HomeMy WebLinkAboutCOM 0116.002 2000-2002 ~N~v~os~
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Harry Kim Dixie Kaetsu
Mayor Managing Director
~~'+'oe<°;,P+'`' Peter T. Young
Deputy Managing Director
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25 Aupuni Street, Room 215 • Hilo, Hawaii 96720-4252 • (808) 961-8211 • Fax (808) 961-6553
KONA: 75-5706 Kualtini Highway, Suite 103 • Kailua-Kona, Hawaii 96740
(808) 329-5226 • Fax (808) 326-5663
Apri122, 2002
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The Honorable James Y. Arakaki, Chair
and Members of the Hawaii County Council
.t.
25 Aupuni Street
Kilo, Hawaii 96720
Subject: Cpeneral Obligation Bonds, 2001 Series A
Dear Chairman Arakaki and Council Members:
When you authorized the issuance of the 2001 Series A bonds last year, I committed to you
that I would keep you informed about the use of the proceeds.
Initially, the County Council authorized $8 million in bonds to be used for the Police radio
system upgrade. We requested and obtained Council authorization for an additional $7
million to cover completion of the J.C. Penneys (Aupuni Center) building and other necessary
projects. The Department of Water Supply (DWS) then requested that the County issue $8
million in general obligation bonds on its behalf to be reimbursed by DWS. The Council
approved that request.
The County sold the authorized $23 million in bonds in July 2001, and in addition to a
favorable interest rate received a small premium on the sale.
Amounts Coininitted
From the net proceeds, the amounts due to DWS and the amounts committed for the Police
radio system upgrade and the J.C. Penneys renovations were deducted as follows, leaving $5.6
million:
Net proceeds of bonds $23,153,796
To DWS (8,053,494)
Police radio system (8,000,000)
J.C. Penneys renovation (1,500,000)
Balance of proceeds $5 600 302
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Apri122, 2002
Honorable James Y. Arakaki, Chair,
and Members of the Hawaii County Council
Page 2
®tlaer Allotanents/Cotnanit~nents Made
Most of the remaining funds have been set aside to meet legal mandates, change orders for
ongoing projects, and flood studies. These projects are discussed below.
Balance of proceeds $5,600,302
Legal mandates:
ADA curb ramps (1,700,000)
ADA facilities upgrades (2,000,000)
P&R wastewater upgrades (250,000)
Change orders:
Keaukaha Gymnasium (250,000)
Cellblock detention facility (100,000)
Flood studies (with CofE):
Keopu feasibility study (170,000)
Palai feasibility study (145,000)
Other: P&R facilities repairs 75 751)
Uncommitted balance ,_909.55.1
Legal Mandates
ADA liequire~raents A total of $3.7 million has been set aside to meet the County's
obligations under the two Federal court consent decrees requiring compliance with the
Americans with Disabilities Act in County facilities, streets and sidewalks. Each consent
decree included a transition plan, and these plans were adopted by the County Council. In
1999, Resolution 95-99 (Dralt 2) covering streets and sidewalks was adopted. In 2000,
Resolution 261-00 (Dra#I 2) was adopted and covers public facilities.
Curb Ramps By this time last year, it was apparent that the County had fallen behind in
making the improvements required by the transition plan for streets and sidewalks. VVe have
just concluded negotiations with the plaintiff's attorney to extend some of the deadlines with
the requirement that by June 30, 2003, we will have entered into contracts for construction of
all the curb ramps required to be completed by that date, and that construction of these ramps
will be completed by December 31, 2003.
From the 2001 Series A bond issue, $1.7 million has been allotted for curb ramps. Along with
the $2 million from the 1999 Series A bonds, the County is working on $3.7 million in curb
ramps at the present time. The ramps are in Hilo and Kona. The estimate of the additional
cost to catch up with the transition plan requirements by the end of 2003 is $6.3 million, of
which $800,000 will come from CDBG funds.
Public Facilities The County expects to be able to meet its first deadlines under the transition
plan for facilities. The 25 projects on Schedule I are to be completed by June 30, 2003. From
Apri122, 2002
Honorable James Y. Arakaki, Chair,
and Members of the Hawaii County Council
Page 3
the 2001 Series A bond issue, $2 million has been set aside for facilities renovations. This is
in addition to the $2 million already provided from the 1999 Series A bonds. As with the curb
ramps, CDBG funds are also allocated for this purpose. For your information, the estimated
additional amount needed to complete the County's obligation under Schedule I is
$2,886,000. Please see Exhibit A attached for a list of the facilities included on Schedule I
and their present status.
PcSPclt T~astewater Upgrades The U. S. Environmental Protection Agency has promulgated
regulations calling for the phase-out of all large-capacity cesspools by April 5, 2005. The
County has 85 parks and facilities islandwide utilizing such cesspools now, and the estimated
cost to install septic or other approved systems to replace the cesspools is around $50,000
each. This $250,000 allotment is to begin the work to replace the existing systems.
Change Orders
Keaukaha Gyrrcnasiur~a This project, a collaborative funding effort of the County, State, and
OHA, got underway last summer. Initially, anon-profit group had proposed to remove the
old Kawananakoa Hall at its own expense and move it to a different site, and plans were
prepared on that basis. However, at the last minute this fell through and the County was left
with the obligation to demolish and remove the existing hall. This allotment of $250,000 was
necessary to fund this demolition/removal so that the project could continue, and also
provides a small balance to cover change orders.
Palblic Sa,~`ety Complex Cedlbl®ck I)etenti®n Facility While under construction, a change
order for $100,000 was necessary to fund HELCO primary underground electrical service
installation, as well as additional excavation work caused by existing underground electrical
line routing.
Flood Steadies
The County has entered into agreements with the Army Corps of Engineers to conduct
feasibility studies for the Keopu-Hienaloli Streams Flood Control Project and the Palai Stream
Flood Control Project. These are both 50/50 cost-sharing projects, with the County's share of
each funded over four years. The amounts required from the County in the first year are
$170,000 for Keopu-Iienaloli Streams, and $145,000 for Palai Stream. Total estimated study
cost for each project, including both the federal and county share, is $1,023,500 for the
Keopu-Hienaloli Streams Flood Control Project and $836,050 for the Palai Stream Flood
Control Project.
Other
The Department of Parks and Recreation received an allotment of $75,751 for facilities repairs
and maintenance. This amount, along with $49,249 from the 1999 Series A bonds, provides
$125,000 for the department's use to repair and maintain its numerous facilities islandwide,
Apri122, 2002
Honorable James Y. Arakaki, Chair,
and Members of the Hawaii County Council
Page 4
and was especially necessary because of budget cuts made in the operating budget allocation
for repairs and maintenance.
Present Status
At the present time, there is a balance of $909,551 left from the 2001 Series A bond issue.
Numerous requests are outstanding for the use of these funds, and these are being reviewed
and prioritized. Emphasis is placed on projects that are necessary to meet a legal mandate,
that meet health and safety needs, and that are matching funds for federal or state projects.
The projects requested by departments (not in priority order) are:
Kawaalani Street Bridge Replacement Project $100,000 is requested to fund the County
share of planning and design for this federal highways (FHWA) project.
Police Evidence Warehouse Completion of the evidence warehouse, including mezzanine,
office facility, plumbing equipment, and furniture will cost approximately $504,000.
Police Radio Shop Completion of the interior of the Radio Shop, including equipment and
furniture, will cost an estimated $762,000.
Komohana Heights Collector Sewer $100,000 is requested for design work to construct a
collector sewer system to serve Komohana Heights Subdivision and eliminate the Sunrise
Ridge Sewage Pump Station. This is necessary because of the EPA mandate to eliminate
large-capacity cesspools by 2005. Construction funds will come from the SRF program.
Queen Liliuokcrlani Collector Sewer $500,000 is requested for design work for a collector
sewer to service Queen Liliuokalani subdivision in North Kona. Again, this is necessary
because of the EPA mandate relating to large-capacity cesspools, and construction funds will
come from the SRF program.
Honokohau Sewage Pump Station and Force Main $200,000 is requested for design work
for a sewage pump station and force main to service Honokohau Harbor and the surrounding
area, to reduce pollution of coastal and groundwater in accordance with the Kailua to Keahole
Plan.
Paukaa Collector Sewer $30,000 in construction funds is requested to obtain easements
for new sewer lines and to close out this project.
Scotty White Bridge $200,000 in matching funds for design of this project in Ka`u is
requested.
Hilo Landfill Closure $750,000 to plan and design a regional transfer station facility is
requested. The facility will consolidate refuse generated in East Hawaii and temporarily haul
it to the Pu`uanahulu Landfill, allowing the County to close the Hilo Landfill and provide
Apri122, 2002
Honorable James Y. Arakaki, Chair,
and Members of the Hawaii County Council
Page 5
breathing space to properly plan, develop and construct a new waste reduction system. Until
the waste reduction system becomes operational, island-wide recycling efforts will be
intensified to minimize the amount of refuse being transported to Pu`uanahulu.
Kalapana Road Realignment $500,000 is requested for project construction.
South Kopua Road Phase III $200,000 is requested for this project.
Waiakea Recreation Center Restoration $850,000 is necessary to restore the functionality
of this heavily used facility, including roof/gutter replacement, bathroom repairs, and
addressing ADA issues.
Play Equipment Upgrade $500,000 is requested for this islandwide project.
Conclusion As you can see, the requests far exceed the available funds, so we will be
reviewing all projects carefully before making a selection of those that can be funded with the
balance of this bond issue. Any comments you wish to make on the use of these funds should
be submitted to me by May 24, 2002. Thank you.
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MAYOR
Attachment: Exhibit A
Exhibit A
The islandwide facilities to be upgraded to ADA compliance on Schedule I of the transition
plan are shown below by district:
Puna Ahalanui Beach Park final plans being circulated)
Pahoa Park final plans being prepared)
Shipman Park (under construction)
Isaac Bale Beach Park final plans under review by P&R)
South Hilo Liliuokalani Gardens (completed)
Coconut Island final plans approved, bid package being revised)
Onekahakaha Beach Park final plans under review by DCAB)
Hilo Bayfront final plans being prepared)
Waiakea-Waena Playground (construction contract awarded)
Hilo Armory (completed)
Prosecuting Attorney's Offices (pending
Hoolulu Park (Aunty Sally's Luau Hale) final plans being circulated)
Lincoln Park Playground final plans under review by P&R)
Papaikou Park Community Center (prefinal plans being prepared)
North Hilo Laupahoehoe Point (final plans being circulated)
Laupahoehoe Playground (dilapidated play equipment removed)
Ham'akua Honoka`a Park final plans being circulated)
South Kohala Waimea Park final plans being circulated)
North Kona Hale Halawai (under construction)
Kahalu`u Beach Park final plans being circulated)
South Kona Greenwell Park final plans being prepared)
Konawaena Pool final plans being circulated)
Ho`okena Beach Park final plans being circulated)
Ka`u Pahala Community Center final plans approved, advertising for bids)
Islandwide Playgrounds (site evaluations being conducted)