Laserfiche WebLink
u1 r~~ts <br /> a` rO: <br /> o~ <br /> U <br /> DEPARTMENT OF WATER SUPPLY • COUNTY OF HAWAII <br /> o~ <br /> 25 AUPU NI STREET HILO, HAWAII 96720 <br /> yl~ x~ w~~1? <br /> TELEPHONE (608) 961-6660 FAX (806) 961-8657 <br /> September 30, 1997 <br /> T0: Mr. Aaron S. Y. Chung, Chairman RECEIVED <br /> and Members of the Committee on Finance ilme..._...._---_.,..y-By,._.._.__..-___.-. <br /> Dote_.~-'----~--~---- <br /> FROM: Milton D. Pavao, Manager Count' Coundl ' <br /> SUBJECT: COMMUNICATION #491 (BILL 142) <br /> I am Milton D. Pavao, P.E., Manager of the Department of Water Supply of the County of Hawaii. <br /> <br /> The Department of Water Supply. (DWS), is in support of Bill 142, dated September 9, 1997, an <br /> ordinance bill authorizing the issuance of not to exceed 5775,600 principal amount of General <br /> Obligation Bonds of the County of Hawaii. Proceeds will be used to finance a portion of the <br /> <br /> water system improvements for the plantation camps of Ookala, Paauilo, and Paauhau. The <br /> issuance will satisfy the final requirement of the USDA's loan-grant program whereby USDA will <br /> <br /> make available 52.159,400 in grants to finance the balance of the water system improvements. <br /> <br /> With the closure of the Hamakua Sugar Company, the Hamakua Housing Corporation was formed. One <br /> of their tasks was to construct county dedicable water systems for Ookala. Paauilo, and Paauhau <br /> plantation camps with the intent of dedicating the improvements to the DWS of the County of <br /> Hawaii. Financial assistance for the improvements was available through the USDA's loan-grant <br /> program. However, a condition of the loan-grant program was that the applicant had to be the <br /> owner of the water system improvements. Since the DWS would be the eventual owner of the water <br /> system improvements to be financed, the USDA considered the DWS the only allowable applicant <br /> for the loan-grant program. The DWS was therefore approached and asked to assist the <br /> communities of Ookala, Paauilo, and Paauhau in applying for the loan-grant program from USDA. <br /> <br /> After discussions with Hamakua Housing Corporation and USDA, the DWS agreed to be the applicant <br /> for the loan-grant program to ensure availability of funds from the USDA. Another requirement <br /> of USDA was that the loan portion of the program be secured through the issuance of General <br /> Obligation Bonds. Hence the resolution from the Water Commission and your consideration of the <br /> proposed Bill 142. Through separate agreements with Hamakua Housing Corporation, the DWS will <br /> be reimbursed for all associated costs of the bond issuance and repayments. <br /> The DWS is pleased to be able to provide the assistance necessary to ensure the completion of <br /> water system improvements for the benefit of the residents of the Ookala. Paauilo, and Paauhau <br /> plantation camps. We therefore request and would appreciate your favorable consideration of <br /> Bill 142. <br /> Milton D. Pavao, P.E. ~xo, FN1~ Ur <br /> Manager e_ F~- <br /> Ref. 20:~ <br /> UI/af¢r brine pro~r¢ys 1bi, Date <br /> <br />