Loading...
HomeMy WebLinkAboutBIL 058 Draft 01 2000-2002 • • OFFICE INFORMATION ONLY Meeting: Finance Committee - 05/15/2001 Action: Withdrawn via Comm. 872 dated 11/29/2004 (Note. Bill 58 was referred to the Environmental Management Commission for review and was withdrawn per the request of both the Department of Environmental Management and Environmental Management Commission,) Re: Comm 213 (Bill 58) (2001) COUNTY O~ ~IAWAI`I STATE OF II~WAI`I BILL NO. ss OIaDINANCE NO. AN ORDINANCE AMENDING CHAPTER 21 OF THE HAWAII COUNTY CODE, 1983 (1995 EDITION), RELATING TO SEWERS. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Purpose. The County of Hawaii owns and operates a sewer system serving approximately 4,000 sewer accounts. The County of Hawaii, as a condition of receiving federal construction grants for wastewater treatment facilities, is required to construct sewer lines and laterals in Hilo and Kona and to expedite full utilization of the sewer lines and laterals by requiring existing houses adjacent to the sewer lines and laterals to connect to the sewer system. The council recognizes that installation of sewers to customers currently using other means of wastewater disposal may pose a significant fmancial burden for certain customers, and the council finds that the County shall implement a loan program to assist these customers and to allow these customers to pay sewer installation costs over time. SECTION 2. Chapter 21, article 1, section 21-2 of the Hawaii County Code, 1983 (1995 Edition), is hereby amended by adding the following to be appropriately numbered and to read as follows: "Default" means the failure of the owner to make a required payment to the County within ninet~days of the date upon which the pa meet is due, as stated in the agreement between the County and the owner. "Borrower" means an owner who has executed the approUriate agreements with the County required by this article. "Owner" means: A person or persons, including joint tenants, tenants in common, tenants by the entirety, corporations, and partnerships who hold the fee title to real property which is required to be connected to sewer lines, pursuant to article 2, section 21-5 of this chapter; or B~ A person or persons, including.joint tenants, tenants in common, tenants by the entirety, corporations and partnerships to whom has been entrusted pursuant to law the le al~or equitable titles to real ~roperty which is required to be connected to sewer lines, pursuant to article 2, section 21-5 of this chapter, and who are empowered to act as trustees of that real property for the benefit of another or others. or as trustees of aself-trusted revocable living trust; or A person or persons who hold equitable title pursuant to an agreement of sale of real property which is required to be connected to sewer lines, pursuant to this chapter; or ~D . A person or persons who hold, under a lease for a term of five tears or more for residential purposes, real property which is required to be connected to sewer lines, pursuant to this chapter. "Qualified households" has the meaning stated in article 1, section 11-3(3) of the Hawaii County Code, chapter 11. "Self-trusted revocable living trust" means a trust formed for the pu orp se of mana eg ment and administration of real property and in which the owners of an interest in real property becomes settlor(s) and trustee(s) of the trust by making said real property the trust res, and administering said property for the benefit of the owner(s). SECTION 3. Chapter 21 of the Hawaii County Code, 1983 (1995 Edition), is hereby further amended by deleting Article 5 in its entirety and adding a new Article 5 to read as follows: Article 5. Building Sewer Loan Program. Section 21-37. Findings and purpose. In 1992, the County implemented a sewer connection loan .program, intended to reduce the financial burden to existing houses adjacent to sewer lines that the County has been required to install. In 1992, the council found that, in order to assure that all possible lots are connected to the sewer to meet federal and state requirements, it was in the public interest to create~,in cooperation with a bank or other financial institution, a pro arum b-y which the Count a owners to connect to the sewer bx~uaranteeing loans for this purpose. -2- To provide further assistance to existing_customers adjacent to sewer lines that are required to connect to the sewer svstem, the council now finds that it is in the public interest to create a building sewer loan pro~,ram. The building sewer loanpro~ram will allow the County to use state revolving.fund fSRF) loan proceeds to construct building sewers. SRF loan proceeds will be obtained and transferred to the County sewer fund. A portion of the SRF loan proceeds will be used to construct building sewers and the remainder will be used to cover the County's desi.n, inspection, and administration expenses. The owner will repay the County. at terms identical to that of the SRF loan the County receives from the State of Hawaii. The County will repay the SRF loan using_payments from owners. The owner must agree that the Count shall_place a lien on the ~ro~perty at the time the loan~eement between the County and the owner is executed. Section 21-38. Building sewer loan program. La,Z The director of finance shall be authorized to develop a buildi_g sewer loan pro am for the purpose of providing loans to a development, existng_prior to the effective date of this article, that has been notified of the requirement to connect to the County's sewer svstem, pursuant to article 2, section 21-5 of this chapter. To be eli~,ible for the building sewer loan program, the owner of the development must be a qualified household as defined in article 1 t section 11-3(31 of the Hawaii Count~Code, chapter 11. As conditions of_participation, the applicant for a building sewer loan shall execute: 1~. A loan agreement with the County, providin tg`hat: The loan amount will consist of construction costs, applicable taxes, County-inc rred engineering, inspection, and administration costs The loan proceeds will be paid by the County directly to the contractor performing the connection; and In the event the borrower fails to pay the required payment on the loan within ninetX days of the date upon which payment is due, the loan shall be considered in default. An agreement with the County ig ving the County a lien on the property to be connected. In situations in which the borrower is a corporation or an owner holdingproperty in a trust other than aself-trusted revocable living trust, the Counter hall initiate foreclosure proceedings immediately upon default bY_the owner and payment by thethe Count,~In situations in which the borrower consists -3- of two peo,Qle holding. as tenants by the entirety, the County shall initiate foreclosure proceedings immediately upon the death of the survivor of the tenancy by the entirety. or, upon the sale, exchange, transfer or forced sale of the property. In all other situations, upon the death of the borrower, or the sale. exchange, transfer, or forced sale of the property. or the death of the last surviving settlor of aself-trusted revocable living trust, foreclosure action shall be brought concerning any amounts remainins on the amount owed to the County. Upon execution, the loan agreement and the lien document shall be recorded at the Bureau of Conveyances~ or,_Land Court,-as applicable. ~3,~ A,grant of easement. ~4 Aconstructionright-of-entry agreement. 5~, A waiver of liability agreement. ~c,2 The County may elect to develop an interim loan agreement, to be executed prior to the construction of the building sewer, consisting of estimated project costs lp us a contin eg~ncy,-and a final loan agreement, to be executed following construction of the building_sewer when all project costs are known. For the protection of the interest of the County, a title search for any prp o~pert~upon which the Count~ll have a lien shall be conducted prior to execution of an~greements and the cost of the search shall be paid from the loan proceeds. ~ Latepayments shall be handled in accordance with article 4, section 21-32 of this chapter. Sectflon 21-39. Default procedure. In the event of default, the director of finance shall have the discretion to negotiate with the borrower a plan for repayment of the loan to the County. In ne otg; iatin~ the loan repayment, the director of finance shall take into consideration the following_~uidelines: ~ In the event that the borrower is capable of paying<the monthly interest on the loan, the repayment plan shall include a minimum monthlypayment at least equal to the amount of monthly interest. In the event that the borrower is unable t0 pay an amount eaual to the monthly interest, the director of finance may negotiate a smaller monthly payment than the amount equal to the monthly interest, provided that in every case the borrower in default shall pay no less than $1 per month. -4- ~ If no agreement on the plan for re~ayment is reached within ninety days of default, the County shall immediately initiate foreclosure proceedings against the subject property. d~ In the event that the borrower is a cornoration or is an owner holding property in a trust, then the County shall initiate foreclosure nroceedin~s immediately upon default by the owner. ~ In the event that the borrower is an owner holding r~o~perty in a self- trusted revocable living trust, or, is an~tvpe of owner described in the definition of "owner," with the exception of those described in section 21- ~d ,then, upon the death of the borrower, or the sale, exchange, transfer, forced sale of the,proPerty, or termination of a trust created pursuant to chanter 558, Hawaii Revised Statutesa as amended, foreclosure action shall be broueht concerning_any amounts owed to the County. fS~ In the event that the borrowers are owners holding as tenants by the entirety, then, upon the death of the surviving spouse, or the sale, exchange, transfer, or forced sale of the .propertyforeclosure action. shall be brought concerning any amounts owed to the Count Section 21-40. Connection contract. ~ From time to time, the director of public works shall authorize a request for proposal (RFP) for licensed contractors to connect ro erties subject to the building sewer loan program. Such a proposal shall require the contractor to give the director of public works an estimate for the cost of connection for each ~r~erty to be connected. Payment of the ca aci assessment is a precondition to inclusion of the applicant's building sewer in an RFP. b~ All borrowers shall have their properties connected to the sewer by the contractor selected, pursuant to this article. This shall be a condition of the building_sewer loan agreement. Section 21-41. Waiver of liability. The contractor selected, pursuant to this article as well as the borrower, shall execute agreements with the County in which each of them agrees to defend, indemnf rand hold harmless the County in the event of any personal injury or rn operty damage resulting from the construction of the building sewer and connection of the property to the County's sewer system. -5- SECTION 4. Material to be repealed is bracketed. New material is underscored. In printing this Ordinance, the brackets, bracketed material and underscoring need not be included. SECTION 5. Severability. If any provision of this Ordinance, or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the Ordinance which can be given effect without the invalid provision or application, and, to this end, the provisions of this Ordinance are declared to be severable. SECTION 6. This Ordinance shall take effect upon its approval. INTRODUCED BY: COUNCIL MEMBER, COUNT ~OF HAWAI'I Hilo, Hawaii Date of Introduction: Date of ls` Reading: Date of 2°d Reading: Effective Date: lF~~t`1:,Fe comm. ~ 213 -6-