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Home My WebLink AboutRES 480 Draft 01 1969-1972County of Hawaii --Mate of Hawaii Resolution RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF $4,600,000.00 PAR VALUE IMPROVEMENT DISTRICT BONDS FOR IMPROVEMENT DISTRICT NO. 11, DISCOVERY HARBOR SUBDIVISION AND ADJACENT LANDS, WAIOHINU, DISTRICT OF KA'U, HAWAII, AND PROVIDING FOR RECEIPT OF TENDERS FOR PURCHASE OF SAID BONDS UNTIL 10:00 A.M., MARCH 30, 1972 WHEREAS, by Ordinance No. 446 of the County of Hawaii, special assessments were fixed and levied against the several properties situated in and comprising Improvement District No. 11, Discovery Harbor Subdivision and Adjacent Lands, Waiohinu, Dis- trict of Ka'u, Hawaii; . WHEREAS, the total amount assessed was $4,600,000.00, which amount is required to meet the cost of the proposed improve- ments; WHEREAS, said assessments may be paid on or before April 3, 1972; NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII, STATE OF HAWAII: 1. That Improvement District Bonds for Improvement District No. 11, Discovery Harbor Subdivision and Adjacent Lands, Waiohinu, District of Ka'u, Hawaii, amounting to $4,600,000.00 (less the total amount of assessments paid on or before April 3, 1972, if any) be and the same are hereby authorized for issuance, and that the officials designated by law including the Director of Finance are hereby directed to execute and issue such bonds, as provided by the Charter of the County of Hawaii and Ordinance No. 350 of the County of Hawaii, as amended. 2. That the bonds of this issue shall be dated May 1, 1972, shall be coupon bonds, shall be without privilege of regis- tration, shall be numbered consecutively, and shall bear interest at the rate of not to exceed eight per centum (8%) per annum payable semiannually on November 1 and May 1; that the bonds will continue to bear interest after maturity at the rate stated therein, provided that they are presented at maturity and payment thereof is refused upon the sole ground that there is not suffi- cient moneys in the redemption fund with which to pay same, and if they are not presented at maturity interest thereon will run only until maturity; that the denominations of said bonds with their respective numbers and dates of maturity shall be as shown on Exhibit "A" hereto attached and made a part hereof by ref- erence (except that in the event any of said assessments are paid on or before April 3, 1972, then Bond No. 1 shall be, if necessary, of the denomination of the number of dollars and cents by which the total amount of assessments so paid is less than an amount evenly divisible by $1,000 and an amount equal to the remaining amount of assessments so paid shall be deleted from Exhibit "A" at the rate of $1,000 per year commencing with the year 1976 and continuing so long as necessary in the following order, to wit: 1978, 1980, 1982, 1984, 1986, 1974 through 1987, and thereafter repeating 1974 through 1987, and with the bond num- bers adjusted to reflect such deletions); that on or after May 1, 1973, all of said bonds except those maturing on May 1, 1972, shall be subject to redemption before maturity at a premium of four -2- RESOLUTION N0. per centum (4/) of the face amount of the bond, whenever suffi- cient funds are available; that said bonds and interest coupons thereof shall be printed or lithographed, and shall contain the provisions substantially set forth herein, and shall be issued in substantially the following form: NO. UNITED STATES OF AMERICA STATE OF HAWAII IMPROVEMENT DISTRICT BOND OF THE COUNTY OF HAWAII IMPROVEMENT DISTRICT NO. 11 DISCOVERY HARBOR SUBDIVISION AND ADJACENT LANDS WAIOHINU, DISTRICT OF KA'U, HAWAII TOTAL ISSUE $ KNOW ALL MEN BY THESE PRESENTS: That, subject to the provisions of Ordinance No. 350 of the County of Hawaii, as amended, and pursuant to proceedings of the Council of the County of Hawaii duly taken thereunder: THE COUNTY OF HAWAII, State of Hawaii, for value re- ceived, hereby promises to pay, the bearer hereof out of the funds hereinafter specified, the sum of DOLLARS ($ ) on the 1st day of May, 19_, together with interest thereon from date hereof at the rate of per centum (_%) per annum, payable semiannually on the Ist day of November and the 1st day of May, upon presentation and surrender of the interest coupons attached hereto as they -3- RESOLUTION rxi. 480 f severally become due, both principal and interest of this bond being payable at the principal office of Bank of America National Trust and Savings Association, San Francisco, California, Paying Agent for this bond. The principal and interest of this bond are exempt from all state, county and municipal taxation in the State of Hawaii, except inheritance, transfer and estate taxes. THE COUNTY OF HAWAII reserves the right to redeem bonds maturing on or after May 1, 1974, on or after the 1st day of May, 1973, as provided in said Ordinance No. 350, as amended; a premium of four per centum (4%) of the face amount of the bond shall be payable upon such redemption. This bond is payable exclusively out of (1) the money to be collected or paid on account of the assessments unpaid as of the 3rd day of April, 1972, being a total sum of $ bearing interest at per centum (_%) per annum as pres- cribed by Ordinance No. 446 of said County of Hawaii, which assessments were levied against property within Improvement District No. 11, Discovery Harbor Subdivision and Adjacent Lands, Waiohinu, District of Ka'u,. Hawaii, in said County of Hawaii, which unpaid assessments are payable in fifteen annual installments, the principal amounts of which correspond each year with the principal amount of bonds of this issue which mature in such year, together with interest at per centum (_—%) per annum from March 3, 1972, and which assessments are severally a lien upon the several properties assessed to the -4- RESOLUTION NO. '180 extent of the amount of the unpaid assessments thereon, respectively, which lien has priority over all other liens except the lien of property taxes, with which tax lien said lien is on a parity; and (2) the money to be placed in a reserve fund, in the initial sum of $644,000.00, pursuant to Resolution No. 432 (1971) of said Council and Section 5.2.1 of said Ordinance No. 350, as amended. THE COUNTY OF HAWAII hereby promises, for valuable consideration, to cause said unpaid assessments to be collected or paid and kept in the Improvement District Bond and Interest Redemption Fund to be applied solely to the payment of interest and principal on the bonds issued for said Improvement District until fully paid, and will otherwise perform all its obligations as required by law. THE COUNTY OF HAWAII does not otherwise guarantee the payment hereof. This bond is not a general debt of the County of Hawaii, nor based upon the credit of the public domain, nor chargeable against the general revenues of said County, nor has it been specifically authorized by the voters of said County as part of a general indebtedness. It is hereby certified and recited that all acts, conditions and proceedings essential to the validity of this bond and required by said Ordinance No. 350, as amended, to be done precedent thereto and in the issuing of this bond, exist, have duly happened and have been performed in regular and due form as required by law. IN WITNESS WHEREOF, the said COUNTY OF HAWAII has -5- RESOLUTION NO. 4SO caused this bond to be executed by its Director of Finance, and to bear the lithographed or engraved facsimile signatures of the Chairman of, this Council and its Clerk and sealed with the Cor- porate Sealof the County of Hawaii, and the interest coupons hereto attached to bear the lithographed or engraved facsimile signature of its Director of Finance, as of the 1st day of May, 1972. COUNTY OF HAWAII By Chairman of Council By Its Director of Finance ATTESTED: Its Clerk (SEAL) (FORM OF COUPON) The County of Hawaii, State of Hawaii will. pay the bearer hereof at the principal office of Bank of America National. Trust and Savings Association, San Francisco, California, Paying Agent for this coupon, the sum shown hereon, being semiannual interest then due on its Improvement District Bond issued for IMPROVEMENT On 1 19 RESOLUTION NO. I'S`) J DISTRICT NO. 11, DISCOVERY HARBOR SUBDIVISION AND ADJACENT LANDS, WAIOHINU, DISTRICT OF KA'U, HAWAII, dated as of May 1, 1972. BOND NO, STANLEY A. NAKAMAE Director of Finance Coupon No. 3. That the principal and interest of said bonds shall be payable at the principal office of Bank of America National Trust and Savings Association, San Francisco, California, Paying Agent for this issue of bonds, solely and exclusively out of the Improvement District Bond and Interest Redemption Fund from all moneys collected on account of assessments and interest due for Improvement District No. 11, Discovery Harbor Subdivision and Adjacent Lands, Waiohinu, District of Ka'u, Hawaii, which shall be designated in the bonds issued hereunder, and the money to be placed in a reserve fund, in the initial sum of $644,000.00, pursuant to Resolution No. 432 (1971) of said Council and Section 5.2.1 of said Ordinance No. 350, as amended; and that moneys in said reserve fund shall be used to pay the principal or interest or both, in whole or in part, on the last outstanding maturity or maturities of said bonds and assessment installments or such portions thereof which would otherwise be collected to make such payment shall be cancelled, provided that in making such use of the reserve fund the Director of Finance shall (a) apportion to assessments paid during the original thirty day period or paid in advance, pursuant to sections 4.3 and -7 180 RESOLUTION NO. 4.7, respectively, of said Ordinance No. 350, as amended, if any, their respective proportionate shares of said moneys, and (b) make provisions for expected delinquencies in payment of any portions of assessment installments which will not be cancelled by such use of said reserve fund, and provided further that in- sofar as said moneys are attributable to fully paid assessments rather than to cancellation of installments or portions thereof, same shall be paid to the respective parties who paid such assessments or the last payment thereon, as the case may be. 4. That with resoect to call and redemption before maturity of any of said bonds moneys in said reserve fund shall not be deemed available therefor (except for the sole purpose of determining whether there are sufficient funds in the hands of the Director of Finance to make the next interest payment on the unpaid balance of said bonds), so that such call and redemption shall be made only from funds in the hands of the Director of Finance by reason of advance payment of assessment installments pursuant to section 4.7 of said Ordinance No. 350, as amended; and that in the event of such call and redemption the Director of Finance shall promptly mail, air mail postage prepaid, to the original purchaser of said bonds, at his last known address, a true copy of the notice published pursuant to section 5.5 of said Ordinance No. 350, as amended, 5, That the Director of Finance of the County of Hawaii is hereby authorized and directed to procure the printing or lithographing of the necessary bonds authorized herein, RESOLUTION NO. ISO substantially according to the foregoing form hereby approved by the Council of the. County of Hawaii; and that said Director of Finance is hereby further authorized and directed on behalf of the County of Hawaii to publish a notice of sale in a news- paper of general circulation published in the County of Hawaii, at least once a week for not less than two successive weeks, that tenders will be received for the purchase of said bonds at the Office of the Treasury Division, Department of Finance, County of Hawaii, at Hilo, Hawaii, up to 10:00 a,m., on March 30, 1972. 6. That the legal opinion of Wilson, Jones, Morton. & Lynch, San Mateo, California, approving the validity of said bonds will be furnished to the successful bidder without charge. 7. That the conditions of sale of said bonds shall be as follows: (1) All bids shall state the price bid per $100.00 par value and shall be for not less than all of the bonds offered; (2) Bids for less than par will not be considered unless a full interest rage of eight per centum (8%) is quoted for all. of the bonds of each maturity; (3) Bidders shall specify the rate of interest which the bonds hereby offered for sale shall bear, and will be per- mitted to bid different rates of interest for different maturi- ties of said bonds (the interest rates stated in the bid may be In multiples of any fraction of 1% per annum); (4) The bonds will be awarded to the highest and best -9- RESOLUTION No. 'I'S 9 bidder considering the interest rate or rates specified and the premium or discount offered, if any; the highest bid will be determined by deducting the amount of the premium bid from, or adding the discount to, the total amount of interest which the County would be required to pay from the date of said bonds to the respective maturity dates at the coupon rate or rates specified in the bid, and the award will be made on the basis of the lowest net :interest cost to the County (the lowest net interest cost shall be computed between the dates aforesaid according to 30 -day month, standard four -decimal bond interest tables); (5) The Council reserves the right in its discretion, to reject any or all bids and to waive any irregularity or informality in any bid; (6) Bids must be unconditional and shall be made according to the form of proposal prepared by the Director of Finance, County of Hawaii; (7) All bids shall be accompanied by a deposit of certified check or cashier's check drawn on a bank doing business within the State of Hawaii, for or in a sum equal to 5% of the par value of the bonds bid for, payable to the Director of Finance, County of Hawaii, provided that when the par value of the bonds bid for exceeds $1,000,000,00, the certified check or cashier's check shall be for $50,000.00 plus 1% of the amount in excess thereof. Check of the suc- cessful bidder willbe applied toward payment for the purchase _10 - RESOLUTION NO. '189 price of the bonds and accrued interest; checks of all unsuc- cessful bidders will be returned immediately after the bid opening or as soon thereafter as the normal course of business allows; and in the event that an award is made to any successful bidder and said bidder fails to pay the balance due in cash upon tender by said Director of Finance of the bonds awarded, the deposit shall be forfeited to the County of Hawaii to be cashed by its Director of Finance and deposited in the special fund for said improvement district; (8) The Councilwill take action authorizing and directing the Director of Finance to accept the highest and best bid, or rejecting all bids, not later than at its next regular meeting following receipt of the tenders, provided that it may take such action thereafter if the successful bidder shall not have given the Council. notice in writing of the withdrawal of such bid. (9) The successful bidder to whom bonds are awarded shall pay to the Director of Finance of the County of Hawaii, in addition to the amount of his bid, a sum equal to the amount of interest accrued on the bonds awarded from their date to the date of payment for the bonds, provided that the bonds are tendered for delivery on their date, and if not so tendered then from the date of their tender to the date of payment; and payment for the bonds must be made by federal funds or by other imme- diately available funds (any expense of making funds immediately -11- RESOLUTION NO.��, available must be borne by the purchaser); (10) Delivery of the fully executed bonds will be made in Hilo, Hawaii, at the expense of the County of Hawaii, as soon as possible as the normal course of business allows, or elsewhere at the expense of the purchaser; the successful bidder shall have the right, at his option, to cancel the contract of purchase if the County shall fail to execute the bonds and tender them for delivery within 60 days from date of sale; and in the event that prior to the delivery of the bonds the income received by private holders from bonds of the same type and character shall be de- clared to be taxable under any Federal Income Tax laws, either by the terms of such laws or by a ruling of a Federal Income Tax authority or official which is followed by the Internal Revenue Service, or by decision of any federal court, the successful bidder may, at his option, prior to the tender of the bonds by the County, be relieved of his obligations under the contract to purchase the bonds. 8. The County hereby covenants that the proceeds of the sale of $4,600,000.00 Improvement District Bonds for Im- provement District No. 11, Discovery Harbor Subdivision and Adjacent Lands, Waiohinu, District of Ka'u, Hawaii, will not be used directly or indirectly in such a manner as to violate Internal Revenue Code section 103(d) as amended by section 601 of P.L. 91-172, 83 Stat. 656, (the Tax Reform Act of 1969) -12- RESOLUTION N0. 1140 'COUNTY OF HAWAII - STATE OF HAWAII Discovery Harbor Subdivision and Adjacent Land Improvement District No, 11 BOND MATURITY SCHEDULE EXHIBIT A RESOLUTION NO. X180 Annual Bond Principal Principal Year of Bond Nos. 'Denomination Amount •Amount •Maturity 1-45 $1,000 $ 45,000 1973 46-56 5,000 55,000 $100,000 57-102 1,000 46,000 1974 103-157 5,000 275,000 321,000 158-203 1,000 46,000 1975 204-258 5,000 275,000 321,000 259-305 1,000 47,000 1976 3o6 -36o 5,000 275,000 322,000 3361-4o6 1,000 46,000 1977 407-461 5,000 275,000 321,000 462-5o8 1,000 47,000 1978 509-563 5,000 275,000 322,000 564-6o 1,000 46,000 1979 6lo-6N 5,000 275,000 321,000 665-711 1,000 47,000 1980 712-766 5,000 275,000 322,000 767-812 1,000 46,000 1981 813-867 5,000 275,000 321,000 868-914 1,000 47,000 1982 915-969 5,000 275,000 322,000 970-1015 1,000 46,000 1983 lol6-1070 5,000 275,000 321,000 1071-1117 1,000 47,000 1984 1118-1172 5,000 275,000 322,000 1173-1218 1,000 46,000 1985 1219-1273 5,000 275,000 321,000 1274-1320 1,000 47,000 1986 1321-1375 5,000 275,000 322,000 1 76-1421 1,000 46,000 1987 1422-1476 5,000 275,000 321,000 Total $4,600,000 EXHIBIT A RESOLUTION NO. X180 and the Temporary Rules construing said section adopted November. 12, 1970, by the Treasury Department, Decision 7072. 1972. Dated at Hilo, Hawaii, this 13th day of march , -13- ROLL CALL VOTE EOtfNtt COUNCIL ROLL County of Hawaii Corpenter r Hilo, Hawaii Da Luz v -T I hereby certify that the foregoing RESOLUTION was by the veto indicated to the right hereof adopted by the COUNCIL of the County of Hawaii am Greemm Hisacka ..................._March 13 127? Souza .....r..r...................................... yadco ATTEST: yomodo Chr. Mr 0\ T.e.e" Suzoci Norbert T. Mn4n oshi Relerenae y COUNTY CLERK CHAIRMAN & PREM G OFFICER M.B. No. RESOWTION NO........._k$0