COUNTY OF MAUI, BOARD OF WATER SUPPLY
RESOLUTION NO. 11 (1998)

A RESOLUTION OF THE COUNTY OF MAUI, BOARD OF WATER SUPPLY REQUESTING THE 
COUNTY OF MAUI TO AUTHORIZE ON BEHALF OF THE DEPARTMENT OF WATER SUPPLY, A 
SEMI-AUTONOMOUS DEPARTMENT, THE ISSUANCE IN AN AMOUNT NOT TO EXCEED TWELVE 
MILLION DOLLARS ($12,000,000) AGGREGATE PRINCIPAL AMOUNT OF GENERAL 
OBLIGATION BONDS OF THE COUNTY OF MAUI FOR THE PURPOSE OF PROVIDING FUNDS
TO PAY FOR ALL OR A PART OF THE COST OF CONSTRUCTING AND ACQUIRING CAPITAL 
IMPROVEMENTS AS IDENTIFIED IN THE FISCAL YEAR 1998 BUDGET OF THE DEPARTMENT 
OF WATER SUPPLY, INCLUDING THE ACQUISITION OF ANY NECESSARY LAND THEREFOR



	WHEREAS, the Department of Water Supply ("Department") of the County of 
Maui, Hawaii ("County"), consisting of a Board of Water Supply ("Board"), a Director, 
a Deputy Director, and the necessary staff, has, pursuant to the Charter of the County, 
the full and complete authority to manage, control and operate water systems owned and 
operated by the County, including all the County water rights and water sources, together 
with all materials, supplies and equipment and all real and personal property used in 
connection with such water systems and has, pursuant to such authority, managed, controlled 
and operated such water systems; and 

	WHEREAS, the Board adopted on December 17, 1991, a Bond Resolution (as amended 
and supplemented from time to time) (the "Bond Resolution") authorizing and providing 
for the issuance from time to time a series of Water System Revenue Bonds in the name of 
the Board for the purposes of the water system of the County; and

	WHEREAS, under the Constitution of the State of Hawaii, Hawaii Revised Statutes, 
and the Charter of the County, the Board may, by resolution, request and consent to the 
issuance of general obligation bonds of the County for constructing and acquiring capital 
improvements of the Department of Water Supply, and to pledge the revenues of the 
Department to the payment and security of such general obligation bonds; and

	WHEREAS, the Board finds and determines it to be beneficial to the management 
and operation of the water systems of the County to request and consent to the issuance 
of such general obligation bonds; now, therefore,

	BE IT RESOLVED BY THE BOARD OF WATER SUPPLY OF THE COUNTY OF MAUI, STATE 
OF HAWAII:

	SECTION 1. Pursuant to Part I, Chapter 47, Hawaii Revised Statutes, as amended, 
the Council of the County of Maui (the "Council") is hereby requested to authorize 
the issuance of general obligation bonds of the County of Maui in the aggregate 
principal amount not to exceed TWELVE MILLION DOLLARS ($12,000,000), the first 
installment of principal to mature not later than five years from the date of the 
bonds and the last installment of principal to mature not later than twenty-five
years from the date of the bonds, proceeds derived from the sale thereof to be 
used for constructing and acquiring capital improvements of the Department of Water 
Supply, including the acquisition of necessary lands therefor, as identified in the
Fiscal Year 1998 Budget for the Department of Water Supply.
	
	The Director of Finance ("Director") of the County of Maul, in accordance 
with and subject to the Constitution and laws of the State of Hawaii and the Charter 
of the County of Maui ("County Charter") and the ordinances of the County of Maui, 
including the ordinance authorizing such bonds, shall fix and determine the form, date, 
denomination and maturities of said bonds, which shall mature in substantially equal 
annual installments of principal and interest as the Director deems to be in the best 
interest of the Department. The bonds shall be substantially in the form of the general 
obligation bonds of the County of Maui heretofore issued, with such omissions from such 
form, such insertions therein and such variations thereto as shall be deemed necessary 
and desirable to reflect the provision of the Constitution and laws of the State of 
Hawaii and the County Charter and the ordinances authorizing such bonds. The bonds shall 
have such further details as shall be determined by the Director consistent with the 
provisions of the Constitution and laws of the State of Hawaii and the County Charter 
and ordinances of the County of Maui, including the ordinance authorizing such bonds, 
all as the Director deems to be in the best interest of the Department.

	SECTION 2. The Council is hereby requested to authorize the Director to 
issue and sell the bonds as such time as the Director shall determine after consultation 
with the Board of Water Supply, provided that such bonds shall be issued and sold by not 
later than September 1, 1998.

	SECTION 3. Said bonds shall be issued for a public undertaking from 
which revenues are derived, to wit: for Capital Improvement Projects, Fiscal Year 1998 
Budget of the Department of Water Supply. The Board hereby covenants that the General 
Fund of the County of Maui shall be reimbursed for the payment of the principal of and 
interest on said bonds. The Board further pledges as security for repayment of the bonds 
Department of Water Supply revenues from the undertakings which the bonds will finance. 
Such reimbursement will be made in a manner consistent with the provisions of the 
Constitution and laws of the State of Hawaii and County Charter.

	SECTION 4. The Board hereby covenants with the holders, from time to 
time of said bonds that so long as any bonds shall be outstanding, the Board shall 
comply with all applicable provisions of Sections 103 and 141 through 150 of the Internal
Revenue code of 1986, as amended, and all applicable regulations of the Internal Revenue 
Service proposed or promulgated thereunder.

	SECTION 5. This resolution shall take effect upon the adoption thereof, 
and a certified copy shall be delivered to the Mayor and to the Council.


Approved as to form and legality:

Gary Zakian
Deputy Corporation Counsel
County of Maui