HomeMy WebLinkAboutCOM 0652.001 2000-2002
.1. CUlaTi5 TYLER, III <P,:'•_,,: ~~e~'' Bus: (808) 327-3666
~ ;ca c •h~,;. ' Fas: (808) 326-5697
Di.c;r~c;8/,4'or;hKurial ~ ~ etyler!icinterpac.net
+i'
OR.~~~
I-IAWAl`1 COUNTY COUNCIL
f::
t
June 6, 2002
MElO~IORAleTDUM
TO: James Y. Arakaki, Chair, Coun e ers ;
}z
FROM: J. Curtis Tyler, III ~ R
,
SUBJECT: Resolution for the Establi rn t of a Council-Initiated Water System
Ianprovegaaent District for the Kona Coastvievd and Dona Wonderview Subdivisions
Attached for your review and consideration is a resolution calling for the establishment of a Council-
initiated water system improvement district for the Kona Coastview and Kona Wonderview
subdivisions. It has been prepared by the Legislative Auditor's Office with considerable input from
bond counsel attorneys Andrew W. Char and Brian T. Hirai.
For additional reference to the provisions of this resolution and related documentation, please see
Communication No. 652, "Manager's Report and Installation Cost Estimate for a Water System
Improvement District" transmitted by Milton D. Pavao, Manager, Department of Water Supply on
June 4, 2002.
Coupled with the Council's adoption of Bi11223, a measure intended to facilitate the improvement
district process, this resolution lays the foundation for the financing of along-sought dedicable water
system for over 400 property owners in two adjoining North Kona subdivisions. Utilizing a very
favorable federal grant/loan formula outlined in a letter of conditions dated Apri19, 2002 from
USDA Rural Development State Director Lorraine P. Shin, this proposed improvement district
resolution proposes a total project cost of $4,600,000, supported by $1,823,600 in grant funds from
the USDA's Rural Utilities Services (RUS) and $2,776,400 in RUS loan funds requiring enaction of
a general obligation bond to be repaid by the assessed owners within the improvement district.
I am grateful for the collaborative effort of Department of Water Supply, USDA Rural Development
Office, Mayor Harry Kim, Finance Department, Planning Department, bond counsel and legislative
staff in assembling this proposal and urge your support for this critical improvement district
initiative.
Please do not hesitate to contact me if you have any questions at your earliest convenience. Thank
you.
Com~i. l~TO~
JCT/rf
Attachment 1' i!e No
~:..~t. z>~~p ~ ~ 6 2~
Kona Council Ot•ticc: 77-fi399 Nalani Street • Suite 104 • Kailua-Kona • Hawaii • 96749-8980
~.~C..h:R;{.Y.
1 hone:: (8~8) ,51-83
• ,
AARON S.Y. CiIUNG ' ~ °
~ n
~ ~ourtci~.;,s»fhe,~ • ~ F'ax: (8,;8) 961-891
f
v h,{
.•.Y.4i:i"~:
cor~wr~ catrNCrl.
c~~t~,~~,~ ~/~Hcnt~ar
3 i . ~u~,tirr .SFi~ee~
Urlo, Hux~cri'i 91.''3(1
June 7, 2002
James Y. Arakaki, Chair Re : Comm . 6 5 2 . 1
Hawaii County Council
25 Aupuni Street
Hilo, Hawaii 96720
RE: Request to Waive Consideration of Resolution 220-02, a Resolution Proposing the
Establishment of a Water System Improvement District for the Kona Coastview and Kona
Wonderview Subdivisions and related Communication No. 652, the "Manager's Report and
Installation Cost Estimate for a Water System Improvement District -Kona Coastview and Kona
Wonderview Subdivisions," from Water Supply Manager Milton D. Pavao dated June 4, 2002 and
Communication 652.1 from Councilmember J. Curtis Tyler, III dated June 6, 2002.
Pursuant to Section 1(g) of Rule 4 of the Procedure of the Council of the County of Hawaii, I request
your support for waiver of these matters from my Committee on Finance for consideration and approval
by the full Council at its next scheduled meeting on June 19, 2002.
Resolution No. 220-02 proposes the making of along-sought Council-initiated improvement district
supported by federal financing assistance consisting of a USDA/RUS grant and loan for the estimated
$4.6 million cost of the proposed water system. In light of the considerable work undertaken to date and
reflected in the "Manager's Report" from DWS Manager Milton D. Pavao and the timeliness of moving
forward with this project to secure USDA funding, it is advisable to take up this matter at the next
scheduled meeting of the full Council on June 19, 2002, to be held in West Hawai` i. For these reasons, it
is therefore advantageous that approval is granted for these matters to be placed onto the next Council
agenda for review. However, in the event this request is denied, for whatever reason, I understand the
matter shall be referred to the Finance Committee for placement on its future agenda.
Sincerel ,
. ~
Aaron S. Y. Chung'', Ch r
Finance Committc~
,
pro -t`e/~Vaiv C ci • Disapproved/Date/Refer to Finance Committee:
Ja akaki, Chair James Y. Arakaki, Chair
Hawaii unty Council Hawaii County Council
AC