HomeMy WebLinkAboutCOM 0693.006 2002-2004 IMPROVEMENT DISTRICT INFORMATION SUMMARY
1. PROJECT COSTS /NET PP.OJECT COST /ESTIMATED ASSESSMENT
PROJECT COSTS:
Water System Construction Cost 4,942.024.00 (bid; Isemoto Contracting Co. Ltd.)
10% Construction Contingency 494,202.00 (10%per Department of Water Supply)
ROW Acquisition (Reservov Sites) $ 243,384.00 (actual)
Design and Survey 322,385.00 (actual)
Inspection 0.00 (in-kind; Department of Water SuPPIY)
Environmental Assessmen[ 18,100.00 (actual)
Reserve Fund 0.00 (ID Loans: USDA/RUS & Water Board)
Bond Counsel, Underwriting, Printing $ 35,000.00 (estimate)
County Clerk Administrative Cost 5.000.00 (estimate)
Total Development Cost $ 6,060,095.00
NET PROJECT COST:
Total Development Cost $ 6,060,095.00
(Less - USDA/RUS Grant $ - 1,823,600.00
Net Project Cost $ 4,236,495.00
ESTIMATED ASSESSMENT:
$4,236,495 divided by 437 assessed owners = $9,694.50*
• subject to amendment upon final accounting of "County Clerk Administrative Cost"
• Assessments may be reduced with the addition of new CPR properties subject to
assessment
2. PROJECTED PAYMENTS
AMORTIZATION SCHEDULES FOR THE THREE ID LOANS BASED ON 437 ASSESSEES:
Year 1: (from 9-30-04 bond closing date)
Interest only payments based on contractor's projected draw schedule: $82.00/quarter
Year 2-6:
$2,776,400 @ 4.75% for 34 years
$920,000 @ 4.375% for 34 years
$540,095 @ 4.5% for 5 years** $66.16/month*
Year 7-35:
with DWS loan paid off $42.70/montlt*
* includes $1.00 collection fee
assumes maximum rate with aone-year interest only period >I
lus 5-year amoritization
3. ADDITIONAL COSTS
FACILITIES CHARGE (Water Meter): Payable to Department of Water Supply separate from ID
assessment: $1,190.00 for hook-up to ID water system 1
`i1~ll~l i. .~i:. ~
Ref. To: P~eier
Ref. Date .1111 ~ ~ ~nnd
NOTE: Facilities charges will be waived for al] owners (approximately 119) who made prior
recorded payment of facilities charges to DWS
PLUMBING CONNECTION: Costs for owner's hookup from dwelling unit to DWS water meter.
4 PREPAYMENT AND PROPOSED T IMETABLE: PREPAYMENT PENALTY
It is anticipated that property owners wishing to prepay [he fitll assessment (estimated as of 7-12-04 to be
$9,694.50) and [hereby avoid interest payments on the ID loans may make payment to th FinancgDire_,.,_c__.tor,
County of Hawaii fro~h€.perind beeinning August 25,.2004 until September 24, 2004. Upon a of a
ounciioidinance setting the assessment for the Improvement Dtstrict, owners will be notified b certified mail
o t is one-mon prepayment" eriod fter this 30-day period, property owners
will also be permrtte o t
o etr assessments in 1, plus a 3%ptemmm on the unpaid balance (unless waived) and interest at
the rate on the bonds until they can be redeemed with the assessment prepayment.
5. PROJECT /LEGISLATIVE ACTION TIMETABLE
July 12 Public hearing (Kealakehe Intermediate School, 6pm).
my 23 Council Resolution of Determination based on 7/12 public hearing
July 24 USDA/Rural Development requests Closing Instructions
ug 4, 18 ID Assessment and bond ordinances, 1" & 2"d reading.
c ; 25 Construction contract reviewed by Corp Counsel and RD
iCu - Notice of award issued
ug 25 'j Published and certified notice of prepayment
ept Construction contract executed (shortened to 2 weeks since contract already reviewed by
Corporation Counsel and Rural Development)
Sept 13 USDA/Rural Development concurrence of construction contract
Sep[ 24 30-day prepayment period ends
Sept 28 DWS loan closes
Se t 30 RD loan closes (before federal fiscal year ends to avoid higher interest rate)
Oct 2 Notice to proceed
ct Tentative date for preconsttuction conference; followed by an open "ground blessing"
event.
Dec 31 Connector roads to Kaiminani open.
12/20/05 I S-month construction period substantial completion.
6. RIGHT TO SEEK REDUCTION IN ASSESSMENT
Chapter 12-29 (b), Hawaii County Code, allows a proposed assessed owner to submit an application to the
Director of Finance to pay a reduced assessment based on costs associated with the issuance of bonds.
However, as there is no reserve fund established for the Improvement District, the only savings to be realized, if
approved, would be the bond counsel expenses amounting [o approximately $80 ($35,000 divided by 437 units).
7. INFORMATION TO COMMUNITY
The Department of Water Supply anticipates providing periodic Improvement District update reports to [he
residents of Kona Coastview and Kona Wonderview on the status of project construction via its county website
i~ a[ http://www.hawaiidws.org.