RES 099 Draft 01 2010-2012 - Laserfiche WebLink

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the passage of a bond ordinance to finance the Improvement District. At that time, a final Assessment Roll of owners of assessment units within the Improvement District shall be compiled by the Department of Water Supply. 3. Kind, Extent and General Details of the Proposed Improvements. The improvements shall consist of a public water system (the "Water System ") consistent with applicable Department of Water Supply standards, which shall be owned, operated, and maintained by the Department of Water Supply. The construction and installation of the Water System shall include the removal of all existing meters and laterals servicing residents of the Improvement District, and the installation of meters for each currently existing assessment unit within the Improvement District. 4. No Acquisition of Land Required; Required Easements or Other Use and Occupancy Agreements. The construction and installation of the Water System for the Improvement District will not require the acquisition of land. However, an easement over the privately -owned subdivision roads will be required for maintenance and operation of the Water System. In addition, an easement or other agreement to use and occupy an area within the Mamalahoa Highway right -of -way will also be required for a portion of the Water System. 5. Part or Proportion of the Cost of the Improvements to be Borne by the County. The total costs of the design, instruction and installation of the Water System, including the acquisition of the parcels described in the preceding section (collectively, the "Project Costs "), is estimated to be $1,569,369, which is anticipated to be financed by: (a) a grant from the U.S. Department of Agriculture Rural Development ( "Rural Development ") in the amount of $353,369, to be applied against the Project Costs; (b) a 35 -year loan from Rural Development to the County in the amount of $1,169,000, which loan shall be evidenced by a bond of the County (the "Improvement District Bond ") and repaid out of the proceeds of assessments to be assessed to the owners of assessment units within the Improvement District; and (c) an applicant contribution required by Rural Development in the amount of $47,000, which applicant contribution shall be advanced by the Department of Water Supply and repaid out of the proceeds of assessments assessed to the owners of assessment units within the Improvement District. The County of Hawai`i shall bear the customary operating costs of loan management by its Department of Finance - Treasury Division for the 35 -year duration of the Improvement District Bond. These costs will be partially offset by charging a collection fee as specified in Chapter 12, Hawai`i County Code 1983 (2005 Edition, as amended). A prepayment penalty for early payoffs and out -of- pocket transaction costs associated with property transfers will also be assessed. 4