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REPORT OF THE <br /> COMMITTEE ON FINANCE <br /> DATE: January 8, 2013 Re: Comm. No. 51/Bill No. 12 <br /> PLACE: Council Chambers <br /> Hilo, Hawai`i <br /> TIME: 2:40 p.m. <br /> Council Chair and Members <br /> Hawai`i County Council <br /> Hilo, Hawai`i 96720 <br /> Committee on Finance, to which was referred Bill No. 12, reports as follows: <br /> Bill No. 12, transmitted by Finance Director Nancy Crawford via Communication No. 51, dated <br /> December 21, 2012, authorizes the Mayor of the County of Hawai`i to enter into an intergovernmental <br /> agreement for a State Water Pollution Control Revolving Fund Loan (SRF) for wastewater public <br /> improvement projects; and authorizing the issuance of$12 million General Obligation Bonds of the <br /> County of Hawai`i for the purpose of financing the qualified Kealakehe Wastewater Treatment Plant <br /> Aeration Upgrade and Sludge Removal Project. <br /> The project was previously authorized for funding through County general obligation bonds under <br /> Ordinance 09-154 in the amount of$10 million. This request will allow the County to take advantage of <br /> the lower interest rates provided by the State Revolving Fund Loan Program, and increases the amount <br /> to reflect the current cost estimate for this project. <br /> Acting Director Dora Beck and Acting Wastewater Division Chief Lyle Hirota, from the Environmental <br /> Management Department, appeared before Your Committee and provided detailed information <br /> regarding this project. Ms. Beck noted a$250,000 per year energy savings benefit to the County of <br /> Hawai`i. <br /> Mr. Onishi questioned the lifespan of the Hilo Lagoon Centre. Mr. Hirota informed the Council of its <br /> 20-year plan. <br /> Council Member Ford expressed support for the project. She stated that delaying large projects would <br /> eventually cost the County more money. <br /> Pursuant to the County Procedures Manual for Participation in the Hawai`i State Revolving Fund Loan <br /> Program, prepared by the Wastewater Branch of the Hawai`i Department of Health in April 1994, part <br /> of the loan application process requires a"resolution or ordinance passed by the county council which <br /> authorizes the SRF loan application and identifies the dedicated source(s) of revenue (i.e., general <br /> obligation bonds) which will fund the project and repayment of the loan with interest." The Council's <br /> authorization of the issuance of general obligation bonds will serve as a pledge of its general obligation <br /> authority as security for repayment of the loan and interest. <br /> FC Report No. 14 <br />