REP FC 195 01/31/2012 2010-2012 - Laserfiche WebLink

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REPORT OF THE COMMITTEE ON FINANCE DATE: January 31, 2012 PLACE: Council Chambers Hilo, Hawaii TIME: 8:33 a.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Re: Comm. No. 540/Res. 215-12 Your Committee on Finance, to which was referred Resolution 215-12, reports as follows: Resolution 215-12, transmitted jointly with Bill No. 175, by Finance Director Nancy Crawford via Communication No. 540, dated January 12, 2012, authorizes the Mayor to enter into an agreement with the State Department of Health for a Grant to reimburse lot owners of Honoka`a, who are located within a wellhead protection zone and are required to connect to a sewer system, their sewer connection costs when applying for financial assistance under the County's Sewer Connection Loan Program. The County of Hawaii has been awarded a $250,000 grant to assist the lot owners in Honoka'a with their sewer connection costs. The grant is funded by the State Department of Health to safeguard the water from the Haina well from upslope contaminants and is limited to those lots within the wellhead protection area. This grant will supplement funding provided by the County's sewer connection loan program which will be implemented for the first time by the affected Honoka`a property owners. At the time of the grant application, the amount of the grant monies available was not known. Also unknown was the total guaranteed amount under the sewer connection loan program. Therefore, in order to satisfy DOH's goal of maximizing connections with unknown financial variables, a priority system based on need was identified as the basis to award the grant funds to the recipients. The first priority will be awarded to those lot owners who are unable to participate in the guaranteed loan program. Next, grant monies will be allocated to those lot owners who are participating in the guaranteed loan program. Finally, if funds are still available, the remaining funds will be pro -rated among the remaining lot owners based on a percentage of their connection costs. The maximum award per lot owner is $25,000. Pursuant to Section 46-7, Hawaii Revised Statutes, County Departments must obtain the consent of the Council to enter into agreements with the Federal or State governments respecting action to be taken pursuant to any of the powers granted by law to furnish, expend and receive any funds or other assistance in connection with projects being or to be undertaken pursuant to those powers. Finance Department Treasurer, Michael Okumoto and Corporation Counsel Craig Masuda appeared before Your Committee. Mr. Okwnoto commented and provided information regarding sending and receiving completed surveys from affected Honoka`property owners'. He confirmed the Honoka`a property owners' completed surveys and their need for some type of financial assistance with the sewer connection costs. FC Report No. 195