HomeMy WebLinkAboutRES 220 Draft 02 2000-2002 C06.J 1 ~ J_ 1 OJ. J~~~A.a O1 1 J1L ~~1~`~
RESOLUTION NO. 2~Q=®~
Drafit Z
A RESOLUTION PROPOS[NG TIIE ESTABLISIIMENT OF A WATER SYSTEM
IMPROVEMENT DISTRICT EOII; THE I{ONA COASTVIEW AND I{ONA
WONDERVIEW SUBDIVISIONS
WIIEREAS, the Kona Coastview and Kona Wonderview subdivisions, consisting of a
total of 415 lots in North Kona and located on Tax Map Key Plat Nos. (3) 7-3-013, -014, -0l 5, -
016, -022, -023 and -028 (the "Coastview/Wonderview Subdivisions"), were subdivided and
developed in the early 1960s without a public system for the delivery of potable water to
property owners within the Coastview/Wonderview Subdivisions; and
WIIEREAS, the Coastview/Wonderview Subdivisions continue to be served by two
private water delivery systems, private catchment, and limited service by the Department of
Water Supply; and
WIIEREAS, in 1994, the Hawaii County Council (the "Council") initiated certain
proceedings to consider a proposal to establish a water improvement district to provide a public
water delivery system for the Coastview/Wonderview Subdivisions pursuant to Chapter 12,
Hawaii County Code (the "Improvement District"), but further proceedings regarding the
proposed Improvement District were suspended following a public hearing held on November 1,
1996 based on the lack of a clear community consensus regarding the proposal; and
WIEIEREAS, at a subsequent public meeting held by the Department of Water Supply on
October 20, 1999, a majority of the residents and homeowners of the Coastview/Wonderview
Subdivisions in attendance expressed strong support for renewed efforts to establish the proposed
Improvement District; and
WIIEREAS, on July 26, 2000, pursuant to Section 12-10(a), Hawaii County Code, the
Council adopted Resolution No. 270-00, directing the Manager of the Department of Water
Supply (the "Manager") to prepare and submit a report on the establishment of the Improvement
District and the costs of design and installation of a public water delivery system for the
Improvement District (the "Manager's Report"); and
WIIEREAS, as directed by Resolution No. 270-00, the Water Department conducted a
further examination of the cost and feasibility of the proposed Improvement District and initiated
an application to the United States Department of Agriculture (the "USDA") for grant and loan
funding by the USDA's Rural Utilities Service (the "RUS"); and
WHEREAS, at a public meeting held on March 21, 2002, attended by over 100 residents
of the Coastview/Wonderview Subdivisions, strong community support was expressed for the
establishment of the proposed Improvement District and for the funding of the costs of the
Improvement District under the RUS grant and loan programs, as reported in Kest Hawaii Today
on March 22, 2002 (see Article marked as Exhibit E in the Manager's Report); and
WHEREAS, the proposed Improvement District is also supported by both private water
companies serving the Coastview/Wonderview Subdivisions, as reflected in their respective
letters to the Water Department marked as Exhibit ~ in the Manager's Report; and
WHEREAS, by letter dated April 9, 2002 (the "USDA Letter of Conditions") tom
Lorraine P. Shin, State Director, USDA Rural Development, a copy of which is marked as
Exhibit D in the Manager's Report, the USDA has indicated that the Department of Water
Supply's application for up to $1,823,600 of RUS grant funds and $2,776,400 of RUS loan funds
for the Improvement District is being considered by the USDA, subject to the conditions
specified therein; and
WHEREAS, the total amount of RUS grant and loan funds specified in the USDA Letter
of Conditions is sufficient to pay the estimated cost of the proposed Improvement District (as
further discussed herein) and, in view of the potential benefits of such funding, the Department
of Water Supply is proceeding with the actions necessary to satisfy the conditions specified in
the USDA Letter of Conditions in order to obtain a firm commitment of the RUS grant and loan
funds for the Improvement District; and
WHEREAS, on June 4, 2002, the Council received the Manager's Report from the
Manager (Communication No. 652), including the supporting surveys, plans, estimates, maps,
and other data contained therein, all of which are incorporated herein by this reference; and
WHEREAS, the Manager's Report states, among other things, that the proposed
Improvement District will provide significant benefits to the health, safety and welfare of the
residents of the Coastview/Wonderview Subdivisions and that the estimated construction,
acquisition (including land acquisition) and installation costs of the Improvement District
(collectively, the "Project Costs") are $4,600,000; and
WIIEIZEAS, upon consideration of the community support expressed for the proposed
Improvement District, the findings, conclusions and recommendations set forth in the Manager's
Report, and the potential benefits of the available RUS grant and loan funds, the Council has
determined to proceed with further actions regarding the potential establishment and funding of
the Improvement District.
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NOW, THEREFORE, I$E IT RESOLVED DY THE COUNCIL OF THE COUNTY
OF HAWAII AS FOLLOWS:
1. Certain Findings and Determinations. The Council hereby ratifies and confirms
Resolution No. 270-00, and approves and adopts the findings, conclusions and recommendations
specified in the Manager's Report (Communication No. 652) dated June 4, 2002. Without
limiting the generality of the foregoing, the Council concurs with the findings and conclusions
specified in the Manager's Report to the effect that the establishment of the Improvement
District will provide significant benefits to the health, safety and welfare of the residents of the
Coastview/Wonderview Subdivisions, including:
a. The installation of underground waterlines, constructed and installed in
accordance with Department of Water Supply standards, will allow the elimination of
substandard and unsightly PVC "spaghetti lines", third-party easements for homeowner
consumer lines, and nonconforming easements over County-maintained roads and
drainage culverts; will permit the clearance and restoration of culverts intended for storm
water drainage; and will provide residents with a reliable water supply and regular water
pressure;
b. The inclusion of the Coastview/Wonderview Subdivisions within the
Department of Water Supply system will provide residents with reliable system-wide
maintenance and emergency repair services, and standardized billing procedures bringing
an end to private purveyor service fees attached to water bills;
c. The installation of fire hydrants will afford a greater measure of public
safety and homeowner security in the Coastview/Wonderview Subdivisions, and may
potentially result in lower fire insurance premiums for owners within the
Coastview/Wonderview Subdivisions; and
d. The installation of water meters fronting each homeowner's parcel within
the improvement district will provide residents with verifiable monthly water usage and
billing figures.
In consideration of the foregoing, the Council further finds, in accordance with Section 12-10(i),
Hawaii County Code, that the creation of the Improvement District encompassing the
Coastview/Wonderview Subdivisions, and the construction, acquisition and installation of a
water system for the Improvement District, all as contemplated in this Resolution is in the public
interest.
2. Proposal to Establish Improvement District. The Council proposes the creation of
the Improvement District, which shall encompass the Coastview/Wonderview Subdivisions, and
the construction, acquisition and installation of a water system for the Improvement District,
upon the terms and conditions set forth in the Manager's Report, including the following terms
and conditions:
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a. Special Improvements to be Opened Constructed, or Improved. The
special improvements shall be for the design, construction, acquisition and installation of a
public water system for the Improvement District consistent with applicable Department of
Water Supply standards, which shall be owned, operated, and maintained by the Department of
Water Supply. The special improvements shall include the removal of all existing meters and
laterals within the Improvement District, and the installation of meters for each currently existing
assessment unit within the Improvement District.
b. Area, Owners, and Description of Land to be Acquired. The construction
and installation of the Water System shall require the acquisition of the following parcels of land,
each to be used for the construction of a 100,000 gallon reservoir:
i. Undeveloped parcel of land, elevation 1,675 foot, Tax Map Key
No. (3) 7-3-022:046, consisting of .4197 acres, owned by Donald W. Judd, D. Wayne Judd and
Nanette Judd; current assessed value of $73,600.
ii. Undeveloped parcel of land, elevation 1,140 feet, Tax Map Key
No. (3) 7-3-023:088, consisting of .4041 acres, owned by Shinobu Sato and Joan H. Sato, current
assessed value of $72,900.
c. Material to be Used. The materials to be used in the construction and
installation of the special improvements are set forth in the Manager's Report, and include,
without limitation, the following:
i. 15,000 lineal feet 6-inch ductile iron pipeline;
ii. 9,200 lineal feet 8-inch ductile iron pipeline;
iii. Three (3) pressure reducing valves (PRV);
iv. Thirty-three (33) fire hydrants;
v. 219 Type "C" service laterals; and
vi. Two (2) 100,000 gallon concrete reservoirs.
d. Proposed Assessment Unit; Method of Assessment; Minimum Number of
Installments.
i. Assessment Unit. "Assessment unit" for purposes of the
Improvement District shall mean a duly subdivided parcel of land or condominium unit bearing a
unique tax map key number.
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ii. Method of Assessment.
(1) As used in this Resolution, "Net Project Costs" means the
Project Costs, less any amounts which reduce the actual costs of the special improvements to the
County. By way of example, assuming the Project Costs to be Manager's estimate thereof, or
$4,600,000, and further assuming an RUS grant of $1,823,600 to be applied against the Project
Costs, the Net Project Costs would be $2,776,400.
(2) Each assessment unit existing as of the date that
assessments begin to accrue on assessment units within the Improvement District (the
"Commencement Date") shall be subject to an assessment calculated by dividing the Net Project
Costs by the number of assessment units within the Improvement District as of the
Commencement Date.
iii. Minimum Number of Assessments. The minimum number of
assessments shall be five (5) annual, or sixty (60) monthly installments of principal.
e. Maximum Term. The maximum term of the bonds to be issued to
represent unpaid installments (the "Bonds") shall be as the Director of Finance shall determine in
his reasonable judgment; however, such term shall not exceed thirty-five years (35) years
following the date of issuance thereof.
f. Maximum Rate of Interest. The rate of interest to be borne by the Bonds
shall be as the Director of Finance shall determine in his reasonable discretion; provided,
however, that such interest shall not exceed 5.75 percent (5.75%).
g. Maximum Premium. The premium to be paid on the advance payment of
installments or the call and redemption of any Bond prior to its maturity shall be as the Director
of Finance shall determine in his reasonable judgment; provided, however, that such premium
shall not exceed three percent (3%).
h. Maximum Amount of Reserve Fund. The Director of Finance may
establish a reserve fund for the Bonds; provided, however, that the amount of such reserve fund
shall not exceed the maximum annual debt service requirements on the Bonds.
i. General Boundaries of Improvement District. The Improvement District
shall be comprised of all assessment units located within the Coastview/Wonderview
Subdivisions, except for TMK (3) 7-3-022:001 (a State of Hawaii highway remnant parcel) and
TMK (3)7-3-022:002 (a parcel located along Mamalahoa Highway with no frontage along
Ahikawa Street within the Kona Coastview Subdivision).
j. Maximum Estimated Units of Assessment. The current estimated
maximum number of assessment units within the Improvement District is 437, consisting of 414
parcels of land and 23 condominium units. Assuming Net Project Costs of $2,776,400, the
anticipated assessment per assessment unit will be $6,353.22.
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3. Assessed Tax Valuation. The Council finds that a review by the Real Property
Tax Office transmitted in a letter to the Legislative Auditor dated August 24, 2001 from Tax
Administrator Gary Kiyota (Exhibit H in the Manager's Report) confirms that the proposed
Improvement District meets the qualifying criteria specified in Section 12-10(h)(1), Hawai `i
County Code for approval, as the current assessed tax valuation of the assessment units
contained in Tax Map Key Plat Nos. 7-3-013, -014, -015, -016, -022, -023 and -028 are
$26,145,990 in total 2001 land value and $35,133,000 in 2001 building value, and are therefore
at least twice the estimated cost of the proposed $4.6 million improvement.
4. Facilities Connection Charge. Owners of assessment units who are not presently
customers of the Department of Water Supply shall pay the applicable facilities connection
charge upon connection to the completed special improvements.
5. Future Increase in Assessment Units. In accordance with the provisions of
Section 12-30(c), Hawaii County Code, in the event of an increase in the number of assessment
units in the Improvement District resulting from subdivision, annexation, conversion to
condominium property regime or otherwise, the Department of Finance shall reallocate the
outstanding assessments within the Improvement District among the assessment units subject to
such outstanding assessments, including the resulting new assessment units.
6. Provisions Regarding Combination Hearings.
a. The Council determines that the public hearings relating to the special
improvements and the establishment of the Improvement District provided for under Sections
12-10 and 12-27 of the Hawaii County Code shall be combined, as permitted under Section
12-28 of the Hawaii County Code.
[b. In accordance with said Section 12-18:
i. The Manager is hereby directed to prepare the documents and data
to be prepared by the Manager as provided in Sections 12-18, 12-19, and 12-27 of the Hawaii
County Code.
ii. The Department of Water Supply is hereby requested to furnish
final detail plans and specifications for the special improvements in accordance with Section
12-20 of the Hawaii County Code.
iii. The director of public works is directed to furnish the Department
of Water Supply with such copies of the final surveys, maps and plans covering the proposed
improvements, other than for such water system, as are required under Section 12-20 of the
Hawaii County Code.]
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b. The Council finds that although Section 12-28 of the Hawaii County
Code contemplates that the Council, in its resolution proposin to make the improvements shall
direct the Manager to prepare documents and data as-provided in Sections 12-18 12-19 and
12-27 of the Hawaii County Code, and further contemplates that the Council shall request the
Manager to furnish final detail plans and specifications for the proposed improvements as
provided in Section 12-20 of the Hawaii Countv Code the Manager's Report already contains
such documents, data, and detailed plans and specifications.
c. The Council further finds that the Mana erg 's Report coupled with the
Preliminary Engineering Report and Environmental Resort dated April 2002~contained in
Exhiibat C of the Manager's Report DWS Job No. 2001-790 prepared by Inabab Engineering,,
Inc. provide sufficient and comprehensive documentation relating to the plans and specifications
for adeuuate and appropriate conduits, des, service laterals fire hydrants and other
appurtenances, includingreservoirs, necessary for the water supply and distribution of the
proposed im~oyements.
d. In light of the findings set forth in Paragraphs 6.b and 6.c above the
Council determines that, as Rrovided by Section 12-28 of the Hawaii Count~Code:
i. The direction by the Council to the Manager for the
preparation of the documents and data as provided in Sections 12-18, 12-19 and 12-27 of th_e
Hawaii Countv Code, and the request by the Council that the Manager furnish detail plans and
specifications for the proposed improvements as provided in Section 12-20 of the Hawaii
County Code, shall be deemed to have been made; and
ii. The delivery of the Mana erg 's Report shall be deemed to have
complied with such directions and fulfilled such requests.
e. The Council hereby~reliminarily approves the aforementioned
documents, data, and detail plans and~ecifications.
f. A public hearing on the proposed improvements shall beheld not more
than sixty (60) days after the adoption of this resolution and not less than fifteen (15) da sy after
the first ublication thereof in at least one news a er of eneral circulation in the Count of
Hawai` i. The County Clerk shall assure that affidavits of ,publication in at least one newspaper
of the notice of public hearing and posting of same at a public place within the district shall be
filed with the Council on or before the date of the hearing.
7. Effective Date• Transmittal of Resolution. This Resolution shall take effect
immediately upon adoption thereof. Following such adoption, the Clerk of the County of
Hawaii shall transmit copies of this Resolution to Mayor Harry Kim; Finance Director William
Takaba; Corporation Counsel Lincoln Ashida; Real Property Tax Division Tax Administrator
Gary M. Kiyota; Department of Water Supply Manager Milton D. Pavao; Water Board Chair
John Tolmie; Lorraine P. Shin, Hawaii State Director, USDA Rural Development; Brian T. Hirai
and Andrew W. Char, McCorriston Miller, Mukai MacKinnon LLP, bond counsel; Al Konishi,
County Clerk; and Constance R. Kiriu, Legislative Auditor.
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Dated at Kona , Hawaii this 19th day of June , 2002.
INTRO CED BY:
COUNCI M BER, COUN OF HAWAI`1
JCT/rf
COUNTY COUNCIL
County of Hawaii AYES NOES Aas Ex
Hilo, Hawaii ARAKAKI X
CHUNG X
I hereby certify that the foregoing RESOLUTION was by ELARIONOFF X
The ~~ote indicated to the right hereof adopted by the COUNCI L of the JACOBSON
County of Hawaii on _ Juri@ 19 , 2002 X
LEITHEAD-TODD X
PISICCHIO X
ATTEST: SAFARIK X
TYLER X
YAGONG
7 0 2 0
Reference: C-bS2 2 fP-Cntmeil
Y CLERK CHAIRMAN & PRESIDING OFFICER RESOLUTION NO. (Draft 2)
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