REP FC 362 10/30/2006 2004-2006 - Laserfiche WebLink

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REPORT OF THE COMMITTEE ON FINANCE DATE: October 30, 2006 Re: Comm. No. 1145/Bill No. 358 PLACE: Council Chambers TIME: 9:00 a.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Finance, to which was referred Bill No. 358, reports as follows: Bill No. 358, transmitted by Director of Finance William Takaba, via Communication No. 1145, dated October 17, 2006, authorizes the issuance of up to $75 million in general obligation bonds of the County of Hawaii for the purpose of funding all or a portion of the cost of various improvement projects and refunding certain outstanding debt obligations of the County; fixing the form, denominations, and certain other details of such bonds and providing for their sale to the public; and authorizing the taking of other actions relating to the issuance and sale of the bonds and the retirement of the bonds to be refunded. The County currently has four lazge projects, the West Hawaii Civic Center, County Building Repairs, Laiopua Connector Road, and ADA compliance, which require funding in the next three months. The Administration also lists several existing projects which have used half of 2006A Bond Issue. As the remaining 2006A Bond Issue has been allotted for other projects, funds are intended to be used for these progressing projects as well. Total bond authorization requested is $75,000,000, which includes an estimate of $1,000,000 for bond issuance costs. Any realized savings on issuance costs will be applied to the projects. West Hawaii Civic Center - $41,500,000 The project will provide a new 62,000 square foot office complex in North Kona to house a majority of the existing County agencies currently renting or leasing office space at vazious scattered locations. The County will be able to offer the residents of West Hawaii a centralized complex where they can access governmental services. The West Hawaii Civic Center project was appropriated by County Council for $42 million. This amount has not been previously included in a bond authorization, and it is being requested at this time. County Buildin¢ Repairs - $20,100,000 The project is necessary for the continued use of the facility. It will combine asbestos abatement, roof repair, air conditioning system replacement, electrical upgrades, fire alarm and suppression system, hurricane and seismic improvements, and office space enhancement, plus other miscellaneous improvements. Accessibility requirements will also be addressed during the project to insure compliance with Russell et al v. County of Hawaii. The project was appropriated by County Council for $26 million. Funding of $5.5 million for the project was anticipated in the 2006A bonds. We are currently requesting authorization to borrow $20.1 million to fund the remaining appropriation. FC REPORT NO. 362