COM 0844.000 2008-2010 - Laserfiche WebLink

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County Council Transmittal of Kilohana Sewer Improvement District — Implementation Study, Kilohana Sewer Improvements Financing Analysis Report, and Finance Department Memorandum Page 2 of 6 • Kilohana Subdivision; • Ali'i Kai Subdivision; • Kamani Tree Subdivision; • Kalani Makai Subdivision; and • Komohana Kai Subdivision. The Implementation Study considered various wastewater treatment and disposal options for parcels located within the study area. Based upon existing lot sizes and percentage of developed Tots, a centralized wastewater collection system that connects the study area to the existing County sewer system was recommended as the preferred option. The centralized collection system would include gravity sewer lines, pump stations and force mains and low pressure sewers with a grinder pump application for certain areas. The Financing Analysis considered various public infrastructure funding mechanisms including an improvement district (ID), community facilities district (CFD) and tax increment district (TID). The Financing Analysis noted that each of these mechanisms involves different implementation procedures, protest requirements, authorized facilities, revenue sources and security requirements. The Financing Analysis identified that an ID and a CFD share the following positive attributes: c • Ability to fund all of the needed improvements in the Kilohana Implementation Study; • Both can be formed without a majority protest; • IDs and CFDs require a minimum value -to -lien ration of 3 -to -1; and • ID bonds and CFD bonds are non - recourse to the County so the County's general fund is not at risk. The Financing Analysis noted that the limitation of an ID compared to the flexibilities of a CFD justify the formation of a CFD as the preferred funding tool. Although the Financing Analysis recommended the formation of a CFD, our department, in consultation with the County of Hawai'i Department of Finance, feels that neither an ID nor CFD for the study area is likely to be accepted by the community at this time. Although the study area is within the one -mile shoreline area identified in the Kona Community Development Plan as including lots which should be connected to the County sewer system, there is minimal motivation for those outside of the Kilohana Subdivision to form the district and pay for the sewer improvements. It should be noted that Hawai'i County Code (HCC) Section 21 -14 requires that a sewer lateral be installed to all properties adjacent to the Public sewer, thereby making these properties "accessible ". HCC Section 21 -5(a) requires that properties that are "accessible" to the Public sewer be connected to the sewer at the property owner's expense. As a new sewer extension will make many properties accessible to the Public sewer, it is unlikely that these property owners outside of the Kilohana Subdivision, will support the implantation of an ID or CFD. County of Hawai' i is an Equal Opportunity Provider and Employer.