HomeMy WebLinkAboutORD 1996-078 1994-1996COUNTY OF HAWAII STATE OF HAWAII
Bill No. 274
(Draft 2)
ORDINANCE NO. 96 78
AN ORDINANCE AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $4,000,000
PRINCIPAL AMOUNT OF GENERAL OBLIGATION BONDS OF THE COUNTY OF
HAWAII FOR THE PURPOSE OF FINANCING THE COUNTY'S PORTION OF THE
ACQUISITION OF A FACILITY AND RELATED PROPERTY FOR USE AS OFFICES BY
THE COUNTY AND TO SECURE THE PAYMENT OF A LOAN BY THE UNITED STATES
OF AMERICA, DEPARTMENT OF AGRICULTURE; AND FIXING THE FORM,
DENOMINATIONS, AND CERTAIN OTHER DETAILS OF SUCH BONDS AND
PROVIDING FOR THEIR SALE.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
that:
SECTION 1. Findings and Determinations. It is hereby found and determined
A. It is necessary, advisable and desirable that the County of Hawaii, Hawaii
(the "County") undertake the acquisition of the former J.C. Penney's facility at the
Kaiko'o Mall and related property for the purpose of reconstructing, enlarging, improving
and such facility for use as offices by the County (the "Acquisition");
A. The United States of America acting by and through Department of
Agriculture ("USDA") has offered to make a loan, at one time or from time to time (the
"Loan"), in the principal amount not to exceed Four Million Dollars ($4,000,000) to the
County under the Federal Consolidated Farm and Rural Development Act to pay part of
the cost of the Acquisition, it being the expectation that the Loan shall bear interest at the
rate not to exceed four and seven -eighths percentum (4-7/8 %) per annum;
and
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B. It is advisable and desirable for the County to obtain the Loan from USDA;
C. It is necessary, advisable and desirable that to secure the payment of the
Loan the County authorize, issue and dispose of to USDA general obligation bonds of the
County in a principal amount equal to the principal of the Loan obtained by the County
from USDA.
SECTION 1. Authorization of Bonds. There are hereby authorized for issuance
and sale general obligation bonds of the County (the "Bonds") in the principal amount not to
exceed Four Million Dollars ($4,000,000), the proceeds derived from the sale of which shall be
used to pay the County's portion of the cost of the Acquisition, appropriations for which have
been made in Ordinance No. 94-70, the Capital Budget Ordinance for the fiscal year ending
June 30, 1995-.
SECTION 2. Details of Bonds. To secure the payment of the Loan from USDA,
the Bonds authorized for issuance and sale in Section 2 hereof shall be issued and sold to USDA
in their entirety at one time as a separate series of general obligation bonds of the County or from
time to time in series, all as shall be determined by the Director of Finance of the County to be
in the best interest of the County. The Bonds of a series 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.
135589.1 017401 ORD
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 not later than five years from the date of the Bonds of such series and the
last of such maturities to be not later than twenty-five years from the date of the Bonds of such
series, may be redeemable prior to their stated maturity thereof at any time at prices not exceeding
105 % of the principal amount thereof, and shall bear interest at such rate or rates per annum as
may be agreed to with USDA but in no event exceeding seven per centum (7 %) per annum. 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 payment dates and the maturity dates of the Bonds of such
series; the amount of principal of the Bonds of such series 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 their 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.
SECTION 3. Redemt)tio-n of Bonds. In the event any of the Bonds shall be subject
to prior redemption and if any Bond (or portion thereof in installments which are integral
multiples of the smallest denomination 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
135589.1 017401 ORD
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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 4. 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 5. Execution and Form of Fully Registered Bonds. The Bonds shall
be lithographed or steel engraved, typewritten, printed or otherwise reproduced as the Director
of Finance of the County shall determine. The Bonds shall bear the facsimile signatures of the
Director of Finance and of the Mayor of the County and shall be sealed with the seal or a
lithographed, engraved or other facsimile seal of the County; provided, however, the Director of
Finance may, at his election, provide for manual signatures upon the Bonds. The Director of
Finance may, at his election, prepare such number of blank Bonds of any series executed and
sealed as aforesaid as he shall determine and deliver such executed blank Bonds to the registrar
for such series for safekeeping prior to the time such Bonds are actually issued, exchanged or
transferred. In the event the Director of Finance shall elect to appoint a registrar for the Bonds
of a particular series pursuant to Section 3, the Director of Finance shall direct the registrar for
the Bonds of such series to register and authenticate such Bonds and no such Bond shall be valid
135589.1 017401 ORD
or obligatory for any purpose unless and until the certificate of authentication endorsed on such
Bond shall have been manually executed by such registrar.
The Bond shall be designated and the form of the Bonds, the registrar's certificate
of authentication and the assignment shall be substantially as follow, with such appropriate
insertions, variations and omissions as are required with respect to a particular series of the Bonds,
book -entry provisions, single instrument provisions or other provisions:
[FORM OF BOND]
"(Vignette)
UNITED STATES OF AMERICA
COUNTY OF HAWAII
STATE OF HAWAII
SERIES
(Number)
INTEREST MATURITY DATE OF
RATE: DATE: BSD• CUSIP:
REGISTERED HOLDER:
PRINCIPAL SUM:
DOLLARS
The COUNTY OF HAWAII, State of Hawaii (the "County"), for value received,
hereby promises to pay the Registered Holder (named above), or registered assigns, on the
135589.1 017401 ORD
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Maturity Date (specified above) (unless this bond shall be subject to prior redemption and shall
have theretofore been duly called for previous redemption and payment of the redemption price
duly made or provided for), the Principal Sum (specified above), and to pay interest on such
Principal Sum semiannually on and on of each year, commencing on
(each such date is hereinafter referred to as an "interest payment date"), from the
date hereof or from the interest payment date next preceding the date of registration hereof to
which interest shall have been paid, unless such date of registration is an interest payment date,
in which case, from such interest payment date, or unless such date of registration is within the
period from the sixteenth (16th) day to the last day of the calendar month next preceding the
following interest payment date, in which case from such following interest payment date, such
interest to be paid until the maturity or redemption hereof at the Interest Rate (specified above)
per annum, by check mailed by the Paying Agent hereinafter mentioned to the holder hereof in
whose name this bond is registered upon the Bond Register as of the close of business on the
fifteenth (15th) day (whether or not a business day) next preceding each interest payment date at
his address as it appears on the Bond Register hereinafter mentioned. The principal of and
premium, if any, on this bond are payable on presentation and surrender hereof at the
office of the Registrar and Paying Agent, in , or at the office of its successors
from time to time appointed by the County. Principal of, and premium, if any, and interest on
this bond are payable in any coin or currency of the United States of America which, on the
respective dates of payment thereof, shall be legal tender for public and private debts.
135589.1 017401 ORD
This bond is one of a series of bonds entitled "Public Improvement Bonds,
Series ". The bonds of the series of bonds of which this bond is one maturing ,
and thereafter are subject to redemption at the option of the County prior to the respective stated
maturities thereof, on and after I , in whole and in part at any time and in any order
of maturity selected by the County, 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 Provisions] . If less than all of the bonds of any
maturity are called for redemption, the bonds of such maturity to be redeemed shall be selected
by lot.
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. The County may, at its sole election, in addition to the giving of notice of such
redemption by mail, give such notice by publication not less than thirty (30) days prior to the date
fixed for the redemption hereof of one such notice in The Bond Buyer, a financial paper published
135589.1 017401 ORD
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in the City of New York, New York or, in lieu of such publication in The Bond Buyer, by
publication thereof in some other financial paper published in any of the cities of New York, New
York, Chicago, Illinois, or San Francisco, California. If this bond be of a denomination in excess
of $5,000, portions of the principal sum hereof in installments of $5,000 or any integral multiple
thereof may be redeemed, and 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 any portion of the principal sum hereof) be redeemable and shall
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 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 his duly authorized
135589.1 017401 ORD
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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 his duly authorized attorney,
which may be the form endorsed hereon) and subject to the limitations and upon payment of the
charges, if any, provided from time to time by the County 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 one of a series of bonds authorized by the Council of the County to
be issued to provide funds for all or parts of appropriations for certain public improvements made
in the Capital Budget Ordinance for the fiscal years ending June 30, . This bond and the
series of which it is a part are 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, 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.
135589.1 017401 ORD
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.
IN WITNESS WHEREOF, the COUNTY OF HAWAII, State of Hawaii has
caused this bond to be signed by the lithographed facsimile of the signatures of its Director of
Finance and of its Mayor, and to be sealed with the lithographed facsimile of the seal of the
County of Hawaii, and this bond to be dated as of the day of , 19 .
[SEAL]
[FACSIMILE SIGNATURE]
Director of Finance
[FACSIMILE SIGNATURE]
Mayor"
135589.1 017401 ORD
[FORM OF CERTIFICATE OF AUTHENTICATION]
"CERTIFICATE OF AUTHENTICATION
This bond is one of the bonds described in the within -mentioned proceedings of the County of
Hawaii, State of Hawaii.
Date of Registration:
, Registrar
By [MANUAL SIGNATURE]
Authorized Officer or Signatory"
135589.1 017401 ORD
[FORM OF INSTRUMENT OF ASSIGNMENT]
"INSTRUMENT OF 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, or in the office of its successors with full power of substitution in the
premises.
Date:
Signature Guaranteed:
(name of assignor)
(name of signature guarantor)
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 of any change
whatsoever. "
SECTION 6. Sale of Bonds. To secure the payment of the Loan from USDA,
without any further authorization from or action by this Council but subject to the provisions
135589.1 017401 ORD
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hereof and of applicable law, the Director of Finance is hereby authorized to issue and sell the
Bonds at one time, or from time to time in series, at 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 he 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 or of
portions of the Bonds to secure the payment of the Loan from USDA, 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 he 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 agreement with USDA
pursuant to which the Loan shall be made and the Bonds or portions thereof shall be issued to
secure the Loan, in each case in such form and containing such terms and conditions as he shall
approve and deem advisable, and to distribute an Official Statement and such other information
relating to the Bonds as he 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 loan agreements approved. The Mayor, the 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 or
any portion thereof, and, if any loan agreement therefor be approved, the preparation, execution
and delivery thereof, in accordance with the provisions hereof and applicable law.
SECTION 7. 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
135589.1 017401 ORD
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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 8. CUSIP Identification Numbers. The Director of Finance may
authorize the printing of CUSIP identification numbers upon the Bonds or the Notes. Such
numbers and the printing thereof shall be subject in all respects to the provisions of Section 47-10,
Hawaii Revised Statutes, as amended.
SECTION 9. Bond Insurance. The Director of Finance of the County, subject to
applicable law, is hereby authorized to procure, determine and provide for any insurance
provisions respecting the Bonds, or any portion thereof, as he shall determine to be in the best
interest of the County, including without limitation, the selection of the bond insurer, the payment
of insurance premium or related fees and the printing of any statement with respect to such
insurance upon such Bonds.
SECTION 10. 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.
135589.1 017401 ORD
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SECTION 11. Effective Date. This ordinance shall take effect upon its approval.
Hilo, Hawaii
Date of Introduction: June 3 , 1996
Date of Adoption: June 19, 1996
Effective Date: June 27, 1996
REMENCE: Comm. .255-03
as to
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Com:`,," y 3[ HAVVAH
j o N ' i 1996
Date------------------------------------------ -----
INTRODUCED BY:
135589.1 017401 ORD
0
Introduced By:
Date Introduced:
First Reading:
Published:
REMARKS:
Second Reading:
To Mayor:
Returned:
Effective:
Published
REMARKS:
Brian De Lima
June 3, 1996
June 3, 1996
June 10, 1996
June 19, 1996
June 20, 1996
June 27, 1996
June 27, 1996
July 8, 1996
OFFICE OF THE COUNTY CLERK
County of Hawaii
Hilo , Hawaii
(DRAFT 2+ i. i ; i
I DO HEREBY CERTIFY that the foregoing BILL was adopted by the County Council and publi a'
indicated above.
COUNCIL CHAIRMAN
z� /40�
COUNTY CLERK
Approved/ -d this 21
day
Bill No.: 274 (Draft 2 )
Reference: C-255.02/FC-262
Ord. No.: !36 7N
ROLL CALL VOTE
AYES NOBS ABS EX
Arakaki
X
Bonk -Abramson X
Childs
X
De Lima
X
Domingo
X
Osorio
X
Rath
X
—RaY
X
Smith
X
X
9 t-0 0 0
I DO HEREBY CERTIFY that the foregoing BILL was adopted by the County Council and publi a'
indicated above.
COUNCIL CHAIRMAN
z� /40�
COUNTY CLERK
Approved/ -d this 21
day
Bill No.: 274 (Draft 2 )
Reference: C-255.02/FC-262
Ord. No.: !36 7N
ROLL CALL VOTE
AYES NOES ABS EX
Arakaki
X
Bonk -Abramson
X
Childs
X
De Lima
X
Domingo
X
Osorio
X
Rath
X
Ray
X
Smith
X
8 t-0 1 1 1 0
I DO HEREBY CERTIFY that the foregoing BILL was adopted by the County Council and publi a'
indicated above.
COUNCIL CHAIRMAN
z� /40�
COUNTY CLERK
Approved/ -d this 21
day
Bill No.: 274 (Draft 2 )
Reference: C-255.02/FC-262
Ord. No.: !36 7N