HomeMy WebLinkAboutREP FC 236 05/14/2002 2000-2002 REPORT OF TIIE
COl0~Il0~IITTEE ON FINANCE
DATE: May 14, 2002 Re: Comm. No. 626/Bill No. 215
PLACE: Council Chambers
TIME: 10:07 a.m.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill No. 215, reports as follows:
Bill No. 215, transmitted by Director of Finance William Takaba, via Communication No. 626,
dated May 1, 2002, authorizes the issuance of general obligation bonds of the County of Hawaii
in a principal amount of $259,200 for the Department of Water Supply to finance a portion of
the costs of constructing a replacement waterline for the Happy Homes Subdivision. The
measure secures the payment of a loan by the United States of America, Department of
Agriculture; and fixes the form, denomination, and certain details of such bonds, and providing
for its sale.
The Department of Water Supply has awarded a contract, Job No. 99-733, Construction of the
Happy Homes Subdivision waterline replacement (Puna, Hawai`i), for $1,036,700. This project
consists of the replacement of existing galvanized iron pipeline and appurtenances with new
ductile iron pipeline, copper service connections, fire hydrants and appurtenances. The water
system within the subdivision in addition to the distribution line feeding into the subdivision will
be replaced with new lines, including ahigh-pressure by-pass line that will improve the water
pressure conditions for a certain segment of the area. The completion of this project will provide
for improved fire flow and water pressure conditions.
This project will be funded under the United States Department of Agriculture (USDA), Rural
Development Program. The funding provides for a grant amount not to exceed $777,500 and for
a loan amount of $259,200. As a condition of this funding, the USDA requires the Department
of Water Supply to secure a general obligation bond as a pledge on the loan portion.
On January 22, 2002, the Water Board adopted a loan resolution authorizing and providing for
the incurrence of indebtedness for the purpose of providing a portion of the cost for this project.
The aforementioned water system is a public water system but had not been built to county
dedicable standards back in the 1950's.
FC REPORT NO. 236
Pursuant to Chapter 3, Section 5-3.3(c), Hawaii County Charter, the Director of Finance shall
negotiate loans and the issuance and sale of bonds and notes when authorized by the Council.
For informational purposes, Mr. Tyler voted kanalua twice.
Your Committee on Finance is in accord with the purpose and intent of Bill No. 215 and
recommends it pass first reading.
smc
Al'ES NOES A&E EX
Respectfully submitted
CI-LUNG X
rLSLCCrLto X COMMITTEE ON FINANCE
ARAKAKI X
ELARI®N®FF X
JACORS®N X
LEITI-iEAD-TODD X
SAFARIK X AARON S.Y. CHUNG, C R
TYLER X FC REPORT NO. 236
vAGONG X ADOPTED: ~ ~
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non ~