HomeMy WebLinkAboutChapter 12 Improvements by Assessments
CHAPTER 12
IMPROVEMENTS BY ASSESSMENTS
Article 1. General Provisions.
Section 12-1. Definitions.
Section 12-2. Method; authority to issue bond.
Section 12-3. Repealed.
Section 12-4. Improvements outside designated districts.
Section 12-5. Lands exempt from taxation; costs.
Section 12-6. Powers reserved to council.
Section 12-7. Costs advanced and borne by owners and County.
Section 12-8. Limitation on time to sue.
Section 12-9. Ratification and validation.
Article 2. Procedure.
Section 12-10. Initiation by council; study of proposed improvement; adoption of
improvement; hearing.
Section 12-11. Report of responsible director or manager.
Section 12-12. Filing of protests.
Section 12-13. Waiver of objections.
Section 12-14. Petition by sixty percent of owners.
Section 12-15. Petition by twenty percent of owners.
Section 12-16. Petition by owners of one hundred percent of frontage or area.
Section 12-17. Determination by council.
Section 12-18. Resolution to define extent of improvement.
Section 12-19. Responsible director or manager to prepare map showing
improvements, details, plans and specifications.
Section 12-20. Plans and specifications from cooperating department.
Section 12-21. Land acquisition; procedure; cost; condemnation award.
Section 12-22. Construction of water system; inspections; costs borne by County.
Section 12-23. Repealed.
Section 12-24. Bidding; award of contract.
Section 12-25. Repealed.
Section 12-26. Contract for off-site water facilities.
Section 12-27. Corrected map; preliminary assessment roll and description;
notice of authorized improvement.
Section 12-28. Combination hearings; applicable proceedings.
Section 12-28.1. Termination of improvement districts.
Article 3. Assessments.
Section 12-29. Assessments fixed by ordinance; owner application to pay reduced
assessment.
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Section 12-30. Amended assessments upon consolidation or subdivision.
Section 12-31. Notice and collection of assessments.
Section 12-32. Assessment as lien; order of priority; mistakes or errors.
Section 12-33. Due date of payments; election to pay by installments.
Section 12-34. Payment of installments.
Section 12-35. Advance payment of assessment installment.
Section 12-36. Installment collection expense.
Section 12-37. Payment in bonds.
Section 12-38. Failure to pay installments.
Section 12-39. Owner of undivided interest.
Section 12-40. Sale for default.
Section 12-41. Purchase at sale.
Section 12-42. Certificate of balance due.
Section 12-43. Sale of land by director; terms.
Article 4. Finance and Payment.
Section 12-44. Improvement bonds authorized.
Section 12-45. Contents of bonds.
Section 12-46. Execution of bonds; records; funds for payment.
Section 12-47. General obligation bonds and special assessment revolving fund.
Section 12-48. Exemption of general obligation bonds from certain requirements.
Section 12-49. Special fund for administrative and pre-formation costs and
payment of bonds; use of surplus; insufficient funds.
Section 12-50. Reserve fund.
Section 12-51. Repealed.
Section 12-52. Place of payment of bonds.
Section 12-53. Sale of bonds; use as payment to contractor.
Section 12-54. Payment of bonds.
Section 12-55. Repealed.
Section 12-55.1. Exemption from taxes.
Section 12-56. Bonds not chargeable against general revenue.
Section 12-57. Errors in computation of amount due.
Article 5. Refunding.
Section 12-58. Refunding authorized.
Section 12-59. Initiation of refunding.
Section 12-60. Protest against refunding.
Section 12-61. Determination by council.
Section 12-62. Refunding bonds.
Section 12-63. Petition by all owners.
Section 12-64. Cancellation of retired bonds.
Section 12-65. Obligations unimpaired.
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I MPROVEMENTS B Y A SSESSMENTS§12-1
CHAPTER 12
IMPROVEMENTS BY ASSESSMENTS
Article 1. General Provisions.
Section 12-1. Definitions.
As used in this chapter:
“Affected assessment unit” means an assessment unit determined, pursuant to
sections 12-2(b), 12-18 and 12-29(a), to be an affected assessment unit with respect to a
reasonably anticipated future change in classification or use that will result in
increased special benefits conferred on such assessment unit.
“Assessment unit” means, with respect to a special assessment, a subdivided parcel
of land and/or condominium unit that will be subject to such special assessment;
provided, however, that every assessment unit shall have a unique tax map key
number.
“Condominium unit” means an “apartment” as defined in section 514A-3, Hawai‘i
Revised Statutes, and may include, if so determined by the council, the common
elements and/or limited common elements appurtenant thereto, as set forth in the
declaration of condominium property regime or horizontal property regime which
created such apartment.
“Cooperating department” means a department of the County, other than the
responsible department, that undertakes or supervises the construction and installation
of a portion of the special improvements for an improvement district.
“Cost” means the cost, either estimated or actual, as the case may be, of the
improvements to be opened, constructed or improved in proceedings taken pursuant to
this chapter for which assessments are to be levied. There may be included within the
definition of “cost,” amounts for construction contingencies, bond discounts, reserve
funds, capitalized interest, and incidentals.
“Improvement district” means any contiguous or noncontiguous area within the
County which has been designated by the council as an improvement district for the
purposes of this chapter.
“Incidentals” means expenses in carrying out proceedings pursuant to this chapter
for:
(1) Preparation of maps, notices, and other documents;
(2) Posting, mailing and publication costs;
(3) Preparation and printing of bonds, bond registers and transfer books;
(4) Fees of financial, legal, engineering and surveying consultants; and
(5) Such other administrative or miscellaneous expenses which relate directly to
the proceedings.
“Owner” of an assessment unit means the person to whom the real property tax for
such assessment is assessed, as shown on the real property tax assessment roll,
regardless of whether such person is exempt from the payment of such tax.
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§ 12-1H AWAI‘I C OUNTY C ODE
“Premium” means:
(1) An amount payable by a property owner at the time the owner makes an
advance payment of unpaid installments of the assessment in accordance with
the provisions of section 12-35 (Advance payment of assessment installment)
which amount is in addition to the unpaid principal amount the owner’s
assessment and the interest thereon to the next date for the payment of
installments;
(2) An amount payable to the holder of a bond issued pursuant to this chapter
which is called by the director of finance for payment before maturity in
accordance with the provisions of section 12-54 (Payment of bonds), and which
is in addition to the face amount of such bond and the interest thereon payable
to such bondholder; or
(3) An amount paid by the purchaser of the bonds in excess of the par value of the
bonds.
“Responsible department” means: (1) in the case of a water system improvement
district, the department of water supply of the County; (2) in the case of a sewer system
improvement district, the department of environmental management of the County; and
(3) in all other cases, the department of public works of the County or, if applicable,
such other department of the County as shall have primary responsibility for
undertaking or supervising the construction and installation of the special
improvements for the improvement district in question.
“Responsible director or manager” means the director or manager of the responsible
department.
“Special improvement,” “improvement,” “the making of a special improvement,”
“make any special improvement” and equivalent expressions include any one or any
combination of the following:
(1) The establishment, opening, extension, widening, or altering of any street,
alley, or other highway or sidewalk;
(2) The grading, paving, curbing, or otherwise improving of the whole or any part
of any existing public street, alley, or other highway or sidewalk;
(3) The construction of a storm drainage facility;
(4) The construction of a street lighting system;
(5) The construction of a water system;
(6) The construction and installation of underground or overhead utility facilities
including gas, electrical, telephone or television facilities, and the removal,
relocation, replacement or reconstruction thereof;
(7) The establishment, extension, or construction of public off-street parking
facilities, pedestrian malls, parks, playgrounds, beach areas, or other public
recreational areas and facilities;
(8) Improvements related to the foregoing, and to otherwise improve any of the
foregoing to an extent exceeding maintenance or repair thereof;
(9) Any other public improvement, which will specially benefit the assessment
units to be assessed.
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I MPROVEMENTS B Y A SSESSMENTS§12-1
“Sewer system improvement district” means an improvement district in which the
improvements to be made are exclusively those to construct a sewer system or upgrade
an existing sewer system, including the restoration of roadways or other facilities
incidental to such construction or upgrading.
“Storm drainage facility” includes “sanitary sewerage system.”
“Water system improvement district” means an improvement district in which the
improvements to be made are exclusively those to construct a water system or upgrade
an existing water system, including the restoration of roadways or other facilities
incidental to such construction or upgrading.
(1983 CC, c 12, art 1, sec 12-1; am 1990, ord 90-127, sec 1; am 1995, ord 95-22, sec 2; am
2002, ord 02-82, sec 2; am 2011, ord 11-66, sec 2; am 2020, ord 20-7, sec 2.) 12-1
Section 12-2. Method; authority to issue bond.
(a) Whenever in the opinion of the council it is desirable to make any special
improvement in any improvement district, the special improvement shall be made
and done under the provisions of this chapter. The cost of the special improvement
including the cost of acquiring (whether prior to or after the commencement of the
proceedings for such improvements) any new land therefor, shall be assessed
against the assessment unit specially benefited on the basis of any method or
methods which the council finds assesses the assessment unit according to the
special benefits conferred thereon, which may include, without limitation, any of
the following:
(1) Frontage;
(2) The area of the assessment unit;
(3) The permissible number of dwelling units permitted on each parcel under
applicable zoning provisions;
(4) The amount of water allotted to each assessment unit;
(5) Minimum required sewer capacity of the assessment unit;
(6) Traffic generation/usage for road improvements;
(7) The square footage of buildings and/or other improvements; or
(8) Any other method that the council finds assesses said assessment units
according to the special benefits conferred on said assessment units or any
combination thereof.
(b) Any provision or section to the contrary notwithstanding, in determining the
applicable method of assessment for any improvement district under subsection (a)
above, the council may, in its discretion, give consideration to the following, if
applicable:
(1) In the case of assessment units or classes of assessment units having different
uses which affect the nature or extent of the special benefits to be conferred
thereon by the proposed special improvements, the method of determining the
assessments against such assessment units or classes of assessment units may
vary based on their respective uses to the extent that the council deems
appropriate in order to reflect the special benefits conferred thereon.
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§ 12-2H AWAI‘I C OUNTY C ODE
(2) In addition, if a change in classification or use is reasonably anticipated with
respect to specified assessment units that will result in increased special
benefits conferred thereon, the council may designate such assessment units
as affected assessment units with respect to the anticipated change in
classification or use, in which case the assessments against such affected
assessment units shall be subject to change upon the effectiveness of the
anticipated change in classification or use to reflect the increased special
benefits; provided that the change in assessments on the affected assessment
units is authorized in the resolution creating the improvement district
pursuant to section 12-18 and the ordinance fixing the assessments for the
improvement district pursuant to section 12-29.
(c) The County may issue and sell bonds to provide the funds for such improvements,
which bonds shall be secured by such assessments as a lien upon the assessment
units assessed. For such purpose, the council may create, define and establish
improvement districts, all according to the provisions of this chapter.
(1983 CC, c 12, art 1, sec 12-2; am 1990, ord 90-127, sec 1; am 2002, ord 02-82, sec 3; am
2020, ord 20-7, sec 3.)12-2
Section 12-3. Repealed.
(1983 CC, c 12, art 1, sec 12-3; rep 1990, ord 90-127, sec 2.) 12-3
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§ 12-4H AWAI‘I C OUNTY C ODE
Section 12-4. Improvements outside designated districts.
(a) Improvements which may be outside the improvement district boundaries but
which confer special benefits on assessment units within the improvement district
may be included as part of the special improvements in the improvement district
and the cost thereof shall be assessed as provided in this chapter.
(b) The cost of improvements described in section 12-4(a) which benefit more than one
improvement district shall be apportioned among the affected improvement
districts according to the special benefits conferred upon the assessment units
within said improvement districts.
(1983 CC, c 12, art 1, sec 12-4; am 1990, ord 90-127, sec 3; am 2002, ord 02-82, sec 4.)12-4
Section 12-5. Lands exempt from taxation; costs.
(a) Whenever any public land, or any land by law exempted from assessments of the
character provided for in this chapter, forms part of any improvement district or
fronts upon or is situated with relation to any special improvement or area to be so
improved in such manner that such land would, if privately owned or not exempt
from such assessment, be subject to assessment, the council shall, nevertheless,
without assessing such public or exempted land for any part of the cost of such
improvements, by general ordinance appropriate and pay toward such
improvements out of general revenues the portion of the cost thereof which would
otherwise be assessable against the same in lump sum, or, at the election of the
council, in such equal installments with such interest thereon as the council shall
determine. In the event, however, any part of such exempt land, except public
lands, may be required for right-of-way or easement purposes within such
improvement districts the value thereof shall be chargeable to the improvement
district, and upon acquisition the owner shall be compensated therefor in the
following manner:
(1) Where the value of the part taken together with any severance damages
exceeds the portion of the cost of the improvements which would otherwise be
assessable against the exempt land, the County shall pay the difference to the
owner; or
(2) Where the value is less than the portion of the cost of improvements which
would otherwise be assessable against such exempt lands, the value of the
land shall be deducted therefrom and the County shall pay the balance of the
assessment as provided herein.
(b) With respect to any such proposed improvement where any part of the cost is to be
borne by the County, the council shall have the same right of approval or protest as
though the County were the private owner of the public or exempted land so
involved. As to such expenditure for public and exempt lands, the County shall be
entitled to be reimbursed out of State revenues by appropriations to be made from
time to time by the legislature to the extent of fifty percent of all assessments
regularly apportioned against persons, corporations or entities, which are part of
any improvement district or frontage improvement and are exempted by law from
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I MPROVEMENTS B Y A SSESSMENTS§12-5
the payment of such assessments. The County shall be entitled to be likewise
reimbursed for the full amount of assessments regularly apportioned against public
lands which are a part of any improvement district or frontage improvement, which
public lands are owned in fee simple by the United States, or by the State, and
which are not set aside for schools maintained by the County, for County parks, or
for other County purposes or for street areas or frontages; provided, that in case
any land exempted by law from assessments as herein provided, other than public
land, or any part thereof, is sold or leased after the establishment of a frontage
improvement or an improvement district, the grantee in the one case and the lessor
in the other, shall assume the payment of assessments from the date of such sale or
lease in the same manner as if the property had not been exempted from
assessments and as if assessments apportionable against the property had been
paid in installments to such date of sale or lease. All payments received from such
grantee or lessor, as the case may be, shall be paid into the permanent
improvement fund.
(c) Nothing in this section shall be taken to prejudice any rights of the State to
reimbursement from the United States for assessments herein assumed by the
State, but the latter shall be subrogated to the rights of the County on such
assessments so assumed.
(1983 CC, c 12, art 1, sec 12-5.)12-5
Section 12-6. Powers reserved to council.
Any provision of law to the contrary notwithstanding, the council reserves the
following powers over any proposed improvement district, whether County-initiated
under section 12-10 or initiated by petition of owners under sections 12-14, 12-15, 12-16,
or otherwise.
(a) If, for any reason whatsoever, the improvement district bonds authorized under
article 4 are not sold or cannot be sold to any acceptable purchaser within a
reasonable time, then the council shall have the power and authority to terminate
the entire improvement district project, or any part thereof. In the event that the
project is terminated, in the case of petitions by owners under sections 12-14, 12-15
and 12-16 hereof, the petitioners shall be responsible for all costs incurred by the
County for such improvement district. The County may assure such repayment by
requiring reasonable deposits therefor.
(b) In addition to the foregoing, at any time during the proceedings of any
improvement district proposal up to and including the adoption of the assessment
ordinance under section 12-29, the council shall have the power and authority to
terminate the entire improvement district project, or any part thereof, if it
determines that the improvement district project is not in the public interest.
(c) In addition to the foregoing, at any time during the proceedings of any
improvement district proposal up to and including the adoption of the assessment
ordinance under section 12-29 hereof, the council shall have the power and
authority to require the inclusion of costs of additional improvements including
off-site improvements such as roads, water, sewers, drainage, which may be outside
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§ 12-6H AWAI‘I C OUNTY C ODE
the improvement district boundaries but which service the improvement district. If
such costs are to be so included and said inclusion increases the proposed
assessment of any owner, the council shall give appropriate notice and conduct
public hearings as provided in sections 12-10, 12-27 and 12-28 (as applicable) and
the appropriate resolutions and ordinances shall be amended accordingly.
(d) The council may allow as a credit against any improvement district assessment,
any payment made by an owner to the County which is used to pay for costs of that
improvement district, whether such payment is made before or after the creation of
said improvement district. Provided, however, that such credit shall not create any
obligation of the County to create or continue any improvement district, nor shall
such credit impair or otherwise affect the powers of the council in this chapter.
(1983 CC, c 12, art 1, sec 12-6; am 1990, ord 90-127, sec 4.)12-6
Section 12-7. Costs advanced and borne by owners and County.
(a) The County or an affected owner of an assessment unit may advance costs,
including incidentals, for improvement districts, whether before or after the
commencement of proceedings for creation of improvement districts and, to the
extent that said costs are included in the cost of improvements for said
improvement districts, the council may direct partial or full reimbursement to the
County or such owner for such costs from improvement district funds. Upon a
request by an affected owner of an assessment unit, the director of finance may
apply all or part of any such refund toward payment of improvement district
assessments or installments thereof. The County may expend such funds to the
same extent as if it advanced its own funds for that purpose. If the improvement
district is not created or if it is terminated by the council under section 12-6, said
owner shall not be entitled to any refund or credit, except as authorized by the
council.
(b) For main or general thoroughfares, the County may assume and pay out of all
available funds, the costs of improvements thereto which: (1) exceed the special
benefits conferred on the assessed assessment units or (2) the council finds should
not be covered by special assessments. As used in this section “main or general
thoroughfare” means a street or highway that is used as an arterial highway
between substantially different or naturally separated localities or sections of the
County.
(1983 CC, c 12, art 1, sec 12-7; am 1976, ord 241, sec 2; am 1990, ord 90-127, sec 4; am
2002, ord 02-82, sec 5.)12-7
Section 12-8. Limitation on time to sue.
Any objections to any actions undertaken pursuant to this chapter shall be
governed by section 46-80.5, Hawai‘i Revised Statutes.
(1983 CC, c 12, art 1, sec 12-8; am 2002, ord 02-82, sec 6.)12-8
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I MPROVEMENTS B Y A SSESSMENTS§12-9
Section 12-9. Ratification and validation.
The levy of all special assessments, all outstanding improvement bonds of the
County payable from special assessments, and all acts and proceedings heretofore had
or taken or purportedly had or taken, by or on behalf of the County under law or under
color of law preliminary to and in the authorization, execution, sale, issuance, and
payment (or any combination thereof) of all such bonds are hereby validated, ratified,
approved and confirmed, including but necessarily limited to the terms, provisions,
conditions, and covenants of any resolution and ordinance appertaining thereto, the
redemption of improvement district bonds before maturity and provisions therefor, and
the use of the proceeds of such assessments and bonds, notwithstanding any lack of
powers, authority, or otherwise, other than constitutional, and notwithstanding any
defects and irregularities, other than constitutional, in such assessments, bonds, acts
and proceedings, and in such authorization, execution, sale, issuance and payment,
including without limiting the generality of the foregoing, such acts and proceedings
heretofore not been levied nor purportedly levied and issued nor purportedly issued.
Such outstanding assessments and bonds are and shall be, and such assessments and
bonds heretofore not levied nor purportedly levied and issued nor purportedly issued
shall be, after such levy or issuance, binding, legal, valid, and enforceable obligations in
accordance with their terms and their authorizing proceedings, subject to the taking or
adoption of acts and proceedings heretofore not had nor taken, but required by and in
substantial and due compliance with laws appertaining thereto.
(1983 CC, c 12, art 1, sec 12-9.)12-9
Article 2. Procedure.
Section 12-10. Initiation by council; study of proposed improvement;
adoption of improvement; hearing.
(a) The council shall, by resolution requiring not more than one reading for its
adoption, direct the responsible director or manager to prepare and submit to the
council a report containing the following:
(1) Preliminary data concerning the special improvement proposed to be opened,
constructed, or improved;
(2) The general character and extent of any improvement to be proposed;
(3) The proposed assessment unit and method of assessment;
(4) Whether any new land will be necessary to be acquired, and the estimated cost
thereof and the proportion of the cost which should be borne by the County;
(5) The materials recommended to meet the conditions of the improvement;
(6) The boundaries of the proposed improvement district and any subdistricts or
zones therein as to which different portions of the cost of improvements should
be charged;
(7) The estimated cost of the improvement, the portions of the cost to be borne by
the County, and the portions of the cost to be assessed against the assessment
units specially benefited with the maximum unit of assessment to be made
against each assessment unit to be assessed; and
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§ 12-10H AWAI‘I C OUNTY C ODE
(8) All necessary plans and other data, details, and specifications for the
improvements and any other matters or details intended to apply thereto. The
report of the responsible director or manager, when so furnished and filed with
the council, shall not be acted upon until one week has elapsed from the date
of the filing of the report with the council.
(b) If the proposed improvement district includes the construction and installation of
improvements to be undertaken or supervised by a cooperating department, the
responsible director or manager shall obtain from the cooperating department
preliminary plans and estimates for such cooperating department’s proposed
improvements, and the responsible director or manager shall furnish the
cooperating department with such preliminary plans of the proposed
improvements, other than those of the cooperating department, as will enable the
cooperating department to make its plans and estimates. The responsible director
or manager shall incorporate such preliminary plans and estimates of the
cooperating department in the report to the council.
(c) Thereafter the council may, by resolution requiring one reading for its adoption,
propose the making of an improvement or improvements, specifying:
(1) The special improvements to be opened, constructed, or improved;
(2) The area, owners, so far as known, and general description and location of new
land to be acquired, if any;
(3) The materials proposed to be used;
(4) The proposed assessment unit and method of assessment including the
minimum number of installment payments to be proposed;
(5) The maximum term of assessment bonds to be issued to represent unpaid
installments;
(6) The maximum rate of interest to be borne by the bonds;
(7) The maximum premium required to be paid on the advance payment of
installments or the call and redemption of any bond prior to its maturity;
(8) The maximum amount of the reserve fund either as set forth in the report of
the responsible director or manager or as otherwise determined by the council;
(9) The general boundaries of the district or frontage, subdistricts and zones to be
assessed; and
(10) The maximum estimated units of assessment.
The resolution shall refer to and incorporate by reference such surveys, plans,
maps, and other data reported by the responsible director or manager as are
approved by the council. The resolution shall also fix a date of public hearing upon
the proposed improvement, which date shall be not less than fifteen days after the
first publication of notice thereof in at least one newspaper of general circulation in
the County.
(d) The council may adopt the plans and estimates so furnished by any cooperating
department and incorporated in the report of the responsible director or manager.
If the plans and estimates of a cooperating department are adopted by the council,
the plans and estimates shall be referred to and incorporated by reference in such
resolution.
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§ 12-10H AWAI‘I C OUNTY C ODE
(2) The council finds the appraised value of such assessment units as improved is
at least twice the estimated cost of the proposed improvement. The appraisal
shall be conducted in accordance with prevailing standards for appraisals used
by banks for loans.
(i) No improvement district shall be approved unless the council finds that such
improvement is in the public interest.
(1983 CC, c 12, art 2, sec 12-10; am 1984, ord 84-4, sec 1; am 1990, ord 90-127, sec 5; am
1995, ord 95-22, sec 3; am 2001, ord 01-108, sec 1; am 2002, ord 02-82, sec 7; am 2011,
ord 11-66, sec 3.)12-10
Section 12-11. Report of responsible director or manager.
In preparing the report required by section 12-10, the responsible director or
manager may consult with the director of finance or with such financial consultant as
has been specially employed by the council to assist in the proceedings or who may
otherwise be available to the council, at the direction of the council. Upon the written
advice and recommendation of the director of finance or of such a financial consultant,
the responsible director or manager may include such sums as that director or manager
deems proper for reserve funds, bond discount allowances, and construction
contingencies in determining that director’s or manager’s estimate of the project cost
and the amount to be assessed therefor.
(1983 CC, c 12, art 2, sec 12-11; am 1995, ord 95-22, sec 4; am 2001, ord 01-108, sec 1;
am 2011, ord 11-66, sec 4.)12-11
Section 12-12. Filing of protests.
Any owner of an assessment unit may at or before the public hearing file in writing,
with the council, any protest, objection, or suggestions as to the proposed improvement,
stating the reason(s) therefor, and may present such written protest, objection, or
suggestions in person at the public hearing. If the owners of assessment units which
are proposed to have fifty percent or more of the total assessments (whether such
assessments are to be assessed by frontage, area or otherwise) file written protests, duly
acknowledged by such owners, against making all or part of the proposed improvements
or against the methods by which such assessments are to be made, or the inclusion of
certain costs therein, then the improvements or methods of assessment shall not be
made contrary to said written protests. If the protest is against the making of any
improvement, the same shall not be made, and the proceedings shall not be renewed
within six months from the date of closing the public hearing, unless all owners
withdraw their protests.
(1983 CC, c 12, art 2, sec 12-12; am 1990, ord 90-127, sec 6; am 2002, ord 02-82, sec 8.)
Section 12-13. Waiver of objections.
All objections to any act or proceeding occurring prior to the time within which such
objections are permitted to be filed in relation to the work, not made in writing and in
the manner and at the time specified, shall be waived if the notices required by section
12-10 have been actually mailed, published and posted as required by law.
(1983 CC, c 12, art 2, sec 12-13.)12-13
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Section 12-14. Petition by sixty percent of owners.
If the owners of not less than sixty percent of the frontage upon any street, alley, or
highway designated by them or of sixty percent of the area of land designated by them
as a proposed improvement district, file with the council a petition duly acknowledged
by the owners requesting the construction of special improvements, together with the
surveys, maps, plans and other preliminary data and estimates mentioned in section
12-10, in the case of a proceeding initiated by the council, the council may reject or
accept the petition. If the petition is accepted, the council shall proceed in the same
manner as though the plan for such improvements had been initiated on its own
motion, and the cost of the preliminary surveys, maps and other data, if not in excess of
the estimate therefor stated in the petition, shall be deemed part of the cost of the
improvement; provided, that upon such petition the council shall not have the power to
abandon the proceedings or make any change or modification of the plans or the details
or specifications for the proposed improvements without the written and duly
acknowledged consent of the owners of not less than sixty percent of the frontage or
area of the land to be assessed; except that the council may decline to acquiesce in or
may modify any part of the plan which contemplates the payment by the County of any
part of the cost of acquiring new land or of any part of the cost of improving any main or
general thoroughfare, and in such event, if the owners of not less than sixty percent of
the frontage or property to be assessed agree in writing to the change or modification,
the council shall be bound to proceed with the plan as so modified.
(1983 CC, c 12, art 2, sec 12-14; am 1976, ord 241, secs 1 and 3; am 1984, ord 84-4,
sec 2.)12-14
Section 12-15. Petition by twenty percent of owners.
(a) If the owners of not less than twenty percent of the frontage upon any street, alley
or highway designated by them or of twenty percent of the area of land designated
by them as a proposed improvement district, file with the council a petition duly
acknowledged by the owners requesting the construction of special improvements,
together with the surveys, maps, plans and other preliminary data and estimates
mentioned in section 12-10, the council may reject or accept the petition. If the
council accepts the petition, it shall proceed in the manner hereinafter provided.
The council shall act on the petition provided:
(1) The petition of twenty percent of the owners includes the signatures of at least
fifty percent of the resident owners residing in the proposed improvement
district; and
(2) A state of emergency is found to exist by the council that requires the
formation of the improvement district.
(b) The cost of the preliminary surveys, maps and other data shall be deemed part of
the cost of the improvement provided fifty-one percent of the owners of the
improvement district hereinabove described do not object to the improvement
district. If fifty-one percent or more of the owners involved in the improvement
12-11
§ 12-15H AWAI‘I C OUNTY C ODE
district oppose the improvement district, all such cost of the preliminary surveys,
maps and other data shall be borne by the County as if the proceeding had been
initiated by the council in accordance with section 12-10.
(c) Upon such petition and prior to the hearing thereon, the council shall, at its option,
have the power to abandon the proceedings or make any change or modification of
the plans or the details or specifications for the proposed improvements without the
written consent of the petitioning owners of the frontage or area of the land to be
assessed. With regard to the petition, the council may at any time decline to
acquiesce in or may modify any part of the plan which contemplates the payment
by the County of any part of the cost of acquiring new land or of any part of the cost
of improving any main or general thoroughfare.
(d) Upon receipt of the petition, the council shall by resolution requiring not more than
one reading for its adoption, direct the responsible director or manager:
(1) To investigate and report to the council:
(A) Preliminary data concerning the special improvements proposed to be
opened, constructed, or improved;
(B) The general character and extent of any improvement to be proposed;
(C) The proposed assessment unit and method of assessment;
(D) Whether any new land will be necessary to be acquired, and the estimated
cost thereof and the proportion of the cost which should be borne by the
County;
(E) The materials recommended to meet the conditions of the improvement;
(F) The boundaries of the proposed improvement district and any subdistricts
or zones therein as to which different portions of the cost shall be charged;
and
(G) The estimated cost of the improvement, the portions of the cost to be
borne by the County, and the portions of the cost to be specifically
assessed against the assessment units specially benefited with the
maximum unit of assessment to be made; and
(2) To prepare and furnish all necessary drawings and other data, details, and
specifications for the improvements and any other matters or details intended
to apply thereto.
The report when so furnished and filed with the council shall not be acted
upon until one week has elapsed from the date of the filing of the same.
(e) If the proposed improvement district includes the construction and installation of
improvements to be undertaken or supervised by a cooperating department, the
responsible director or manager shall obtain from the cooperating department
preliminary plans and estimates for such cooperating department’s proposed
improvements, and the responsible director or manager shall furnish the
cooperating department with such preliminary plans of the proposed
improvements, other than those of the cooperating department, as will enable the
cooperating department to make its plans and estimates. The responsible director
or manager shall incorporate such preliminary plans and estimates of the
cooperating department in the report to the council.
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I MPROVEMENTS B Y A SSESSMENTS§12-15
(f)The council may, by resolution requiring one reading for its adoption, propose the
making of an improvement or improvements specifying:
(1) The streets, storm drainage, sanitary sewerage system, water system or street
lighting system, or combination thereof, to be opened, constructed, or
improved;
(2) The area, owners, so far as known, and general description and location of new
land to be acquired, if any;
(3) The materials proposed to be used;
(4) The proposed unit of assessment and method of assessment including the
minimum number of installment payments to be proposed;
(5) The maximum term of assessment bonds to be issued to represent unpaid
installments;
(6) The maximum rate of interest to be borne by the bond;
(7) The premium required to be paid on the advance payment of installments for
the call and redemption of any bond prior to its maturity;
(8) The amount of the fund either as set forth in the report of the responsible
director or manager or as otherwise determined by the council;
(9) The general boundaries of the district or frontage, subdistricts and zones to be
assessed; and
(10) The maximum amount estimated to be assessed against a unit of assessment.
(g) The council may adopt the plans and estimates so furnished by a cooperating
department and incorporated in the report of the responsible director or manager.
If the plans and estimates of a cooperating department are adopted by the council,
the plans and estimates shall be referred to and incorporated by reference in such
resolution. The resolution shall refer to and incorporate by reference such surveys,
plans, maps and other data reported by the responsible director or manager as are
approved by the council. The resolution shall also fix a date of public hearing upon
the proposed improvement, which date shall be not less than forty-five days after
the first publication of notice thereof in a newspaper of general circulation in the
County. The hearing shall provide owners of assessment units within the
improvement district with a reasonable opportunity to object or approve in writing
of the proposed improvement.
(h) After the adoption of the resolution, the County clerk shall:
(1) Cause a notice of the public hearing to be published twice a week for two
successive weeks (four publications in all) in at least one newspaper of general
circulation in the County, giving notice, generally, to all owners of assessment
units proposed to be assessed or acquired and to all others interested in the
general details of the proposed improvements as adopted by the council and
stating the time and place of public hearing and where the resolution and
reports and other data may be seen and examined prior to the hearing;
(2) Post copies of the notice described in the preceding paragraph at least ten days
prior to the hearing at a public place in the district in which the proposed
improvement district is located; and
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§ 12-15H AWAI‘I C OUNTY C ODE
(3) Mail a notice of public hearing to all owners of the assessment units proposed
to be assessed at least two weeks prior to the hearing. The notice to be mailed
shall contain:
(A) The material contained in the published and posted notices;
(B) A description of the assessment unit of such owner set forth in such
manner as to enable such owner to identify the assessment unit;
(C) A statement that the assessment unit described on said notice is proposed
to be assessed to pay for a portion of the cost of the proposed
improvements;
(D) A statement that the testimony of all interested persons and owners of
assessment units for or against the establishment of the improvement
district, the extent of the improvement district, and the levy of the special
assessment will be heard; and
(E) A statement that any protest, objection, or suggestion relating to the
making of all or part of the proposed improvements or against the
methods by which such assessment are to be made, or the inclusion of
certain costs therein must be submitted in writing, in accordance with
section 12-12 of this chapter, to be considered by the council.
(i) The clerk of the County shall file with the council on or before the hearing an
affidavit by the clerk of the County attesting that the clerk of the County completed
the publication, posting, and mailings described in the preceding section 12-15(h) in
accordance with the requirement thereof; provided, however, that the failure of the
clerk to timely file such affidavit shall not invalidate the proceedings held
thereafter. Any failure to post, mail, or receive the notice described above shall not
invalidate the proceedings held thereafter.
(j) All notices referred to in this section shall also contain a provision providing that if
the owner does not object in writing at or before the time of hearing, such inaction
will be construed as a conclusive presumption that said owner does not object to the
proposed improvement and that the improvement district may be put into effect
unless fifty-one percent of the owners who will be assessed as a result of the
improvement district object in writing at or prior to the time of hearing.
(k) Should fifty-one percent or more of the owners of the assessment units affected by
the improvement district fail to object prior to or at the hearing, the proposed
improvement by assessment shall be approved by council passing a resolution
requiring one reading for its adoption, provided, that no such improvement shall be
approved unless:
(1) The assessed valuation for taxation purposes of the assessment units to be
improved is twice the estimated cost of the proposed improvement; or
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I MPROVEMENTS B Y A SSESSMENTS§12-15
(2) The council by resolution finds the appraised value of such assessment units
in accordance with prevailing standards of appraisal and used by banks for
loans thereon is twice the estimated cost of the proposed improvement and
that such approval is in the public interest.
(l) This section shall apply only to subdivisions created prior to March 1, 1967.
(1983 CC, c 12, art 2, sec 12-15; am 1995, ord 95-22, sec 5; am 2002, ord 02-82, sec 9; am
2011, ord 11-66, sec 5.)12-15
Section 12-16. Petition by owners of one hundred percent of frontage or
area.
(a) If a petition is filed and is acknowledged by the owners of one hundred percent of
the frontage upon any street, alley, or highway or of the area of land designated by
them as a proposed improvement district, then the council may reject or accept the
petition. If the petition is accepted, the council shall by resolution requiring not
more than one reading for its adoption, direct the responsible director or manager
to prepare and submit to council a report meeting the requirements of section
12-10(a) and (b) in the same manner as though the plan for the proposed
improvement or improvements had been initiated by the council on its own motion.
Upon submission of the report of the responsible director or manager, including the
plans and estimates of each cooperating department, if applicable, the council may,
by resolution requiring not more than one reading for its adoption, approve and
adopt such report, including applicable surveys, plans, maps and other data
reported by the responsible director or manager and each cooperating department,
and create, define and establish the improvement district in accordance with
sections 12-18, 12-19, 12-20 and 12-21. In any such case, any other provision or
section to the contrary notwithstanding, it shall be unnecessary to give the notice of
or to hold the hearing specified by section 12-10, the provisions of section 12-12
shall be not apply, and it shall be unnecessary to give the notice or to hold the
hearing specified by section 12-27 and the council may immediately proceed to fix
the assessments in the manner provided by section 12-29 without further hearings
or actions of council pursuant to this chapter.
(b) No such improvement shall be approved by the council unless:
(1) The assessed valuation for taxation purposes of the assessment units to be
improved is twice the estimated cost of the proposed improvement; or
(2) The council by resolution finds the appraised value of such assessment units
in accordance with prevailing standards of appraisal then used by banks for
loans thereon is twice the estimated cost of the proposed improvement; and
(3) The council finds that such improvement is in the public interest.
(1983 CC, c 12, art 2, sec 12-16; am 2002, ord 02-82, sec 10; am 2020, ord 20-7, sec 4.)12-
16
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12-15
§ 12-17H AWAI‘I C OUNTY C ODE
Section 12-17. Determination by council.
After the hearing provided in section 12-10, the council shall consider any protests,
objections or suggestions which may have been made or filed and whether sufficient
valid protests have been filed to compel it to abandon any part or all of the proposed
improvement. If the council still has jurisdiction to continue it shall then proceed,
determining whether or not the proposed improvement shall be made as proposed, or
made with modifications or with changes in the total estimated costs or costs per
assessment unit of the improvements set forth in the resolution adopted pursuant to
section 12-10(c). In the latter event, modifications or changes may be made without
again giving notice of a hearing as provided in section 12-10; provided that such
modifications or changes shall not materially alter the general character or plan so
advertised or increase the total estimated costs or costs per assessment unit of the
improvements by more than ten percent or as otherwise set forth in the resolution
pursuant to section 12-10(c). No modification of or change in the plans and estimates
furnished by the responsible department or cooperating department shall be made
without the consent of such department.
(1983 CC, c 12, art 2, sec 12-17; am 2013, ord 13-125, sec 2.)12-17
Section 12-18. Resolution to define extent of improvement.
If, after initial or further advertisement and hearing when no changes are made
which will require further advertisement or hearing, the council determines to proceed
with the improvements, it shall, by resolution requiring not more than one reading for
its adoption:
(1) Create, define, and establish the extent of the frontage improvement or the
improvement district to be assessed;
(2) Define the kind, extent, and general details of the proposed improvements;
(3) Describe each parcel of land to be acquired, if any;
(4) Declare the part or proportion of the cost of the improvement which is to be
borne by the County;
(5) Describe the assessment units and method of assessment, including, if
applicable, any affected assessment units with respect to a reasonably
anticipated future change in classification or use and the related changes in
assessments to be effective upon such change in classification or use;
(6) Describe the kinds of materials to be used;
(7) Direct the responsible director or manager as provided in section 12-19;
(8) If the proposed improvement includes construction or improvements of a water
system, make requests as provided in section 12-20; and
(9) If the improvement district includes any affected assessment units, as
identified pursuant to paragraph (5) above, approve the change in assessments
upon the change in classification or use of such assessment units, provided
that (A) the changed assessments are consistent with the assessments against
other comparable assessment units within the improvement district, and (B)
the changed assessments have the effect of reducing the assessments against
assessment units other than the affected assessment units.
(1983 CC, c 12, art 2, sec 12-18; am 1995, ord 95-22, sec 6; am 2001, ord 01-108, sec 1;
am 2002, ord 02-82, sec 11; am 2011, ord 11-66, sec 6; am 2020, ord 20-7, sec 5.)12-18
SUPP. 8 (7-2020)
12-16
I MPROVEMENTS B Y A SSESSMENTS§12-19
Section 12-19. Responsible director or manager to prepare map showing
improvements, details, plans and specifications.
The council shall, by resolution required by section 12-18 direct the responsible
director or manager to prepare a corrected map of the highways to be improved,
showing the abutting lands or, of the improvement district showing the highways
therein to be improved, or the special improvements to be constructed or improved, and
showing the exact location of the improvements, together with final details, plans and
specifications for the work, all in such form as will readily permit and encourage
genuine competition between contractors in so far as the materials specified will permit
of such competition. These maps, final details, plans, and specifications, as approved in
accordance with the applicable policies and procedures of the responsible department or
as otherwise approved by resolution adopted by the council, shall be used as the basis
for the calling of bids and awarding of a contract for the work as provided in this
chapter.
(1983 CC, c 12, art 2, sec 12-19; am 1995, ord 95-22, sec 7; am 2001, ord 01-108, sec 1;
am 2011, ord 11-66, sec 7; am 2013, ord 13-125, sec 3.)12-19
SUPP. 8 (7-2020)
12-16.1
H AWAI‘I C OUNTY C ODE
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SUPP. 8 (7-2020)
12-16.2
I MPROVEMENTS B Y A SSESSMENTS§12-20
Section 12-20. Plans and specifications from cooperating department.
(a) If the proposed improvement district includes the construction and installation of
improvements to be undertaken or supervised by a cooperating department, the
council shall by resolution required by section 12-18 request the cooperating
department to furnish final detail plans and specifications for such improvements.
The resolution shall also direct the responsible director or manager to furnish the
cooperating department with such copies of the final surveys, maps and plans
covering the proposed improvements, other than those of the cooperating
department, as may be necessary to enable the cooperating department to prepare
the final plans and specifications for its improvements.
(b) The cooperating department shall furnish such final plans and specifications when
requested, provided that the cooperating department may refuse to furnish such
plans and specifications where funds for the amount the County is obliged to pay
towards the contract price have not been included in the budget of the County for
such year. The final plans and specifications so furnished by the cooperating
department, as approved in accordance with the applicable policies and procedures
of the coordinating department or as otherwise approved by resolution adopted by
the council, shall be used as the basis for the calling of bids and awarding of a
contract for such work.
(1983 CC, c 12, art 2, sec 12-20; am 2001, ord 01-108, sec 1; am 2011, ord 11-66, sec 8;
am 2013, ord 13-125, sec 4.)12-20
Section 12-21. Land acquisition; procedure; cost; condemnation award.
In case the improvements so determined under section 12-18 require the
acquisition of any new land therefor, the council shall acquire the land before final
award of the contract, either by deed, or other voluntary conveyance from the owners
thereof, or it may, at its option, and in the name of the County cause condemnation
proceedings to be brought to acquire the land. After the filing of the petition in such
proceedings the final award of the contract may be made. If the cost of acquiring such
land exceeds the estimate therefor, the council may provide for the excess cost by
general appropriation. In the event that land has been acquired by condemnation under
the provisions of chapter 101, Hawai‘i Revised Statutes and in the award made on the
condemnation there has been deducted from the compensation or damages otherwise
payable to the landowner, any amount by reason of the fact that land of such landowner
not sought to be condemned would be benefited by the construction of improvements
proposed to be made after the condemnation, it shall be unlawful to make any
assessments against such land under this chapter without having first credited against
the amount for which land would otherwise have been assessed the amount that has
been deducted in the award made on condemnation for benefits by reason of the
construction of improvements proposed to be made after condemnation.
(1983 CC, c 12, art 2, sec 12-21.)12-21
12-17
§ 12-22H AWAI‘I C OUNTY C ODE
Section 12-22. Construction of water system; inspections; costs borne by
County.
(a) If any proposed special improvement includes the construction or improvement of a
water system, the department of water supply shall maintain an inspector over the
work to see that the plans and specifications which it has furnished have been
complied with. After the work has been completed and accepted, the water system,
pipes, conduits, hydrants, and other appurtenances for supplying or distributing
water so installed shall constitute a part of the system of the department of water
supply and shall at all times thereafter be used, operated and maintained by it as a
part of its system.
(b) If any proposed special improvement includes the construction or improvement of a
water system, the department of water supply may assume and pay out of its funds
available for such purpose, the cost of engineering, incidentals and inspection, not
to exceed thirty-three and one-third percent of the total cost of the construction or
improvement of such water system.
(1983 CC, c 12, art 2, sec 12-22.)12-22
Section 12-23. Repealed.
(1983 CC, c 12, art 2, sec 12-23; rep 2002, ord 02-82, sec 12.)12-23
Section 12-24. Bidding; award of contract.
(a) The bid process for the construction of special improvements shall be administered
by the responsible department in accordance with procedures and requirements
applicable to County of Hawai‘i projects and the state Procurement Code.
(b) The bid specifications shall contain provisions that specify that the award of the
contract will not occur until the improvement district is created and the necessary
funds for construction are appropriated.
(c) The responsible department may award the work as an entire contract or, in its
discretion, make one or more contracts separately for the different kinds of work to
be performed.
(d) Notwithstanding the foregoing, if one hundred percent of the assessment units are
owned by a single owner, or by two or more owners who have duly designated one
owner to act on their behalf as the owners’ duly authorized representative, the
responsible department may authorize the owner or owner’s representative to
administer the bid process, award the work and administer the contract or
contracts for such work, subject to:
(1) The responsible department’s oversight;
(2) Compliance with all applicable procedures and requirements of the County of
Hawai‘i; and
(3) If progress payments for the work are to be made pursuant to section 12-53(f),
receipt by the County, prior to execution and delivery of the contract(s) for the
work, of satisfactory assurances and agreements from the owner or owners’
representative and the contractor that the contractor(s) and contract(s) are in
the best interest of the County, that the contractor(s) is(are) competent and
SUPP. 8 (7-2020)
12-18
I MPROVEMENTS B Y A SSESSMENTS§12-24
capable of performing the work, that the work will be performed in compliance
with plans and specifications approved by all applicable governmental
agencies, including the responsible department and/or the cooperating
department, and that adequate performance and payment bonds have been
issued to assure that the work will be completed in accordance with the
approved plans and specifications and duly paid for.
(1983 CC, c 12, art 2, sec 12-24; am 1990, ord 90-127, sec 7; am 1995, ord 95-22, sec 8;
am 2002, ord 02-82, sec 12; am 2011, ord 11-66, sec 9; am 2020, ord 20-7, sec 6.)12-24
Section 12-25. Repealed.
(1983 CC, c 12, art 2, sec 12-25; rep 2002, ord 02-82, sec 12.)12-25
Section 12-26. Contract for off-site water facilities.
(a) Notwithstanding any other provisions in this chapter to the contrary, in the event
that a portion of the improvements proposed to be made consist of water facilities
outside of the boundaries of a proposed improvement district which in whole or in
part will serve the improvement district, and if there exists with respect to such
facilities an arrangement or agreement pursuant to which:
(1) The responsibility for the costs of such facilities in excess of a specified sum
has been fixed;
(2) The plans and specifications for such facilities will be approved by the
department of water supply; and
(3) The plans and specifications will not be prepared nor the contract for
construction of such facilities be ready to be advertised and awarded until a
time or times beyond the time or times when the proceedings pursuant to this
chapter for construction of the proposed improvements by assessment could
otherwise be commenced and prosecuted; then the council may determine to
proceed pursuant to this section.
(b) The determination to proceed shall be made in the resolution proposing to make the
improvements, and the following provisions shall then be applicable to the
proceedings:
(1) For the purpose of the report provided for in section 12-10 the preliminary
plans for such off-site water facilities need only be general in nature and the
estimates therefor shall be the sums specified by the aforementioned
arrangement or agreement.
(2) Section 12-20 shall not be applicable, and for the purpose of the report
provided for in sections 12-18 and 12-19 the preliminary plans used for the
report provided for in sections 12-10(a) and (b) (general in nature only as
provided in subsection (b)(1) above) shall be sufficient, if adopted by the
council in its resolution proposing to make the improvements.
SUPP. 8 (7-2020)
12-18.1
H AWAI‘I C OUNTY C ODE
(3) For the purpose of section 12-27, the portion of the total amount of the cost of
the improvements attributable to such off-site water facilities shall be based
upon said sum or sums specified by the aforementioned arrangement or
agreement, rather than upon a bid of a lowest responsible and reliable bidder
for such off-site water facilities.
(4) If section 12-28(a)(4) is applicable to the proceedings, the council need not
request a call for bids on such off-site water facilities.
(5) At such time as the final details, plans and specifications for such off-site
water facilities are prepared, approved by the department of water supply and
by resolution approved and adopted by the council, the contract for
construction thereof shall be advertised and awarded by the department of
water supply pursuant to the provisions of sections 12-23,* 12-24 and 12-25.*
All remaining funds after payment of the costs of such facilities shall be
transferred to and become a part of the reserve fund.
(1983 CC, c 12, art 2, sec 12-26; am 2002, ord 02-82, sec 12.)12-26
* Editor’s Note: Sections 12-23 and 12-25, Hawai‘i County Code, were repealed by Ordinance 02-82.
SUPP. 8 (7-2020)
12-18.2
I MPROVEMENTS B Y A SSESSMENTS§12-27
Section 12-27. Corrected map; preliminary assessment roll and description;
notice of authorized improvement.
(a) The council shall have the responsible director or manager prepare a corrected
map, a preliminary assessment roll, description of assessment units to be assessed,
a list of all known owners of the assessment units within the improvement district,
and the responsible director’s or manager’s estimate of cost or the bid of the lowest
responsible and reliable bidder (if such bid is made).
(b) The preliminary assessment roll and description of assessment units to be assessed
shall contain for the assessment units in the proposed improvement district or in
the several subdistricts or zones, if any, the following:
(1) Where assessments are based on frontage, the maximum proposed amount per
foot of frontage;
(2) Where assessments are based on area, the maximum proposed amount per
square foot;
(3) Where assessments are based on methods other than frontage or area, the
method of assessment and the amount of which each unit of assessment shall
be assessed;
(4) The maximum proposed amount of assessment for each assessment unit; and
(5) A list of all known owners of the assessment units within the proposed
improvement district.
12-19
§ 12-27H AWAI‘I C OUNTY C ODE
(c) Upon receipt of the corrected map, preliminary assessment roll, and description of
assessment units, the council shall give notice of the following:
(1) The total cost of improvements as established by the estimate of the
responsible director or manager or by the bid of the lowest responsible and
reliable bidder, or as otherwise provided in this chapter;
(2) The contents of the preliminary assessment roll;
(3) The availability of the corrected map, preliminary assessment roll and
description of assessment units for inspection at the office of the responsible
director or manager during business hours at any time prior to and including
the hearing date; and
(4) The time, date, and place of the public hearing to be held concerning said
items; provided that the date shall not be less than ten days nor more than
three weeks after the date of the first newspaper publication of the notice.
(d) The notice of improvement and hearing shall be advertised, mailed, and posted in
the same manner as provided in section 12-10.
(e) At the public hearing, the council shall act as a board of equalization to receive
complaints or objections concerning the amounts of the proposed assessments.
(1983 CC, c 12, art 2, sec 12-27; am 1990, ord 90-127, sec 8; am 1995, ord 95-22, sec 9;
am 2001, ord 01-108, sec 1; am 2002, ord 02-82, sec 13; am 2011, ord 11-66, sec 10.)12-
27
Section 12-28. Combination hearings; applicable proceedings.
(a) The council may combine the hearings provided for in sections 12-10 and 12-27. If it
does so, such determination shall be made in the resolution proposing to make the
improvement or improvements, and the following provisions shall then be
applicable to the proceedings:
(1) The resolution need not specify the maximum estimated amount to be
assessed on the unit of assessment nor fix the date of public hearing upon the
proposed improvement, but shall direct the preparation by the responsible
director or manager of the documents and data to be prepared by such person
12-20
I MPROVEMENTS B Y A SSESSMENTS§12-28
as provided in sections 12-18 and 12-19 and in section 12-27 and if applicable
shall include the request and direction provided in section 12-20. After the
combined hearings, if the council determines to proceed with the
improvements, the resolution specified in section 12-20 need not again direct
preparation by the responsible director or manager of the documents and data
as provided in sections 12-18 and 12-19. The clerk shall not cause the notices
to be given as provided in section 12-10 until the documents and data have
been so prepared by the responsible director or manager, and if applicable, by
each cooperating department, and preliminarily approved by the council, at
which time the council shall by resolution requiring not more than one reading
for its adoption fix the date of combined hearings; provided that the map,
details and plans and specifications specified in sections 12-19 and 12-20 shall
be deemed to satisfy this requirement if such documents are determined by
the responsible director or manager to be in such form and contain such
information as is reasonably necessary to inform the owners and other
interested parties at least generally of the nature and scope of the proposed
special improvements.
(2) The matters to be contained in the notices provided for in sections 12-10 and
12-27 shall be combined into single notices to be so published, posted and
mailed; for the purpose thereof the total amount of the cost of the
improvement shall be based on the estimated cost of the work to be included in
bids when received, not upon the bid of the lowest responsible and reliable
bidder as specified in section 12-27.
(3) The council may request the responsible director or manager, to call for bids
on all improvements to be constructed under contract to be received on or
before the date of the combined hearings pursuant to the provisions of section
12-24
(4) The responsible director or manager shall prepare an amended preliminary
assessment roll based on any revisions in the estimate of the responsible
director or manager or on the results of the bids received for improvements as
the case may be and shall send said amended assessment roll to the council on
or before the public hearing.
(A) If the amended preliminary assessment roll shows a proposed amount of
assessment for any of the assessment units to be assessed which is more
than that shown on the preliminary assessment roll, then, unless the
affected owner shall waive the same, the council shall postpone the public
hearing and readvertise and mail an amended notice of hearing
containing the amended preliminary assessment roll. Said
readvertisement and mailing shall be done under the provisions of
sections 12-27(c) and (d). Said postponed public hearing shall be
conducted in the same manner as provided in section 12-27(e).
12-21
§ 12-28H AWAI‘I C OUNTY C ODE
(B) If the amended preliminary assessment roll shows a proposed amount of
assessment for each of the assessment units to be assessed which is the
same or less than the preliminary assessment roll, the public hearing
shall be held as scheduled and the amended preliminary assessment roll
shall be considered at said public hearing.
(1983 CC, c 12, art 2, sec 12-28; am 1990, ord 90-127, sec 8; am 1995, ord 95-22, sec 10;
am 2001, ord 01-108, sec 1; am 2002, ord 02-82, sec 14; am 2011, ord 11-66, sec 11; am
2013, ord 13-125, sec 5.)12-28
Section 12-28.1. Termination of improvement districts.
The council by ordinance shall provide for the procedures to terminate an
improvement district created under this chapter once the improvements have been
completed and the obligations of the improvement district have been satisfied.
(a) The ordinance directing termination of an improvement district shall contain the
provisions enumerated below:
(1) The director of finance shall be directed to set aside sufficient funds to cover
all outstanding or anticipated debts or obligations of the improvement district,
including cost and expenses of making any distributions to assessment unit
owners and the cash refund obligations in section 12-28.1(a)(3) below.
(2) Any outstanding assessment installments which are not needed to pay the
debts or obligations described in section 12-28.1(a)(1) above, shall be canceled.
(3) If assessment installments are canceled, those owners whose assessment units
have prepaid assessments will be entitled to cash refunds equal to the
assessment principal which would be prepaid as of cancellation. For these
purposes, “prepaid assessments” shall include all payments made upon the
assessments for an assessment unit, whether such payments were made
before or after the assessment liens were created.
(4) The council may provide that from any funds remaining in the improvement
district after the payments described in section 12-28.1(a)(1) or (3) that the
director of finance be authorized to make cash refunds to assessment unit
owners from remaining improvement district funds in such amounts and at
such times as the director of finance finds are reasonable. Any cash refund
will be made to the owner of record at the time that the director of finance
authorizes such refund.
(5) The effective date of termination shall be at such time that the director of
finance has determined that all outstanding or anticipated debts or obligations
of the improvement district have been paid or can be satisfied and that the
cash refunds provisions described above have been made.
(b) The ordinance directing termination of the improvement district shall not be
enacted prior to the redemption date fixed in the call for redemption of all
outstanding improvement district bonds at which time the director of finance or
paying agent of the County, as the case may be, shall have sufficient funds on hand
to pay all outstanding bond principal, interest and any premiums thereon.
(1990, ord 90-127, sec 9; am 2002, ord 02-82, sec 14.)12-28.1
12-22
I MPROVEMENTS B Y A SSESSMENTS§12-29
Article 3. Assessments.
Section 12-29. Assessments fixed by ordinance; owner application to pay
reduced assessment.
(a) After the hearing, if applicable, the council shall forthwith proceed to make such
modifications or changes as to them may seem equitable or just, or shall confirm
the first proposed assessment. Upon reaching a final decision the council shall by
ordinance, fix the portions of the cost to be assessed against the benefited
assessment units and against the owners thereof respectively. The ordinance shall
incorporate by reference the assessment roll as approved by the council. After the
final enactment of such ordinance the amounts of the several assessments so listed,
advertised and incorporated and not previously objected to shall be conclusively
presumed to be just and equitable and not in excess of the special benefits accruing
or to accrue by reason of the improvement to the specific assessment unit assessed.
Any provision hereof to the contrary notwithstanding, if the improvement district
includes any affected assessment units as to which a change in assessments is
authorized by the resolution creating the improvement district pursuant to section
12-18, the ordinance shall incorporate the provisions of such resolution for the
change in assessments, and shall authorize the director of finance to determine the
final amounts of the changed assessments on the affected assessment units based
on the actual classification or use thereof, and to revise the assessments on other
assessment units downward to reflect the changed assessments on affected
assessment units, all without further action or approval by the council, unless the
number of affected assessment units is changed by more than ten percent or the
aggregate amount of assessments on the affected assessment units is changed by
more than ten percent, as compared to the number of affected assessment units or
the aggregate assessments thereon contemplated by the resolution creating the
improvement district, in which event the change in assessments shall require the
approval of council by further resolution requiring not more than one reading for its
adoption.
(b) After commencement of improvement district proceedings and prior to the adoption
of the improvement district ordinance described in section 12-29(a), an owner may
apply for a reduction in the proposed assessment against an assessment unit as
follows: (1) file a written application with the County clerk for a reduced
assessment not later than one week prior to the time that the ordinance is placed
on the council agenda for first reading; (2) deposit the full amount of the proposed
reduced assessment, said deposit being an irrevocable commitment by the owner to
the payment of the reduced assessment. The amount of reduction shall be as
provided by the council, but shall not exceed the applicant’s proportionate share of
the sum of the improvement district bond reserve fund and the improvement
district bond discount allowance and other incidental expenses directly related to
the issuance of improvement district bonds. For purposes of the deposit
requirements of this section, the owner may direct that refunds due under section
12-7(a) be applied as a deposit hereunder. Such refund amounts shall thereafter be
SUPP. 8 (7-2020)
12-23
§ 12-29H AWAI‘I C OUNTY C ODE
treated as a deposit under this section, except that no cash refund shall be made for
or on account of such refund amounts, whether or not they are treated as deposits
in this section.
(1) The director of finance shall submit a report with recommendations to the
council with respect to any such applications. The council shall consider such
applications and, to the extent that such applications are acceptable to the
council, include the same in the improvement district ordinance. Upon
approval of the application by inclusion of the reduced assessment in the
ordinance, the director of finance shall immediately deposit such funds in the
construction special account for the improvement district.
(2) If the assessment is not reduced by the council, the funds deposited shall be
refunded to the owner, except that no refund shall be made for or on account of
refunds due for advances made under section 12-7(a). In that event, the owner
shall make payment of the assessment as provided in this chapter.
(1983 CC, c 12, art 3, sec 12-29; am 1990, ord 90-127, sec 10; am 2002, ord 02-82, sec 15;
am 2020, ord 20-7, sec 7.)12-29
SUPP. 8 (7-2020)
12-23.1
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SUPP. 8 (7-2020)
12-23.2
§ 12-30H AWAI‘I C OUNTY C ODE
Section 12-30. Amended assessments upon consolidation or subdivision.
(a) For purposes of this section 12-30:
(1) “Subdivide,” “subdivision,” and “subdividing” shall refer to the subdividing of
an assessment unit pursuant to chapter 23, Hawai‘i County Code, or the
subjection of real property to a condominium property regime pursuant to
chapter 514A, Hawai‘i Revised Statutes.
(2) “Consolidate,” “consolidation,” and “consolidating” shall refer to the
consolidation of more than one assessment unit into a single assessment unit.
(b) In the event that an assessment unit previously assessed is subsequently
subdivided, the assessments previously levied against such original assessment
unit shall be divided pro rata among the resulting assessment units in accordance
with the original method of assessment, subject to section 12-30(c).
(c) In the event of an increase in the number of assessment units within an
improvement district resulting from subdivision, annexation, or otherwise, if so
provided in the resolution establishing the improvement district in which such
assessment units are located, the department of finance, within sixty days following
receipt of notification by the planning department of such approved subdivision,
annexation, or other action establishing a new assessment unit or units within the
improvement district, shall reallocate the outstanding assessments within the
improvement district among the assessment units subject to such outstanding
assessments, including the resulting new assessment units.
(d) In the event that two or more assessment units previously assessed are
subsequently consolidated, the total assessments previously levied against such
original assessment units shall be levied against the resulting assessment unit.
(1983 CC, c 12, art 3, sec 12-30; am 1995, ord 95-22, sec 11; am 2001, ord 01-108, sec 1;
am 2002, ord 02-82, sec 16.)12-30
Section 12-31. Notice and collection of assessments.
The director of finance shall forthwith publish notice of assessment once in at least
one daily newspaper of general circulation in the County, and notify the several owners
of the assessment units assessed, respectively, by registered letter or certified mail with
request for a return receipt, of the several amounts assessed on the respective
assessment units and of the date and place the assessments are payable. Such mailed
notice shall be addressed to the owners appearing in the records of the real property tax
division of the department of finance, County of Hawai‘i, as the addresses appear in the
records, or as otherwise known to the director of finance if not shown in the records. The
director of finance shall also collect the assessments and set aside all moneys collected
in a special fund or funds for the frontage improvement or improvement district, as the
case may be.
(1983 CC, c 12, art 3, sec 12-31; am 2002, ord 02-82, sec 17.)12-31
Section 12-32. Assessment as lien; order of priority; mistakes or errors.
(a) All assessments made pursuant to this chapter shall be a lien against each
assessment unit assessed from the date of the first publication of the ordinance
12-24
I MPROVEMENTS B Y A SSESSMENTS§12-32
declaring the assessment until paid and shall have priority over all other liens
except the lien of property taxes and for other public purposes. The lien of
assessments levied pursuant to this chapter shall be on a parity with the lien of
property taxes and liens for other public purposes. As between liens of assessments
made pursuant to this chapter, the earlier lien shall be superior to the later lien.
(b) No delay, mistake, error, defect, or irregularity in any act or proceeding authorized
by this chapter shall prejudice or invalidate any assessment. The delay, mistake,
error, defect or irregularity may be remedied by subsequent or amended acts or
proceedings and, when so remedied, the same shall take effect as of the date of the
original act or proceeding.
(c) If in any court of competent jurisdiction any assessment made under this chapter is
set aside for irregularity in the proceedings, the council may, upon notice as
required in making an original assessment, make a new assessment in accordance
with the provisions of this chapter.
(1983 CC, c 12, art 3, sec 12-32; am 2002, ord 02-82, sec 17.)12-32
Section 12-33. Due date of payments; election to pay by installments.
All assessments under this chapter shall be due and payable within thirty days
after the date of the last publication of the ordinance; provided that any assessments
may, at the election of the owner of the assessment unit assessed, be paid in
installments with interest, as hereinafter provided. Failure to pay the whole of any
assessment within the period of thirty days shall be conclusively considered and held an
election on the part of all persons interested in such assessments, whether under
disability or otherwise, to pay in installments. All persons so electing to pay in
installments shall be conclusively considered and held to have consented to the
improvement and such election shall be conclusively held and considered as a waiver of
any and all right to question all power or jurisdiction of the County to make the
improvement, the regularity or the sufficiency of the proceedings, or the validity or
correctness of the assessment.
(1983 CC, c 12, art 3, sec 12-33; am 2002, ord 02-82, sec 17.)12-33
Section 12-34. Payment of installments.
(a) In case of an election to pay any assessment in installments, the assessment shall
be payable in not less than five nor more than twenty annual installments of
principal; provided that, in the case of improvements financed by bonds issued to
secure loans from the federal government, the maximum number of annual
principal installments may be increased so as to permit the repayment of the
principal of such bonds over a period not to exceed thirty-five years from the date of
issuance; and provided further that the council may, in its discretion, determine the
date on which payment of such annual installments shall commence, which date
shall be no more than three years from the thirty-first day following the last
publication of the ordinance required to be enacted pursuant to section 12-29. The
annual installments shall be in such amounts as determined by the council, and
each annual installment may be made payable in up to twelve equal monthly or
12-25
§ 12-34H AWAI‘I C OUNTY C ODE
other periodic installments; provided that principal, interest or both on any bonds
outstanding due prior to collection of annual assessment shall be paid in accordance
with section 12-49, and except as provided in sections 12-44, 12-45, and 12-46
regarding temporary advances, shall not be paid out of any moneys available in the
County treasury. Interest in all cases shall be paid on the unpaid principal, at such
rate or rates as may be determined by the council.
(b) The date on which such annual installments shall commence, the number of such
annual installments, the respective amounts of the annual installments, the period
of payment, and the rate of interest shall be as determined by the council. Interest
for each year may be computed and collected up to the next succeeding date for
payment of principal and interest on the bonds issued pursuant to sections 12-44,
12-45, and 12-46, no deduction being made by reason of any installment being due
and payable prior to such date; provided, that after the annual installments are
determined and fixed if it appears to be of advantage to the assessee, the council
may permit the director of finance to accept payments in monthly installments as
hereinabove provided.
(1983 CC, c 12, art 3, sec 12-34; am 1984, ord 84-17, sec 1; am 2002, ord 02-82, sec 17;
am 2011, ord 11-65, sec 2.)12-34
Section 12-35. Advance payment of assessment installment.
The owner of any assessment unit subject to unpaid assessment installments which
are not delinquent may, at any time after the thirty day period specified in section
12-33, pay the entire unpaid principal provided the total of the following sums are also
paid therewith:
(1) An amount to be fixed by the director of finance for publishing notice calling
bonds;
(2) Interest on the unpaid principal to the interest due date on the bonds next
succeeding forty-five days after the date of advance payment, plus interest for
an additional six months on any portion of the unpaid principal which is not
evenly divisible by $1,000; and
(3) The premium required to be paid on advance payment of installments, if any,
as specified in the resolution adopted by the council pursuant to section 12-10.
The premium shall not exceed five percent of the unpaid amount.
(1983 CC, c 12, art 3, sec 12-35; am 2002, ord 02-82, sec 17.)12-35
Section 12-36. Installment collection expense.
The director of finance may add to each annual installment on assessments an
amount not less than one-half of one percent of the amount of the installment, both
principal and interest, to cover the expenses of collection; provided that the council may
increase such percentage to the extent the council determines from data presented by
the director of finance that an increased percentage is necessary to cover the collection
expenses. Such percentage when collected shall belong to the County.
(1983 CC, c 12, art 3, sec 12-36.)12-36
12-26
I MPROVEMENTS B Y A SSESSMENTS§12-37
Section 12-37. Payment in bonds.
The director of finance may accept in lieu of cash in payment of any assessment,
installment thereof, interest, penalty, cost, expense or any portion thereof, bonds of the
improvement district in which the assessment unit is situated, whether such bonds are
outstanding or hereafter issued, to a value of par, plus accrued interest to the date of
acceptance of such bonds by the director of finance. Upon the receipt of such bonds, the
director of finance shall cancel the bond and credit the improvement district with the
amount allowed on the bonds.
(1983 CC, c 12, art 3, sec 12-37; am 2002, ord 02-82, sec 17.)12-37
Section 12-38. Failure to pay installments.
(a) Failure to pay any installment, whether of principal or interest, when due, shall
cause the whole of the unpaid principal to become due and payable immediately,
and the delinquent installment or installments shall thereafter bear penalty at the
rate of two percent per month or fraction of a month from the date of delinquency
until the day of sale as provided in this chapter. At any time prior to the date of
sale, the owner may pay the amount of all delinquent installments, with penalty,
and all costs and expenses accrued, and shall thereupon be restored to the right
thereafter to pay in installments in the same manner as if default had not been
made.
(b) The council may, by resolution, approve a waiver of such amounts of penalty and
upon such terms, as it finds is needed to induce payment of substantial funds to be
used for the payment of obligations which are owed and which will be owing to
bondholders; in approving such a waiver, due consideration shall be given to an
equitable apportionment of the costs of the affected improvement district among
the various assessed assessment units.
(1983 CC, c 12, art 3, sec 12-38; am 1982, ord 777, sec 2; am 2002, ord 02-82, sec 17.)12-38
Section 12-39. Owner of undivided interest.
The owner of any undivided interest in any assessment unit may pay the whole
assessment thereon and may have a joint or several right of action against the other
owners of any interest in the assessment unit for their proportionate share of the
assessments.
(1983 CC, c 12, art 3, sec 12-39; am 2002, ord 02-82, sec 17.)12-39
Section 12-40. Sale for default.
(a) In case of default in the payment of any installment of principal and interest when
due, the director of finance may within one hundred twenty days after such default
commences advertise and sell the assessment unit concerning which default is
made for the whole of the unpaid assessment thereon, interest and costs. The
period of default shall not exceed one year before foreclosure action is initiated. The
purchaser of such assessment unit shall be permitted to pay in cash the total
amount of the delinquent installment or installments of principal and interest and
penalty, and the balance in equal annual or monthly installments as originally
12-27
§ 12-40H AWAI‘I C OUNTY C ODE
provided, in which event the lien of the unpaid assessment shall remain in full force
and effect until final payment of such balance. Such sale and advertisement shall
be made by the director of finance in the same manner, under the same conditions
and penalties and with the same effect as provided by general law for sales of real
property for default in payment of property taxes.
(b) In the event of the failure of the director of finance to so commence and diligently
complete advertisement and sale of the assessment unit pursuant to the provisions
of this section, the director of finance shall not be personally liable for such failure,
but if a default exists in payment of principal or interest upon bonds, issued to
represent an assessment for which any such installment of principal and interest is
in default, or if the levy has been made or it appears probable that the levy will be
required to be made, the holder of such bonds in the former case, and any persons
who are owners of the assessment units subject to such levy and liable to pay same
in the latter case, or both, shall have the right to enforce performance of the duties
of the director of finance hereunder by action in the nature of mandamus, as
provided by law.
(1983 CC, c 12, art 3, sec 12-40; am 2002, ord 02-82, sec 17; am 2011, ord 11-65, sec 3.)
12-40
Section 12-41. Purchase at sale.
At any sale for default in payment of any assessment levied as provided in this
chapter, the director of finance may accept, in lieu of cash, in payment for the
assessment unit so sold, bonds of such improvement district whether such bonds are
then outstanding or hereafter issued, to a value of par plus accrued interest to date of
sale. Upon the receipt of such bonds, the director of finance shall cancel the bonds and
credit the improvement district with the amount allowed on the bonds.
(1983 CC, c 12, art 3, sec 12-41; am 2002, ord 02-82, sec 17.)12-41
Section 12-42. Certificate of balance due.
The director of finance shall, on request, give a certificate in writing to any person
making request for same, showing in the certificate the balance due on any individual
assessment for improvements for principal, with the date of next installment payment,
the number of the installment payment and the amount to be due for the installment
payment and particulars of interest and penalty on the next installment date to be due
and owing.
(1983 CC, c 12, art 3, sec 12-42.)12-42
Section 12-43. Sale of land by director; terms.
Whenever any assessment unit has been bid in by the director of finance at any
sale for default of the owner thereof, the director of finance, in making such sale thereof
as may by law be authorized, may sell the assessment unit, upon the following terms
and conditions:
(1) A down payment at the sale of twenty percent of the sale price;
12-28
I MPROVEMENTS B Y A SSESSMENTS§12-43
(2) The balance payable in monthly installments of not less than one and one-
third percent of the total sale price, plus interest at the rate of five percent per
annum upon all unpaid balances;
(3) Failure for thirty days to pay any installment due shall effect an entire
forfeiture of the purchaser’s right, title and interest in such assessment unit in
any payments previously made by the purchaser on account thereof;
(4) Such building restrictions as the director of finance may prescribe; and
(5) The assessment unit when sold shall be subject to real property taxes.
(1983 CC, c 12, art 3, sec 12-43; am 2002, ord 02-82, sec 17.)12-43
Article 4. Finance and Payment.
Section 12-44. Improvement bonds authorized.
In the event of an election to pay all or part of any such special assessment in
installments, the amount required for immediate use to pay the cost of the
improvement, or the installments thereof from time to time as they fall due, may be
advanced out of any funds available in the general fund or the permanent improvement
fund; provided that as soon as practicable, the amounts so necessary shall be secured,
and repaid if advances have been made, by the issuance of sufficient district
improvement bonds of the County to raise such required amounts.
(1983 CC, c 12, art 4, sec 12-44; am 1984, ord 84-4, sec 3.)12-44
Section 12-45. Contents of bonds.
(a) The director of finance, upon authorizing resolution from the council, may issue
improvement bonds. The resolution shall require one reading for its adoption.
Improvement bonds shall bear the name of the improvement district, and:
(1) Shall bear interest at a rate or rates not exceeding a rate or rates established
by resolution enacted by the council payable at such time or times;
(2) May be made payable as to both principal and interest at such place or places
and in such manner within and without the State;
(3) May be issued in coupon form without privilege of registration or registrable
as to principal only or as to both principal and interest or in fully registrable
form without coupons;
(4) May be made registrable at such place or places within and without the State;
and
(5) May be subject to redemption, to being tendered for purchase or to being
purchased prior to their stated maturity at the option of the County, the
holder or either or both, all as determined by the council or the director of
finance as herein provided.
(b) Unless the council shall itself perform the actions, the director of finance shall:
(1) Determine the date, denomination or denominations, interest payment dates,
maturity date or dates, place or places of payment, registration privileges and
place or places of registration, redemption price or prices and time or times
and terms and conditions and method of redemption;
12-29
§ 12-45H AWAI‘I C OUNTY C ODE
(2) The rights of the holder to tender for purchase and the price or prices and time
or times and terms and conditions upon which those rights may be exercised;
(3) The rights to purchase and price or prices and the time or times and terms and
conditions upon which those rights may be exercised and the purchase may be
made; and
(4) Determine all other details of bonds issued under this chapter.
(c) The principal of and interest and premium, if any, on all bonds issued under this
chapter 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. Dates of
such payment shall take into account the dates that assessment installments for
the improvement district are due. Improvement bonds shall be subject to call but
not prior to the second interest date thereof as hereinafter provided and at such
premium, if any, as may have been provided for in the resolution authorizing such
bonds, but not in excess of the maximum premium provided in the resolution of the
council adopted pursuant to section 12-10.
(1983 CC, c 12, art 4, sec 12-45; am 1984, ord 84-4, sec 3; am 1990, ord 90-127, sec 11.)
12-45
Section 12-46. Execution of bonds; records; funds for payment.
(a) Improvement bonds shall be executed by the director of finance, or by a deputy of
the director of finance duly designated by the director to execute such bonds, and
issued pursuant to and under the authority and requirements of resolutions of the
council. The bonds shall bear the lithographed or engraved facsimile signature of
the mayor and shall be impressed with a lithographed or engraved facsimile of the
seal of the County. If the council provides that no such improvement bond shall be
valid or obligatory unless and until there shall be manually executed a certificate of
authentication thereof, all signatures of County officials on the bonds may be
facsimiles of their respective signatures. Interest coupons, if any, shall bear the
lithographed or engraved facsimile of the signature of the director of finance.
(b) The director of finance shall preserve a record of the bonds in a suitable book kept
for that purpose. The council shall provide for books of registry to be kept for the
registration of improvement bonds issued in fully registered form or which are
subject to registration.
(c) The bonds shall be payable only out of the moneys collected on account of
assessments made for the improvement for which they are issued or from the
reserve fund established pursuant to section 12-50, if the moneys collected out of
assessments are insufficient to pay the bonds or the interest thereon as they
become due. The County shall not otherwise guarantee payment of any bonds
issued under the provisions of this chapter, provided that interest payments may be
advanced by the council temporarily out of any moneys available in the County
treasury.
(1983 CC, c 12, art 4, sec 12-46; am 1984, ord 84-4, sec 3; am 1990, ord 90-127, sec 11.)
12-46
12-30
I MPROVEMENTS B Y A SSESSMENTS§12-47
Section 12-47. General obligation bonds and special assessment revolving
fund.
(a) For any improvement initiated pursuant to section 12-10 only, the council, in lieu of
the issuance of improvement bonds as permitted by sections 12-44, 12-45, and 12-
46 may in its sole discretion issue general obligation bonds of the County or
authorize payment of the required amount from the special assessment revolving
fund of the County or both.
(b) The council shall have power to issue general obligation bonds of the County for the
purpose of establishing, maintaining or replenishing the special assessment
revolving fund.
(c) All such general obligation bonds shall be authorized, issued and sold under,
pursuant to, and in accordance with chapter 47, Hawai‘i Revised Statutes, as
amended, all of the provisions of which chapter shall be applicable thereto. Without
limiting the generality of the provisions of the foregoing sentence, the form, name,
date, denomination, numbers, maximum interest rate, method of execution and all
other details of such general obligation bonds shall be fixed and determined in
accordance with and as provided by chapter 47. No right of prior redemption need
be reserved in the issuance of such bonds, nor shall either the amounts or dates of
the maturities of any such bonds be required to conform in any way to the amounts
and due dates of any assessments.
(d) The validity of such general obligation bonds shall not be dependent on or affected
in any way by any proceedings taken or any contracts made, acts performed or done
in connection with, or in furtherance of, any improvement or any assessments for
such improvement.
(e) If the issuance of general obligation bonds are issued as provided in this section, all
moneys collected on account of assessments and interest for any improvement that
is financed by such bonds, may, to the extent so directed by the council, be applied
to the reimbursement of the general fund of the County to the extent of the
amounts paid for interest on and principal of such general obligation bonds. Any
amounts collected on account of assessments and interest as aforesaid to the extent
not so directed by the council to be applied to such reimbursement or in excess of
the amounts required for such reimbursement, and amounts collected on account of
assessments and interest for any improvement financed from the special
assessment revolving fund, shall be appropriated to and become a part of the
special assessment revolving fund and may be used and applied as authorized by
the council.
(1983 CC, c 12, art 4, sec 12-47; am 1984, ord 84-4, sec 3; am 1990, ord 90-127, sec 11.)
12-47
Section 12-48. Exemption of general obligation bonds from certain
requirements.
The provisions of sections 12-49, 12-50, 12-51,* 12-52, 12-53, 12-54 and 12-55* shall
not apply to the general obligation bonds authorized by section 12-47 and such sections
shall be restricted in their application to improvement bonds, nor shall the provisions of
article 5 of this chapter apply to such general obligation bonds unless the council in its
12-31
§ 12-48H AWAI‘I C OUNTY C ODE
sole discretion shall consent to the application of such provisions to such bonds. The
refunding of any such general obligation bonds shall not in any way affect the payment
of assessment installment and the interest thereon or the amounts and times of such
payments unless such refunding is part of a plan consented to by the council and
adopted under article 5 of this chapter.
(1983 CC, c 12, art 4, sec 12-48; am 1984, ord 84-4, sec 3; am 1990, ord 90-127, sec 11.)
12-48
* Editor’s Note: Sections 12-51 and 12-55, Hawai‘i County Code, were repealed by Ordinances 84-4 and 90-127.
Section 12-49. Special fund for administrative and pre-formation costs and
payment of bonds; use of surplus; insufficient funds.
(a) All moneys collected on account of assessments and interest for any improvement
after the issuance of any bonds shall be kept by the director of finance in a special
fund and applied to the payment of interest and principal of bonds and
administrative costs issued for the improvement until the bonds have been paid.
The director of finance of the County shall pay the principal of the bonds at
maturity and the interest thereon as and when the same become due at the place or
places and in the manner prescribed for the payment under this chapter and the
proceedings authorizing those bonds from such special fund.
(b) If any surplus remains in any special fund after the disbursement of funds
described in section 12-28.1 of this chapter, such surplus or premium shall be
credited to and become a part of a fund to be known as the improvement district
revolving fund, the moneys in which shall be available to make up deficiencies in
the proceeds of bonds sold below par, to cover deficiencies in interest realized on
account of diminishing balances of installments outstanding, and to advance
interest due on bonds outstanding prior to collection of annual assessments, and
also for the purpose of paying all expenses in connection with the sale of delinquent
improvement district assessment units and the prices of the delinquent assessment
units as are bid for and purchased by the director of finance. The director of finance
may upon such purchase, transfer the proper amounts so bid to the proper special
funds for the respective improvement districts concerned. The director of finance
may also use the improvement district revolving fund to advance the cost of pre-
formation activities pursuant to section 12-7 with the expectation that the
improvement district revolving fund will be reimbursed after the improvement
district is formed.
(c) If moneys in the applicable special fund prove insufficient at any time to pay the
principal and interest, or the interest only, as the case may be, on bonds
outstanding, moneys shall be transferred from the reserve fund established
pursuant to section 12-50, or from the improvement district revolving fund into
such special fund in such amounts as will enable the director of finance to make the
payments of principal or interest, or interest only, as the same becomes due.
(1983 CC, c 12, art 4, sec 12-49; am 1984, ord 84-4, sec 3; am 1990, ord 90-127, sec 11;
am 2002, ord 02-82, sec 18; am 2011, ord 11-101, sec 2.)12-49
12-32
I MPROVEMENTS B Y A SSESSMENTS§12-50
Section 12-50. Reserve fund.
(a) The council may provide in the resolution adopted pursuant to section 12-10 for a
reserve fund as additional security for the payment of principal and interest on
improvement bonds issued in proceedings taken pursuant to this chapter. The
reserve fund shall be initially funded from the proceeds from the sale of
improvement bonds with respect to which such reserve fund is established in such
amount as is designated by the council in the resolution authorizing such bonds.
Moneys in a reserve fund shall be used in accordance with the provisions of section
12-49 and to pay the principal or interest, or both, in whole or in part, on the last
outstanding maturity or maturities of the bonds, and assessment installments or
such portions thereof which would otherwise be collected to make such payments
shall be canceled, provided that in making use of moneys in the reserve fund to pay
principal or interest, or both, on the last outstanding maturity or maturities of the
bonds, the director of finance shall make provisions for expected delinquencies in
payment of any portions of assessment installments which will not be canceled by
such use of the reserve fund, and provided further that insofar as the moneys are
attributable to fully paid assessments rather than to cancellation of installments or
portions thereof, the moneys shall be paid pro rata to the persons who at the time of
such apportionment own (as shown on the records of the County tax office) the
assessment units subjected to the assessments.
(b) There shall be transferred to the improvement district revolving fund of the
County:
(1) Any portion of such moneys which shall not have been paid to or claimed by
the persons entitled thereto within two years after the due date of the last
bonds; and
(2) Any interest earned from the investment of such moneys during the two year
period.
(1983 CC, c 12, art 4, sec 12-50; am 1984, ord 84-4, sec 3; am 1990, ord 90-127, sec 11;
am 2002, ord 02-82, sec 18.)12-50
Section 12-51. Repealed.
(1983 CC, c 12, art 4, sec 12-51; rep 1984, ord 84-4, sec 3.)12-51
Section 12-52. Place of payment of bonds.
The principal and interest of the bonds shall be payable at the office of the director
of finance and may also be made payable at the office of any bank, fiduciary company, or
in such other places as may be determined by the council, provided that interest on
registered bonds may be payable by check or draft mailed to the registered holders as
provided by the council. In all cases, the bonds and coupons, if any, shall recite the
places and manner of payment. In case any bonds are made payable elsewhere than in
Hilo, Hawai‘i, the director of finance shall remit the funds necessary to pay the interest
and principal when due, of any such bonds, to the institution so designated, first
assuring that such institution is then solvent.
(1983 CC, c 12, art 4, sec 12-52; am 1984, ord 84-4, sec 3.)12-52
12-33
§ 12-53H AWAI‘I C OUNTY C ODE
Section 12-53. Sale of bonds; use as payment to contractor.
(a) The director of finance may make such arrangements as may be necessary or
proper for the sale of each issue of bonds or part thereof as are issued under this
article, including without limitation, arranging for the preparation and printing of
the bonds, the official statement and any other documents or instruments deemed
required for the issuance and sale of bonds and retaining those financial,
accounting, and legal consultants, all upon such terms and conditions as the
director of finance deems advisable and in the best interest of the County. The
council may authorize the director of finance to offer the bonds at competitive sale
or to negotiate the sale of the bonds to:
(1) Any person or group of persons;
(2) The United States of America, or any board, agency, instrumentality, or
corporation thereof;
(3) The employees retirement system of the State;
(4) Any political subdivision of the State;
(5) Any board, agency, instrumentality, public corporation, or other governmental
organization of the State; or of any political subdivision of the State.
(b) Subject to any limitation imposed by the council by the ordinance or resolution
authorizing the bonds, the sale of the bonds by the director of finance by
negotiation shall be at such price or prices and upon such terms and conditions,
from time to time in such manner, as the director of finance shall approve.
(c) Subject to any limitation imposed by the council by the resolution authorizing the
bonds, the sale of the bonds by the director of finance at competitive sale shall be at
such price or prices and upon such terms and conditions, and the bonds shall bear
interest at such rate or rates or such varying rates determined from time to time in
the manner, as specified by the successful bidder, and the bonds shall be sold in
accordance with this subsection. The bonds offered at competitive sale shall be sold
only after published notice of sale advising prospective purchasers of the proposed
sale. The bonds offered at competitive sale may be sold to the bidder offering to
purchase the bonds at the lowest interest cost, the interest cost, for the purpose of
this subsection, being determined on one of the following bases as selected by the
director of finance:
(1) The figure obtained by adding together the amounts of interest payable on the
bonds from their date to their respective maturity dates at the rate or rates
specified by the bidder and deducting from the sum obtained the amount of
any premium offered by the bidder;
(2) Where the interest on the bonds is payable annually, the annual interest rate
(compounded annually), or where the interest on the bonds is payable
semiannually, the rate obtained by doubling the semiannual interest rate
(compounded semiannually), necessary to discount the principal and interest
payments on the bonds from the dates of payment thereof to the date of the
bonds and to the price bid (the price bid for the purpose of this paragraph shall
not include the amount of interest accrued on the bonds from their date to the
date of delivery and payment); or
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I MPROVEMENTS B Y A SSESSMENTS§12-53
(3) Where the interest on the bonds is payable other than annually or
semiannually or will vary from time to time, upon such basis as, in the opinion
of the director of finance, shall result in the lowest cost to the County; provided
that in any case the right shall be reserved to reject any or all bids and waive
any irregularity or informality in any bid.
(d) Bonds offered at competitive sale, without further action of the council, shall bear
interest at the rate or rates specified by the successful bidder or varying rate or
rates determined from time to time in the manner specified by the successful bidder
with the consent of the director of finance. The notice of sale required by this
section shall be published at least once and at least five days prior to the date of the
sale in a newspaper circulating in the County and in a financial newspaper or
newspapers published in any of the cities of New York, Chicago, or San Francisco,
and shall be in such form and contain such terms and conditions as the director of
finance shall determine. The notice of sale shall comply with the requirements of
this section if it merely advises prospective purchasers of the proposed sale and
makes reference to a detailed notice of sale which is available to the prospective
purchasers and which sets forth the specific details of the bonds and terms and
conditions upon which such bonds are to be offered. The notice of sale published
and any detailed notice of sale may omit the date and time of sale, in which event
the date and time shall be either published in the same newspapers in which the
notice of sale has been published or transmitted via electronic communication
systems deemed proper by the director of finance which is generally available to the
financial community, in either case at least forty-eight hours prior to the time fixed
for the sale.
(e) The proceeds of the sale of bonds shall be applied to pay the contract price. If no
purchaser is found, the County may be the purchaser of any such bonds, using any
funds available and unspent. Bonds sold to a purchaser other than the County may
be sold for such discount as is acceptable to the council.
(f) The council may provide for payment to the contractor, or to the owner or the
owners’ representative designated pursuant to section 12-24(d), of the contract
price of the improvement by means of progress payments during the period of the
work, such payments in bonds at par or in cash or both.
(1983 CC, c 12, art 4, sec 12-53; am 1984, ord 84-4, sec 3; am 1990, ord 90-127, sec 12;
am 2020, ord 20-7, sec 8.) 12-53
Section 12-54. Payment of bonds.
(a) All improvement bonds not previously paid shall be paid at maturity together with
interest thereon as the same become due at the places and in the manner
prescribed by this chapter.
(b) The resolution of the council authorizing improvement bonds may provide that such
bonds may be called for redemption prior to the stated maturity. In such event, on
and after the second interest due date of any such improvement bonds issued
pursuant to this chapter, whenever sufficient funds are in the hands of the director
of finance by reason of payment of assessment installments, exceeding the next
interest payment on the unpaid balance of any bonds so issued, the director of
finance is authorized to call for payment prior to the stated maturity thereof such
SUPP. 8 (7-2020)
12-35
§ 12-54H AWAI‘I C OUNTY C ODE
number of improvement bonds as there are funds to pay. The resolution of the
council authorizing the improvement bonds shall provide for proper and adequate
notice of such redemption to be published or mailed or both prior to the date fixed
for redemption. A copy of such notice shall also be mailed to the person who
purchased such bonds at the original sale thereof. Interest on the bonds so called
for payment shall cease on the date of call, provided that the notice shall be
published or mailed at least fifteen days before the date of such call. If notice must
be made by publication, a second publication shall be made not less than one week
after the date of first publication. The moneys provided for the payment of such
bonds with the interest unpaid to the date of their call for payment, together with
any applicable premium payable, shall be set aside by the director of finance in a
special deposit to which fund only the owners of the bonds shall thereafter look for
payment.
(c) Improvement bonds shall be selected for redemption in the manner prescribed by
the council.
(d) Any premium paid on redemption may not exceed five percent of the face amount of
the improvement bond.
(1983 CC, c 12, art 4, sec 12-54; am 1984, ord 84-4, sec 3; am 1990, ord 90-127, sec 12.)
12-54
Section 12-55. Repealed.
(1983 CC, c 12, art 4, sec 12-55; am 1984, ord 84-4, sec 3; rep 1990, ord 90-127, sec 13.)
12-55
Section 12-55.1. Exemption from taxes.
(a) All bonds heretofore or hereafter issued under the authority of this chapter and the
income therefrom shall be exempt from any and all taxation by the State or any
County or other political subdivision thereof, except inheritance, transfer, and
estate taxes.
(b) Bonds issued under this chapter, to the extent practicable, shall be issued so as to
comply with requirements imposed by valid Federal law providing that the interest
on those bonds shall be excluded from gross income for Federal income purposes
(except as certain minimum taxes or environmental taxes may apply). The director
of finance is authorized to enter into arrangements, establish funds or accounts,
and take any action required in order to comply with any valid Federal law.
Nothing in this chapter shall be deemed to prohibit the issuance of bonds, the
interest on which may be included in gross income for Federal income tax purposes.
For the purpose of ensuring that interest on bonds issued pursuant to this
chapter which is excluded from gross income for Federal income tax purposes
(except as provided above) on the date of issuance shall continue to be so excluded,
no County officer or employee or user of an undertaking or loan program shall
authorize or allow any change, amendment, or modification to an undertaking or
loan program financed or refinanced with the proceeds of the bonds which change,
12-36
I MPROVEMENTS B Y A SSESSMENTS§12-55.1
amendment or modification would affect the exclusion of interest on the bonds from
gross income for Federal income tax purposes unless the change, amendment, or
modification shall have received the prior approval of the director of finance.
Failure to receive the approval of the director of finance shall render any change,
amendment, or modification void.
(1990, ord 90-127, sec 14.)12-55.1
Section 12-56. Bonds not chargeable against general revenue.
No improvement bonds issued under the provisions of this chapter shall be
considered as County bonds within the meaning of section 248-5, Hawai‘i Revised
Statutes, nor shall the payment of same be a charge against the general revenues of the
County.
(1983 CC, c 12, art 4, sec 12-56; am 1984, ord 84-4, sec 3.)12-56
Section 12-57. Errors in computation of amount due.
No improvement bond, coupon, assessment or installation thereof or of the interest
or penalties thereon, or certificate of sale or deed shall be held invalid for any error in
the computation of the proper amount due on the same, if the error is found to be
comparatively negligible.
(1983 CC, c 12, art 4, sec 12-57; am 1984, ord 84-4, sec 3.)12-57
Article 5. Refunding.
Section 12-58. Refunding authorized.
The council may provide for the refunding of the outstanding indebtedness of
improvement districts located within the County in the manner provided in this article.
(1983 CC, c 12, art 5, sec 12-58.)12-58
Section 12-59. Initiation of refunding.
(a) The owners of assessment units in any improvement district whose assessment
units represent seventy-five percent or more of the outstanding improvement
assessments at the time of the filing of the petition shall, if it is desired that the
indebtedness of the district be refunded, file with the council a petition, which
petition shall set forth the indebtedness of the district, that it is desired that the
indebtedness be refunded, and the proposed method of refunding the outstanding
indebtedness.
(b) The council shall thereupon, by resolution requiring not more than one reading for
its adoption, direct the director of finance to investigate and report to the council:
(1) The amount of unpaid assessments and the assessment units subject to the
assessment in the improvement district;
(2) The detail of any delinquent assessments and of any unpaid penalties;
(3) Whether the petitioners own assessment units representing seventy-five
percent or more of the unpaid assessments in the district;
12-37
§ 12-59H AWAI‘I C OUNTY C ODE
(4) The proposed method of reassessment of the assessment units subject to
existing assessments;
(5) A new assessment roll showing the proposed new assessments;
(6) The cost of the proposed refunding scheme; and
(7) Other details which may be necessary to carry into effect the proposed
refunding project.
(c) The report of the director of finance shall be filed with the council.
(d) Thereafter the council shall, by resolution requiring one reading for its adoption,
propose the adoption of the suggested refunding plan specifying:
(1) The outstanding indebtedness of the district;
(2) That the owners of assessment units representing not less than seventy-five
percent of the unpaid improvement assessments have petitioned that the
outstanding indebtedness of the district be refunded;
(3) The proposed refunding plan in detail; and
(4) The proposed method of reassessment, including the minimum number of
installment payments to be proposed, and the maximum amount to be
assessed against a unit of assessment.
The resolution shall refer to and incorporate by reference the preliminary
assessment roll and such other data reported by the director of finance as shall be
approved by the council. The resolution shall also fix the date of public hearing
upon such plan, which date shall not be less than fifteen days after the first
publication of notice thereof in a newspaper of general circulation in the County. In
addition, the resolution may require the petitioners to deposit with the director of
finance, within seven days after adoption of such resolution, a sum sufficient to
meet the cost of the refunding project as reported by the director of finance, in
which case the holding of the public hearing and any other actions of the County
with respect to the refunding shall be conditioned on the making of such deposit
within such period.
(e) After the adoption of the resolution, the clerk shall cause a notice of the public
hearing to be published as provided in section 12-10, giving notice generally to all
owners of the assessment units still under assessment in the improvement district,
stating the time and place of the public hearing and where the resolution,
preliminary assessment roll and other data may be seen and examined prior to the
hearing. Like notices shall be posted in three of the most conspicuous places in the
improvement district for which the outstanding bonds are issued. Affidavits of
publication, both in the newspaper and of the posting, respectively, shall be filed
with the council at the hearing.
(1983 CC, c 12, art 5, sec 12-59; am 2001, ord 01-108, sec 1; am 2002, ord 02-82, sec 19;
am 2011, ord 11-66, sec 12.)12-59
Section 12-60. Protest against refunding.
(a) Any owner of an assessment unit, the assessments on which to pay the outstanding
indebtedness have not been fully discharged, may at any time prior to or at the
public hearing, file in writing with the council any protest, objection or suggestion
12-38
I MPROVEMENTS B Y A SSESSMENTS§12-60
as to the proposed refunding measure, stating briefly the reason therefor, or may
present the same in person orally at the public hearing. If the owners of assessment
units representing thirty percent or more of the outstanding improvement
assessments shall at the hearing, or prior thereto, file with the council written
protests duly acknowledged by the owners against the proposed refunding project,
or against any part of the refunding plan, the refunding shall not be made contrary
to protest. If the protest is against the adoption of any refunding plan, the plan
shall not be made, and the proceedings shall not be renewed within one year from
the date of closing the public hearing, unless each owner protesting shall sooner
withdraw the protest.
(b) The council shall also at the hearing sit as a board of equalization to receive
complaints or objections respecting the total amounts of the proposed assessments.
(1983 CC, c 12, art 5, sec 12-60; am 2002, ord 02-82, sec 19.)12-60
Section 12-61. Determination by council.
(a) After the hearing, the council shall consider any protests or suggestions which may
have been made or filed and whether sufficient valid protests have been filed to
compel it to abandon the proposed refunding plan. If the council has jurisdiction to
continue, it shall then proceed to determine whether or not the refunding plan shall
be adopted as proposed, or adopted with modifications. In the latter event the clerk
shall be directed to give notice again of the hearing as provided in section 12-59.
(b) If after such initial and further advertisement and hearing the council determines
to proceed with the refunding measure, it shall, by ordinance, promulgate the
refunding measure. Should the refunding project provide for the issuance of new
bonds in the improvement district, the ordinance shall provide for the form of new
bonds to be issued, approve of the assessment roll, and incorporate the assessment
roll by reference. The assessment roll, as provided in section 12-26* shall contain
only the names of the owners of assessment units who have not fully paid the
assessments originally provided for the payment of the outstanding improvement
bonds and shall provide for the levying of new assessments in amounts sufficient to
retire the refunding bonds to be issued pursuant to the terms hereof.
(c) After the final enactment of the ordinance, the amounts of the several assessments
listed, advertised or incorporated, not previously objected to, shall conclusively be
presumed to be just and equitable and not in excess of the special benefits accruing
or to accrue by reason of the original improvement project. Upon final passage of
the ordinance as provided above, all assessments therein made shall be a lien in the
same manner and to the same extent as provided in section 12-32; provided, that in
no case shall this new assessment constitute a lien on any assessment unit which
has been discharged from the payment of the original assessment.
(1983 CC, c 12, art 5, sec 12-61; am 2001, ord 01-123, sec 2; am 2002, ord 02-82, sec 19.)
12-61
* Editor’s Note: See section 12-27, Hawai‘i County Code, regarding preliminary assessment rolls.
12-39
§ 12-62H AWAI‘I C OUNTY C ODE
Section 12-62. Refunding bonds.
(a) Improvement bonds issued for the refunding of the outstanding indebtedness of any
improvement district shall bear the name of the improvement district for which
they are issued, and shall be issued and sold under all the conditions and terms as
prescribed by article 4 of this chapter, except as otherwise prescribed in this
chapter.
(b) A lower rate of interest than that authorized in the original issue of improvement
bonds may be prescribed and the refunding bonds may be authorized to run for a
term not to exceed fifteen years from the final maturity date of the outstanding
bonds.
(1983 CC, c 12, art 5, sec 12-62; am 1984, ord 84-4, sec 4.)12-62
Section 12-63. Petition by all owners.
If the petition is filed and acknowledged by the owners of assessment units
representing one hundred percent of the unpaid assessments in any improvement
district, and by all lessees of any assessment unit to be assessed, who, by the express
terms of their respective leases must pay the kind of assessments contemplated by this
article, unless the lessor of such lease files with the petition a duly acknowledged
waiver of the stipulation in the lease which requires the lessee to pay such special
assessments, and a written undertaking by the lessor or owner to pay the special
assessments to be made under the proposed refunding plan, then the council shall
proceed as provided above to have a hearing on the proposed new method of assessment
and the assessment roll; provided that in case the owners of assessment units
representing one hundred percent of the unpaid assessment as provided in this section
consent, in writing, to the amount and apportionment of the proposed assessments
under the refunding plan, it shall be unnecessary to give the notice or to hold any of the
hearings specified above and the council may immediately proceed to fix the assessment
in the manner provided; and provided further that the council may by resolution require
the petitioners to deposit with the director of finance, within seven days after adoption
of such resolution, a sum sufficient to meet the cost of the refunding project as reported
by the director of finance, in which case the holding of the public hearing (if applicable)
and any other actions of the County with respect to the refunding shall be conditioned
on the making of such deposit within such period.
(1983 CC, c 12, art 5, sec 12-63; am 2001, ord 01-108, sec 1; am 2002, ord 02-82, sec 19;
am 2011, ord 11-66, sec 13.)12-63
Section 12-64. Cancellation of retired bonds.
Should the refunding project provide for the retirement of the outstanding bonds of
the improvement district, the director of finance shall stamp the retired bonds
“canceled” and shall keep such canceled bonds in his possession.
(1983 CC, c 12, art 5, sec 12-64.)12-64
12-40
I MPROVEMENTS B Y A SSESSMENTS§12-65
Section 12-65. Obligations unimpaired.
Nothing in this article shall be construed as giving the council or any improvement
district authority to impair the obligations of the improvement district under any
outstanding improvement district bonds.
(1983 CC, c 12, art 5, sec 12-65.)12-65
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