The URL can be used to link to this page

Home My WebLink AboutCOM 0637.001 2000-2002 06/03/02 YON 13:59 FA.g 1002 McCo~sT®N M~.~.E~ 11siux M~cv~ro~v 1,1~ ~ T T O R N E Y$ A 7 L A W June 3, zooz .3 1 The k~onorable James Y. A.rakaki, Chairman and 1VYembers of the County Council County off l`~awai'i 25 Aupuni Street I3ilo, Iiawai'i 96720 Itc: Tia~rai'i ,C°otantx Counci113i11 No, 223 Idadies and Csea~.tlemen: 'fhari<k you for his opportunity to present testimony in support of Iiavvai'i County Council dill No. 223, which is presently before you for first reading ova .lone 5, 2002. I anx with the law firm of McCorriston 1Vliller Mukai Macl{iruxon T~~,I'. Vie have provided assistance to the County of l:~avaai'i with respect to $111223, which provides for certain changes to Chapter 12 of the fIawai'i County Code, relating to Iinprowexnent Districts. I would like to provide a brief overview of the proposed changes to Chapter 12, as set forth ire ~i11223. Section 1 of ~i11223 sets forth fourteen (14} separate purposes of the bill, ~Iowever, for oua- analysis, it may be useful to note that the expressed purposes and proposed amendrr~elats fall auto three basic categories: 1. Certain of the arraer~dments are intended to address specific issues raised by the 'Wonderview/Coastview water system project. 2. Other amendrgaezats are intended to deal with potential legal impediments or conflicts contained in. ~e current version of Chapter 12. 3. The third category of amendrrcerats contains those arneg~dnaents which are intended to streaanIinc, simplify, or clarify the process for the establishment of an improvenn.ent district. Let me address these three broad categories in turn. ~lrst, this bill seep t® address Qvv® sp~€~c issues that mere raised by the V6'®nderviewiGot+vie®v water systeD>srI project. Cot~2Y15. 1~T1~ ~ ~ • t G356_3.DOC P.O. Box 2$00 • Honolulu, Hawaii 96803.2$00 Five WataefrOnt Plaza, 44h Floor •500 Ala Moans ®aulovard • Honolulu, Hawaii 9fiHT3 F'; lejp. Talc~ska~: iID ~ 7 • ~ax:113~81 ~4 • E~maiO: iMa~alaw.corss ~ . 1 o~~i~~~~~P h~ef. Date~~' 06/03/02 ~fON 14:00 Frl~ X003 The I~onorable James Y. Arakaki, Chairman and Members of the Coutaty Council June 3, 2002 Page 2 1 • The first of these two issues was prompted by the fact that several parcels in the 'U'e~oradervfevv and Coastview subdivisions have been "condonair~iutaaized". The Water Department has reasonably detexzxained that for purposes of the Wonderview/Coastview subdivisions, it would be appropriate to treat condoaaainium units in the same mantaer as a subdivided parcels of land zoned fox single~family dwellings. This 13111 includes language which specifically permits the County to provide that condognixxiutaa waits may be assessed in the same manner as subdivided parcels of land, if the County so deteaxgaincs, and provides furtrier clarification and flexibility for the Couiaty in detei~iiaittg how a condoinizaiuxaa unit is to be defined. Ixi dais regard, we would like to specifically address the concept of "assessment unit", which is introduced by this bill. Essentially, an assessment unit is the unit of real property that will be subject to the iaaaproveiYient district assessment, as the County rtiay decide. ~ noted above, an "assessrgaent unit°' can be a parcel of land. Tt can also be a condonziniuaal taaait. We anticipate that there may be occasions in the future when the Coeiiaty Ynay want to include condonrniniuin uzaits as assessment units ~ as iaa, for example, Wonderview and Coastview. We also expect that there may be improvement districts where the County array ~~arit to overlook individual condorrAainiuna uzaits. The concept of the "assessment unit" is intended to provide the County with platnaixAg flexibility, and to mitigate the possibility of confiasion with other tuns which may be too broad or too narrow an scope (i.e., "property", "parcel", "lot", etc.). 2. T1ac second issue within this category relates to the term of the i%nQrovcment district bonds to be issued in caiun.ectionwith the establishxnerat of the improvement distt~ct. As you array ltaaow, ghats is a possibility that the USDA will provide financing for the coxistruction and installation of the water system by a cornbinatior? of direct grant and loam (which v~rill be evidenced by a bond to be issued by ilia County}. I..oagas under the USDA program and certain other federal pro,~ams axe typically based on a 3~=year teriri. tcs final maturity, and it inay not be possible to obtain shorter term financing under the federal lending guidelines currently in effect. At the preseiat tigne, uxider Chapter 12, the maximum team for a bond is 20 years, provided that the council lass the discretion to provide that payments under the bond riot coi~amence until as late as 3 years following the 31 st day following publication of the. ordirxagice establishing the assessment. This bill increases the raiaximmauaaA, term for bonds issued to secure loans faom the federal govereanaeaa# to 35 years. This maximum term of 35 years is consistent with the re3evant provisions of the lEiawaii Stare Constitution. Seeon~, this 1~ill seeps t® deal with potential legal inapeduaneuts to the process for the establashaneaat of aia improvement tlista°ict< 1. Under the current version of Chapter 12, the County is required to provide notice to all owiaer$, lessees, buyers tinder agreements of sale, and life tenants or remainderrraen 2 06/03/02 SON 14:00 FA% ~J004 The 1°i[onorable Janraes Y. Ai°akaki, Chairman amd Nlerr~bers of the County Council June 3, 2002 Page 3 of properties within the proposed inxprovement district, and to trustees of properties witkain such proposed district which are held intrust. Thal necessitates a search of the records of the Eureau of Conveyaarces and the band Court (ilx Ja[onolulu), or alternatively, obtaining a title report from a title company as to ownership of all such properties. Either course of action, in the context of a subdivision of 400-odd properties cornea at a substantial cost, tither in hours and manpower, or cash. Eor this reason, this ball allows the County to provide requisite notice by providing notice to the person shown as the owner in the County's real property tax records. 2. Certain sections of Chapter 12 having to do with the contracting and procurensent process for the cons~uction corntracts date back to 1975, and thus prcndate the 1'Tawaii State Public Procurement Code. Thus, this dill provides for th.e elianinataon of certain contracting and procurement provisions from Chapter 12 so as to avoid potential incoaasisteneiEs with the JProcurernent Cvde, and to allow appropriate flexibility for the County in contracting for irraproverments. Third, this 1$lli seems to streartalirAa~ sirupl, and clarigy process €®r tlee establlsh~aent of an lmpr®veaaaent distt~ic~. The County in the future ffiay wel] be interested in establishing iniprovcment districts withim subdivisions which have already been in place for a nber of years. Xn other words, in those cases, the County will not be dealing an inaprovernent distract for a r~ew subdivision, where a single developer is the owner of record for all properties in the irmproverrcent district. Instead, in those cases, the County wall be in situations like Wondcrvievr/Corstview, where instead of having to deal with orte developer, the County will have to deal with 400+ individual owners. `T'herefore, this dill seeks to streamline, simplify, and clarify the isx~,provement district process by: 1. Clarifying to whom the county clerk must send the public mail notice to establish an improvement district. 2. Specifying the contents of the notice. 3. Clarifying laow an objection or protest against a proposed irraprov~ent district assessment should be counted for an assessment ualit; 4. Authorizing the director of finance, upon termtination o;f an ianproverm.ent district, to make any cash refunds to the property owner(s) of record at the time that the director of finance suthonizes such refund; 3 06/09/02 MON 14:01 FA% ~ 005 'The l~onorablc James Y. Chaiarflflan annd Members of the County Council June 3, 2002 page 4 S. Allowing the reallocation of an assessment if there is an ixtcrease in the numbeP of assessanent units resulting froYn subdivision, asaraexation or other means if proenidsd in the resolution establishirflg the ixaipravernent district; and 6. Amending all other sections of Chapter 12, Hawaii County Code, to coz~forcn with language and def~nitiona contained within these amenda~nents. ®nce again, thanl~ you for the apportuunity to present my views on fihe above Matters. We hops that these cornrnents will be of assistance, I will be available in person on June 5, 2002, to respond to any questions or commesats that you may have rcgardixdg zny preceding cotnmez~ts. Very tTUly yours MCCOI~ISTON MILLER IV~UKAI MACYSTNNON, l~L.p Andrew W. Char cc: Ms. Connie I~iriu Mr. Rory Flynn Mr. Michael ®lcumoto 13fllefln ~flT~l, ESC(, 1 . 4