such annual install- ments shall commence, which date shall be no more than three years from the 31st day following the last publica- tion of the ordinance required to be enacted pursuant to section of this Article hereof, said installments to be respectively, in such amounts as shall be determined by the Council, and each annual installment may in turn be made pay- able in twelve equa:i monthly installments as hereinafter pro- vided, provided further that principal, interest or both on any bonds outstanding d~ae prior to collection of annual assessment shall be paid in accordance with Article 5, Section 2, and except as provided :in Article 5, Section 1 regarding temporary advances, shall not be paid out of any moneys available in the county treasury. Interest in all cases shall be paid on the unpaid principal, at a rate not exceeding eight per cent per annum. Tha_ date on which such annual installments shall commence, the number of such annual installments, the respective <~mounts of said annual installments, the period of payment, and the rate of interest shall be as determined by the Council, and such interest may for each year be computed and collected up to the next succeeding date for payment of principal and interest on the bonds issued pursuant to Article 5, Section 1 of this Chapter, no deduc- -4- tion being made by reason of any installment being due and payable prior to such date; provided, that after the annual installments are de*_ermined and fixed if it appears to be of advantage to the assessee, the Council may permit the Director of Finance to accept payments in monthly install- ments as hereinabovi=_ provided." SECTION 4. Article 4, of Chapter 16, is amended by adding a new section to read as follows: "SEC. 5.01. ADVANCE PAYMENT OF ASSESSMENT INSTALLMENTS. The owner of any lot or parcel subject to unpaid assessment installments which are not delinquent may, at any time afi:er the shirty day period specified in Article 4, Section 3, pay the entire unpaid principal provided the total of the following sums are also paid therewith: (a) an amount to be fixed by the Director of Finance for publish- ing notice calling bonds; (b) interest on the unpaid principal to the interest due date on the bonds next succeeding forty-five days after the date of advance pay- ment, plus interest for an additional six months on any portion of the unpaid principal which is not evenly divi- sible by $1,000.00; and (c) the premium required to be paid on advance payment of installments, if any, as specified in the reso:Lution adopted by the Council pursuant to Article 3, Section 1. SECTION 5. Section 1, Article 5, of Chapter 16, is amended to read as follows: "SEC. 1. IMPROVEMENT BONDS AUTHORIZED. In the event of an election to pay all or any part of any such special assessment in installments, the amount required fo:r immediate use to pay the cost of the improvement, or the installments thereof from time to time as they fall -5- due may be advanced out of any funds available in the general fund or the permanent improvement fund; provided that as soon as practicable, the amounts so necessary shall be secured, and repaid i_f advances have been made, by the issuance of sufficient district improvement bonds of the county to raise such require>d amoun+= or amounts. Such bonds shall be in such form as may be prescribed by the Council, shall bear the name of the benefited or improved district, shall be payable to bearer in a sufficient period of years and in amounts in those respe<;tive years so as to cover the outstanding install- ment payments determined upon pursuant to the provisions of this ordinance, and the Council, in its discretion, may pro- vide that the amount of principal maturing in each year plus the amount of interest payable in that year will be an aggregate amount that shall be approximately equal each year, except for moneys i`alling <iue on the first series of the bonds which shall be adjusted to reflect the amount of interest earned from the date when the bonds bear interest to the date when the first interest is payable on the bonds; or it may make such other determination of the amount of the aggregate principal of the bonds that shall fall due in a year as it shall choose. Such bonds shall be subject to call but not prior to the section interest date thereof as hereinafter provided and at such premium, if any, as may have been provided :for in the resolution of the Council adopted pursuant to Article 3, Section 1. The bonds of each issue shall bear serial numbers, shall be of such denomination, not exceeding $5,000 each, as may be determined by the Council, anti shall :bear interest at the rate of not more than eight per cent per annum, payable semiannually, as may be determined by the Council. -6- Such bands sha:Ll be executed by the Director of Finance, or by a deputy of the Director of Finance duly designated by said Director to execute such bonds, and issued pursuant to and under the authority and requirements of resolutions of the Council. The bonds shall bear the lithographed or engraved facsimile signature of the Mayor and shall be [be countersigned by the chairman of the Council and attested by the cler}: and] impressed with a lithographed or engraved facsimile of the seal of the county. Interest coupons shall bear the lithographed or engraved facsimile of the signature of the Dire<tor of ]?finance. The Director of Finance shall preserve a record o:E the bonds in a suitable book kept for that purpose. The bonds shall be payable only out of the moneys collected on account of assessments made for the improvement for which they are issued or from the reserve fund established pursuant to Article 5, Section 2.01, in the event that the moneys collected out of assessments are insuffi- cient to pay the bonds or the interest thereon as they become due, and the county shall not otherwise guarantee payment of any bonds issued under the provisions of this ordinance; provided that interest payments may be advanced by the Council temporarily out of any moneys available in the county treasury." SECTION 6. Article 5, of Chapter 16, is amended by adding a new section to read as follows: "SEC, 1.01. GENERAL OBLIGATION BONDS AND SPECIAL ASSESS- MENT REVOLVING FUND. For an improvement or improvements initiated pursuant to Article 3, Section 1 only, the Council, in lieu of the issuance of improvement district bonds as permitted by Article 5, Section 1, may in its sole discretion issue -7- general obligation bonds of the County or authorize payment of the required amount from the special assessment revolving fund of the County or both. The Council shall have power to issue general obligation bonds of the County for the purpose of establishing, maintaining or replenishing the special assessment revolving fund. All such general obligation bonds shall be authorized, issued and sold under, pursuant to, and in accordance with Chapter 47, Hawaii Revised Statutes, as amended, all of the provisions of which chapter shall be applicable thereto. Without limiting the generality of the provisions of the foregoing sentence, tYie form, name, date, denomination, numbers, maximum interest rate, method of execution and all other details of such general obligation bonds shall be fixed and determined in accordance with and as provided by such chapter, and no right of prior redemption need be reserved in the issuance of such bonds, nor shall either the amounts or dates, of the maturities of any such bonds be required to conform :Ln any way to the amounts and due dates of any assessments, and the validity of such general obligation bonds shall not be dependent on or affected in any way by any proceedings taken or any contracts made, acts performed or done in connection with, or in furtherance of, any improvement or improvements or any assessments for such improvement or improvements. In the event of the issuance of general obligation bonds as provided in this section, all moneys collected on account of assessments and interest for any improve- ment that is financed by such bonds, may, to the extent so directed h~, the Council, be applied to the reimburse- ment of the general fund of the County to the extent -8- of the amounts paid for interest on and principal of such general. obligation bonds. Any amounts collected on account of assessments and interest as aforesaid to the extent not so directed by the Council to be applied to such reimbursement or in excess of the amounts required for such reimbursement, and amounts collected on account of assessments and 'nterest for any improvement financed from the spE~cial assessment revolving fund, shall be appropriated to and become a part of the special assess- ment revolving fund and may be used and applied in the manner and 1`or the purposes as are all other moneys deposited in that f~znd. The provisions of Sections 2, 3, 4, 5, 6, and 7 of Article 5 of this Chapter shall not apply to such general obligation bonds and shall be restricted in their appli- cation to improvement district bonds, nor shall the provisions of Article 6 of this Chapter apply to such general obligation bonds unless the Council in its sole discretion shall consent to the application of such provisions to such bonds, and the refunding of any such general obligation bonds shall not in any way affect the payment of assessment installments and the interest thereon or the amounts and times of such payments unless such refunding is part of a plan consented to by the Council and adopted under Article 6 thereof." SECTION 7. Section. 2.01, Article 5, of Chapter 16, is amended to read as follows: "SEC. 2.01. RESERVE FUND. The Council. may provide in the resolution adopted pursuant to Article 3, Section 1 that a reserve fund shall be established as additional security for the payment of principal -Q- and interest on bones issued in proceedings taken pursuant to this ordinance. The reserve fund shall be established from the proceeds from the sale of bonds in such amount as is designated by they Council in the aforementioned resolution. Thereafter, moneys in the reserve fund shall be used in accordance with the provisions of Article 5, Section 2[. Moneys in the resex•ve fund may be used] and to pay the principal or interest, os• both, in whole or in part, on the last outstand- ing maturity or maturities of the bonds, and [in such case] assessment[e>] instalments or such portions thereof which would otherwise be collected to make such payments shall be cancelled,[.] provided that in making use of moneys in the reserve fund to pay princi al or interest, or both, on the last outstanding maturity or maturities of the bonds, the Director of Finance shall make provisions for expected delinquencies in payment of any portions of assessment installments which will not be cancelled by such use of said reserve fund, and provided further that insofar as said moneys are attributable to fully paid assessments rather than to cancellation of installments or portions thereof, same shall be paid pro rata to the persons who at the time of such apportionment own (as shown on the records of 'the State Department of Taxation) the lands subjected to said assessments. There shall be transferred to the improvement district revolving fund of the county (1) any portion of such moneys which shall not have been paid to or claimed by the persons entitled thereto within two years after the due date of the last bonds, and (2) any interest earned from the investment of such moneys during said two year period." -10- SECTION S. Section 5, Article 5, of Chapter 16, is amended to read eis follows: "SEC. 5. PAYMENT B13FORE MATURITY. On and after i:he second interest due date of any bonds so issued, whenever sufficient funds are in the hands of the Director of b'inance by reason or payment of assessment installment, exceed:_ng the next interest payment on the unpaid balance of any bonds so issued, [the Council may direct) the Director of Finance is authorized to call for payment, by [advertisement for not less than five days in some) up bli- cation of a notice of redemption at least once a week for two successive calendar weeks on any day of the week in a newspaper of` genera__ circulation in the county, such number of bonds as there are funds to pay. In each case the serial number of tYie bonds to be called for payment shall be speci- fied in the notice :ao published. A copy of such notice shall be mailed, not less than five days after the first publication thereof, to the person who purchased such bonds at the orig~.nal sale thereof. [At the expiration of thirty days from the first publication of such notice, interest] Interest on the bonds so called for payment shall cease [; and the] on the date of call, provided that the first publication of the notice of redemption shall be made at least fifteen days before the date of such call and the second publication :hereof shall be made not less than one week after the date of first publication. The moneys provided for_ the pa°~ment of such bonds with the interest unpaid to the date ~~f their call for payment, together with anv applicable premium payable, shall be set aside by the Director of Finance in a special deposit to which fund only the owners of the bonds shall thereafter look for payment. -11- [The call price of any bond called for payment before maturity pursuant to this section shall be the principal amount of such bond, interest at the rate stated on the face of the bond from the date on which interest on such bond was last paid to and including the thirtieth day from the first publication of such notice, together with the applicable premium payable, if any.] If the bonds mature in annual series, in first selecting a bond for retirement, the lowest numbered bond of the annual series midway to the end of the bond term shall be chosen, and successive bonds shall be chosen from the lowest number of each annual series, before and after the series from which the first bond is selected, so that bonds called shall be a pro rata part of each annual series, it being intended that the relationship of unpaid assessments to bonds out- standing be least disturbed as possible by the call of bonds. If the bonds all mature at the end of the bond term, the bonds selected for retirement shall be those of the lowest outstanding serial number." SECTION 9. Section 7, Article 5, of Chapter 16, is amended to read as follows: "SEC. 7. BONDS NOT CHARGEABLE AGAINST GENERAL REVENUES. No bonds issued under the provisions of this ordinance shall be considered as county bonds within the meaning of Section [246-2] 248-5, Hawaii Revised Statutes, nor shall the payment of same be a charge against the general revenues of the County." SECTION 10. Article 5, of Chapter 16, is amended by adding a new section to read as follows: "SEC. 8. ERRORS IT' COMPUTATION OF AMOUNT DUE. No bond, coupon, assessment or installment thereof -12- or of the interest ~r penalties thereon, or certificate of sale or deed sha~l be held invalid for any error in the computation of the proper amount due on the same, if the error is found t;o be comparatively negligible." SECTION 11. Section 1, Article 8, of Chapter 16, is amended to read eis follows: "SEC. 1. SEVERABILITY. If any provision of this ordinance or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or application:; of the 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 12. Superseded material is enclosed in brackets and new material underscored. In printing this ordinance the County Clerk is authorized to delete brackets and underscoring. SECTION 13. This ordinance shall take effect upon its approval. INTRODUCED BY: i un man, oun o fiawa~ i~ Date of Introduction: May 22, 1974 Date of Adoption: Effective Date: June 5, 1974 June 18, 1974 -13- yr„gF ~y O~ ~Y i~9 Tadashi Suzuki ~ ~ f' COUNTY CLERK \~'oF'r OF"FICE OF' THE COUNTY CLERK COUNTY ^F HAWAII H'~ILn, HAWAII 9672^ Mayor Bruce McCall. County of Hawaii Hilo Hawaii Robert Shioji DEPUTY COUNTY CLERK I hereby transmit Ordinance Bill No. 22 passed by the County Council on secbnd and final reading. COUNTY CLERK Encl. Dated: June /0, 1974 Hilo, Hawaii Date: May 22, 1974 FIRST READING AYES NOES A./E Car enter x De Luz x Ferias x Fujii x Hisaoka x Kawahara x Matayoshi x Yadao x Chr. Yamada ~ . _ " _ 8 L Publication Date: I"~ay 26, X1974 Hilo, Hawaii Date: June 5, 1974 SECOND & FINAL READING AYES NOES A/E Carpenter x De Luz Ferias x Fujii x Hisaoka x Kawahara x Matayoshi x Yadao x Chr. Yamada 9 dUl,i "9i4 Publication Da}e: _ We do hereby certify thaT the foregoing BILL was adopted by the County Council and published as indicated above. gpPROVED ~s ,o FOAM CO'JNTV OF M1~'~+~~~ Council Chairman County Clerk Datm Approved/Disapprored this- /~_f "` day of t_ ~L~.-i_ __ __, 19__r __. Mayor, Counfy of Hawaii Bill No. _ 22 Reference: C-623/PWC-32 M.B. No. .."_._._..._. r ,: Ord. No. _~"~ r Bill No. 22 COUI7TY OF FIAWAI:I - STATF. OF HAWAII NO. AN ORDINANCE AMENDING CHAPTER 16, OF THE HAWAII COUNTY CODE RELATING TO IMPROVEMENT BY ASSESSb7ENT. BE IT ORDAINED BY THE COUNCIL OF THF. COUNTY OF HAWAII: SECTION 1. P,rticle 4, of Chapter 16 is amended by adding a new section thereto to read as follows: "SEC. 1.01 AMENDED ASSESSMENTS. In the event that a lot previously assessed is sub- sequently subdivided or consolidated with any other lot, whether or not the latter is within the improvement district, the Council, upon petition by the owners of such lots as may be subdivided or consolidated, or upon petition by the lessees of such lots as may be subdivided or consolidated who by the a}:press terms of their leases are obligated to pay the kind of asses>sments covered by this ordinance, may prorate the original assessment among the lots resulting from the subdivision, or consolidate the assessments upon the component logs and assess the consolidated lot therefor, by an appropriate amendment to the ordinance declaring the assessment; provided that prior to the introduction of the amendment to the ordinance declaring the assessment (a) the subdivider or consolidators shall deposit with the county legal tender or a certified check in an amount sufficient to be used to cover the cost of making such allocation, and to cover the as:>essment allocable to areas used or to be used for purposes that aria public in nature, such as, but not limited to, roadways, parks, school sites, sewage treatment plant sites and reservoir sites, developed in connection with the subdivision or consolidation (together with any interest and premium payable thereon pursuant to section 8 of this Artic:le by rcaason of prepayment of unpaid principal), and (b) the <:hief enc}ineer shall send notice of the proposed proration or consolidation by certified mail to the original purchaser of any bonds which may be outstanding for the improvement district involved, together with a notice that unless a written request for a hearing thereon is received within fourteen days from the date of mailing of such notice said proratio~i or consolidation will be presented to the Council for approval and amendment of the original assessment ordinance in accordance therewith. If a written request for a hearing is so received, the Council shall fix a date, time and place of such hearing, notice of which shall be mailed by certified mail to each person making such request.. Such notice shall be so mailed at least fourteen days prior .o the hearing. An affidavit of so mailing same shall bta filed with the County Clerk. The cosi~ of making the reallocation of assessments, when determined by the Chief Engineer and approved by the Council, shall be paid into the general fund of the county. The amount of the assessment allocable to areas used or to be> used f~~r purposes that are public in nature, and developed in connection with the subdivision or conso- lidation, together with the above specified premium and interest, as recommended by the Chief Engineer and approved by the Council, shall be credited to the special fund described in Article 5, Section 2. The amended assessments shall be a lien upon the subdivided lots or consolidated lot as of the date of the first publication of the original -2- ordinance declaring the assessment. Said amended assessments shall be paid in installments equal in number to that remair.~ing under the original assessment, at the same rates of interest, and each of such install- ments for the respective amended assessments shall be its pro rata share of the corresponding installment that would have been payak~le upon the original assessment, or, in the case of consolidation the total of the corresponding installments that would have been payable upon the original assessments, if proration of the original assessment or consolidation. of the original assessments had not been made." SECTION 2. Section 2, Article 4, of Chapter 16 is amended to read as follows: "SEC. 2. NOTICE AND COLLECTION OF ASSF,SSMENTS. The Director of Finance shall forthwith (post] publish notice of assessment [upon the land assessed] once in a daily newspaper of general circulation in the county, and notify the several owners[,] and lessees [or occupants, respectively, by registered. letter] of the land assessed, respectively, by certified mail with request for a return receipt, of the several amour.~ts assessed on the respective properties and of the date when and the: place where such assessments are payable. Such mailed notice shall be addressed to the owners and lessees of said lands as same appear in the records of the Department of Taxation, State of Hawaii, as the addresses appear in said records, or as otherwise known to the Director of Finance if' not shown in said records. [He] The Director of Finance shall also collect such assessments and set aside all moneys so collected in a special fund or funds for the frontage improvement or improvement district, as the case may be." SECTION 3. Section 5, Article 4, of Chapter 16 is amended -3- to read as follows: "SEC. 5. INSTALLMEN`CS PAYABLE WHEN. In cases of an election to pay any assessment in installments, the assessment shall be payable in not less than five nor more than twenty annual installments of principal, provided that the Council may, in its discretion, determine the date on which payment of such annual install- ments shall commence, which date shall be no more than three years from the 31st day following the last puhlica- tion of the ordinance required to be enacted pursuant to section of this Article hereof, said installments to be respectively, in suc''z amounts as shall be determined by the Council, and each annual installment may in turn be made pay- able in twelve equal monthly installments as hereinafter pro- vided, provided further that principal, interest or both on any bonds outstanding due prior to collection of annual assessment shall be paid in accordance with Article 5, Section 2, and except as provided in Article 5, Section 1 regarding temporary advances, shall not be paid out of any moneys avail- able in the county treasury. Interest in all cases shall be paid on the unpaid principal, at a rate not exceeding eight per cent per annum. The date on which such annual installments shall commence, the number of such annual installments, the respective amounts of said annual install- ments, the period of payment, and the rate of interest shall be as determined by the Council, and such interest shall for each near be computed and collected up to the next succeeding date for payment of principal and interest on the bonds issued pursuant to Article 5, Section 1 of this Chapter, no deduction being made by reason of any installment being due and payable prior to such date; provided, that after the annual installments are determined and fixed if it appears to be of advantage to the assessee, the Council may permit the Director of Finance to accept payments in -4- monthly installments as hereinabove provided." SECTION 4. Article 4, of Chapter 16, is amended by adding a new section to read as follows: "SEC. 5.01. ADVANCE PAYMENT OF ASSESSMENT INSTALLMENTS. The owner of ~xny lot or parcel subject to unpaid assessment installments which are not delinquent may, at any time aftEar the t}rirty day period specified in Article 4, Section 3, pay the entire unpaid principal provided the total of the following sums are also paid therewith: (a) an amount to be fixed b~~ the Director of Finance for publish- ing notice calling bonds; (b) interest on the unpaid principal to the interest due date on the bonds next succeeding forty-fives days after the date of advance payment, plus interest for an additional six months on any portion of the unpaid principal which is not evenly divisible by $1,000.0; and (c) the premium required to be paid on advance payment of installments, if any, as specified in the resolution adopted by the Council pursuant to Article 3, Section 1. SECTION 5. Section 8, Article 4, of Chapter 16 is amended to read: "SEC. 8. EFFECT OF FAILURE TO PAY INSTALLMENT. Failure to pay any installment, whether of principal or interest, when due, shall cause the whole of the unpaid principal to become due and payable immediately, and the [whole amount of unpaid principal and accrued interest shall thereafter draw interest) delinquent installment or installments shall thereafter bear penalty at the rate of [one] two per cent per month or fraction of a month from the date of delinquency until the day of sale as herein- after provided; but at any time prior to the date of sale, -5- the owner may pay the amount of all delinquent installments [with interest thereon at one per cent per month or frac- tion of a month], with penalty, and all costs and expenses accrued, and shall thereupon be restored to the right thereafter to pay in installments in the same manner as if default had not been made. SECTION 6. Section 1, Article 5, of Chapter 16, is amended to read as follows: "SEC. 1. IMPROVEMENT BONDS AUTHORIZED. In the event of an election to pay all or any part of any such special assessment in installments, the amount required for immediate use to pay the cost of the improvement, or the installments thereof from time to time as they fall due may be advanced out of any funds available in the general fund or the permanent improvement fund; provided that as soon as practicable, the amounts so necessary shall be secured, and repaid if advances have been made, by the issuance of sufficient district improvement bonds of the county to raise such required amount or amounts. Such bonds shall bc~ in such form as may be prescribed by the Council, shall bear the name of the benefited. or improved district, shall be payable to bearer in a sufficrient period of years and in amounts in those respective years so as to cover the outstanding install- ment payments determined upon pursuant to the provisions of this ordinance, and the Council, in its discretion, may pro- vide that the amount of principal maturing in each year plus the amouht of interest payable in that year will be an aggregate amount that shall be approximately equal each year, except for moneys falling due on the first series of the bonds which shall.. be adjusted to reflect the amount of interest earned from the date when the bonds bear interest to the date when the first interest is payable on the bonds; -6- or it may make such ~ther determination of the amount of the aggregate principal ~f the bonds that shall fall due in a year as it sYiall choose. Such bonds shall be subject to call but not prior to the section interest date thereof as hereinafter provided and at such premium, if any, as may have been provided for in the resolution of the Council adopted pursuant to Article 3, Section 1. The bonds of each issue shall bear serial numbers, shall be of such denomination, not exceeding $5,000 each, as may be determined by the Council, and shall bear interest at the rate of not more than eight per cent per annum, payable semiannually, as may be determined by the Council. Such bonds shah be executed by the Director of Finance, or by a deputy of the Director of Finance duly designated by said Director to execute such bonds, and issued pursuant to and under the authority and requirements of resolutions of the Council. The bonds shall bear the lithographed or engraved facsimile signature of the Mayor and shall be [be countersigned by the chairman of the Council and attested by the clerk and] impressed with a lithographed or engraved facsimile of the seal of the county. Interest coupons shall bear the lithographed or engraved facsimile of the signature of the Director of Finance. The Director of Finance shall preserve a rf~cord of the bonds in a suitable book kept for that purpose. The bonds shall be payable only out of the moneys collected on account of assessments made for the improvement :Eor which they are issued or from the reserve fund established pursuant to Article 5, Section 2.01, in the event that the moneys collected out of assessments are insuffi- dent to pay the bonds or the interest thereon as they become due, and the county shall not otherwise guarantee payment of any bonds issued under the provisions of this ordinance; -7- provided that: interest payments may be advanced by the Council temporarily out of any moneys available in the county treasury." SECTION 7. Article 'i, of Chapter 16, is amended by adding a new section to read as follows: "SEC. 1.01. GENERAL OBLIGATION BONDS AND SPECIAL ASSESS- MENT REVOLVING FTJATD. For an improvement or improvements initiated pursuant to ]lrticle :3, Section 1 only, the Council, in lieu of the issuance of improvement district bonds as permitted by Article 5, Section 1, may in its sole discretion issue gene ral obligation bonds of the County or authorize payment of the required amount :from the special assessment revolving fund of the ('ounty o:r both. The Council shall have power to issue general obl:'~cation bonds of the County for the purpose of establishing, maintaining or replenishing the special assessment revolving fund. All such general obligation bonds shall be authorized, issued and sold under, pursuant to, ~snd in accordance with Chapter 47, Hawaii Revised Statutes, as amended, all of the provisions of which chapter shall be applicable thereto. Without limiting the generality of the provisions of the foregoing sentence, the form, came, date, denomination, numbers, maximum interest rate, method of execution and all other details of such general obligation bonds shall be fixed and determined in accordance with and as provided by such chapter, and no right of prior redemption need be reserved in the issuance of such bonds, nor shall either the amounts or dates, of the maturities of any such bonds be required to conform in any way to the amounts and due dates of any assessments, and the validity of such general obligation -9- bonds shall not be dependent on or affected in any way by any proceedings taken or any contracts made, acts performed or done in connection with, or in furtherance of, any improvement or improvements or any assessments for such improvement or improvements. In the event of the issuance of general obligation bonds as provided in this section, all moneys collected on account of assessments and interest for any improve- ment that is financed by such bonds, may, to the extent so directed by the Council, be applied to the reimburse- ment of the general fund of the County to the extent of the amounts paid for interest on and principal of such general obligation bonds. Any amounts collected on account of assessments and interest as aforesaid to the extent not so directed by the Council to be applied to such reimbursement or in excess of the amounts required for such rei~*~bursement, and amounts collected on account of assessments and interest for any improvement financed from the special assessment revolving fund, shall be appropriated to and become a part of the special assess- ment revolving fund and may be used and applied in the manner and for the purposes as are all other moneys deposited in that fund. The provisions of Sections 2, 3, 4, 5, 6, and 7 of Article 5 of this Chapter shall not apply to such general obligation bonds and shall be restricted in their appli- cation to improvement district bonds, nor shall the provisions of Article 6 of this Chapter apply to such general obligation bonds unless the Council in its sole discretion shall consent to the application of such provisions to such bonds, and the refunding of any such -9- general obligation bonds shall not in any way affect the payment of assessment installments and the interest thereon or the amounts and times of such payments unless such refunding is part of a plan consented to by the Council and adopted under Article 6 thereof." SECTION 8. Section :2.01, Article 5, of Chapter 16, is amended to read a.> follow,s "SEC. 2.01. RESER~IE FUND. The Council may provide in the resolution adopted pursuant to Article 3, Section 1 that a reserve fund shall be established as additional security for the payment of principal and interest on bonds issued in proceedings taken pursuant to this ordinance. 'Phe reserve fund shall be established from the proceeds from the sale of bonds in such amount as is designated by the Council in the aforementioned resolution. Thereafter, moneys i~ the reserve fund shall be used in accordance with the ;?rovisions of Article 5, Section 2[. Moneys in the reserve fund may be used] and to pay the principal or interest, or both, i:n whole or in part, on the last outstand- ing maturity or maturities of the bonds, and [in such case] assessment[s] installments or such portions thereof which would otherwise be collected to make such payments shall be cancelled,[.] rp ovided that in making use of moneys in the reserve fund to pay principal or interest, or both, on the last outstan~9ing maturity or maturities of the bonds, the Director of ]Finance shall make provisions for expected delinquencies in payment of any portions of assessment installments which will not be cancelled by such use of said reserve fund, and provided further that insofar as said moneys are attributable to fully paid assessments rather than to cancellation of installments or portions thereof, same shall be paid pro-rata to the persons who -10- at the time of such apportionment own (as shown on the records of the State Department of Taxation) the lands subjected to said assessments There shall be transferred to the improvement district revolving fund of the county (1) any portion of such moneys which shall not have been paid to or claimed by the persons entitled thereto within two years after the due date of the last bonds, and (2) any interest earned from the investment of such moneys during said two year period." SECTIOt1 9. Section 2.02, Article 5, of Chapter 16, is amended to read as follows: "SEC. 2.02. REPLENISHMENT OF RESERVE FUNDS. (When moneys are transferred from the reserve fund to the special fund described in Article 5, Section 2] If at any time the amount in the reserve fund is less than one-half of the original amount thereof or double the amount of the delinquent unpaid assessment installments for the preceding year, the Council shall replenish the reserve fund by pro- viding for the levy and collection of an ad valorem assess- ment upon the lands assessed in the proceedings sufficient restore said fund. to one-half of the original amount thereof or double the amount of the delinquent unpaid assessment installments for the preceding year, whichever is greater. The ad valorem assessment referred to in this section shall be levied, collected and enforced by the county in the same time and manner as [the county levies, collects, and enforces property taxes for general county purposes.] property taxes for general county purposes are levied, collected ar.d enforced." SECTION 10. Section. 5, Article 5, of Chapter 16, is amended to read as follows: "SEC. 5. PAYMENT BEFORE. MATURITY. -11- On and after the second interest due date of any bonds so issued, whenever sufficient funds are in the hands of the Director of Finance by reason or payment of assessment installment, exceeding the next interest payment on the unpaid balance of any bonds so issued, [the Council may direct] the Director of Finance is authorized to call for payment, by [advertisement for not less than five days in some] up bli- cation of a notice of redemption at least once a week for two successive calendar weeks on any day of the week in a newspaper of general circulation in the county, sucYi number of bonds as there are funds to pay. In each case the serial number of the bonds to be called for payment shall be speci- fied in the notice so published. A copy of such notice shall be mailed, not less than five days after the first publication thereof, to the person who purchased such bonds at the original sale thereof. [At the expiration of thirty days from the first publication of such notice, interest] Interest on the bonds so called for payment shall cease [; and the] on the date of call, provided that the first publication of the notice of redemption shall be made at least fifteen days before the date of such call and the second publication thereof shall be made not less than one week after the date of first publication. The moneys provided for the payment of such bonds with the interest unpaid to the date of their call for payment, together with any applicable premium payable, shall be set aside ley the Director of Finance in a special deposit to which fund only the owners of the bends shall thereafter look for payment. [The call price of any k>ond called for payment before maturity pursuant tc• this section shall be the principal amount of such bond, interest at the rate stated on the face of the bond from the date on which interest on such -12- bond was last paid to and including the thirtieth day from the first publication of such notice, together with the applicable premium payable, if any.] If the bonds mature in annual series, in first selecting a bond for retirement, the lowest numbered bond of the annual series midway to the end of the bond term shall be chosen, and successive bonds shall be chosen from the lowest number of each annual series, before and after the series from which the first bond is selected, so that bonds called shall be a pro rata part of each annual series, it being intended that the relationship of unpaid assessments to bonds outstanding be least disturbed as possible by the call of bonds If the bonds all mature at the end of the bond term, the bonds selected for retirement shall be those of the lowest outstanding serial number." SECTION 11. Section 7, Article 5, of Chapter 16, is amended to read as follows: "SEC. 7. BONDS NOT CHARGEABLE AGAINST GENERAL REVENUES. No bonds issued under the provisions of this ordinance shall be considered as county bonds within the meaning of Section [24E-2] 248-5, Hawaii Revised Statutes, nor shall the payment of same be a charge against the general revenues of the County." SECTION 12. Article 5, of Chapter 16, is amended by adding a new section to read as follows: "SEC. 8. ERRORS IN COMPUTATION OF AMOUNT DUE. No bond, coupon, assessment or installment thereof or of the interest or penalties thereon, or certificate of sale or deed shall be held invalid for any error in the computation of the proper amount due on the same, if the error is found to be comparatively negligible." -13- SECTION 13. Section 1, Article 8, of Chapter 16, is amended to read as follows: "SEC. 1. SE'VERABILITY. If any provision of this ordinance or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the 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 14. Superseded. material is enclosed in brackets and new material underscored. In printing this ordinance the County Clerk is authorized to delete brackets and underscoring. SECTION 15. This ordinance shall take effect upon its approval. INTRODUCED BY: Counci man, County of Hawaii Date of Introduction: Date of Adoption: Effective Date: -14- Bill No. 22 - 1974 AN ORDINANCE AMENDING CHAPTER 16, OF THE HAWAII COUNTY CODE RELATING TO IMPROVEMENT BY ASSESSMENT. This Bill amends Chapter 16, of the Hawaii County Code, relating to improvement by assessment. Date Introduced: May 22, 1974 Copies of the foregoing Bill, in full, are on file in the Office of the County Clerk for use and examination by the public. I hereby certify that the foregoing Bill passed first reading at the meeting of the County Council on May 22, 1974, by the following aye and no vote: AYES: Councilmen Carpenter, De Luz, Farias, Fujii, Kawahara, Matayoshi, Yadao and Chairman Yamada - S. NOES: None. ABSENT AND EXCUSED: Councilman Hisaoka - 1. . ~~~ ,:~ COUNTY CLERK COUNTY OF HAWAII ORDINANCE NO. 37 (Bill No. 22-1974) AN ORDINANCE AMENDING CHAPTER 16, OF THE HAWAII COUNTY CODE RELATING TO IMPROVEMENT BY ASSESSMENT. Date Approved: June S, 1974 Date Effective: June 18, ].974 Copies of the foregoing Ordinance, in full, a.re on file in the Office of the County Clerk for use and examination by the public. I hereby certify that the foregoing Ordinance passed second and final reading at the meeting of the County Council on June 5, 1.974, by the following aye and no vote: AYES: Councilmen Carpenter, De Luz, Farias, Fujii., Hisaaka, Kawahara, Matayoshi, Yadao and Chairman Yamada - 9. NOES: None. COUNTY CLERK COUNTY OF HAWAII