HomeMy WebLinkAboutRES 704 Draft 01 2022-2024COUNTY OF HAWAFI
STATE OF HAWAII
A RESOLUTION AUTHORIZING THE EXTENSION OF THE PUBLIC SEWER FROM
AN EXISTING SEWER LINE TERMINUS AT PUKIHAE BRIDGE TO HAU LANE,
WITHIN HAWAIJ BELT ROAD, TO SERVICE TAX MAP KEY PARCELS (3) 2-6-
015:001 AND 002 AT AHUPUA'A OF WAINAKU, DISTRICT OF SOUTH HILO,
ISLAND AND COUNTY OF HAWAIJ, STATE OF HAWAI'l.
WHEREAS, applicant Hawaiian Ola Brewing Corporation, a Hawaii corporation ("the
Applicant"), has requested to extend the sewer in accordance with Chapter 21, Section 21-26,
Hawaii County Code, to service Parcels 2-6-015:001 and 002 only, and presently no additional
properties are being made accessible to this extension; and
WHEREAS, the Applicant will bear the total cost of the construction and in the future
will be eligible to exercise conditions under Section 21-28(a), Hawaii County Code, pertaining
to receipt for ten (10) years after completion of the extension one-half of all monies for sewer
charges collected by the County from other properties, if any, connecting to the extension,
provided the total of such reimbursement shall not exceed the cost incurred by the applicant to
construct the extension. Plans to reimburse the applicant for construction of the sewer extension
shall require the approval of the County Council by resolution; and
WHEREAS, the Applicant will build the sewer to County standards and agrees to any
inspection by the Department of Environmental Management to be conducted before, during, or
after construction; and
WHEREAS, the ownership and maintenance of the sewer system from its terminus at
Han Lane to Parcel 2-6-015:001 shall be as described in an executed Memorandum of
Agreement between the County of Hawaii and the Applicant. Applicant agrees to apply for and
maintain a Use and Occupancy Agreement with the Department of Transportation of the State of
Hawaii to work in the Hawaii Belt Road as necessary in accordance with Hawaii law; and
WHEREAS, the Director of the Department of Environmental Management
recommends approval of the extension according to Section 21-27, Hawaii County Code, and
Exhibit "A" is an application from Hawaiian Ola Brewing Corporation; and
WHEREAS, Exhibit "B" shows the Memorandum of Agreement, with a vicinity map as
supporting documentation; and
WHEREAS, the sewer extension will extend the County of Hawaii Sewer System from
Pukihae Bridge at existing Manhole Nos. 10450 and 13169 to Han Lane along the mauka or west
side of Hawaii Belt Road, which segment of extended wastewater line will be dedicated to the
County of Hawaii, Department of Environmental Management (DEM) upon its completion to
DEM's dedicable standards; and
WHEREAS, sewer extensions benefit the community by eliminating the need for
alternative waste treatment options and reducing the amount of pollutants reaching the
groundwater and coastal waters, resulting in a cleaner, healthier environment; and
WHEREAS, Section 21-26.1 of the Hawaii County Code requires that the County
Council approve all sewer extensions; now, therefore,
BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAI`I that the
sewer extension from the existing sewer line terminus at Pukihae Bridge to Hau Lane, and from
Hau Lane to Parcel 2-6-015:001 is approved.
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BE IT FURTHER RESOLVED that the County Clerk shall transmit copies of this
resolution to the Department of Finance, Department of Environmental Management, Office of
the Corporation Counsel, Highways Division of the Hawai`i Department of Transportation, and
to the applicant, Hawaiian Ola Brewing Corporation.
Dated at Hilo , Hawai`i, this 18th day of December , 2024
INTRODUCED BY:
' 114 -7)C
COUNCIL MEMBER, COUNTY OF HAWAII
COUNTY COUNCIL ROLL CALL VOTE
County of Hawai`i AYES NOES ABS EX ,
Hilo,Hawai`i GALIMBA X
HUSTACE X
INABA X
KAGIWADA X
I hereby certify that the foregoing RESOLUTION was by KANEALI`I-KLEINFELDER X
the vote indicated to the right hereof adopted by the COUNCIL of the KIERKIEWICZ X
County of Hawaii on December 18, 2024
KIMBALL X
ONISHI X
VILLEGAS X
8 0 1 0
Reference: C-1146/LAAC-75
TY C HAIRPERSON&PRESIDING OFFICER RESOLUTION NO. '°-4 Z4
3
Department of Environmental Management EXHIBIT A
Wastewater Division, County of Hawai'i
Application For Sewer Extension
Part A. (must be completed)
Project Address: 238 Belt Road, Hilo, Hawaii Date: October 17, 2024
TMK No.: (3) 2-6-015:001 and 002
Applicant Information: Contractor Information:
Name: Hawaiian Ola Brewing Corporation Name: To Be Determined
Address: 74-5598 Luhia St, Kailua-Kona HI 96740 Address:
Company:
Company:
Phone No,:. 808-646-1654, Brett Jacobson Phone No.:
Check applicable box: V Sewer Main Installation (Indicate reason for work and complete Parts B & C.)
EZ Sewer Lateral Installation (Indicate reason for work and complete Part C)
Reason For Work: 16 connect distillery, restaurant and bar to County wastewater system.
Sewer extensions are subject to Hawai'i County Code, Chapter 21, Division 4, Extensions and the APPLICANT shall be
responsible for submitting a final resolution to the Wastewater Division for review, The Department of Environmental
Management will submit the final resolution and supporting documents to the County Council for approval of the Sewer
main extension. Select one of the following methods of payment for cost and construction:
(Note: reimbursement refers to payments collected by the County from properties connecting to the extension)
Section 21-28(a): Applicant constructs and pays, IK
Section 21-28(b)(1): County constructs, applicant pays. D
Section 21-28(b)(2): County constructs, applicant and County share cost. ❑
Estimated Start Date - Upon approval of plans by Estimated Completion Date 9 to 12 months after contract award.
DOT and DEM.
Part C.
I hereby certify that all wori,,WWs ed above will conform to appropriate sections of the Hawal'! County Code.
HAWA11KN,0VLAB W RPOR ON
Owner Signature: Date: 101(712_02-�
BY:
j�C`OBSON, CEO
Department of Environmental Management, Wastewater Division
Approved by: NJ
Approved by:
Director of
ief
I Management
Date:
Date:, I D - I � - I It
Note: 1) Approval of the Application for Sewer Extension does NOT constitute approval for construction.
Approval for construction is provided by an approved Permit to Perform Work on the Public Sewer
System pending final approval by the Hawaii County Council In accordance with Section 21-26,11 of the
Hawai'i County Code.
2) Filing of Sewer Extension Resolution Is not required for sewer lateral installations,
Hawai'i County Is an Equal Opportunity Provider and Employer
M;\Wastewater\Plan Review\Sewer Extension Application.doc
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MEMORANDUM OF AGREEMENT -
WAINAKU EXTENSION AND CONNECTION
TO THE HILO WASTEWATER TREATMENT FACILITY
This MEMORANDUM OF AGREEMENT, dated this day of
, 2024, is by and between HAWAIIAN OLA BREWING
CORPORATION, a Hawaii corporation, whose mailing address is 74-5598 Luhia Street,
Kailua-Kona, Hawaii 96740 (hereinafter referred to as "OLA"), and the COUNTY OF
HAWAI`I, a municipal corporation of the State of Hawaii, by and through its Department of
Environmental Management, whose mailing address is 25 Aupuni Street, Hilo, Hawaii 96720
(hereinafter referred to as "the County").
RECITALS:
1. OLA is the owner of certain real property located at Wainaku, District of South
Hilo, Island, County, and State of Hawaii, identified as TMK Nos. (3) 2-6-015:001 and 002.
These parcels of land are collectively identified as the "Project Area." OLA intends to develop a
restaurant, bar and distillery in the Project Area, requiring OLA to connect to the County's Hilo
Wastewater Treatment Plant.
2. The County, through its Department of Environmental Management ("DEM"),
owns and operates a public wastewater treatment plant facility at the vicinity of Hilo
International Airport known as the Hilo Wastewater Treatment Plant (the "HWWTP"), and has
agreed to recommend extension of wastewater facility connections from the Project Area to the
existing sewer terminus on the south side of Pukihae Bridge to carry wastewater from the Project
Area and lands in the vicinity located along the proposed extension to the HWWTP, and has
agreed to accept sewer wastewater at the HWWTP for treatment, provided that the sewer
wastewater transmission lines and related infrastructure (the "Sewer Infrastructure") are
designed, constructed and installed by OLA in accordance with Hawaii County Code ("HCC")
Chapter 21, Article 3, Section 21-15.
3. The Sewer Infrastructure is to be developed in accordance with HCC Chapter 21
Article 4 Section 21-26, and shall consist of (A) a connection from the line located between the
current East side of the bridge Pukihae Street terminus (SMH 10450, Station 0+24.40) to run
across the existing bridge and continue to run along the Hawaii Belt Highway to a location
across the Project Area near Hao Street to a sewer manhole at Station 20+51.71 ("Belt Line"),
and (B) extending therefrom to a sewer service lateral connection between the Hao Street
terminus that crosses the Belt Highway to the Project Area ("OLA Forced Lateral Line"). A
location map depicting the locations of the Belt Line and the Ola sewer service Forced Lateral
Line is attached hereto as Exhibit "A." OLA shall submit an application to the Director of the
Department of Environmental Management ("Director") for approval. As specified in HCC
Section 21-26.1, the sewer extension shall be approved by resolution of the County Council,
once the application for an extension has been approved by the Director. Construction
specifications shall be determined by the Director as specified in HCC Section 21-27. As
specified therein, the property owner shall not have any title to the extension.
4. The State of Hawai `i, through its Department of Transportation ("DOT"), owns
and maintains the Hawaii Belt Highway, where the Sewer Infrastructure is to be constructed and
installed. DOT requires the execution of a Use and Occupancy Agreement for construction and
maintenance of the Sewer extension. OLA will be responsible for the design and construction of
the Sewer Infrastructure in accordance with the approved construction plans. The County, as
owner of the extension, will be responsible for the ongoing maintenance of the Belt Line section
of the Sewer Infrastructure under any Use and Occupancy Agreement that it executes with the
State. Should OLA wish to construct and maintain other infrastructure in the Hawaii Belt
Highway not related to the Belt Line section of the Sewer, it shall be required to execute its own
Use and Occupancy Agreement with the State, and the County shall not have any liability for
any other infrastructure or activities related to it, which shall be the sole responsibility and
liability of OLA.
5. OLA has elected to design and construct the extension in accordance with HCC
Section 21-28(a), and in accordance with that provision of the Code, shall bear the total cost of
the construction, permits, and other matters relating to construction.
6. OLA, in electing to follow HCC Section 21-28, will comply with all required
provisions of Chapter 343, Hawaii Revised Statutes, as amended.
7. The parties desire to set forth their understanding as to the foregoing matters and
cooperation in order that the Sewer Infrastructure can be designed and constructed in an
expeditious manner to allow wastewater from the Project Area development to be treated at the
HWWTP.
AGREEMENT:
In mutual consideration of the foregoing, and the terms and conditions stated herein, the
parties do hereby agree as follows:
I. Treatment of Wastewater from the Proiect Area. Subject to the completion of
the Sewer Infrastructure connecting the Project Area to the HWWTP, and in accordance with
HCC Chapter 21, Division 4, and provided sufficient capacity exists within the County's
HWWTP system, DEM agrees to accept and treat up to 100,000 gallons per day of wastewater
from OLA's restaurant, bar and distillery in accordance with local, state and federal rules and
regulations after such wastewater goes through an acceptable pretreatment process by OLA prior
to discharge into the Hao Street terminus manhole.
2. Description of Sewer Infrastructure. The Sewer Infrastructure is more
specifically defined herein in Exhibit "A" as the length of 10-inch diameter sewer pipe from the
east side of the current existing bridge extending to the Hao Street terminus manhole that meets
with the approval of DEM together with related improvements, the location of which lines are
generally depicted on Exhibit "A" attached hereto and incorporated herein by this reference.
The connection of the Belt Line to the existing DEM terminus of the sewer line shall be at the
manhole located at the eastside of the existing bridge as depicted on Exhibit "A." Plans and
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specifications for the Sewer Infrastructure have been prepared by OLA's consultants and
engineers ("Consultants") for approval by the County, through its affected agencies, as set forth
herein below. The infrastructure to be constructed by OLA shall be presented in an engineering
plan to the Director and shall be in accordance with the approved plan, as required by HCC
Section 21-7.
3. Use and Occupancy Agreements. Within a reasonable time from the approval
of the sewer plans, the County will negotiate with DOT to meet DOT requirements regarding
Conditional Use and Occupancy in the State Right of Way. OLA hereby agrees as follows:
A. OLA and its consultant will assist and provide the County with any
information required by DOT to facilitate execution of the Use and Occupancy for the state-
owned Hawaii Belt Highway.
B. OLA further agrees to assist the County with any needed information to
finalize a Use and Occupancy Agreement acceptable to both the County and the State as required
prior to the start of construction. The County agrees to assist OLA, as its resources permit, in the
submission of all required documentation and with the execution of such forms as may be
reasonably required by DOT. DEM shall, in consultation with OLA, have reasonable discretion
to negotiate a satisfactory form of Use and Occupancy Agreement with DOT for the Belt Line
segment and shall commence such negotiations with DOT within a reasonable time after the
execution of this Agreement.
C. In conjunction with the performance of the Conditional Use Letter and
Use and Occupancy Agreement No. 588, OLA hereby agrees to save, defend and hold the
County harmless from and against any and all claims, actions and proceedings arising out of,
related to, or connected with the environmental impacts and or mitigations, permitting, design,
and construction of the Sewer Infrastructure, including claims of improper design or
construction, personal injury or death occurring in the construction phase, and to complete the
performance of the foregoing terms of said agreements and to pay the costs incurred therefor,
provided that after the County's final acceptance of the Belt Line Sewer Infrastructure, County
shall be solely responsible for the satisfaction and performance of the terms and conditions of
said Use and Occupancy Agreement No. 588.
D. OLA further agrees to provide that the Construction Contract for the
construction of the Sewer Infrastructure provides that: (1) the County is named as a third party
beneficiary of the Construction Contract, with the right, but not the obligation, of the County to
act in place of OLA in the event that OLA is in default of the terms of this Agreement, and to be
notified of and the right to timely approve any change orders, such approval not to be
unreasonably withheld or delayed; (2) all warranties and warranty bonds shall be assignable by
OLA to the County; (3) the General Contractor hired by OLA provides performance and
payment bonds assuring the performance and completion of the Construction Contract in
accordance with the COH General Terms and Conditions for Construction Contracts (1972)
("GTCs") or as revised prior to contract execution, and in accordance with its terms regarding
the payment of the General Contractor's subcontractors; and (4) general commercial liability,
automobile liability and pollution coverage insurance coverage naming OLA, the County and the
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State oflla*ai'iosadditional insureds heissued. The County shall provide its consent tothe
form ofthe Construction Contract prior huOLA`nexecution thereof.
4. Approvals by the County. County approval ofthe Sewer Infrastructure shall be
in accordance with HCC Chapter 21, Division 4, Sections 21-26 through 21-28. DEM agrees to
v/nck in good faith to execute the required steps outlined in the Code within nccosonably
cspcdieo1dooefrume. [)|GM agrees that assistance to ()LA in the performance of this Agreement
oba\| include, but not bc limited to, the following steps or phases:
4]. Assistance with State Historic Preservation Division. Within
reasonable time following of the sewer plans, the County will assist ()L/\`tothe extent
pomaU`|c, in u similar manner ue hwould any other contractor, by submitting to the l{uvvoi'i State
Historic Preservation Division ("S|{PO")oletter informing SBPIlofthe proposed Sewer
Infrastructure work within the DOT right nfway and seek Sf{PD'a determination that such work
will have "no effect" upon the Siaic`ahistoric resources; however, itisstrictly understood by all
parties that the County is not responsible for any State or local final determination regarding any
externally imposed requirements.
42. Construction of Sewer Infrastructure. The County and 0L&agree that
iothe event the Council approves the sewer line extension, and the County and OLA and DOT
execute Use and Occupancy Agreements for the Belt Line and OLA Line segments, OLA shall
undertake, at its expense, the construction and installation of the Sewer Infrastructure in
accordance with and subject to the following procedures and such other procedures as required
by law:
A. Contract Award. Upon the `m approval ofthe plans and
specifications for the Sewer Infrastructure Work and the DOT and County's execution of Use
and Occupancy Agreement No. 500for Sewer Force Main Purposes, orusimilar acceptable
document, OLA shall be authorized to award the Construction Contract, in conformity with this
Agreement, and prior to commencement of the work, OLA shall provide the County with the
Construction Contract and the bonds and insurance certificates required in Paragraph 3.1) and
[()}lGTCs()972),unless amended toulater date prior toContract execution. DLAaho}| use
best efforts to commence construction within one year after the construction plans and
specifications have been approved by DEM and DOT, and shall complete construction within
twelve (12) months of the Construction Contract execution date in accordance with the approved
construction plans and specifications, provided that this time period may be extended based on
force oo jcurccvonta.
B. County Inspection of Construction. DBM`aoudicipotion in
OL&`«construction of the Sewer Infrastructure shall belimited to approval of the plans and
specifications for such work and inspection of the work as it proceeds to ensure conformity with
the approved plans and specifications and compliance with DPW and DEM standards, in
accordance with HCC Section 21-18 and all other applicable federal, state and county laws, rules
and regulations. I)EM agrees totimely conduct its inspections as the construction work
progresses, to ensure that the work may progress in accordance with the Contractor's schedule.
0[Ashall cover the cost ofany change orders pertaining tothis project aadcsoribedhc,ciuood
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as shall be required by DOT.
4.3. Acceptance of Sewer Infrastructure by the County. Upon the
completion of the Sewer Infrastructure and compliance with any deficiencies that have been
identified during the course of ongoing inspections as described in HCC Section 21-18, the
County will approve connection of the sewage works to the public sewer system. The County
will accept the sewage infrastructure in accordance with the HCC Section 21-19. OLA shall bear
all costs related to finalizing the punchlist and any deficiencies that shall be requested to deliver
this project "as a whole," and will comply with the tenets of HCC Section 21-19.
5. Financial Obligations. The County shall bear no financial liabilities or
responsibilities for the Belt Line through the date of County's final acceptance of the Belt Line.
This Agreement is contingent on OLA demonstrating within thirty (30) days of the execution of
this Agreement that it holds a minimum of $3,000,000 in available reserves.
6. Cooperation by Parties. The parties understand and agree that they will in good
faith strive to complete and accomplish the foregoing in as expeditious a manner as possible to
allow OLA to complete the construction of the Sewer Infrastructure. To this end, OLA and the
County further agree to set monthly periodic status conferences to review the status of the tasks
set forth in this Agreement or on a more frequent basis as may be necessary from time to time.
In recognition of DEM's current staffing challenges, OLA and its consultant shall take the lead
in preparing all required documentations to assist and expedite the process that can allow OLA to
meet the terms and conditions set here forth in this agreement, and the County will expeditiously
review any documentation requiring the County's approval.
7. Successors and Assigns. This Agreement shall inure to the benefit of the parties
and their respective successors and assigns.
8. Counterparts. This Agreement may be executed in counterparts, including
counterparts signed and transmitted electronically or by facsimile, each of which when taken
together shall constitute one and the same instrument, and which shall be binding on the parties.
9. Modification or Termination of the Agreement. This agreement may be
modified or terminated upon mutual agreement of the parties with fifteen (15) days prior written
notice.
(The remainder of this page is intentionally left blank.
Signature page follows.)
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IN WITNESS WHEREOF, the undersigned parties have executed this Memorandum of
Agreement — Wainaku Extension and Connection to the Hilo Wastewater Treatment
Facility effective as of the day and year first above written.
RECOMMEND APPROVAL:
M
Ramzi MansOUr, Director
Department of Environmental
Management
APPROVED AS TO LEGALITY AND
FORM:
IN
Deputy Corporation Counsel,
County of Hawaii
HAWAIIAN OLA BREWING
CORPORATION
By:_
Name:
Its:
[Celli U IVA W a ■ RMAXIM
itz
541
MITCHELL D. ROTH
Its Mayor
Kel ".1
"the County"