Loading...
HomeMy WebLinkAboutORD 2017-073 2016-2018 ie:;;?‘f r COUNTY OF HAWAII STATE OF HAWAII BILL NO. 77 ORDINANCE NO. 1.7 73 AN ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS OF THE COUNTY OF HAWAII IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED$2,437,000 FOR THE PURPOSE OF FINANCING A PORTION OF THE COSTS OF CONSTRUCTING A PUBLIC SEWER SYSTEM SERVING THE LONO KONA SUBDIVISION; FIXING THE FORM, DENOMINATION,AND CERTAIN DETAILS OF SUCH BONDS; PROVIDING FOR THE ISSUANCE AND SALE OF SUCH BONDS; AND PROVIDING FOR OTHER MATTERS OR ACTIONS PERTAINING TO THE ISSUANCE AND SALE OF THE BONDS. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Findings and Determinations. It is hereby found and determined that: A. Pursuant to Chapter 12, Hawaii County Code 1983 (2005 Edition, as amended) (the "Hawaii County Code), and Resolution Nos. 264-14, 519-14 and 72-15,the Council of the Countyof Hawaii(the"County")has authorized the creation, definition and establishment of a Sewer System Improvement District (the "Improvement District") for the purpose of undertaking and financing the costs of a project consisting of the construction, acquisition and installation of a public water system to serve the Lono Kona Subdivision(the"Project"). B. In order to assist in the financing of the Project,the United States of America,acting through the Department of Agriculture,Rural Utilities Service("USDA")has offered to make a loan to the County (the "USDA Loan") in a principal amount not to exceed Two Million Four Hundred Thirty-Seven Thousand and No/100 Dollars($2,437,000) and bearing interest at a rate not to exceed Two and One-Eighth Percent(21/8%)per annum. USDA has also offered to make a grant to the County (the "USDA Grant") to provide further assistance for the Project in an amount not to exceed Four Million Twenty Four Thousand Eight Hundred and No/100 Dollars ($4,024,800). C. It is advisable and desirable for the County to obtain the USDA Loan. In order to secure the payment of the USDA Loan, it is necessary, advisable and desirable that the County authorize, issue and sell to USDA general obligation bonds of the County in a principal amount equal to the principal amount of the USDA Loan. D. Costs of the Project,net of the USDA Grant,will be assessed against the"assessment units" within the Improvement District in accordance with Chapter 12, Hawai`i County Code. Collections of such assessments will be used to reimburse the County for payments of the principal of and interest on the bonds authorized hereunder, for costs of the Project not funded by such bonds and for administrative expenses of the County with respect to the Improvement District. SECTION 2. Authorization of Bonds. There are hereby authorized for issuance and sale general obligation bonds of the County (the "Bonds") in an aggregate principal amount not to exceed Two Million Four Hundred Thirty-Seven Thousand and No/100 Dollars ($2,437,000), the proceeds derived from the sale of which shall be used to pay a portion of the costs of the Project and costs incurred by the County in connection with the issuance of the Bonds. SECTION 3. Details of the Bonds. The Bonds authorized for issuance and sale in Section 2 hereof shall be issued and sold to USDA in one or more series of Bonds evidencing and securing the USDA Loan. Such Bonds shall be issued and sold to USDA, as lender with respect to the USDA Loan evidenced and secured thereby,shall be in an aggregate principal amount equal to the principal amount of such USDA Loan, and shall bear interest and mature upon the applicable terms of such USDA Loan. The Bonds may be issued and sold in their entirety at one time or in portions from time to time, as shall be determined by the Director of Finance to be in the best interest of the County. The Bonds 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 no later than five years from the date of the Bond 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 the stated maturity thereof at any time at prices not exceeding 103 % of the principal amount thereof, and shall bear interest at such rate or rates per annum,not to exceed Two and One-Eighth Percent(2'/8%)per annum,as may be determined by the Director of Finance and agreed to by 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 series designation; the date of the Bonds of such series; the interest rates and payment dates of the Bonds of such series;the maturity dates of the Bonds of such series and the principal amount of such Bonds maturing on each maturity date; the registration privileges and place or places at which the Bonds of such 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 the 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. 2 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) 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 shall be lithographed or steel engraved,typewritten, printed or other reproduced as the Director of Finance shall 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, shall be impressed with or bear a facsimile of the seal of the County, and shall be authenticated by the Registrar (unless the Director of Finance is serving as Registrar and has manually signed the Bonds as aforesaid). The Director of Finance may, at such official's election, prepare such number of blank Bonds of any series executed and sealed as aforesaid as such official shall determine and deliver such executed blank Bonds to the Registrar for such series (if other than the Director of Finance) for safekeeping prior to the time such Bonds are actually issued, exchanged or transferred. � The Bond shall be designated and the form of the Bonds, the Registrar's certificate of authentication, if applicable, and the assignment shall be substantially in the form of EXHIBIT A attached hereto,with such appropriate insertions,variations and omissions as are required or deemed advisable by the Director of Finance with respect to a particular series of the Bonds, book-entry provisions, single instrument provisions'or other provisions. SECTION 7. Sale of Bonds. To secure the payment of the USDA Loan from USDA, 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 a negotiated sale to USDA in accordance with Section 47-8,Hawaii Revised Statutes,as amended,at such price or prices and upon such terms and conditions as such official 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 to secure the payment of the USDA Loan, 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 such official 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 agreements with USDA pursuant to which the USDA Loan shall be made and the Bonds or portions thereof shall be issued to secure such USDA Loan, in each case in such form and containing such 3 terms and conditions as such official shall approve and deem advisable, and to take such other actions as such official 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 agreements so approved. The Mayor,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, and, if any loan agreement therefor be approved or any bid therefor be accepted, the preparation execution, and delivery thereof, in accordance with the provisions hereof and applicable law. SECTION 8. Reimbursement of Expenditures. The County expects that it 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 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. Security for the Bonds. 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. SECTION 10. CUSIP Identification Numbers. The Director of Finance may authorize the printing of a CUSIP identification number upon the Bonds. Such number and the printing thereof shall be subject in all respects to the provision of Section 47-10, Hawai`i Revised Statutes, as amended. SECTION 11. Application of Assessments. Assessments against the"assessment units"in the Improvement District made in accordance with Chapter 12, Hawai`i County Code, shall be applied to pay or reimburse the County for (i) costs of the Project not funded by Bond proceeds; (ii) payments of the principal of and interest on the Bonds and other costs relating to the Bonds (including costs of funding the reserve fund authorized by Section 8 hereof,to the extent applicable), and (iii) administrative expenses of the County with respect to the Bonds and the Improvement District. Amounts so collected which are not applied or reasonably required to be reserved for such purposes shall be applied in accordance with the provisions of Chapter 12, Hawai`i County Code. SECTION 12. Repeal 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. 4 SECTION 13. Effective Date. This ordinance shall take effect upon its approval. INTRODUCED BY: Adak COUNCIL MEMBE', • TY OF HAWAII Kona, Hawai`i Date of Introduction . November 2, 2017 Date of 1st Reading November 2, 2017 Date of 2nd Reading November 15, 2017 Effective Date: November 21, 2017 REFERENCE: Comm. 557 5 EXHIBIT A [FORM OF BOND] UNITED STATES OF AMERICA COUNTY OF HAWAII STATE OF HAWAII PUBLIC IMPROVEMENT BOND, [SERIES DESIGNATION] Dated: , 2013 Interest Rate: % Final Maturity: , 20_ The COUNTY OF HAWAII, State of Hawaii (hereinafter called the "County"), for value received,hereby promises to pay to the United States of America, acting through the United States Department of Agriculture, Rural Utilities Service ("USDA"), or registered assigns, as Registered Holder (a)on 1 in each of the years set forth in the following Maturity Schedule,the principal installment amount (each, a "Principal Installment Amount") that is obtained by multiplying the amount set forth in such Maturity Schedule opposite such year by the Aggregate Funding Percentage (as hereinafter defined), and (b) semiannually on 1 and 1 in each year, commencing on 1, 20 , interest on each Loan Advance (as hereinafter defined) from the date such Loan Advance is funded and received by the County until the payment of all Principal Installment Amounts shall be made or provided for in full, at the rate specified above. MATURITY SCHEDULE Maturity Maturity Maturity Date Date Date 1 Amount ( 1) Amount 1 Amount All Principal Installment Amounts and interest thereon,except the last Principal Installment Amount and interest thereon,shall be paid by check or draft mailed or by wire sent to the Registered Holder at the Registered Holder's address or account as it appears on the Bond Register kept pursuant to the proceedings authorizing this bond or otherwise as agreed upon by the County and the Registered Holder. The last Principal Installment Amount and interest thereon shall be payable upon presentation and surrender of this bond at the office of ,Paying Agent,in , or at the office of any successor Paying Agent appointed from time to time by the County. All amounts due hereunder 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. A-1 As used in this Bond: (a)"Aggregate Funding Percentage"shall mean the percentage that is obtained by dividing (i) the total amount of all Loan Advances actually funded by USDA and received by the County, by (ii) the amount of$ representing the maximum amount of the Loan Advances USDA has agreed to make to the County hereunder;(b)"Loan"shall mean the loan, in an amount not to exceed$ ,that USDA has agreed to make to the County hereunder to pay a portion of the costs of a public sewer system project to serve the Lono Kona Subdivision; and(c) "Loan Advance"shall mean each portion of the Loan funded by USDA and received by the County, as set forth in the Record of Advances contained herein. This Bond is authorized by the County to be issued to evidence the County's payment obligations with respect to the Loan from USDA to finance the aforesaid public sewer system project. This Bond is 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,proceedings of the aforesaid Council duly taken thereunder and a Certificate of the Director of Finance of the County providing for the issuance and sale and fixing the form and details of this Bond (the "Authorizing Certificate"). Reference is hereby made to the Authorizing Certificate for additional provisions applicable to this Bond,to all of which provisions the registered, owner hereof by acceptance of this Bond hereby assents. This Bond is subject to redemption in whole or in part at the option of the County,prior to maturity, at any time [, on and after , ,] 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 Premiums,if applicable] 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. 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 of Bonds of which this Bond is one. If this Bond (or anyportion of the principal sum hereof)be redeemable and shall p p 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 A-2 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 the Registered Holder's 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 the Registered Holder's duly authorized attorney,which may be the form endorsed hereon)and subject to the limitations and upon payment of the charges,if any, rovided from time to time by the County Y 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 contrary. This Bond is authorized by the Council of the County to be issued to provide funds for payment of a portion of the costs of a public sewer system for a Sewer System Improvement District established by the County pursuant to Chapter 12,Hawaii County Code. This Bond is 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,Hawai`i 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. A-3 IN WITNESS WHEREOF, the COUNTY OF HAWAII, State of Hawai`i has caused this Bond to be signed by the facsimile of the signatures of its Director of Finance and of its Mayor,and to be sealed with the facsimile of the seal of the County of Hawai`i, and this Bond to be dated as of the day of , 20 . [MANUAL OR FACSIMILE SIGNATURE] Director of Finance [SEAL] [MANUAL OR FACSIMILE SIGNATURE] Mayor A-4 [FORM OF CERTIFICATE OF AUTHENTICATION, IF APPLICABLE] CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the within-mentioned proceedings of the County of Hawai`i, State of Hawai`i. Date of Registration: Registrar By [MANUAL SIGNATURE] Authorized Officer or Signatory [FORM OF INSTRUMENT OF ASSIGNMENT] 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 with full power of substitution in the premises. Date: Signature Guaranteed: (name of assignor) (address of assignor) 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 or any change whatsoever. A-5 COUNTY CLERK OFFICE OF THE COUNTY CLERK COUNTY OF H AWAI I County of Hawai`i Kona, Hawai`i 7017 NOV 21 PM 12: 36 Introduced By: Mai le David (B/R) ROLL CALL VOTE Date Introduced: November 2 , 2017 AYES NOES ABS EX First Reading: November 2 , 2017 Chung X Published: November 11, 2017 David X Eoff X REMARKS. Kanuha X Lee Loy X O'Hara X Poindexter X Richards X Ruggles X Second Reading: November 15, 2017 8 0 1 0 To Mayor: November 17, 2017 Returned: November 21, 2017 ROLL CALL VOTE Effective: November 21, 2017 AYES NOES ABS EX Published: December 2, 2017 Chung X David X REMARKS. Eoff X Kanuha X Lee Loy X O'Hara X Poindexter X Richards X Ruggles X 8 0 1 0 I DO HEREBY CERTIFY that the foregoing BILL was adopted by the County Council published as indicated above. CO -.{L CHAIRPERSON Approved/Disapproved this day , Y ' of N 0 v ernoy 20 11 . NTY CLERK Bill No.: MAYOR, C-557/Waived-FC COUNTY I,%r--w A WAI`I =Reference: Ord No.: 7