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HomeMy WebLinkAboutRES 159 Draft 01 2016-2018f �.� OP q'• OK • COUNTY OF HAWAII H STATE OF HAWAII RESOLUTION NO. 159 17 A RESOLUTION AUTHORIZING THE ADOPTION OF USDA FORM RESOLUTION 1780-27 PROVIDING FOR THE INCURRENCE OF INDEBTEDNESS FOR THE FINANCING OF A WATER DEPARTMENT PROJECT REFERRED TO AS THE PAPAIKOU TRANSITE & G. I. (GALVANIZED IRON) PIPELINE REPLACEMENT; TO ENTER INTO AN AGREEMENT WITH THE UNITED STATES OF AMERICA, PURSUANT TO HRS 46-7, FOR THE USDA GRANT PORTION OF THE COSTS OF THE PROJECT; AND TO AUTHORIZE THE MAYOR, MANAGER-CHIEF ENGINEER OF THE DEPARTMENT OF WATER SUPPLY, FINANCE DIRECTOR AND THE CHAIR OF THE COUNTY COUNCIL TO TAKE ALL ACTION(S) NECESSARY TO FACILITATE AND EXECUTE SUCH LOAN AND GRANT AGREEMENTS BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII: WHEREAS, the United States of America, acting by and through the United States Department of Agriculture.on behalf of the Rural Utilities Service ("USDA") has approved an application for financing assistance for a waterline improvement project referred to as the Papaikou Transite & G. I. (Galvanized Iron)Pipeline Replacement in Papa`ikou, County of Hawai`i(the"Project"), such assistance to be provided'in the form of a loan, secured by a bond of the County, in the amount of FOUR MILLION ONE HUNDRED FIVE THOUSAND DOLLARS ($4,105,000) and a grant in the amount of THREE MILLION FOUR HUNDRED SEVENTY THOUSAND DOLLARS ($3,470,000); and WHEREAS, in order to' proceed with the loan, grant and bond closing process, the USDA requires that the Loan Resolution attached as Exhibit A ("RUS Bulletin 1780-27, Loan Resolution"), or similar resolution, be adopted; and •.WIHEREAS, other documents may be required to be submitted by the County of Hawai`i to the • USDA to complete the loan and grant being offered by the USDA; and WHEREAS, Hawai`i,Revised Statutes, Section 46-7, requires that county departments obtain the • consent of the County Council to enter into agreements with the federal or state governments respecting action(s) to be taken pursuant to any of the powers granted by law to furnish, expend and receive any funds-or other assistance in connection with projects being undertaken pursuant to those powers. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF 'HAWAII, that the Council hereby adopts the USDA Form Loan Resolution ("RUS Bulletin 1780-27, Loan Resolution") attached as Exhibit A to this resolution,to include the Certification To Be Executed At Loan Closing; and BE IT FURTHER RESOLVED that the Office of the Mayor is authorized to enter into a grant agreement with the United States Department of Agriculture for a grant in the amount of$3,470,000 to be • applied to the costs of the Project and is authorized to sign the above-referenced agreement and any related documents on behalf of the Office of the Mayor and the County of Hawai`i pursuant to the Hawai`i County Charter; and BE IT FURTHER RESOLVED that the Mayor of the County of Hawaii, Manager-Chief Engineer of the Department of Water Supply, Finance Director, and the Chairman of the Council of the County of Hawaii are hereby authorized and empowered to take all action(s) necessary or appropriate in the execution of all written instruments as may be requested to facilitate the loans and grant and the terms of the loan and grant agreements,the provisions of which shall be incorporated upon such execution. BE IT FURTHER RESOLVED that the Clerk of the County of Hawai`i shall transmit copies of this resolution to: (1) Mayor Harry Kim; (2) Director of Finance Collins Tomei; (3) Keith Okamoto, Manager-Chief Engineer, Department of Water Supply; (4) Brian Hirai, McCorriston Miller Mukai MacKinnon, LLP, P.O. Box 2800, Honolulu, Hawai`i 96803-2800; (5) Samantha Shimizu, Community Program Specialist, United States Department of Agriculture, Hilo State Office; Federal Building, 154 Waianuenue Avenue, Room 311, Hilo,Hawai`i 96720; and (6) Stewart Maeda, County Clerk. Dated at Kona , Hawai`i,this 19th day of April , 2017. INTRODUCED BY: / &AMP' A COUNCI • EMB ~, •UNTY OF HAWAII • COUNTY COUNCIL ROLL CALL VOTE County of Hawaii AYES NOES ABS EX Hilo, Hawaii CHUNG X DAVID X I hereby certify that the foregoing RESOLUTION was by EOFF X the vote indicated to the right hereof adopted by the COUNCIL of the County of HawaiiKANUHA on April 19, 2017 X LEE LOY X O'HARA X ATTEST: POINDEXTER X RICHARDS X //),Lepci. RUGGLES X 9 0 0 0 Reference: C-219/Waived FC COUNTY CLERK CHAIRPERSON & PRESIDING OFFICER RESOLUTION NO. 159 17 Position 5 RUS BULLETIN 1780-27 APPROVED OMB.No.0572-0121 LOAN RESOLUTION 1 (Public Bodies) A RESOLUTION OF THE COUNTY COUNCIL OF THECOUNTY OF HAWAII AUTHORIZING AND PROVIDING FOR THE INCURRENCE OF INDEBTEDNESS FOR THE PURPOSE OF PROVIDING A PORTION OF THE COST OF ACQUIRING, CONSTRUCTING,ENLARGING,IMPROVING,AND/OR EXTENDING ITS PUBLIC WATERLINE IMPROVEMENTS (PAPAIKOU TRANSITE&G. I. (GALVANIZED IRON) PIPELINE REPLACEMENT PROJECT) FACILITY TO SERVE AN AREA LAWFULLY WITHIN ITS JURISDICTION TO SERVE. WHEREAS,it is necessary for the COUNTY OF HAWAII (Public Body) (herein after called Association)to raise a portion of the cost of such undertaking by issuance of its bonds in the principal amount of FOUR MILLION ONE HUNDRED FIVE THOUSAND AND NO/100 DOLLARS ($4,105,000) pursuant to the provisions of PART 1, CHAPTER 47, HAWAII REVISED STATUTES ;and WHEREAS,the Association intends to obtain assistance from the 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 the 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 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 RD 400-4,"Assurance Agreement,"and Form RD 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. S - . . .. .. - . .. -- . - . . . . .. - .. .• : .- .b: mi3siblc aourec. See Rider A 5. That upon default in the payments of any principal and accrued interest on the bonds or in the performance of any covenant 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,or permit others to do so,without the prior written consent of the Government. 7. Not to defease the bonds,or to borrow money,enter into any contractor agreement,or otherwise incur any liabilities for any 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 and in a manner approved by the Government.Funds may be deposited in institutions insured by the State or Federal Government or invested in readily marketable securities backed by the full faith and credit of the United States.Any income from these accounts will be considered as revenues of the system. 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.Revenue accumulated over and above that needed to pay operating and mainte- nance,debt service and reserves may only be retained or used to make prepayments on the loan.Revenue cannot be used to pay any expenses which are not directly incurred for the facility financed by USDA.No free service or use of the facility will be permitted. According to the Paperwork Reduction Act of 1995,an agency may not conduct or sponsor,and a person is not required to re.spond to,a collection of information unless it displays a valid 01/B control number. The valid 01,1B control number for this information collection is 0572-0121. The time required to complete this information collection is estimated to average l hour per response,including the time for reviewing instructions,searching existing data sources,gathering and maintaining the data needed,and completing and reviewing the collection of information. • EXHIBIT A -2- 11. To acquire and maintain such insurance and fidelity bond coverage 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 as required by the Government,to provide the Government a copy of each such audit without its request,and to 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. That if the Government requires that a reserve account be established,disbursements from that account(s)may be used when necessary for payments due on the bond if sufficient funds are not otherwise available and prior approval of the Government is obtained. Also,with the prior written approval of the Government,funds may be withdrawn and used for such things as emergency maintenance,extensions to facilities and replacement of short lived assets. 15. To provide adequate service to all persons within the service area who can feasibly and legally be served and to obtain USDA's concurrence prior to refusing new or adequate services to such persons.Upon failure to provide services which are feasible and legal,such person shall have a direct right of action against the Association or public body. 16. To comply with the measures identified in the Government's environmental impact analysis for this facility for the pur- pose of avoiding or reducing the adverse environmental impacts of the facility's construction or operation. 17. To accept a grant in an amount not to exceed$ THREE MILLION FOUR HUNDRED SEVENTY THOUSAND AND NO/100 DOLLARS($3,470,000) MAYOR, MANAGER-CHIEF ENGINEER OF DEPARTMENT under the terms offered by the Government;that the OF WATFR SUPPI Y and FINANCE DIRECTOR of the Association are hereby authorized and empowered to take all action necessary or appropriate in the execution of all written instruments as may be required in regard to or as evidence of such grant;and to operate the facility under the terms offered in said grant agreement(s). Thep rovisions hereof and the provisions of all instruments incident to the making or the insuring of the loan,unless otherwise • specifically provided by the terms of such instrument, shall be binding upon the Association as long as the bonds are held or • insured by the Government or assignee.The provisions of sections 6 through 17 hereof may be provided for in more specific detail in the bond resolution or ordinance; to the extent that the provisions contained in such bond resolution or ordinance should be found to be inconsistent with the provisions hereof, these provisions shall be construed as controlling between the Association and the Government or assignee. The vote was: Yeas Nays Absent IN WITNESS WHEREOF,the COUNTY COUNCIL of the COUNTY OF HAWAI'I has duly adopted this resolution and caused it to be executed by the officers below in duplicate on this , day of 2017 (SEAL) By COUNCIL CHAIR Attest: Title Title COUNTY CLERK -3- • CERTIFICATION TO BE EXECUTED AT LOAN CLOSING COUNTY CLERK COUNTY COUNCIL OF THE COUNTY OF HAWAII I,the undersigned,as _ of the hereby certify that the COUNTY COUNCIL of such Association is composed of members,of whom, constituting a quorum,were present at a meeting thereof duly called and held on the day of ;and that the foregoing resolution was adopted at such meeting by the vote shown above,I further certify that as of the date of closing of the loan from the United States Department of Agriculture,said resolution remains in effect and has not been rescinded or amended in any way. Dated,this day of Title COUNTY CLERK Rider A (USDA Form RUS Bulletin 1780-27) 4. The Association shall be responsible for damage or personal injury resulting from acts or omissions of Association employees while acting within the scope of their employment to the extent that the Association's liability for such damage or injury has been determined The Association shall payfor such by a court or otherwise agreed to by the Association damages and injury to the extent that funds have been authorized and appropriated by the County Council of the Association for such purpose, and the funds have been allocated by the executive budget process.