HomeMy WebLinkAboutRES 653 Draft 01 2016-2018 •
COUNTY OF HAWAII = STATE OF HAWAII
RESOLUTION NO. 653 163
A RESOLUTION AUTHORIZING THE ADOPTION OF USDA FORM RESOLUTION
1780-27 PROVIDING FOR A UNITED STATES DEPARTMENT OF AGRICULTURE
LOAN TO FINANCE CERTAIN PUBLIC SEWER SYSTEM IMPROVEMENTS FOR
THE LONO KONA SUBDIVISION, NORTH KONA, HAWAII; AUTHORIZING THE
EXECUTION OF AN AGREEMENT WITH THE UNITED STATES OF AMERICA
DEPARTMENT OF AGRICULTURE, PURSUANT TO HRS 46-7, FOR A GRANT FOR
COSTS OF SUCH PUBLIC SEWER SYSTEM IMPROVEMENTS; AND
AUTHORIZING THE MAYOR, THE DIRECTOR OF ENVIRONMENTAL
MANAGEMENT, THE DIRECTOR OF FINANCE AND THE CHAIR OF THE
COUNTY COUNCIL TO TAKE ALL ACTIONS NECESSARY TO FACILITATE SUCH
LOAN AND GRANT
WHEREAS, the County of Hawai`i proposes to issue its general obligation bonds
to evidence its repayment obligations for a loan to be obtained from the United States of
America, acting through the United States Department of Agriculture, Rural Utilities Service
("USDA"), in an amount not to exceed THREE MILLION SIX HUNDRED NINETY-NINE
THOUSAND AND N0/100 DOLLARS ($3,699,000), to fund a portion of the costs of certain
public sewer system improvements (the "Project") for the Lono Kona Subdivision, North Kona,
Hawaii; and
WHEREAS, in connection with such loan, the USDA has offered a grant to fund costs of
the Project in an amount not to exceed ONE MILLION SEVENTY-ONE THOUSAND AND
N0/100 DOLLARS ($1,071,000); and
WHEREAS, the USDA requires, as part of the loan, grant and bond closing process for
the Project, that a Loan Resolution (RUS BULLETIN 1780-27, LOAN RESOLUTION), or
similar resolution, be adopted, and that certain other documents be executed and actions be
taken; 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 or
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, including the Certification To Be
Executed At Loan Closing.
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BE IT FURTHER RESOLVED that the Office of the Mayor is authorized to enter into
a grant agreement with the USDA for a grant in the amount of up to $1,071,000 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.
BE IT FURTHER RESOLVED that the Mayor, the Director of Environmental
Management, the Finance Director and the Chair of the Council of the County of Hawai`i 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 loan and grant and the terms of the
loan and grant agreements, the provisions of which shall be incorporated upon such execution.
BE IT FINALLY RESOLVED that the Clerk shall transmit copies of this Resolution to:
(a) the Honorable Mayor Harry Kim; (b) Director of Environmental Management William A.
Kucharski; (c) Director of Finance Deanna Sako; (d) Corporation Counsel Joseph K.
Kamelamela; (e) Real Property Tax Division Tax Administrator Lisa Miura; (f) Hawai`i State
Office Community Program Director Donald K. Etes, United States Department of Agriculture,
Hilo State Office, Federal Building, 154 Waianuenue Avenue, Room 311, Hilo, Hawai`i 96720;
and (g) Bond Counsel Brian T. Hirai, McCorriston Miller Mukai MacKinnon LLP, P.O. Box
• 2800, Honolulu, Hawaii 96803-2800.
Dated at Hilo , Hawai`i this 8th day of August , 2018.
INTRODUCED BY:
41101PIP- . 1.:1-i-.AILIA117- --
COUNCIL �`• : � TY OF HA AI`I
COUNTY COUNCIL ROLL CALL VOTE
County of Hawai`i AYES NOES ABS EX
Hilo, Hawai`i 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 KANUHA X
County of Hawai`i on Aug is t 8, 2018
LEE LOY X
O'HARA X
ATTEST: POINDEXTER X
irRICHARDS X
Ai i
RUGGLES X
9 0 0
0-1014/Waived 0
/ � -1014 FC
� " �OO Reference:
O
COUNTY CLERK CHAIRPERSON&PRESIDING OFFICER RESOLUTION NO. S53 18
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EXHIBIT A
Pbsirton 5
RU S BULLETIN 1780-27 APPROVED
0ItB.No.0572-0121
L OAN RE SOLUTION
(Public Bodies)
ARESOLUTIONOFTHE COUNTY COUNCIL
OF THE COUNTYOF HAWArI
AUTHORIZING AND PROVIDING FOR THE INCURRENCE OF INDEB 112)NESS FOR THE PURPOSE OF PROVIDING A
PORTION OF THE COSTOF ACQUIRING, CONSTRUCTING,ENLARGING,IMPROVI1dG,AND/OR EXTENDING ITS
PUBLIC SEWER IMPROVEMENTS(LONO KONA SUBDIVISION PROJECT)
FACILITY TO SERVE AN AREA LAWFULLY WITHIN ITS JURISDICTION TO SERVE.
WHEREAS,it is recessaryforthe COUNTY OF HAWArI
(PaMc ma)')
(herein alter railed Association)to raise a portion of tie cast of suchundertakirg b y issuance of its bonds in tie principal annunt of
THREE ruIIWON SIX HUNDRED NINETY-NINE THOUSAND AND NO/100 DOLLARS($3,099,C00)
u
psant to tla provisions of PART 1,CHAPTER 47,HAWAII REVISED STATUTES ;and
WHEREAS,tha Associationirdenis to obtain ass istence fxomithe United States Department of Apiculture,
(Intern called tin Goverment)actirgunder tin provisions of the Consolidated Fanriani sralDevelopinant Act(7 US.C.1921
et seq.)in tin planning.finanirg,ani supervision ofsuchuniertaldrg ani the purchnasirg ofbonis lawfully issued,in the event
flmatrro other acceptable purchaser for suchb onis is found bytin Association_
NOW THEREFORE,in consideration of the premises tic Association hereby re olves:
1. To have prepared on its behalf and to adopt an ordinance or res olution for foe issuance of it;is orris containirg such
items and insuchforms as are required by S tate statuses ani as are agreeable ani acceptable to the Government.
2. To refinance tin unpaid balarce,inwhole or in part,ofits bonds upon the request of the Govenunen t if at any firm
it shall appear to the Government that the Ass ociation is able to refinance its bonds byobtainirg a loan for such purposes
front responsible cooperative or private sources at reasonab le rates and terms for loans for similar purposes and periods
of tune as required by s ecticer 333(c)of said Consolidated Fann and Rural Developrrerd Act(7 U.S.C.19E3(c)).
3. To provide fo;execute,and oomplywithForm RD 400.4,'Assurance Agreement,"and Form RD 400-1,'Equal
Opportunity Agreement;"ixcludirg an"Equal Opportunity Clary e,"whir h rla„s a is to be incorporated in,or attached
as arider to,each construction contract and subcontract involvug in excess of$10,4JO.
4. --T&inderutifytin-G}vexrnrent-feearpy-payarexts radeor-1 sses reclb}xtie-Gevenuntentonbehal€ tie•Associatiorr.
Suekinienrutifnealien 4rallbe-payable-fnzerr-the-sa m—seance-offiunis-pledged43-paythebexds-or,anyotierlegallyper-
-.nriss. le-source.S ee Rider A
5. Thatupon default in tie pay rrerds of any principal and accrued inter ton the b anis or in tie performance of any
covenant oragreenerd contained herein orin the irsttunerds incident to m altirg or insuring tin loan,tin Government at •
its option may(a)declare the entire principal amount then cuts tending arra accrued irderes t immediately due and
payab le,(b)for the account of the As sociatinn(payab le from she source of funis pledged to pay the bonds or any other
legallypennnissrble source),Moir ani pay reason able expenses for repair,maintenance,and operation of tie facility
and such otherreasonable expenses as maybe recess aryto cure the rause of default,andfor(c)take possession of the
facility,repair,maintain,and operate or rend it.Default under the provisions of this resolution or any instrument incident to
the malting or insuring of the loan maybe construed by tie Govern/rent to constitute default under any other irstrunent
held by die Goverment and executed or assumed by tie As sociatior,ani default under any such irstrurrremt mayb e
CO215 trued by tie Govennuent to constitute default hereunder.
ii. Not to sell,team fez lease,or otherwise enurrb er the facility or any portion thereof,or interest therein,or permit others
to do so,without the prior written consent of the Govenurent.
7. Not to defease the bonds,ortoborw,v nnarey,enter into any oordractor agneenerd,orotierwise in'urany liabilities
for any purpose incoraectionwithtin facility(exclusive of normal maintenance)withrut the priorwrittenconsent of the
Govenarend if suchundertaking would involve the swim of fiends pledged to pay the bonds.
S. To place the proceeds of tie b ands on deposit in an account and in a nraruuer approved by the Gover2mend.Funis/My be
deposited in institutions insured by the S tate or Federal Govenu end or invested in readily nerinetab le securities backed
by the full faith and credit of the United Stats.Anyincome from these aecaurris will be considered as revenues of the system.
9. To oomplywith all applicable State arra Federal laxs and regulations and to continually operate ani maintain the facility
in good condition_
10. To provide for the receipt of adequate revenues to neet the requirements of debt service,operation ani maintenance,and
the es tablislurerd of adequate res ernes.Revenue ac-urnrlated over and ab ore that needed to pay operatig ani mainte-
nance,debtservice and reserves rnayonlybe retained orused to make prepayments on the loan.Revenue caaurotbe used
to pay any expenses which are not directly i„-uned for the facility financed by USDA.No free service cruse of the
f cilitywillb a penuitted.
deco.-6,g.>7Me.Pa v,es-k.Reducr&e,ilea of 5947,an agene,rod,nix ern dueaernpe„sor,dad ape,aa, in required m 1.6pa4ao,de.loon,efS,famdakt,unS:ne
Ltd&pis a,a4d AMBera4d OMB eea oral nun a AN-Mar S,for,naie,eeet.rrea a dir7-Pl 7l. Oe se,,requlred.beempaem AS&S,fa,narS.
Osseeskm a exa„dead ao a,erdge 7 hour per respeax,S,eludS,g ass Lore Js.re,kwing S,r.+,.L,Y,a,sedrehs,g r at,g rant ssurcer,gdste.S,g and md,6a28,8,g a52
dad needed,an ea„p tiaing and re4ays,g ase ea ealo,of 5,l)nnaia,.
EXHIBIT A
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11. To acquire and maintain suchinsrare and fidelityboni coverage as maybe required by the Governneni.
12. To establish and maintain suchbooks and records relating to tie operation of the facility and its financial affairs and to
provide for required ardit thereof as required y tls Govern/want to provide tie Government a copy of eachsuchardit
witlnutits request,and to forward to tie Govenurent such additional information and reports as it may from time to
tine require.
13. To provide the Government at all reasonable times access to allbooks and records relatirg to tie facility and access to
tie property of the system so that tie Government nay ascertain that the Association is complying with the provision
lereofani of tie inutrunerts incident to tie making or intsurirg of the loan.
14. That if the Go'ernuterd requires that a reserve account be established,disbursements from that account(s)may be used
wlenrecessatyfor paynents due on the bond ifsufficient funis are rot otherwise available and pricy approval of the
Government is obtaired. Also,with tie prior writtenapproval of tie Government,funis maybe withirawn and
used for such things as energency maintenanoe,extensions to facilities and replacement of short lived assets.
15. To provide adequate s ervice to all persons within tie s ervice area who can feasrb ly and legallybe served ani to oh fain
USDA's concurrence prior to refusing rew or adequate services to such persons.Upon faihue to provide services which
are feasible and legal,such person shall have a direct right of action aganut tie Association or public body.
16. To eonnplywith tie measures identified in the Government's envircamental impact analysis for this facility for the par'.
pose of avoiding or reducing the adverse environmental impacts of tie facility's construction or operation.
17. To accept agrart in an amount not to exceed$ONE MILLION SEVENTY-ONE THOUSAND AND NO/100 DOLLAR S($1 A71 DOD)
undertle tants offered.b y tie Govennurent;that tie MAYOR,DIRECTOR OF ENNARONMENTALMANABBO ENT,FINANCE DIRECTOR
COUNCIL CHAIR
ani_____ of the Association are lereby arthDnlred ani enpowered to take all action necessary
or appropriate intim execution ofall written instilment;as mayb e required in regard to oras evidence of such grant;anti
to operate the facilityunder tie terms offered in said grant agreenent(s).
The provisions lereofamid t e provisions of all instruments incident to tie making or tie insuring of tie loan,unless otherwise
specifically provided b y the terms of such inmtrunent, shall be bindimg upon the Association as long as tie bonds are held or
insured by the Gomm/mitt or assignee.The provisions of sections 6 through 17}meat'maybe provided for in more specific
detail intim bond resolution or ordinance; to tie extent that the provis ions oontaimed in suchbond resolution or ordinance
should be fount to be inconsistentwith tie provisions hereof, these provisions shall be construed as controlling between tie
As sociation and tie Government or assignee.
The vote was: Yeas Nays Absent
IN WITNESS WHEREOF,the COUNTY COUNCIL softie
COUNTY OF HAWAII has duly adopted this resolution and caused it
iobeexecutedbytheofBcersbelowinduplicateonthis day 2018
,�,�,.�..,� _. _ ._ of
(SEAL) By
COUNCIL CHAIR
Attest: Title
Title COUNTYCLER K
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CERTIFICATION TO BE EXE CUTED AT LOAN CLOSING
COUNTY CLERK COUNTY COUNCIL OF THE COUNTY OF HAWAII
I,the urdersigred,as Qf the
COUNTY COUNCIL
hereby certify that tie _ _ of such Association is composed of
mnbeis ofwhom, constituting aquomim,were present ala meeting thereof duly called ani
Held ontlti ..__ .._. _._ day of _ ;and that the foregoing resalutionwas adopted at such meti g
by tlh vote shown above,I further certify that as of
the dale of closing of the loan from the United Stades Department of Agriculture,said resolutionremains ineffectani has notbeen
rescinded or amended in anyway.
Dated,this day of
Title COUNTY CLERK
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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 A ssociation 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
by a court or otherwise agreed to by the Association. The Association shall pay for such
damages and injury to the extent that funds have been authorized and appropriated bythe
County Council of the Association for such purpose,and the funds have been allocated by
the executive budget process. •
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367588.1
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