HomeMy WebLinkAboutRES 072 Draft 01 2014-2016.14
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COUNTY OF HAWAII
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RESOLUTION NO.
STATE OF HAWAII
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A RESOLUTION OF DETERMINATION TO PROCEED TO CREATE AND
DEFINE A SEWER SYSTEM IMPROVEMENT DISTRICT FOR THE LONO
KONA SUBDIVISION.
WHEREAS, on January 22, 2014, the Hawaii County Council adopted Resolution No.
264-14, a Resolution Proposing the Establishment of a Sewer System Improvement District for
the Lono Kona Subdivision; and
WHEREAS, Resolution 264-14 expressly approved and adopted the findings,
conclusions and recommendations contained in the amended Report, Communication No. 492.1
dated on December 11, 2013 ("Communication No. 492.1"), prepared by the Director of the
Department of Environmental Management (the "Director") with respect to a proposed sewer
system improvement district (the "Improvement District") for the Lono Kona Subdivision (the
"Subdivision"); and
WHEREAS, in adopting Resolution No. 264-14, the Council concurred with the
Director's conclusion that "the establishment of the Improvement District will provide
significant benefits to the health, safety, and welfare of the residents of the Subdivision..." and
found that, in accordance with section 12-10(i), Hawaii County Code, the creation of the
proposed Improvement District and the construction, acquisition, and installation of a sewer
system for the Improvement District was in the public interest; and
WHEREAS, on October 1, 2014, the Hawaii County Council adopted Resolution No.
519-14, a Resolution Approving and Adopting a Supplemental Report of the Director of
Environmental Management Regarding the Proposed Sewer Improvement District for the Lono
Kona Subdivision, Amending Resolution No. 264-14 Pertaining to the Proposed District, and
Providing for a Public Hearing Regarding the Proposed District; and
WHEREAS, Resolution 519-14 expressly approved and adopted the findings,
conclusions and recommendations contained in the Amendment to Director's Report,
Communication No. 1029.1 dated September 8, 2014, which amends Communication No. 492.1
and includes a revised assessment roll (Communication No. 492. 1, as so amended, being referred
to herein as the "Director's Report"); and
WHEREAS, Resolution No. 519-14, in accordance with the provisions of section 12-10,
Hawaii County Code, authorized a public hearing on the proposed improvements to be held
within 60 days after its adoption; and
WHEREAS, the Office of the County Clerk set a public hearing to be held on November
18, 2014, at 6:00 p.m. at the West Hawaii Civic Center in Kailua-Kona, Hawaii; and
WHEREAS, in accordance with the requirements of public notice set forth in section 12-
10, Hawaii County Code, the Office of the County Clerk undertook the following steps to notify
owners of properties subject to assessment as contemplated in Resolution No. 519-14 of the date,
time and place of the public hearing:
(1) Mailed copies of the Notice of Public Hearing (available for public inspection at the
Office of the County Clerk) by certified mail to each of the 145 owners of assessment
units within TMKs 7-5-003:022, 025, 026; TMKs 7-5-004:036, 047, 048, 049; and
TMKs 7-5-022:053, 056, 059, 060, 062, 063, 064, 069, 071, 076, 078 to 127, 129 to
171 on October 31, 2014;
(2) Published the Notice of Public Hearing in two newspapers of general circulation
within the County (West Hawaii Today and Hawaii Tribune Herald) twice a week
for two successive weeks (on October 28, October 31, November 3 and November 6,
2014), with respect to which notarized affidavits of publication have been received
from such newspapers; and
(3) Posted the Notice of Public Hearing on November 7, 2014, at the West Hawaii Civic
Center in Kailua-Kona, Hawaii, and the Hawaii County Building in Hilo, Hawaii;
and
WHEREAS, pursuant to the requirements of section 12-10(e), Hawaii County Code, the
Notice of Public Hearing explicitly advised all owners of assessment units within the
Improvement District that "a protest against making all or part of the proposed improvements or
against the methods by which such assessments are to be made, or the inclusion of certain costs
therein must be submitted in writing to be considered by the Council," and further directed that
such written protests or objections were required to be mailed to the County Clerk and
postmarked on or before November 18, 2014, or submitted in person prior to adjournment of the
public hearing; and
WHEREAS, approximately 35 residents of the Subdivision attended the public hearing;
and
WHEREAS, all persons in attendance at the public hearing were invited to offer verbal
testimony relating to the Improvement District and to submit written testimony to the Office of
the County Clerk for purposes of recordation and further consideration by the County Council;
and
WHEREAS, to answer any questions relating to the proposed Improvement District, the
following County departmental personnel and consultants were present at the public hearing: BJ
Leithead Todd, Director, Department of Environmental Management; Michael Okumoto,
Treasurer, Department of Finance; and Roy Takemoto, consultant and Managing Director, PBR
Hawaii & Associates, Inc.; and
WHEREAS, testimony for and against the proposed Improvement District was heard by
the Council at the public hearing; and
WHEREAS, the County Clerk has advised the Council that written protests were timely
received from the owners of 9 assessment units representing 13.4 single family equivalents
(SFEs) within the proposed Improvement District, copies of which are available for public
inspection at the Office of the County Clerk; and
WHEREAS, the written protests received from owners of assessment units constitute
less than 50 percent of the total number of SFEs (268.1) in the proposed Improvement District
and, in accordance with sections 12-12 and 12-17, Hawaii County Code, the Council may
proceed to approve the proposed improvement by assessment; now, therefore,
BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII as
follows:
Certain Determinations and Findings. In accordance with the provisions of sections
12-17 and 12-18, Hawaii County Code, the Council hereby determines to proceed
with the improvements initiated by Resolution No. 120-11 D2, adopted in Resolution
No. 264-14, as amended by Resolution No. 519-14, and as further described in the
Director's Report. The Council finds that the establishment of the proposed
Improvement District will provide significant benefits to the health, safety and
welfare of the residents of the Subdivision, including:
a. The installation of underground sewer lines, constructed and installed in
accordance with Department of Environmental Management standards, which
will eliminate the need for private cesspools and septic systems, alleviate potential
leachate problems to the ground water and near shore water quality, and provide
residents with a reliable wastewater disposal system; and
b. The installation of sewer system will afford compliance with U.S. EPA notices of
violations relating to large -capacity cesspools.
2. Creation, Definition and Establishment of the Extent of the Improvement District.
The Council hereby creates, defines, and establishes a Sewer System Improvement
District consisting of all "assessment units" (as such term is defined in Item 6a below)
located within the Subdivision, comprised of TMKs 7-5-003:022, 025, 026; TMKs 7-
5-004:036, 047, 048, 049; and TMKs 7-5-022:053, 056, 059, 060, 062, 063, 064, 069,
071, 076, 078 to 127, 129 to 171. The owners of assessment units within the
Improvement District are those persons identified in the "Revised Assessment Roll"
attached to this resolution as "Exhibit A." The Council acknowledges that changes in
property ownership and the recordation of ownership of assessment units by the
County of Hawaii Real Property Tax Division may be subject to change and/or
revision prior to 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 Environmental
Management.
Kind, Extent and General Details of the Proposed Improvements. The special
improvements shall consist of a public sewer system (the "Sewer System") consistent
with applicable Department of Environmental Management standards, which shall be
owned, operated, and maintained by the County. The special improvements shall
include the installation of laterals for each currently existing assessment unit within
the Improvement District that would not be exempt from assessment based on current
usage.
4. No Acquisition of Land Required; Required Easements or Other Use and Occupancy
Agreements. The construction and installation of the Sewer System for the
Improvement District will not require the acquisition of land. The construction and
installation of the sewer system for the Improvement District will, however, require
the acquisition of 10 -foot wide easements over seven parcels as identified in the
Director's Report.
5. Part or Proportion of the Cost of the Improvements to be Borne by the County. The
total cost of the design, instruction and installation of the Sewer System, including the
acquisition of the parcels described in the preceding section (collectively, the "Project
Costs"), is estimated to be $6,461,800, 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 $4,024,800 to be applied against the Project
Costs; and
b. A 35 -year loan from Rural Development to the County in the amount of
$2,437,000 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.
Pursuant to sections 46-74.1 and 46-74.2, HRS, and section 12-5, Hawaii County
Code, the assessments for ten properties owned by qualifying nonprofits will be
paid for by the County. The preliminary total cost is $294,525.56 ($16,134.10
annually) for 32.4 SFEs.
The County of Hawaii 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, Hawaii County Code. A prepayment penalty
for early payoffs and out-of-pocket transaction costs associated with property
transfers will also be assessed.
4
6. Description of the Assessment Unit and Method of Assessment.
a. Assessment Unit. For purposes of the Improvement District, "Assessment unit"
shall mean a duly subdivided parcel of land or condominium unit bearing a
unique tax map key number.
b. Method of Assessment.
i. As used in this Resolution, "Net Project Costs" means the Project Costs,
less any amounts which reduce the actual costs of the special improvements
to the County. By way of example, assuming the Project Costs to be
$6,461,800 as set forth in the Director's Report, and further assuming an
RUS grant of $4,024,800 to be applied against the Project Costs, the Net
Project Costs would be $2,437,000. The Net Project Costs are equivalent
to the RUS loan amount.
ii. Each assessment unit existing as of the date that assessments begin to
accrue on assessment units within the Improvement District (the
"Commencement Date") shall be subject to an assessment calculated by
(A) dividing the Net Project Costs by the total number of single-family
equivalent (SFE) represented by all assessment units in the Improvement
District, and (B) with respect to each assessment unit, multiplying the
amount determined pursuant to (A) above by the number of SFEs
represented by such assessment unit. For purposes of the foregoing, SFEs
shall be determined in the manner provided in the Director's Report based
on each assessment unit's existing land use as of the Commencement Date;
provided that if an assessment unit is vacant, the SFE for that assessment
unit shall be based on existing zoning.
7. Materials to be Used. The materials to be used in the construction and installation of
the Sewer System are set forth in the Director's Report, which is incorporated herein
by reference, and include, without limitation, the following:
a. 5,640 Lin. Ft., 8 -inch PVC SDR -26 sewer pipe and fittings
b. 360 Lin. Ft., 10 -inch PVC SDR -26 sewer pipe and fittings
c. 29 Each, sewer manholes 5.0' to 9.5' deep
d. 4 Each, lined shallow drop sewer manholes 10.0' to 14.99' deep
e. 1 Each, lined drop sewer manholes 15.00' to 20.00' deep
f. 110 Each, sewer lateral connection.
8. Direction to Director, Department of Environmental Management. In accordance
with section 12-19, Hawaii County Code, the Director is directed to prepare a
corrected map of the special improvements to be constructed or improved as part of
the Sewer System showing the exact location of the improvements, together with
final details, plans and specifications for the work in such form as will readily permit
and encourage genuine competition between contractors in the calling of bids and
awarding of a contract for the special improvements.
BE IT FINALLY RESOLVED that the Clerk of the County of Hawaii shall transmit
copies of this resolution to the Honorable Mayor William Kenoi; Finance Director Deanna Sako;
Corporation Counsel Molly Stebbins; Real Property Tax Division Tax Administrator Stanley
Sitko; Department of Environmental Management BJ Leithead Todd; Environmental
Management Commission Chair Anne Lee; Hawaii State Director Chris Kanazawa, USDA
Rural Development; Bond Counsel Brian T. Hirai, McCorriston Miller Mukai MacKinnon LLP;
and County Clerk Stewart Maeda.
Dated at Hilo , Hawai`i, this 4th day of March , 2015.
INTRODUCED BY:
COUNCIL MEMBER, COUNTY OF HAWAII
COUNTY COUNCIL
County of Hawaii
Hilo, Hawaii
I hereby certify that the foregoing RESOLUTION was by
the vote indicated to the right hereof adopted by the COUNCIL of the
County of Hawaii on March 4, 2015
ATTEST:
COUNTY CLERK CHAIRPERSON & PRESIDING OFFICER
ROLL CALL VOTE
Reference:
C-110/EMC--1
RESOLUTION NO. 2 ��
AYES NOES ABS EX
CHUNG
X
DAVID
X
EOFF
X
ILAGAN
X
KANUHA
X
ONISHI
X
PALEKA
X
POINDEXTER
X
WILLE
X
Reference:
C-110/EMC--1
RESOLUTION NO. 2 ��
Lono Kona Sewer Improvement District
Revised Assessment Roll
Table 1, Fixed Assessment Calculation
Estimated
Fixed Annual
TMK/CPR Property owner SFEs Assessment Assessment'
7-5-003-022-0001 CHURCH OF JESUS CHRIST LDS
8.5 $77,267.511 $4,232.72
7-5-004-048-0000 KONA PROFESSIONAL BUILDING LLC 4,5 $40,984.15 $2,245,11
7-5-022-053-0001 ALAHOU LLC /etal 03 $6,36311 $348.58
7-5-022-053-0003 ALAHOU LLC /etal 03 $6,363.21 $348.58
H
7-5-022-053-0005 ALAHOU LLC /etal 0.7 $6,363.21 $348.58
7-5-022-053-0007 ALAHOU LLC /etal 0,7 $6,36121 $348-58
7-5-022-053-0009 ALAHOU LLC /etal 0.7 86.363.21 5348.58
7-5-022-053-0011 ALAHOU LLC fetal 0.7 $6,363.21 $34858
7-5-022-053-0013 ALAHOU LLC /etal 03 $6,36121 $348.58
7-5-022-053-0015 ALAHOU LLC /etal 03 $6,363.21 $348.58
7-5-022-053-0017 ALAHOU LLC 03 $6,363.21 $348,58
7-5-022-053-0019 ALAHOU LLC fetal 0.7 $6,363.21 $348.58
7-5-022-053-0021 ALAHOU LLC 0.7 $6,363.21 $348.58
7-5-022-059-0000 N(U PIA LAND COMPANY LTD 0,0 $0.00 $0.00
7-5-022-062-0000 AIU, ANDREW K/etal 4.9 $44,542.45 $2,440.04
I... i%,,�, ,.))�a9�X'�3, 3. ,.,. _ �»,:'ate.-�;/.Jrw�s�.. *.sr. a.a.)k3,"�3�.tiw�.M•��::� /////��?,�a� H,:"oH,vi,..sy:,, ;�„�' c.�';w�`n o,,,,,�. _.
i 1:� 4ii! Ii •, !'1
7-5-022-076-0002 GORDON!$348.58
� � � � � .�,,gd. � •�, a . � ,.�. �. 'i. ;�: � 'a '�uam+ � i," s.. �:.. ® � a `"sem �,� � "..�+, ;�' ' °
7-5-022-076-0;004 + • 03 $6,363.21
7-5-022-079-0000 CHUNG, EDWARD K III TR 2.0 $18,180.59 $995.93
7-5-022-081-0000 MENTAL HEALTH KOKUA 1.4 $1 6A1' $697.15
7-5-022-083-0000 PATRICK, FAMILY TR 1.4 $12,726.41 $697.15
7-5-022-085-0000 GASPAR,EDWIN 1,4 $12,726.41 $697.15
AI 6 z
7-5-022-087-0000 KESHAP, AJAY 2.1 $19,089.62 $1,045,73
7-5-022-089-0000 MANNING,JEROME O? /etal 1.4 $12,726.41 $697.15
7-5-022-091-0000 HARAGUCHI, ALVIN M 1.4 $12,726.41 $697.15
7-5-022-093-0000
7-5022-097-0000 CIRIAKO, RA
2.0 $18,1110.59 $995.93
2.0 $18,180.59 $995.93
$697.15
7-5-022-099-0000 AHUNA,HATTIE K TRUST 2,0 $18,180.59 $995.93
+�
r iG� SJI• ( I` • , a'z bi` p:R.� -"' ,s : a,.�., 9 # J
.�...,saa's`a•.<*vs.�a:�� a..a> ��''� rs_w'., .. ,, ��« .x��x ti, ,,,d,,,r _.,.t. .1� wS..s, .. .
7-5-022-101-0000 BRECHER, SAUL & BISHNU 1.4 $12,726.41 N $697.15
7-5-0322-103-03000 PHAM', HANK/etal 2.0 $18,180.59 $995.93
7-5-022-105-0000 DECKER, RICHARDA/AMY LTR 2.0 $18,180.59 $995.93
7-5-022-107-0000 �POIRE,GOiRDON H K /etal 10 $9,090.30 $497.97
7-5-422-109-0004 KONA KOKUA HOUSING INC 1.4 $12,726.41' $697.15
- t 4xa�+r � ^� �s r�,g".�e�r �' i'�''�$�� �3 • �� t � �� � .v�€ Rcr'�'f�}, �� '� �
s
7-<5-022-114-0002
LAWRENCE, WILLIAM I
4.7 $5,965,67 $326.80
� �
7-5-022112-0000
UNIVERSITY OF THE NATIONS -
2.0 $18,180.59` $995,93
co- ,
MEOW
7-5-022114-0000
HSBC BANK USA N A TTEE
1.4 $12,726.41 $697.15
7-5-022-116-0000
UNIVERSITY OF THE NATIONS
2.0 $18,184.59' $995.93
7-5-022-118-00100
OKANO,OAVID MASATO TR /etal
2.0 $18,184.59 $995,33
W'0040-10
N.U.`t:,%
- <, :
.th .i
,9�3, .«,'�#.5'k3d,<,r,-ii��%SYw;- ,..�i-,� . n
,y ,l, .. '. a�✓' .!W'd;2>5..,�A„, Fa�.li_.a,? ),..:.,.
7-5-022-124-0000
MORI,SCOTT ALLEN
2.1 $19,089.62 $1,045.73
N '
7-5-022-122-4004
SARADPON,EMMA
1.4 $1.2,726.41 $697.15
7-5-022-1.24-4040
BURGESS,AMELIA L K TR
1.4 $9,490.30 $497.97
7-5-022-12E-44t3t}
CORSAIR,ROBERT
1.4 $12.,726.41 $697.15
7-5-022-129-0004
PATRICK, FAMILY TR
$12,726.41 $597.15
X1.4
7-5-022-131-4000
URBAN,TANTE T JR
2.0 $18,180,59 $995.93
'� ��.,. £�'',di<v�s 'Fl`R9. - �'., yn &+N,' �.�-e•...3...#,e. ,..,
,e ,�` .�%�,.'y�'/a�sSa''FP
7-5-022-133-4001
... ...
GALANTO, NESTOR /eta,
0.7 $6,363.21 $348.58
7-5-022-134-0000
TREDWAY, CAROL E
1.4 $12,726.41 $69715
7-5-422-136-0000
MABUNI, MELVIN Y TR
1,0 $9,494.34 $497.91
$�W7 97
7-5-422-138-4004
TAKAUYE, JAMES K TRUST /etal
1.0 $9,490.34 $497.9,
7-5-022-140-0000
MERG, VALENTINE KJR
1.0 $9,090.30 $497.97
7-5-422-142-0440
JAZMIN, FAMILY TRST
5.6 $50,905,66 $2,788,61
7-5-022-154-0000
WONG, DAMIEN P
2.4
$21,816.71
$1,195.12
r2
Fixed Assessment
2,437,000
Fixed Assessment per SFE:
7-5-022-156-0000
ARNOLD, DOUGLAS G etas
2.0
$18,180.59
$995,93
7 5 022 157 0 66
ALAONAONA ENTAL S LLC -": �l''!
, '' & ,, '' d
�' , " 11; : <
"n
ig
NOR M -
7-5-022-158-0000
BAJADA, S'I-LVLN
1.4
$12,726.41
$697.15
-1 "'Y EAU
"J666W PAALOTE TTEE
2A
1
VW7
7-5-022-160-0001
AVERY, JESSE V
0,1
$6,363.21
$348.58
7-5-022-161-0000
ALLENDE, RICHARD
1,4
$12,726.41
$697.15
0 1-161,0000
T",
'RANCCU R EVE, MR
7-5-022-163-0000
JADRAQUE, EUGENIO /eta[
1,4
$12,726.41
$697.15
7-5-022-165-0000 HAMILTON, ROBERT G /etal 1.4 $12,726.41 $697.15
7-5-022-167-0000 NOVO LODSKIY, YURIY V /etal 1.4 $12,726.41 $697.15
7-5-022-169wOOOO MARK, GARY TRST Mail 1.0 $9,09030 $497.97
7-5-022-171-0000 JAZMIN FAMILY TR 0.0 $0,00 $0,00
Total SFE
Assessment units
268.1 $2,437,000.00 $133,499.00
145.0
' Properties owned by qualifying nonprofit corporations are exempt from assessments pursuant to HRS Sections 46-
741 and 46-74.2 and County Code Section 12-5. Under these sections, the County will be responsible for payment of
assessments an these properties unless and until they are sold or leased to parties which are not qualified for this
exemption.
' includes annual debt service payments and County administration costs,
Table 2. Annual Assessment Per SFE Calculation
Total Development Cost
$
6,461,800
Grant Amount
$
4,024,800
Fixed Assessment
2,437,000
Fixed Assessment per SFE:
9,090
Annual Assessment
Annual Debt Service
103,499
Annual Administrative Cost
30,000
Total Annual Cost
133,499
Annual Assessment per SFE
498