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HomeMy WebLinkAboutORD 1984-004 1984-1988BILL NO. 1048 (Draft 2) COUNTY OF HAWAII - STATE OF HAWAII ORDINANCE NO. S4 AN ORDINANCE AMENDING CHAPTER 12, ARTICLES 2, 4 and 5, HAWAII COUNTY CODE 1983, RELATING TO IMPROVEMENTS BY ASSESSMENTS. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Chapter 12, Article 2, Section 12-10(c)(7), Hawaii County Code 1983, is amended to read as follows: "(7) The maximum premium required to be paid on the advance payment of installments or the call and redemption of any bond prior to its maturity;" SECTION 2. Chapter 12, Article 2, Section 12-14, Hawaii County Code 1983, is amended to read as follows: "Section 12-14. Petition by sixty percent of owners. (a) If the owners of not less than sixty percent of the frontage upon any street, alley, or highway designated by them or of sixty percent of the area of land designated by them as a proposed improvement district, file with the council a petition duly acknowledged by the owners requesting the construction of special improvements, together with the surveys, maps, plans and other preliminary data and estimates mentioned in section 12-10, in the case of a proceeding initiated by the council, the council may reject or accept the petition. If the petition is accepted, the council shall proceed in the same manner as though the plan for such improvements had been initiated on its own motion, and the cost of the preliminary surveys, maps and other data, if not in excess of the estimate therefor stated in the petition, shall be deemed part of the cost of the improvement; provided, that upon such petition the council shall not have the power to abandon the proceedings or make any change or modification of the plans or the details or specifications for the proposed improvements without the written and duly acknowledged consent of the owners of not less than sixty percent of the frontage or area of the land to b e assessed; except that the council may decline to acquiesce in or may modify any part of the plan which contemplates the payment oy the county of any part of the cost of acquiring new land or of any part of the cost of improving any main or general thoroughfare, and in such event, if the owners of not less than sixty percent of the frontage or property to oe assessed agree in writing to the change or modification, the council shall be oound to proceed with the plan as so modified. [(b) This section shall only apply to suodivisions created prior to March 1, 1967.]" SECTION 3. Chapter 12, Article 4, Sections 12-44 through 12-57, Hawaii County Code 1983, are amended to read as follows: "Section 12-44. Improvement bonds authorized. In the event of an election to pay all or any part of 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 duel may oe 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 oe secured, and repaid if advances have peen made, by the issuance of sufficient district improvement bonds of the County to raise such required amounts req wiring one reading for its adoption. Improvement bonds shall oe in such form as may be prescrioed by the council, shall Dear the name of the Benefited or improved district, and shall oe payaole [to bearer in a sufficient period of years and in amounts in those respective years so as to cover the outstanding installment payments] at such times and in such amounts as the council shall determine, provided the council shall provide for such payments in a manner calculated to correspond with the receipt of assessment installments due on account of the improvement to oe financed from the proceeds of such ponds [determined upon] pursuant to the provisions of this chapter. The council, in its discretion, may provide that the amount of principal maturing in each year plus the amount of interest payaole in that year will oe an aggregate amount that shall oe approximately equal each year, except for moneys falling due on the first [series] principal payment date of the ponds which shall oe adjusted to reflect the amount of interest [earned] accrued from the date [when] the 'ponds Dear interest to the date [when] the first interest is payaole on the ponds; or it may make such other determination of the amount of the aggregate principal of the ponds that shall fall due in a year as it shall choose. Improvement ponds shall oe suoject to call out not prior to the [Section] second [section] interest date thereof as hereinafter provided and at such premium, if any, as may have peen provided for in the resolution authorizing such ponds, out not in excess of the maximum premium provided in the resolution of the council adopted pursuant to Section 12-10. (b) The o onds of each issue [shall o ear serial num~ ers, ] shall oe nurroered in such manner, shall.oe of such denomination, and shall 'o ear interest at such [the] rate or rates [of not more than eight percent] per annum, payable [semi-annually,] in such manner, as may be determined'oy the council. "Section No. 12-46. Execution of oonds; records; funds for payment. (a) Improvement oonds shall oe executed oy the director of finance, or by a deputy of the director of finance duly designated dy the director to execute such oonds, and issued pursuant to and under the authority and requirements of resolutions of the council. The oonds shall bear the lithographed or engraved facsimile signature of the mayor and shall oe impressed with a lithographed or engraved facsimile of the seal of the County. In the event the Heil shall provide that no such improvement bond shall be valid or ooligatory unless and until there shall be manually executed a certificate of authentication thereof, all signatures of County officials on the bonds may oe facsimilies of their respective signature. Interest coupons~if any, shall Sear the lithographed or engraved facsimile of the signature of the director of finance. (o) The director of finance shall preserve a record of the oonds in a suitable nook kept for that purpose. The council shall provide for gooks of registry to be kept for the registration of improvement oonds issued in fully registered form or which are suoiect to registration. (c) The oonds shall oe 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 estaolished pursuant to section 12-50, in the event that the moneys collected out of assessments are insufficient to pay the oonds or the interest guarantee payment of any oonds issued under the provisions of this chapter, provided that interest payments may oe advanced oy the council temporarily out of any moneys available in the County treasury. "Section 12-47. General ooligation oonds and special assessment revolving fund. (a) For any improvement initiated pursuant to section 12-10 only, the council, in lieu of the issuance of improvement [district) oonds as permitted oy sections 12-44, 12-45, and 12-46 may in its sole discretion issue general ooligation bonds of the county or authorize payment of the required amount from the special assessment revolving fund of the County or ooth. (b) The council shall have power to issue general obligation bonds of the County for the purpose of estaolishing, maintaining or replenishing the special assessment revolving fund. (c) All such general obligation oonos shall be authorized, issued and sold under, pursuant to, and in accordance with chapter 47, Hawaii Revised Statutes, as amended, all of the provisons of which chapter shall oe applicanle thereto. Without limiting the generality of the provisions of the foregoing sentence, the form, name, date, denomination, numoers, maximum interest rate, method of execution and all other details of such general ooligation oonds shall oe fixed and determined in accordance with and as provided oy chapter 47. No right of prior redemption need oe reserved in the issuance of such oonds, nor shall either the amounts or dates of the maturities of any such oonds oe required to conform in any way to the amounts and due dates of any assessments. (d) The validity of such general ooligation oonds shall not any contracts made, acts performed or done in connection with, or in furtherance of, any improvement or any assessments for such improvement. (e) 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 improvement that is financed by such bonds, may, to the extent so directed by the council, be applied to the reimbursement 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 reimbursement, 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 assessment revolving fund and may be used and applied [in the manner and for the purposes as are all other moneys deposited in that fund] as authorized by the Council. "Section 12-48. Exemption of general obligation bonds from certain requirements. The provisions of sections 12-49, 12-50, 12-51, 12-52, 12-53, 12-54 and 12-55 shall not apply to the general obligation bonds authorized by section 12-47 and such sections shall be restricted in their application to improvement [district] bonds, nor shall the provisions of article 5 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 5 of this chapter. "Section 12-49. Special fund for payment of bonds; use of surplus; insufficient funds. (a) All moneys collected on account of assessments and interest for any improvement after the issuance of any ponds shall oe kept by the director of finance in a special fund and applied solely to the payment of interest and principal of bonds issued for the improvement until the ponds have been paid. (o) In the event that any surplus remains in any special fund after the payment of the ponds chargeaole against the fund or in case of a premium received on the sale of the bonds, [it] such surplus or premium shall be credited to and oecome a part of a fund to be known as the improvement district revolving fund, the moneys in which shall oe available to make up deficiencies in the proceeds of bonds sold below par, to cover deficiencies in interest realized on account of diminishing balances of installments outstanding, and to advance interest due on ponds outstanding prior to collection of annual assessments, and also for the purpose of paying all expenses in connection with the sale of delinquent improvement district lots and the prices of the delinquent lots as are oid for and purchased by the director of finance. The director of finance may upon such purchase, transfer the proper amounts so oid into the proper special funds for the respective improvement districts concerned. (c) In the event that moneys in the applicaole special fund prove insufficient at any time to pay the principal and interest, or the interest only, as the case may be, on ponds outstanding, moneys shall oe transferred from the reserve fund estaolished pursuant to [the] such special fund in such amounts as will enable the director of finance to make the payments of principal or interest, or interest only, as the same becomes due. "Section 12-50. Reserve fund. (a) The council may provide in the resolution adopted pursuant to section 12-10 that a reserve fund shall oe established as additional security for the payment of principal and interest on improvement bonds issued in proceedings taken pursuant to this chapter. The reserve fund shall be [established] initially funded from the proceeds from the sale of improvement bonds with respect to which such reserve fund is established in such amount as is designated by the Council in the resolution authorizing such bonds. [Thereafter,] Moneys in [the] a reserve fund shall be used in accordance with the provisions of section 12-49 and to pay the principal or interest, or both, in whole or in part, on the last outstanding maturity or maturities of the ponds, and assessment installments 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 principal 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 the reserve fund, and provided further that insofar as the moneys are attributable to fully paid assessments rather than to cancellation of installments or portions thereof, the moneys shall he 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] County (b) There shall oe transferred to the improvement district revolving fund of the County: (1) Any portion of such moneys which shall not have oeen paid to or claimed oy the persons entitled thereto within two years after the due date of the last oonds; and (2) Any interest earned from the investment of such moneys during the two year period. [Section 12-51. Replenishment of reserve fund. When moneys are transferred from the reserve fund to the special fund described in section 12-49, the council shall replenish the reserve fund oy providing for the levy and collection of annual ad valorem assessment upon the lands assessed in the proceedings. 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.] Section 12-52. Place of payment of bonds. The principal and interest of the oonds shall oe payaole at the office of the director of finance, and may also be made payaole at the office of any bank, fiduciary company, or in such other places as may oe determined oy the council, provided that interest on _registered oonds may o e pay a7 le by check or draft mailed provided oy the council. In all anY, shall recite the places and bonds are made payaole elsewhere of finance shall remit the funds principal when due, of any such institution so designated, first to the registered holders as cases, the oonds and coupons, if manner of payment. In case any than in Hilo, Hawaii, the director necessary to pay the interest and ponds [, with exchange,] to the assuring [himself] that such "Section 12-53. Sale of oonds; use as payment to contractor. (a) Improvement oonds may oe used oy the council at par to pay wholly or in part the contract price of any improvement made or, in the event that all of the improvement oonds are not so used, they shall then b e sold to the highest 'oidder, after puolic advertisement for [tenders] tenders for at least once each week for not less than two successive weeks in a suitable newspaper of general circulation in the County. The proceeds thereof shall oe [so] applied to pay wholly or in part the contract price; provided that in the event at an advertised sale only part of the issue so advertised is bid for, the council may authorize the director of finance, by resolution requiring one reading for adoption, to sell the whole or any part of the remainder of such issue at the highest oid so received to any person at private sale. In the event no purchaser is found, the County may oe the purchaser of any such oonds, using any funds availaole and unspent. Bonds sold to a purchaser other than the County may oe sold for such discount as is acceptaole to the council. (b) The council may provide for payment to the contractor of the contract price of the improvement oy means of progress payments during the period of the work, such payments in :oonds at par or in cash or both. "Section 12-54. Payment of oonds oefore maturity. (a) The resolution of the council authorizing improvement oonds may provide that such oonds may oe called for redemption prior to the stated maturity. In such event, [0]on and after the second interest due date of any such improvement oonds [soj issued pursuant to this chapter, whenever sufficient funds are in the hands of the installments[,] exceeding the next interest payment on the unpaid oalance of any bonds so issued, the director of finance is authorized to call for payment[, oy puolication 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,] prior to the stated maturity thereof such number of improvement 'oonds as there are funds to pay. [In each case the serial numoer of the oonds to oe called for payment shall oe specified in the notice so puolished.] The resolution of the council authorizing the improvement oonds shall provide for proper and adequate notice of such redemption to be puolished or mailed or both prior to the date fixed for redemption. A copy of such notice shall also oe mailed [, not less than five days after the first puolication thereof,] to the person who purchased such ~ onds at the original sale thereof. Interest on the oonds so called for payment shall cease on the date of call, provided that [the first publication of] the notice [of redemption] shall oe puolished or mailed [made] at least fifteen days oefore the date of such call [and the]. In the event notice shall be required to oe made by puolication, a second puolication [thereof] shall oe made not less than one week after the date of first puolication. The moneys provided for the payment of such oonds with the interest unpaid to the date of their call for payment, together with any applicaole premium payaole, shall oe set aside by the director of finance in a special deposit to which fund only the owners of the oonds shall thereafter look for payment. (o) Improvement oonds shall oe selected for redemption in the manner prescrioed by the council. [If .the oonds mature in annual of the annual series midway to the end of the pond term shall oe chosen, and successive ponds shall be chosen from the lowest number of each annual series, oefore and after the series from which the first bond is selected, so that ponds 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 disturoed as possible oy the call of ponds. If the ponds all mature at the end of the pond term, the o onds selected for retirement shall oe those of the lowest outstanding serial number.] (c) Any premium paid on redemption may not exceed five percent of the face amount of the improvement pond. "Section 12-55. Payment at maturity. All improvement bonds not previously paid shall be paid at maturity together with interest thereon as the same become due at the places and in the manner prescribed by this chapter. "Section 12-56. Bonds not chargeaole against general revenue. No improvement bonds issued under the provisions of this chapter shall be considered as county ponds within the meaning of section 248-5, Hawaii Revised Statutes, nor shall the payment of same oe a charge against the general revenues of the County. "Section 12-57. Errors in computation of amount due. No improvement pond, coupon, assessment or installment thereof or of the interest or penalties thereon, or certificate of sale or deed shall oe held invalid for any error in the computation of the proper amount due on the same, if the error is found to oe comparatively negligio le. SECTION 4 Chapter 12, Article 5, Section 12-62, Hawaii County Code 1983, is amended to read as follows: (a) Improvement [B]oonds issued for the refunding of the outstanding indedtedness of any improvement district shall Dear the name of the improvement district for which they are issued [, shall oe paya'hle to Dearer and shall oe in the form, issued, sold, suoject to call) and shall de issued and sold under all the [other] conditions and terms as prescrioed oy article 4 of this chapter, except as otherwise prescrioed in this chapter. (o) A lower rate of interest than that authorized in the original issue of improvement oonds mayoe prescrioed and the refunding oonds may 5e authorized to run for a term not to exceed fifteen years from the final maturity date of the outstanding oonds. SECTION 5. Material to oe repealed is oracketed. New material is underscored. In printing this ordinance, the oracketed material or the underscoring need not oe included. SECTION 6. In the event that any portion of this ordinance is declared invalid, such invalidity shall not affect the other parts of this ordinance. SECTION 7 approval. This ordinance shall take effect upon its INTRODUCED BY: ~~ COUNCIL MEMBER, COUNTY OF HAWAII Hilo, Hawaii Date of Introduction: January 17, 1984