COM 0989.000 2008-2010 - Laserfiche WebLink

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installation of a water system within the Kona Ocean View Properties subdivision that will meet Department of Water Supply standards. In December of 2009 the Department of Water Supply submitted an application for financial assistance to the United States Department of Agriculture (USDA) Rural Development Office in Hilo. Along with the application a Preliminary Engineering Report for Kona Ocean View Properties Water System Improvements was submitted. As a follow up to the application submittal a meeting was held to discuss the USDA's review of the documents. At the meeting the USDA requested a salary survey of the residents in order to determine the eligibility for financial assistance. The National Rural Water Association was engaged to conduct the salary survey. The survey results were submitted in May of 2010. The USDA accepted the results and requested additional documents in order to complete the application process. In July of 2010 the following documents were submitted to the USDA in support of the application for financial assistance: Preliminary Engineering Report for Kona Ocean View Properties Water System Improvements dated November 2009, revised July 14, 2010, Environmental Review, Kona Ocean View Properties Subdivision, Water System Improvements dated July 2010, a Consistency Letter for the Planning Director dated June 18, 2010, a Survey on Ensuring Equal Opportunity for Applicants, and a Water and Waste Eligibility Certification. On July 28, 2010 the USDA provided a "Letter of Conditions County of Hawaii - Department of Water Supply Kona Ocean View Properties Subdivision Waterline Improvements $1,169,000 Direct Loan and $353,369 Grant" which contained 28 conditions which must be met in order for USDA to continue to process the application for financial assistance. Based upon the terms of the USDA loan/grant, the amount of the proposed improvement district general obligation bond will be $1,216,000. (The USDA letter requires $47,000 is to be funded by the applicant.) It should be noted that a general obligation bond, to be paid by assessed Kona Ocean View Properties subdivision property owners, is specified in paragraph 1780.14 of the USDA Rural Utility Service (RUS)/ Bulletin No. 1780 which states in part "Loans will be secured by the best security position practicable in a manner which will adequately protect the interest of RUS during the repayment period of the loan... Security, in the following order of preference, will consist of: (1) The full faith and credit of the borrower when the debt is evidenced by general obligation bonds; and/or (2) Pledges of taxes or assessments; ..." A meeting is scheduled for November 17, 2010 to discuss the Kona Ocean View Properties Water System Improvements project with the residents of the subdivision and to explain the assessments that will be required in order to move forward with the project. 2. Character and Extent of Proposed Improvements The proposed improvement district, to be initiated by the Hawai`i County Council, is for the design and construction of a water delivery system meeting Department of Water Supply standards for property owners within the Kona Ocean View Properties subdivision. The completed water system will be dedicated to the Department of Water Supply. 3. Proposed Method of Assessment The total estimated construction and related cost for the KOVP water system is $1,569,369. The cost shall be borne entirely by the assessees and shall be divided equally among all assessed 3