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HomeMy WebLinkAboutRES 084 Draft 01 1980-1984C County of Hawaii—State of Hawaii Resolution No. 84 81 A RESOLUTION OF THE COUNTY COUNCIL OF THE COUNTY OF HAWAII, STATE OF HAWAII AUTHORIZING AND PROVIDING FOR THE INCURRENCEOF INDEBTEDNESS FOR THE PURPOSE OF PROVIDING A PORTION OF THE COST OF ACQUIRING, CONSTRUCT- ING, ENLARGING, IMPROVING, AND/OR EXTENDING ITS WATER STORAGE AND TRANSMISSION FACILITY TO SERVE AN AREA LAWFULLY WITHIN ITS JURISDICTION TO SERVE. WHEREAS, it is necessary for the County of Hawaii (hereinafter called association) to raise a portion of the cost of such undertaking by issuance of its bonds in the principal amount of Seven Hundred Fifty Thousand Dollars ($750,000) pursuant to the provisions of Part I of Chapter 47, Hawaii Revised Statutes; WHEREAS, the association intends to obtain assistance from the Farmers Home Administration, United States Department of Agriculture, (herein called the Government) acting under the provisions of the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) in the planning, financing, and supervision of such undertaking and to purchasing of bonds lawfully issued, in the event that no other acceptable purchaser for such bonds is,found by the association: NOW, THEREFORE, in consideration of the premises the association hereby resolves: 1. To have prepared on its behalf and to adopt an ordinance or resolution for the issuance of its bonds and containing such items and in such forms as are required by STATE statutes and as are agreeable and acceptable to the Government. 2. To refinance the unpaid balance, in whole or in part, of its bonds upon the request of the Government if at any time it shall appear to the Government that the association is able to refinance its bonds by obtaining a loan for such purposes from responsible cooperative or private sources at reasonable rates and terms for loans for similar purposes and periods of time as required by section 333(c) of said Consolidated Farm and Rural Development Act (7 U.S.C. 1983(c)). 3. To provide for, execute, and comply with Form FmHA 400-4, "Nondiscrimination Agreement"; and Form F'mHA 400-1, "Equal Opportunity Agreement", including an "Equal Opportunity Clause", which clause is to be incorporated in, or attached as a rider to, each construction contract and subcontract involving in excess of $10,000. 4. To indemnify the Government for any payments made or losses suffered by the Government on behalf of the association. Such indemnification shall be payable from the same source of funds:s pledged to pay the bonds or any other legally permissible source. 5. That upon default in the payments of any principal and accrued interest on the bonds or in the performance of any convenant or agreement contained herein or in the instruments incident to making or insuring the loan, the Government, at its option may (a) declare the entire principal amount then outstanding and accrued interest immediately due and payable, (b) for the account of the association (payable from the source of funds pledged to pay the bonds or any other legally permissible source) incur and pay reasonable expenses for repair, maintenance, and operation of the facility and such other reasonable expenses as may be necessary to cure the cause of default, and/or (c) take possession of the facility, repair, maintain, and operate or rent it. Default under the provisions of this Resolution or any instrument incident to the making or insuring of the loan may be construed by the Government to constitute default under any other instrument held by the Government and executed or assumed by the association, and default under any such instrument may be construed by the Government to constitute default hereunder. 6. Not to sell, transfer, lease, or otherwise encumber the facility or any portion thereof, or interest therein, not permit others to do so without the prior written consent of the Government. 7. Not to borrow any money from any source, enter into any contract or agreement, or incur any other liabilities in connection with making enlargements, improvements or exten- sions to, or for any other purpose, in connection with the facility (exclusive of normal maintenance) without the prior written consent of the Government if such undertaking would involve the source of funds pledged to pay the bonds. 8. To place the proceeds of the bonds on deposit in an account, in a bank, and in a manner approved by the Government. 9. To comply with all applicable State and Federal laws and regulations and to continually operate and maintain the facility in good condition. 10. To provide for the receipt of adequate revenues to meet the requirements of debt service, operation and maintenance, and the establishment of adequate reserves. No free service or use of the facility will be permitted. 11. To acquire and maintain such insurance coverage including fidelity bonds as may be required by the Government. 12. To establish and maintain such books and records relating to the operation of the facility and its financial affairs and to provide for required audit thereof in such a manner as may be required by the Government, to provide the Govern- ment without its request, a copy of each such audit, and to make and forward to the Government such additional information and reports as it may from time to time require. 13. To provide the Government at all reasonable times access to all books and records relating to the facility and access to the property of the system so that the Government may ascertain that the association is complying with the provisions hereof and of the instruments incident to the making or insuring of the loan. 14. To serve any applicant within the service area who desires service and can be feasibly and legally served, and to obtain the concurrence of the Farmers Home Administration prior to refusing service to such applicant. Upon the ,failure to provide such service which is feasible and legal such applicant shall have a direct right of action against the association under this agreement. - 2 - The provisions hereof and the provisions of all instruments incident tc the making or the insuring of the loan, unless otherwise specifically provided by the terms of such instruments, shall be binding upon the association as long as the bonds are held or insured by the Government. "The provisions of sections 6 through 13 hereof may be provided for in the bond resolution or ordinance. To the extent that the provisions contained in such bond resolution or ordinance or in the Constitution or statutes of Hawaii conflict with the provisions hereof, the former shall be construed as controlling between the association and the Government." Dated at Hilo, Hawaii, this 20th day of May, 1981. INTRODUCED BY: COUNCIL MEMBER, COUNTY OF HAWAII COUNTY COUNCIL County of Hawaii Hilo, Hawaii I hereby certify that the foregoing RESOLUTION was by the vote indicated to the right hereof adopted by the COUNCIL of the County of Hawaii on May .... 20........ 1981 ATTEST: COUNTYCY��',RR (;IRIAN R SIDING OFFICER ROLL CALL VOTE JAYES1 NOES De Luz, III X Domingo X Fujii X Hale X Kawahara X Lai X Schutte Chr. Yamashiro X Reference: k 5 S M.B. No. p,q p RESOLUTION NO.. 84 81