HomeMy WebLinkAboutCOM 0692.006 1998-2000 CARLSMITH BALL
ATTORNEYS AT LAW
A PARTNERSHIP INCLUDING LAW CORPORATIONS , ,
1
121 WAIANUENUE AVENUE
P.O. BOX 686 "
HILO, HAWAII 96721-0686
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E-MAIL OUR REFERENCE NO.
SLIM@CARLS MITH.COM 024605-14
JUIy 28, 2000
Peter Boucher
Department of Public Works
Wastewater Division
25 Aupuni Street
Hilo, Hawaii 96720
Re: Maryl Group, Inc. - Waiakea Center
Dear Mr. Boucher:
In a July 7, 20001etter, we requested copies of the wastewater collections
for each residential and non-residential property along the alignment depicted on Exhibit
"A" of the Final Settlement Agreement ("FSA") between Maryl Group, Ina ("Maryl")
and the County of Hawaii (the "County"), as well as a summary of revenue
reimbursements made by the County to Maryl to date. On July 21, 2000, you informed
my office that the County has yet to commence collection of sewer charges for all
residential and non-residential hookups to the sewer extension constructed by Maryl.
As of the date on which the County accepted the dedication of the sewerlin
extension from Maryl, the County has been legally obligated to collect sewer fees from 8
the owners of the residential and non-residential properties along the extension, and those o
owners have been obligated to pay those fees. To our knowledge, as of the date of this
letter, the County has not collected any sewer fees from these property owners and no ~ o
revenue reimbursements have been paid to Maryl. The County's delay in commencing ~ ~
the collection of sewer fees from these property owners has decreased the time period z°~ ~
over which those fees will be collected and paid to Maryl for revenue reimbursements. ~ z F A
o ~
Pursuant to the FSA, at the end of the applicable ten-year period, if Maryl's ~ ~
revenue reimbursements from the DPW sewer account fund have not reached $1 million,
HONOLULU ~ KAPOLEI ~ HILO ~ KONA ~ MAUI ~ GUAry1 ~ $AIPAN ~ LOS ANGEL[$ ~ WASHINGTON. D.C. ~ MEXICO
Peter Boucher
July 28, 2000
Page 2
the County General Fund will be required to pay the difference by reimbursing Maryl up
to the $1 million cap. Several months of the ten-year period have passed without the
County having collected any sewer fees and paying those sums to Maryl for revenue
reimbursements. The County's inaction may result in a shortfall between the amount of
revenue reimbursements paid to Maryl by the DPW over the ten-year period, and any
such shortfall would have to be paid from the County General Fund.
In order to maximize the sewer fees collected from the property owners and
paid to Maryl for revenue reimbursements, and to minimize any shortfall between those
revenue reimbursements and the $1 million cap, we urge that the County implement its
collection procedure without any further delay.
Please call me if you have any questions or need additional information
regarding this matter. Thank you for your cooperation and assistance.
Very truly yours,
CARLSMITH BALL
l ~ -J,
Steven S. C. Lin
2013334.1.024605-14
cc: Mark Richards
3ames Arakaki, Chairman, Hawaii County Council
Aaron Chung, Chairman, Finance Committee, Hawaii County Council
Gerald Takase, Deputy Corporation Counsel