HomeMy WebLinkAboutRES 564 Draft 01 1969-1972County of Hawaii—State of Hawaii
Resolution No,. 564
RESOLUTION OF THE COUNCIL OF THE COUNTY OF HAWAII
DECLARING ITS INTENTION TO SELL BONDS OF THE COUNTY FOR
IMPROVEMENT DISTRICT NO. 10, KALOKO MAUKA, NORTH KONA,
HAWAII THEREOF, IN THE AMOUNT OF NOT TO EXCEED
$4,200,000, FIXING TIME AND PLACE FOR TAKING BIDS AND
DIRECTING PUBLICATION OF NOTICE INVITING BIDS.
WHEREAS, this Council of the County of Hawaii
deems it proper and the necessity therefor appears that
bids be invited for bonds of the County of Hawaii for
Improvement District No. 10, Kaloko Mauka, North Kona,
Hawaii in the amount of not to exceed $4,200,000, and
that if bids are satisfactory said bonds be sold in the
manner and at the time and place hereinafter set forth;
NOW, THEREFORE, the Council of the County of
Hawaii DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows:
Section 1. That proposals for the purchase of
bonds of said County for said Improvement District in the
amount not to exceed $4,200,000 be received by this Council
at the Treasury Division, Department of Finance, County
of Hawaii, Hilo, Hawaii, on November 8, 1972, up to the
hour of 10:00 o'clock A.M.
Section 2. That the Director of Finance is
hereby authorized and directed to publish notice invit-
ing such sealed proposals in a newspaper of general
circulation published in the County of Hawaii at least
once a week for not less than two successive weeks.
Section 3. That said notice shall be sub-
stantially as follows:
NOTICE INVITING BIDS ON IMPROVEMENT
DISTRICT BONDS OF THE COUNTY OF
HAWAII FOR IMPROVEMENT DISTRICT NO.
10, KAL O KO MAUKA , NORTH KO NA , HAWA I I
NOTICE IS HEREBY GIVEN that the Council of the
County of Hawaii, State of Hawaii, will receive sealed
bids for the purchase of the following described bonds
at the office of the Treasury Division, Department of
Finance, County of Hawaii, at Hilo, Hawaii, up to 10:00
a.m. , on November 8, 1972.
Mailed bids should be addressed to "Council of
the County of Hawaii", c/o Director of Finance, County of
Hawaii, 25 Aupuni Street, Hilo, Hawaii 96720.
The bonds to be sold will be bonds secured by
unpaid assessments to be levied upon the lands within
Improvement District No. 10, Kaloko Mauka, North Kona of
said County to pay the cost of the certain improvement
work in said County, are authorized by proceedings taken
pursuant to Ordinance No. 350, as amended, of the County
of Hawaii, and are to be issued pursuant to said ordinance
and Ordinance No. 524 of the County of Hawaii. Said bonds
shall be in $1,000 and $5,000 denominations, except for
Bond No. 1 which may be in an odd amount, and shall not
exceed the aggregate amount of $4,200,000. The exact
principal amount of bonds to be issued shall be determined
on or after November 6, 1972, said date being the date on
which it is estimated the cash collection period shall end.
In any event, the bonds shall mature over a period commencing
on November 15, 1972, and ending November 15, 1987, and in
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RESOLUTION N0. 564
such amounts annually that to the greatest extent possible,
annual payments of principal and interest over the term of
the bonds shall be approximately equal. A sample maturity
schedule is attached as Exhibit A. Said bonds will be
dated November 15, 1972, and bear interest from that date
at a rate of not to exceed eight per cent (8%) per annum.
Interest shall be payable semi-annually on May 15 and
November 15 commencing May 15, 1973. The provisions of
Ordinance No. 350, as amended, of the County of Hawaii
shall apply to said bonds and govern as to the issuance,
collection and enforcement thereof.
The bonds maturing on or after November 15, 1974
are subject to redemption on November 15, 1973 and annually
thereafter upon payment of the principal amount thereof,
plus accrued interest, plus a premium of one-half of one
per cent (1/2%) of the principal amount thereof plus one-
half of one per cent (1/2%) of the principal amount
thereof for each year from the date of redemption to date
of maturity, but not to exceed five per cent (5%) .
The payment of each of said bonds will be
secured by valid assessment liens upon lands within said
Improvement District No. 10, Kaloko Mauka, North Kona.
In the event of default in the payment of any install-
ment
nstall-
ment of any assessment securing said bonds the Director
of Finance shall, within 120 days, commence to advertise
and sell the land upon which said assessment is a lien
at delinquent sale in the same manner in which real
property in the County in which the land lies is sold
for the nonpayment of general taxes. The bonds shall be
payable only out of the moneys.collected on account of
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RESOLUTION N0. 564
assessments made for the improvement for which they are
issued or from the reserve fund established pursuant to
Section 5.2.1 of Ordinance No. 350, as amended, in the
event that the moneys collected out of assessments are
insufficient to pay the bonds or the interest thereon
as they become due, and the County shall not otherwise
guarantee payment of any bonds issued under the provisions
of this ordinance; provided that interest payments may
be advanced by the Council temporarily out of any moneys
available in the County treasury.
PAYMENT: Both principal and interest are
payable in lawful money of the United States of America
at the office of the Director of Finance of the County
in Hilo, Hawaii, or, at the option of the bondholder,
at the offices of the paying agents of the County in Hilo,
Hawaii, Los Angeles or San Francisco, California, New York,
New York or Chicago, Illinois. The successful bidder may
at his option designate in his bid the paying agent for
the bonds in Hilo, Hawaii, provided that any such paying
agent must be a bank or trust company duly qualified in
Hawaii and a designated depositary of the County of Hawaii
and having an office in Hilo, Hawaii, and whose fees and
charges for serving as such paying agent are satisfactory
to the County. If the successful bidder fails to designate
in his bid a Hilo, Hawaii paying agent for the bonds, the
County will designate such paying agent, which will be a
bank or trust company meeting the foregoing qualifications.
The Hilo, Hawaii paying agent shall in turn designate the
Los Angeles, San Francisco, Chicago and New York paying
agents for the bonds.
CM
RESOLUTION N0.
564
FORM OF BONDS: The bonds will be coupon bonds
without the privilege of registration.
TERMS OF SALE
Interest: The maximum rate bid may not exceed
eight per cent (8%) per annum, payable semiannually.
Each rate bid must be a multiple of 1/20th of 1%. No
bond shall bear more than one interest rate, and all
bonds of the same maturity shall bear the same rate.
Each bond must bear interest at the rate specified in
the bid from its date to its fixed maturity date. Only
one coupon will be attached to each bond for each in-
stallment of interest thereon, and bids providing for
additional or supplemental coupons will be rejected.
The interest rate on any maturity or group of maturities
shall not be more than two per cent ( 2%) higher than the
rate on any other maturity or group of maturities.
Award: The bonds shall be sold for cash only
and at a price equal to or above or below their par
value, except that any discount bid shall not exceed 2%
of par value of the bonds. All bids must be for not
less than all of the bonds hereby offered for sale and
each bid shall state the total price offered for the
bonds, the premium or discount, if any, accrued interest
to the date of delivery, and the interest rate or rates
not to exceed those specified herein, at which the bidder
offers to buy said bonds. Each bidder shall state in his
bid the total net interest cost in dollars and the average
net interest rate determined thereby, which shall be
considered informative only and not a part of the bid.
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RESOLUTION N0. 564
Highest Bidder: The bonds will be awarded to
the highest and best bidder considering the interest
rate or rates specified and the premium or discount
offered, if any; 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
speci f ied 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) . The cost of print-
ing the bonds will be borne by the County of Hawaii.
Right of Rejection: The Council reserves the
right, in its discretion, to reject any and all bids
and to the extent not prohibited by law, to waive any
irregularity or informality in any bid.
Prompt Award: The Council will take action
authorizing and directing the Director of Finance to
accept the highest and best bid, or rejecting all bids,
not later than 26 hours 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. The amount of
bonds to be issued and the maturities of said bonds shall
be determined on or after November 6, 1972, which date
shall be the date on which the cash collection period ends.
Place of Delivery; Payment: Delivery of said
bonds will be made to the successful bidder in Los Angeles,
California, at such place as is mutually agreed upon by
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RESOLUTION N0.
the County and the purchaser. 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; and payment for the bonds must be
made by federal funds or by other immediately available
funds (any expense of making funds immediately available
to be borne by the purchaser) .
Prompt Delivery, Cancellation for Late Delivery:
It is expected that said bonds will be delivered to the
successful bidder as soon as possible as the normal course
of business allows. 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 ten-
der them for delivery within sixty days from the date
herein fixed for the receipt of bids, and in such event
the successful bidder shall be entitled to the return
of the check accompanying his bid.
Form of Bid: Each bid, together with the bid
check, must be in a sealed envelope, addressed to the
County, with the envelope and bid clearly marked:
"Proposal for Improvement District No. 10, North Kona."
Bids must be unconditional and shall be made according
to the form of proposal prepared by the Director of
Finance, County of Hawaii.
Bid Check: 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,
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RESOLUTION NO. 564
for or in a sum equl to $100,000, payable to the
Director of Finance, County of Hawaii. The check of
the successful bidder will be applied toward payment
for the purchase price of the bonds and accrued interest;
checks of all unsuccessful 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.
Change in Tax Exempt Status: At any time
before the bonds are tendered for delivery, the suc-
cessful bidder may disaffirm and withdraw the proposal
if the interest received by private holders from bonds
of the same type and character shall be declared to be
taxable income under present federal income tax laws,
either by a ruling of the Internal Revenue Service or
by a decision of any federal court, or shall be declared
taxable or shall be required to be taken into account
in computing any federal income taxes by the terms of
any federal income tax law enacted subsequent to the
date of this notice.
Legal Opinion: The unqualified opinion of
O'Melveny & Myers, attorneys, approving the validity
of said bonds will be furnished the successful bidder
RESOLUTION NO. 564
at or prior to the date of delivery of the bonds, at
the expense of the County. A copy of such opinion,
certified by an officer of the County by his facsimile
signature will be printed on the back of each bond.
No charge will be made to the purchaser for such
printing or certification.
The unqualified opinion of said attorneys that
interest on the bonds is exempt from income taxes of the
United States of America under present federal income
tax laws, and that such interest is also exempt from
personal income taxes of the State of Hawaii under
present state income tax laws, will also be furnished
the successful bidder at or prior to the time of de-
livery of the bonds, at the expense of the County.
No Litigation Certificate: At the time of
payment for and delivery of said bonds the County will
furnish the successful bidder a certificate that there
is no litigation pending affecting the validity of the
bonds.
INFORMATION AVAILABLE:
Requests for informa-
tion concerning the County should be addressed to:
Stone & Youngberg
Municipal Financing Consultants, Inc.
1541 Wilshire Blvd.
Los Angeles, California 90017
l•YdA
Director of Finance
County of Hawaii
25 Aupuni Street
Hilo, Hawaii 96720
RESOLUTION NO.
GIVEN by order of the Council of the County
of Hawaii in accordance with Resolution No.
of said Council adopted on the day of
1972.
Director of Finance
County of Hawaii
Section 4, That the Director of Finance is
further authorized and directed to cause to be furnished
to prospective bidders copies of the notice inviting
proposals and of any official statement respecting the
bonds and to cause notice of sale to be published in a
financial newspaper or journal of his choice; but the
failure, in whole or in part, to comply with this sec-
tion shall not in any manner affect the validity of the
sale of said bonds.
ADOPTED, SIGNED AND APPROVED this 11 th day of
October. 1972, in Hilo, Hawaii
INTRODUCED BY:
COUNTY COUNCIL
County of Hawaii
Hilo, Hawaii
I hereby certify that the foregoing RESOLUTION was by the vote indicated to
the right hereof adopted by the COUNCIL of the County of Hawaii on.
ATTEST:
Tadashi Suzuki
COUNTY CLERK
.............. October ...11,...1.W2...............................
t::�4 Herbert T. Matay i
CHAIRMAN & PRE ING OFFICER
ROLL CALL VOTE
AYES NOES A/E
Carpenter
De Luz
Edwards
X
Greenwell
X
Hisaoka
X
Souza
Yadoo
X
X
Yamada
Chr. Mata oshi
::8 1 0
Reference•Pwc-89
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M.B. No................................................................
RESOLUTION NO. ................... .....................
EXHIBIT A
COUNTY,Or "
HAWAII
STATE. 01" HAVIAII
V7-,V,E.',\,-,,T DISri'll A. TO. 10
IMPROA -j -� I C r, " 1,,
OND MATUl IlTY SCFIZ
B N EDULE
$1,000
Denominations
$5, 000 Denominations
Year
!kmount
Bored -N,0's
Amount
Bond No's.
1973
$ 51000
1-5
$ 145,000
6-34
.1974
5,000
35-39
165,000
40-72
1975
5,f000
73-77
175,000
78-112
1976
5"000
113-117
185, 000118-154
1977
5, 000
155-159
205,000
160-200
1978
5,000
201-205
225,000
206-250
1979
51000
251-21155
245,000
256-304
1980
51000
305-309
255,000
310-360
1981
5, 000
361-30"5
285'r,000
366-422
1982
5r000
423-427
305'000
428-488
1983
5,000
489-493
325,000
494-558
1984
5, 000559-563
'355,000
564-634
1985
51000
635-6319
385,000
640-716
1980
5,f000
717-721
4151000
722-804
1987
5/000
805-809
4551(000
810-900
Taal
$ 75,000
$4,125,000
EXHIBIT A