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HomeMy WebLinkAboutBIL 025 Draft 01 2016-2018 COUNTY OF HAWAII STATE OF HAWAII BILL NO. 25 ORDINANCE NO. AN ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS OF THE COUNTY OF HAWAII IN A PRINCIPAL AMOUNT NOT TO EXCEED $4,105,000 FOR THE PURPOSE OF FUNDING A PORTION OF THE COSTS OF A WATER DEPARTMENT PROJECT REFERRED TO AS THE PAPAIKOU TRANSITE & G. I. (GALVANIZED IRON) PIPELINE REPLACEMENT; FIXING THE FORM, DENOMINATIONS, AND CERTAIN OTHER DETAILS OF SUCH BONDS AND PROVIDING FOR THE SALE THEREOF; AND AUTHORIZING THE TAKING OF OTHER ACTIONS RELATING TO THE ISSUANCE AND SALE OF THE BONDS. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Findings and Determinations. The County Council hereby determines and finds that: (a) The Department of Water Supply (the "Water Department") of the County of Hawai`i (the "County") has determined to undertake a waterline improvement project referred to as the Papaikou Transit and G. I. (Galvanized Iron) Pipeline Replacement in Papaikou, County of Hawaii (the "Project"). (b) The United States of America, acting by and through the United States Department of Agriculture Rural Development on behalf of the Rural Utilities Service ("USDA"), has offered to provide financing for the Project in the form of(i)a grant(the "Grant") in an amount not to exceed Three Million Four Hundred Seventy Thousand Dollars ($3,470,000), and (ii) a loan (the "Loan") at one time or from time to time in a total principal amount not to exceed Four Million One Hundred Five Thousand Dollars ($4,105,000). (c) The Water Department has determined to obtain the Grant and Loan and, in connection therewith, has requested the County Council to authorize the issuance and sale of general obligation bonds of the County to USDA to evidence and secure the Loan and thereby provide funding for the Project. (d) It is advisable, expedient and in the best interest of the County to authorize the issuance and sale of general obligation bonds of the County, as requested by the Water Department, in an aggregate principal amount not to exceed Four Million One Hundred Five Thousand Dollars ($4,105,000). - SECTION 2. Authorization of Bonds. There are hereby authorized for issuance and sale, in one or more series, general obligation bonds of the County (the "Bonds") to evidence and secure the Loan and thereby provide funding for the costs of the Project, including planning, design, engineering, legal, consulting and other predevelopment costs of the Project, the cost of constructing, acquiring and installing public facilities and infrastructure included as components of the Project, and costs of issuance associated with the Bonds. SECTION 3. Details of Bonds. The Bonds authorized for issuance and sale hereunder shall be issued and sold to USDA in their entirety, at one time as a single series or from time to time as two or more separate series, all as shall be determined by the Director of Finance to be in the best interest of the County. The Bonds of a series shall be issued in fully registered form without coupons either as a single instrument or in such denominations as the Director of Finance shall determine. The Bonds of a series shall be numbered from 1 upwards in chronological order of delivery or shall be numbered in any other manner as the Director of Finance shall determine. The Bonds of a series (if the term to maturity of such series exceeds two years) shall mature annually on such day in each year in substantially equal installments of principal or in substantially equal installments of principal and interest, the first of such maturities to be no later than five years from the date of the Bonds of such series and the last of such maturities to be not later than thirty-five years from the date of the Bonds of such series. The Bonds of a series may be redeemable prior to the stated maturity thereof at any time at prices not exceeding 105%of the principal amount thereof, and shall bear interest at such rate or rates per annum not exceeding five and one-half percent (5 1/2%) per annum, as shall be agreed to with USDA. In accordance with and subject to the provisions of this ordinance, the Director of Finance is hereby authorized to determine, with respect to the Bonds of a series, the aggregate principal amount of such series of Bonds; the series 2 designation of such series of Bonds;the date of such series of Bonds;the interest payment dates and maturity dates of such series of Bonds; the amount of principal of such series of Bonds maturing on each maturity date; the registration privileges and place or places at which such series of Bonds may be paid or registered which may include the office of the Director of Finance; whether or not such series of Bonds shall be subject to redemption prior to the stated maturity thereof and, if subject to such prior redemption, the times, prices, methods and other provisions for such prior redemption; and all other details of such series of Bonds. SECTION 4. Redemption of Bonds. In the event any of the Bonds shall be subject to prior redemption and if any Bond (or portion thereof in installments which are integral multiples of the smallest denomination thereof) is to be redeemed,notice of redemption shall be given in such manner as the Director of Finance shall determine. If any Bond shall have been duly called for redemption and notice of such redemption duly given in the manner determined by the Director of Finance, and if moneys for the payment of such Bond at the then applicable redemption price and the interest accrued on the principal amount thereof to the date of redemption are made or duly provided for by the County, interest on such Bond shall cease to accrue and become payable from and after the date fixed for redemption. SECTION 5. Payment of Bonds. The principal of and interest and premium, if any, on the Bonds shall be payable in any coin or currency of the United States of America which at the time of payment is legal tender for public and private debts. SECTION 6. Execution and Form of Fully Registered Bonds. The Bonds of a series shall be lithographed, steel engraved, typewritten, printed or in other reproduced form as the Director of Finance may determine. The Bonds of a series shall bear the manual or facsimile signatures of the Director of Finance and of the Mayor of the County, and shall also bear the bear the seal of the County or a facsimile of such seal. The Director of Finance may provide for the Bonds of a series to be issued in and effect a book-entry system for such Bonds. The Director of Finance may 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. The 3 Director of Finance shall direct the registrar for the Bonds of a series to register and authenticate such Bonds and no such Bond shall be valid or obligatory for any purpose unless and until the certificate of authentication endorsed on such Bond shall have been manually executed by such registrar; provided that a certificate of authentication shall not be required for any Bond if the Director of Finance is the registrar and if such Director has manually signed the Bond in question. The Bonds, including the registrar's certificate of authentication (if required) and the assignment, shall be in substantially the form of general obligation bonds heretofore issued by the County with such insertions, variations and omissions as are required with respect to a particular series of the Bonds as the Director of Finance may determine. SECTION 7. Sale of Bonds. Without any further authorization from or action by the Council but subject to the provisions hereof and of applicable law, the Director of Finance is hereby authorized to issue and sell the Bonds in their entirety at one time, or from time to time in two or more separate series, at negotiated sale to USDA in accordance with Section 47-8, Hawai`i Revised Statutes, as amended, in each case at such price or prices and upon such terms and conditions as he shall approve and determine to be in the best interest of the County. Without limiting the generality of the foregoing, with respect to the sale of the Bonds or of portions of the Bonds, the Director of Finance is hereby authorized to retain bond counsel,paying agents,registrars and financial and accounting consultants, upon such terms and conditions as he shall deem advisable,to select the date for such sale,to enter into one or more agreements with USDA pursuant to which the Loan will be made and the Bonds will be issued to evidence and secure the Loan, in each case in such form and containing such terms and conditions as he shall approve and deem advisable, and to take such other actions as he may deem advisable in connection with the issuance and sale of the Bonds to USDA. Subject to the provisions of Section 3 hereof, without further action of the Council, the Bonds shall bear interest at the rates per annum as agreed to with USDA. 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 issuance and sale of the Bonds or any portion thereof in accordance with the provisions hereof and applicable law. 4 SECTION 8. Reimbursement of Expenditures. The County expects that the County or the Water Department may pay certain capital expenditures for the Project prior to the issuance of the Bonds and reasonably expects to reimburse such expenditures from the proceeds of such Bonds. The County hereby declares its official intent to use proceeds of the Bonds to reimburse itself or the Water Department for such capital expenditures. This ordinance is adopted in part for the purpose of establishing compliance with the requirements of Section 1.150-2 of the Treasury Regulations. This ordinance shall be reasonably available for inspection at the office of the County Clerk commencing within fifteen(15) days after its effective date. SECTION 9. Authorization of Bond Anticipation Notes. General obligation bond anticipation notes ("Notes") are hereby authorized and approved for issuance and sale by the Director of Finance, without further authorization or approval from or action by the Council, in anticipation of the issuance and sale of the Bonds authorized herein and the receipt of the proceeds of the sale thereof, for the purposes for which the Bonds have been authorized herein. The issuance, sale and details of such Notes, as determined by the Director of Finance, shall be governed by Section 47-16, Hawaii Revised Statutes, as amended. Bonds in anticipation of which Notes are authorized and issued hereunder may be issued and sold in accordance with the provisions of this Ordinance at any time within five years of the date of issuance of the first Notes issued in anticipation of such Bonds. SECTION 10. Securityfor the Bonds. The full faith and credit of the Countyis hereby pledged to the payment of the principal of and interest on the Bonds, and the principal and interest payments shall be a first charge on the General Fund of the County. SECTION 11. CUSIP Identification Numbers. The Director of Finance may authorize the printing of CUSIP identification numbers upon the Bonds. Such number and the printing thereof shall be subject in all respects to the provisions of Section 47-10, Hawaii Revised Statutes, as amended. SECTION 12. Repeal of Conflicts; Severability. All ordinances and resolutions, and any portions of ordinances and resolutions, heretofore enacted or adopted by the Council which 5 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. If any provision of this ordinance or application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this ordinance which can be given effect without the invalid provision or application, and to this end,the provisions of this ordinance are declared to be severable. SECTION 13. Effective Date. This ordinance shall take effect upon its approval. INTRODUCED BY: 00011 -111-111111k.A -er-ii4gjr, e COUNCIL MEMBER, CO or TY OF HAWAI` ,Hawai`i Date of Introduction Date of 1st Reading Date of 2nd Reading Effective Date: 185 REFERENCE Comm. 6