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HomeMy WebLinkAboutORD 1997-143 1996-1998COUNTY OF HAWAIIA�mSTATE OF HAWAII BILL NO. 142 (Draft 2) 9'7 143 ORDINANCE NO. AN ORDINANCE AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $775,600 PRINCIPAL AMOUNT OF GENERAL OBLIGATION BONDS OF THE COUNTY OF HAWAII, THE PROCEEDS DERIVED FROM THE SALE OF WHICH ARE TO BE EXPENDED BY THE DEPARTMENT OF WATER SUPPLY FOR THE PURPOSE OF CONSTRUCTING AND ACQUIRING IMPROVEMENTS AND BETTERMENTS TO, AND EXTENSIONS OF, THE PROPERTIES OF THE WATER SYSTEM OF THE DEPARTMENT OF WATER SUPPLY, TO BE KNOWN AS THE OOKALA, PAAUILO AND PAAUHAU IMPROVEMENTS, INCLUDING THE ACQUISITION OF NECESSARY LANDS THEREFOR; AND TO SECURE THE PAYMENT OF A LOAN BY THE UNITED STATES OF AMERICA, DEPARTMENT OF AGRICULTURE; AND FIXING THE FORM, DENOMINATIONS, AND CERTAIN OTHER DETAILS OF SUCH BONDS AND PROVIDING FOR THEIR SALE. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: that: SECTION 1. Findings and Determinations. It is hereby found and determined A. The Department of Water Supply of the County of Hawaii has requested the County Council to authorize the issuance and sale of general obligation bonds of the County in the principal amount of Seven Hundred Seventy Five Thousand Six Hundred Dollars ($775,600), the proceeds derived from the sale of which are to be expended by the Department of Water Supply for the purpose of constructing and acquiring improvements and betterments to, and extensions of, the properties of the Water System of the Department of Water Supply, to be known as the Ookala, Paauilo and Paauhau improvements including the acquisition of necessary lands therefor (the "Water System 1ap433.1 018896 ORD -2- Improvements"); B . B. The United States of America acting by and through Department of Agriculture ("USDA") has offered to make a loan, at one time or from time to time (the "Loan"), in the principal amount not to exceed [Seven Miliion]Seven Hundred Seventy Five Thousand Six Hundred Dollars ($775,500) to the County under the Federal Consolidated Farm and Rural Development Act to pay part of the cost of the Water System Improvements, it being the expectation that the Loan shall bear interest at the rate not to exceed four and one-half percentum (4-112%) per annum; C. In addition to the Loan, USDA has further offered to make grants not to exceed [$1,683,150]$2,159.4QO to the Department of Water Supply to pay the balance of the costs of the Water System Improvements (the "Grants"); D. It is advisable and desirable for the Department of Water Supply to obtain the Loan and to receive the Grants from USDA; and E. It is necessary, advisable and desirable that to secure the payment of the Loan the County authorize, issue and dispose of to USDA general obligation bonds of the County in a principal amount equal to the principal of the Loan obtained by the County from USDA. SECTION 2. Authorization of Bonds. There are hereby authorized for issuance and sale general obligation bonds of the County (the "Bonds") in the principal amount not to exceed [Seven Million]Seven Hundred Seventy Five Thousand Six Hundred Dollars ($775,600), the proceeds derived from the sale of which shall be used to pay the Department of Water 1.80433.1 016896 ORD -3 - Supply's portion of the costs of the Water System Improvements. SECTION 3. Details of Bonds. To secure the payment of the Loan from USDA, the Bonds authorized for issuance and sale in Section 2 hereof shall be issued and sold to USDA in their entirety at one time as a separate series of general obligation bonds of the County or from time to time in series, all as shall be determined by the Director of Finance of the County to be in the best interest of the County. The Bonds of a series shall be issued in fully registered form without coupons in such denominations or as a single instrument, all 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 not later than five years from the date of the Bonds of such series and the last of such maturities to be not later than thirty-five years from the date of the Bonds of such series, may be redeemable prior to their 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 as may be agreed to with USDA but in no event exceeding six per centum (6%) per annum. 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 series designation; the date of the Bonds of such series; the interest payment dates and the maturity dates of the Bonds of such series; the amount of principal of the Bonds of such series maturing on each maturity date; the registration privileges and place or places at which the Bonds of such 180433.1 018896 ORD -4 - series may be paid or registered which may include the office of the Director of Finance; whether or not the Bonds of such series shall be subject to redemption prior to their stated maturities and, if subject to such prior redemption, the times, prices, methods and other provisions for such prior redemption; and all other details of the Bonds of such series. 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 S. Fad of Bonds. The principal of and interest and premium, if any, on the Bonds shall be payable in any coin or currency of the United States of America which at the time of payment is legal tender for public and private debts. SECTION 6. Execution and Form of Fully Registered Bonds. The Bonds shall " be lithographed or steel engraved, typewritten, printed or otherwise reproduced as the Director of Finance of the County shall determine. The Bonds shall bear the facsimile signatures of the 1BO433.1 016596 ORD -5 - Director of Finance and of the Mayor of the County and shall be sealed with the seal or a lithographed, engraved or other facsimile seal of the County; provided, however, the Director of Finance may, at his election, provide for manual signatures upon the Bonds. The Director of Finance may, at his election, prepare such number of blank Bonds of any series executed and sealed as aforesaid as he shall determine and deliver such executed blank Bonds to the registrar for such series for safekeeping prior to the time such Bonds are actually issued, exchanged or transferred. In the event the Director of Finance shall elect to appoint a registrar for the Bonds of a particular series pursuant to Section 3, the Director of Finance shall direct the registrar for the Bonds of such 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. The Bond shall be designated and the form of the Bonds, the registrar's certificate of authentication and the assignment shall be substantially as follow, with such appropriate insertions, variations and omissions as are required with respect to a particular series of the Bonds, book -entry provisions, single instrument provisions or other provisions: 160433.1 01.8896 ORA -6 - [FORM OF BOND] "(Vignette) UNITED STATES OF AMERICA COUNTY OF HAWAII STATE OF HAWAII GENERAL OBLIGATION WATER BOND SERIES (Number) INTEREST MATURITY DATE OF RATE: DATE: BOND: CUSIP: REGISTERED HOLDER: PRINCIPAL SUM: DOLLARS The COUNTY OF HAWAII, State of Hawaii (the "County"), for value received, hereby promises to pay the Registered Holder (named above), or registered assigns, on the Maturity Date (specified above) (unless this bond shall be subject to prior redemption and shall have theretofore been duly called for previous redemption and payment of the redemption price duly made or provided for), the Principal Sum (specified above), and to pay interest on such Principal Sum semiannually on and on of each year, commencing on (each such date is hereinafter referred to as an "interest payment date"), from the date hereof or from the interest payment date next preceding the date of registration hereof to which interest shall have been paid, unless such date of registration is an interest payment date, in 16097].7. 01889E oan -7 - which case, from such interest payment date, or unless such date of registration is within the period from the sixteenth (15th) day to the last day of the calendar month next preceding the following interest payment date, in which case from such following interest payment date, such interest to be paid until the maturity or redemption hereof at the Interest Rate (specified above) per annum, by check mailed by the Paying Agent hereinafter mentioned to the holder hereof in whose name this bond is registered upon the Bond Register as of the close of business on the fifteenth (15th) day (whether or not a business day) next preceding each interest payment date at his address as it appears on the Bond Register hereinafter mentioned. The principal of and premium, if any, on this bond are payable on presentation and surrender hereof at the office of , the Registrar and Paying Agent, in , or at the office of its successors from time to time appointed by the County. Principal of, and premium, if any, and interest on this bond are payable in any coin or currency of the United States of America which, on the respective dates of payment thereof, shall be legal tender for public and private debts. This bond is one of a series of bonds entitled "General Obligation Water Bonds, Series _" . The bonds of the series of bonds of which this bond is one maturing and thereafter are subject to redemption at the option of the County prior to the respective stated maturities thereof, on and after I , in whole and in part at any time and in any order of maturity selected by the County, at the principal amount thereof, the interest accrued thereon to the date fixed for redemption and the following redemption premiums expressed as a percentage of the principal amount redeemed: [Redemption Provisions]. If less than all of the bonds of any maturity are called for redemption, the bonds of such maturity to be redeemed shall be selected by lot. 180433.1 018896 ORP !-:M In the event this bond is redeemable, as aforesaid, and shall be called for redemption, notice of the redemption hereof stating the designation, date, number and maturity of this bond, the portion of the principal sum hereof to be redeemed, the date fixed for such redemption and the premium payable upon such redemption, shall be mailed, at least once not less than thirty (30) days prior to the date fixed for the redemption hereof, to the holder hereof in whose name this bond is registered upon the Bond Register as of the close of business on the forty-fifth (45th) day (whether or not a business day) next preceding the date fixed for the redemption hereof. The failure of the registered holder hereof to receive such notice by mail or any defect in such notice shall not affect the sufficiency of the proceedings for the redemption of this bond. The County may, at its sole election, in addition to the giving of notice of such redemption by mail, give such notice by publication not less than thirty (30) days prior to the date fixed for the redemption hereof of one such notice in The Bond Buyer, a financial paper published in the City of New York, New York or, in lieu of such publication in The Bond Buyer, by publication thereof in some other financial paper published in any of the cities of New York, New York, Chicago, Illinois, or San Francisco, California. If this bond be of a denomination in excess of $5,000, portions of the principal sum hereof in installments of $5,000 or any integral multiple thereof may be redeemed, and if less than all of the principal sum hereof is to be redeemed, in such case upon the surrender of this bond to the Registrar there shall be issued to the registered holder hereof, without charge therefor, for the then unredeemed balance of the principal sum hereof, bonds of like series, maturity and interest rate in any of the authorized denominations provided by the proceedings of the County authorizing the issuance of the series 180433.1 018896 ORD of bonds of which this bond is one. If this bond (or any portion of the principal sum hereof) be redeemable and shall have been duly called for redemption and notice of such redemption duly given as aforesaid, and if on or before the date fixed for such redemption payment of the principal sum hereof to be redeemed, the premium payable upon such redemption and the interest accrued on the principal sum to be redeemed to the date fixed for such redemption shall have been duly made or provided for, then this bond (or the portion of the principal sum hereof to be redeemed) shall become due and payable upon such date fixed for redemption and interest shall cease to accrue and become payable from and after the date fixed for such redemption on the principal sum hereof to be redeemed. This bond is transferable only upon the Bond Register at the office of , Registrar, in the City of , , or at the office of its successors from time to time appointed by the County, by the registered holder hereof, or by his duly authorized attorney, upon surrender of this bond (together with a written instrument of transfer satisfactory in form to the Registrar duly executed by the registered holder or his duly authorized attorney, which may be the form endorsed hereon) and subject to the limitations and upon payment of the charges, if any, provided from time to time by the County and the Registrar, and thereupon a new bond or bonds, in the same aggregate principal amount in authorized denominations and of the same series, interest rate and maturity as the bond surrendered, shall be delivered to the transferee in exchange thereof. The County, the Registrar and the Paying Agent may deem and treat the person in whose name this bond is registered as the absolute owner hereof for the purpose of receiving payment of the principal hereof, premium, if any, and interest due hereon and for all other purposes, and they shall not be affected by any notice to the 180933:1 D18896 ORD contrary. -10 - This bond is one of a series of bonds authorized by the Council of the County to be issued to provide funds to pay the costs of certain improvements and betterments to, and extensions of, the properties of the Water System of the County. This bond and the series of which it is a part are issued under and pursuant to and in full compliance with the Constitution and laws of the State of Hawaii, including Part I of Chapter 47, Hawaii Revised Statutes, as amended, the Charter of the County, and proceedings of the aforesaid Council duly taken thereunder. This bond is a general obligation of the County, and the payment of the principal and interest hereof is a first charge on the general fund of the County. The full faith and credit of the County is irrevocably pledged to the punctual payment of the principal of and interest on this bond according to its terms. This bond shall not be valid or obligatory for any purpose unless the certificate of authentication hereon has been duly executed by the Registrar. It is hereby certified and recited that all the conditions, acts, and things essential to the validity of this bond and the issue of which it forms a part exist, have happened, and have been done; that every requirement of law affecting the issue thereof has been duly complied with; and that the amount of this bond, together with all other indebtedness of the County, is not in excess of any constitutional or statutory limitation on indebtedness. 180411-1 018996 ORD -11 - IN WITNESS WHEREOF, the COUNTY OF HAWAII, State of Hawaii has caused this bond to be signed by the lithographed facsimile of the signatures of its Director of Finance and of its Mayor, and to be sealed with the lithographed facsimile of the seal of the County of Hawaii, and this bond to be dated as of the day of , 19 [SEAL] [FACSIMILE SIGNATURE] Director of Finance [FACSIMILE SIGNATURE] Mayor" [FORM OF CERTIFICATE OF AUTHENTICATION] "CERTIFICATE OF AUTHENTICATION This bond is one of the bonds described in the within -mentioned proceedings of the County of Hawaii, State of Hawaii. Date of Registration: , Registrar By [MANUAL SIGNATURE] Authorized Officer or Signatory" 180433.1 018896 ORD -12 - [FORM OF INSTRUMENT OF ASSIGNMENT] "INSTRUMENT OF ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto Please insert social security or other tax identifying number of assignee: (name and address of assignee) the within -mentioned bond and hereby irrevocably constitutes and appoints attorney-in-fact, to transfer the same on the Bond Register in the office of the within - mentioned Registrar, or in the office of its successors with fall power of substitution in the premises. Date: Signature Guaranteed: (name of assignor) (name of signature guarantor) NOTE: The signature to this assignment must correspond with the name as written on the face of the within bond in every particular, without alteration or enlargement of any change whatsoever. " SECTION 7. Sale of Bonds. To secure the payment of the Loan from USDA, 260433.2 OIBB96 ORD -13 - without any further authorization from or action by this Council but subject to the provisions hereof and of applicable law, the Director of Finance is hereby authorized to issue and sell the Bonds at one time, or from time to time in series, at negotiated sale to USDA in accordance with Section 47-5, Hawaii Revised Statutes, as amended, 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 issuance and sale of the Bonds or of portions of the Bonds to secure the payment of the Loan from USDA, 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 and in the best interest of the County, to select the date for such sale, to enter into one or more loan agreement with USDA pursuant to which the Loan shall be made and the Bonds or portions thereof shall be issued to secure the Loan, in each case in such form and containing such terms and conditions as he shall approve and deem advisable, and to distribute an Official Statement and such other information relating to the Bonds as he may deem advisable. Subject to the provisions of Section 3 hereof, without further action of this Council, the Bonds shall bear interest at the rates per annum as specified in the loan agreement or loan agreements approved. The Mayor, 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 loan agreement therefor be approved, the preparation, execution and delivery thereof, in accordance with the provisions hereof and applicable law. 180433.1 018896 ORO -14 - SECTION 8. Security for the Bonds: Reimbursement to General Fund. The Bonds shall be issued for a public undertaking from which revenues are derived, to wit: for the Water System of the Department of Water Supply of the County. The Bonds are general obligations of the County, the full faith and credit of the County is hereby irrevocably pledged to the punctual payment of the principal of and interest on the Bonds according to the terms thereof, and the principal and interest payments on the Bonds shall be a first charge on and shall be paid from the General Fund of the County; provided, however, that the Director of Finance shall reimburse the General Fund for the payment of the principal of and interest on the Bonds from the revenues of the Water System, such reimbursement to be made in a manner consistent with the provisions of law. SECTION 9. CUSIP Identification Numbers. The Director of Finance may authorize the printing of CUSIP identification numbers upon the Bonds or the Notes. Such numbers and the printing thereof shall be subject in all respects to the provisions of Section 47- 10, Hawaii Revised Statutes, as amended. SECTION 10. Bond Insurance. The Director of Finance of the County, subject to applicable law, is hereby authorized to procure, determine and provide for any insurance provisions respecting the Bonds, or any portion thereof, as he shall determine to be in the best interest of the County, including without limitation, the selection of the bond insurer, the payment of insurance premium or related fees and the printing of any statement with respect to such insurance upon such Bonds. 180433.1 018896 ORD -15 - SECTION ll. Re.peal 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 12. Effective Date. This ordinance shall take effect upon its approval. INTRODUCED BY: JNCIL MEMBER, OUNTY OF Il r4w? 4101 Hilo, Hawaii Date of Introduction: October 15, 1997 Date of Adoption: November 13, 1997 Effective Date: November 24, 1997 REFERENCE Carom. 491.01 180433.1 018896 ORD OFFICE OF THE COUNTY CLERK County of Hawaii F'^ Hilo , Hawaii s ^'i V I 4Iu N (DRAFT 2) Introduced By: Aaron Chung (B/R) Date Introduced: October 15, 1997 First Reading: October 15, 1997 Published: October 23, 1997 REMARKS_ Second Reading: To Mayor: Returned: Effective: Published: November 13, 1997 November 14, 1997 November 24, 1997 November 24, 1997 December 2, 1997 I DO HEREBY CERTIFY that the foregoing BILL was adopted by the County Council and published as indicated above. APPROVED AS TO FORM AND LEGALITY: EPUTY COR RATi01 COUNSEL COUN'iY Of HAWAII Date lV1`%GI" /72*77 Approved1D fw,wd this day ,f Ube kA, 19 7 rY YOR, COUNTY OF HAWAII COU CIL CHAIRMAN COUNTY CLERK Bill No.: 142 ( Draft 2 ? Reference: C-491/FC-145 Ord. No.: 97 143 ;I ROLL CALL' VOTE AYES NOES ABS Ex AYES NOES ABS EX Arakaki X Leithead-Tadd Chung X X Leithead-Todd X Santangelo Ray X x Reynolds x Yagong Santangelo X 9 0 0 0 Smith x ler x Yagong x 7 0 2 0 I DO HEREBY CERTIFY that the foregoing BILL was adopted by the County Council and published as indicated above. APPROVED AS TO FORM AND LEGALITY: EPUTY COR RATi01 COUNSEL COUN'iY Of HAWAII Date lV1`%GI" /72*77 Approved1D fw,wd this day ,f Ube kA, 19 7 rY YOR, COUNTY OF HAWAII COU CIL CHAIRMAN COUNTY CLERK Bill No.: 142 ( Draft 2 ? Reference: C-491/FC-145 Ord. No.: 97 143 ROLL CALL VOTE AYES NOES ABS Ex Arakaki X Chung x Leithead-Tadd x Ray X Reynolds x Santangelo x Smith x Tyler x Yagong X 9 0 0 0 I DO HEREBY CERTIFY that the foregoing BILL was adopted by the County Council and published as indicated above. APPROVED AS TO FORM AND LEGALITY: EPUTY COR RATi01 COUNSEL COUN'iY Of HAWAII Date lV1`%GI" /72*77 Approved1D fw,wd this day ,f Ube kA, 19 7 rY YOR, COUNTY OF HAWAII COU CIL CHAIRMAN COUNTY CLERK Bill No.: 142 ( Draft 2 ? Reference: C-491/FC-145 Ord. No.: 97 143