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HomeMy WebLinkAboutCOM 0564.000 2004-2006 NSV o• y~ Harry Kim ~'•y~"` William Takaba ,4layor Director Nancy E. Crawford h~oi~M~~`~ Deputy Direeror County of Hawaii Finance Department 25 Aupuni Street, Room 118 Hilq Hawaii 96720 (808)961-8234 Fax (808)961-8248 November 18, 2005 Stacy Higa, Chairman, and Members of the Hawaii County Council Hawaii County Council 25 Aupuni Street Hilo, HI 96720 Subject: Bill for an Ordinance Authorizing the Issuance of General Obligation Bonds Attached for your consideration is a bill authorizing the issuance of up to $50 million in general obligation bonds of the County of Hawaii. The amount includes $25 million of bonds for the Department of Water Supply ("DWS"). The DWS will reimburse the General Fund for its share of the debt service on the bonds and the cost of issuance. We currently have a number of projects that are ongoing or ready to initiate which require funding to continue. These projects include construction to meet legal mandates, repairs to facilities, expansion and replacement of facilities, new facilities, and road and traffic improvements (see Exhibit A). Projects included on Exhibit A have been determined to be of high priority and are expected to need funds within the next six months. Project priorities sometimes change and factors beyond our control may dictate which projects are ready to move forward and make use of funds at any given time. The Department of Finance is working with departments to insure that funding will be available when needed, but not borrowed prematurely. The number of projects to be funded is limited by prudent spending amounts and the capacity of the departments to manage the projects. Exhibits B and C are debt service worksheets for your review. (a'ue 185 r Comm. No. .7 61+~ Hawaii County is an equal opportunity provider and employer. f. Tp. G a.:f. L`ote IVUV I t3 t)q Stacy Higa, Chairman and Members of the Hawaii County Council Page 2 November 18, 2005 Please contact departments directly for additional information on specific projects. If there are any questions regarding the bonds, please do not hesitate to contact Mike Okumoto at 961-8303 or me at 961-8234. Thank you very much. y~ William Ta ba Director of Finance APPROVED: Harry Kim Mayor Attachments Exhibit A 2006 Series A Bond Request Planned Projects Mandates/Environmental ADA Compliance - P&R 2,250,000 Naalehu & Pahala LCC replacement 220,000 Honokaa LCC Replacement 600,000 3,070,000 Repair of Facilities Central Police Station repairs 1,000,000 County Building repairs 5,500,000 Rural transfer stations 500,000 Repairs to facilities - P&R 1,255,000 Konawaena Swimming Pool 1,175,000 Kailua Park 850,000 10,280,000 Expansion/Replacement of Facilities Alae Cemetery 1,000,000 Hilo Bayfront Beach Park master plan 300,000 Pahoa Fire Station 300,000 1,600,000 New Facilities Fire Admin Complex 2,500,000 Kalaoa Fire Station 2,150,000 Microwave tower 460,000 5,110,000 Road and Traffic Improvements Palani Road Safety Impr 1,359,000 1,359,000 Total Projects 21,419,000 Reimbursable Water Supply Bonds & Costs 25,000,000 County Bond Issuance Cost 500,000 Total Bond Authorization 46,919,000 EXHIBIT B V OCOO Mt0 NMO N(D LO LON O W V LO aDN -O O V O Lp O W m LO N V V O O r 0 00 V ~ (O r N M C N N O r ~ r M V O Ln V O Ln N M M OD Q~ N r- OD O~ O N U N N f0 M N N O O M M O OD r aD N W r M ~ LO td N O r rn (O W (O (D Lp M N O N O 01 M M M O O (O LO m N ~ N r 0 O~ O m 0 0 W M N N O O OD OD (O (O a0 (O O N a` a` N N N N N N N N r r (O M M M m 0 m r r '7 N ~ r ~ ~ ~ ~ ~ M O O N N N N N N N N N N N N N N N N N N (O d 0 O O N N N N N N N N N N N N N N N N N N W U O -O O O O m O m W W m Q~ O O m O m W m 0 0 0) ~ ~Z O N to ~ l0 Lp Ln iA 10 ~ Ln LO Ln Ln L!') IA to LO Ln LO l!') 1n O U O (p N N O Ln LO LO LO LO Ln LL) l0 M O ~ ~ Ln Ln Ln N ~ Ln D o E o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o N ~ ~ ~ N N N N N N N N N N N N N N N N N N m ~ ~ m M O N O1 ~ EA V O (O aD V O aD O O M M O r O~ (D N M (O LO O V O N r (O r M O N N a0 N M W~ N m V t0 M ~ N O r N W V~ ~ Ln 11') O l0 N V M 01 O N N Q~ ' V C f0 N O N (O (O V LO M r r V N ~ Ln N (D M r LO ~ N ~O r r M N 0 0 Q~ (O r (O N r V M OD r W V V 0 M ~ N CD Q~ O Q~ O O N r N N ~ 0 0 r r 'A O r CO O ~ Ln M M M M M M IA l0 V ~ ~ r r r LO LO N m N N N N N N N N r' ~ ~ ~ ~ O M O~ LOO O~~~ O N O r v a~0 L~ j M a00 O O ~ W O O LO r (O Q1 O O M LO Ln O N 'A ~ O r (O r r r ' W ~ LO O LO rn M W N ~ r V 0 (D M Ln O O m W r D7 m O a0 W r (O (O Ln Ln ~ O O W r m Lb m 01 m N N_ M M M M M M M M V O Ln m r r N N M M M M M M M M N ~ ~ (O M V1 C O O O r V' LO r OD 00 W OD O LO O ~ (O O m M N l0 r LO N O W OJ O r N l!') Ln r t0 O LO Ol r rn O N i0 f/1 L!) ~ M (O ~ M (O QO O O 00 r r v m V' Ln V M V ' M v ~ Moi~~om~ai~co v of ri eo corrncoM m C ~ N ~ LO O N Lj) r 0 ~ (O r m O r V N ~ (D m0 O C O O OD 00 r (p (D 'O M N r' ~ ~ ~ ~ O ~ w ~ N a0 0 V O LO N V V N O M V a0 O O M N M C l0 N N M m N 0 0 T V c0 N M M a~ r rn LO O O c0 O O D_ M V W O r V V V LO O r OJ (O r (D O N V N' to N M h M ~ 0 O I~ O r m O M O O N V m O A C r N W V OD LO N V M W O N (O r Q1 01 O N (O M V V LI') O O r N 0 (O M r r r N N r a a` NN NN NN NN N aD O m V r O W 0 (D o0 O m 'O O 1n M rn m M 0 m O W (O r W r V N LO 00 OD N r V M 07 W Ln r 01 (O r N y N V Ln O m M '7 W 0 0 0 r (O N r r V in V ~ (O U1 (U (O O M (D N (D M ~ O M V Ln r 0 a0 M N O (O V ~ N O (O Ln C V Q N r Ln ~ O Ln O O O N V V r O ~ F N N N Ln l!') Ln 'f) Ln M M r N N N V •S V LO O LO m d to ON OOOOOOM MNOOOr rr'O LON N ~ C N N N N N N N N ~ ~ ~ ~ r O N C m d ~ C r O W 0 (O W O m LO O t0 O O W M O m 0 0 0 r ~ O Q~ r V N Ln W 00 N r V' M Q1 O LO r O O r N O in N O V o0 Ln N O N (O r Q~ r (O N r (O N of N' N V ~ ~ C') ~ m N O (D V fD a0 c0 c o r N a0 r 0 Ln O W O LO V W M r 00 V M (O r v u7 N a0 (O M V r r N ~ C V OD r (O O M (O O~ ~ (O ~ r M O~ V F W lp N LO O - rnro cor r (O M V V MMNN 00 f0 O O O O O O O O O O O O O O O O O O O O O O C O O O O O O O O O O O O O O O O O O O O O N N O LO r 00 V ~ O~ (O V M 0 0 0 0 N V (O O' V O O' M a0 V V 0 (O f0 r M V LO ~ r M 0 0 (O N M Oi CO ~U M V CO N M r LO r M M M N O M O N~ O r 0 r C ~ ~ M QJ LO r OD LO N (O LO LO O M O (O O M ~ M a` ~ M N N M V V to m W Q~ r r c0 (O (O (O Lp LO N N ~ r ~ ~ D) (O r c0 m 0 r N M V Ln O r a~ m O ~ N M V 'n O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 W N N N N N N N N N N N N N N N N N N N N N Il EXHIBIT C Debt Service Projection Principal amount: 25,000,000 Interest rate: 4.5% Year Payment Interest Principal Balance 25,000,000 1 1,125,000 1,125,000 - 25,000,000 2 1,125,000 1,125,000 - 25,000,000 3 2,055,922 1,125,000 930,922 24,069,078 4 2,055,922 1,083,108 972,814 23,096,264 5 2,055,922 1,039,332 1,016,591 22,079,673 6 2,055,922 993,585 1,062,337 21,017,336 7 2,055,922 945,780 1,110,142 19,907,194 8 2,055,922 895,824 1,160,099 18,747,095 9 2,055,922 843,619 1,212,303 17,534,792 10 2,055,922 789,066 1,266,857 16,267,935 11 2,055,922 732,057 1,323,865 14,944,069 12 2,055,922 672,483 1,383,439 13,560,630 13 2,055,922 610,228 1,445,694 12,114,936 14 2,055,922 545,172 1,510,750 10,604,186 15 2,055,922 477,188 1,578,734 9,025,452 16 2,055,922 406,145 1,649,777 7,375,675 17 2,055,922 331,905 1,724,017 5,651,657 18 2,055,922 254,325 1,801,598 3,850,060 19 2,055,922 173,253 1,882,670 1,967,390 20 2,055,922 88,533 1,967,390 (0) 39,256,604 14,256,604 25,000,000 HAWAII COUNTY PROJECT SUMMARIES Compliance with court ordered and federal mandates is a very high priority. The. first three projects will address mandated requirements. County funds are used in conjunction with other sources, such as CDBG or EPA funding. ADA Compliance - $2,250,000 The County is continuing with the on-going process of complying with the obligations as set forth in the consent decree filed in Russell et al v. County of Hawaii. The primary purpose is to ensure equal access to all parks and recreation facilities and sites through the removal of architectural barriers. The funding will be used for construction of some of the remaining Schedule 2 projects and design contracts for Schedule 3 projects. Timeframe Cor encumbrance of the funds is within 6 months of the funds being in place in order to bid construction projects and negotiate contracts. It will take approximately one additional year to expend the funds based on performance of contractors and consultants on their respective projects. Honokaa Large Capacity Cesspool Replacement Project - $600,000 The Honokaa Large Capacity Cesspool Replacement Project was prompted by regulations promulgated by the U.S. Environmental Protection Agency (USEPA) in 1999 that all existing large capacity cesspools be eliminated. The project entails installing a collection system to serve County and state facilities and central Honokaa town. The requested funds will be used for the project design and survey. Anticipated completion of this phase of the project is September of 2006. Naalehu &Pahala Large Capacitypool Replacement Project- $220,000 The Naalehu &Pahala Large Capacity Cesspool Replacement Project is also in response to EPA requirements and involved the County partnering with C. Brewer and the community to address the large LCCs used in former plantation camps. Funds are required for the "pre-design" portion of the project, which consists of a topographic survey, Preliminary Engineering Report detailing sewer system alternatives, recommendations and engineering costs, and an Environmental Assessment Report. This work is also expected to be completed in September of 2006. EPA funds will be utilized for a portion of the construction work. Facility maintenance was deferred Tor a number of years when funding was not available. The following projects represent high priority projects that require funds in the near future and have no designated source of funds at this time. Central Police Station Repairs - $1,000,000 Funding is needed to repair the roof of the Public Safety Complex, Building B, in Hilo, due to leaking causing extensive water damage. The Public Safety Complex, Building B, on Kapiolani Street in Hilo houses the department's In-door Firing Range that consists of four (4) firing lanes located on the third floor of the building. As a result of the water problem, the range is periodically closed down and unavailable for use for safety reasons. Funding will cover the cost of planning, design and construction. Additional funds will be requested at a later date for roof work on Building A. County Building Repairs - $5,500,000 The project will remove asbestos building materials and repair the leaking roof which will entail the following improvements: 1) Remove and replace ceiling grids, lights, soffits, AC air handlers/ducts, floor tiles, metal roof; gutters, downspouts, flat roofs; 2) repair roof decking and canopy structure. Construction is expected to begin April 2006 with a projected completion date of March 2007. Rural Transfer Station Enhancements - $500,000 This represents the cost of the design component of improvements to the County's 21 transfer stations. Transfer stations have been neglected for many years, and are currently in a state of disrepair. Transfer stations are where the public interacts with the County Solid Waste Division. Therefore, public health and safety risks must be addressed, and we must ensure compliance with the State Department of Health regulations. Much of the basic design work for improving transfer stations will be managed in house with the Solid Waste Engineer. Specific structural work such as re-designing the rotten wooden retaining walls will be contracted out to local engineering firms. Enhancements besides repairing and replacing components also include improving the transfer stations to provide for the collection and handling of green waste, white goods, and recyclable materials, and HIS where appropriate. The construction of actual improvements will be based on future multi-year funding and spread out over several years. Repairs To Facilities - $1,255,000 This will address urgent maintenance and repair issues at park facilities that affect safety and usability of the areas. For example, the presence of hazardous materials is at the forefront of our safety concerns for our employees and the public, so one use of these funds will be to ensure that parks facilities are assessed and any deficiencies or hazardous materials dealt with appropriately. U is anticipated that these funds will be utilized within 9-12 months of being made available. Konawaena Swimming Pool - $1,175,000 Current deficiencies at the pool render the pool barely functional at this time. The roof leaks in many locations, the solar water heating system has been broken for several years, the pool pump and filtration system has failed, and the pool is in general disrepair. Improvements at the pool will provide an alternate swimming venue for the currently overcrowded Kailua Community Aquatic Center at Kailua Park. The project includes resurfacing of the pool basin, complete overhaul of the pool's pumps and filtration system, re-roofing of the pool house building, installation of a new solar water heating system at the deck, overhauling the electrical system, providing energy efficient lighting, and other improvements that will make the pool functional and operational. The funding will be applied immediately for the construction of the improvements at the pool as the design will be completed by the end of December 2005. Construction is anticipated to take 4-6 months. Kailua Park - $850,000 This project will include improvements to the Old Terminal building which is in disrepair with leaking roofs, rotting roof sheathing, fire damage, etc. The facility will be made weather tight, with repairs of water damage and repainting. A small meeting room for public use is planned, as well as improvements to provide an expanded and improved work environment for the Kona District maintenance staff. It will also address the degraded parking lot that has lost its structural integrity. Remaining funds will be applied to the facilities adopted when the State Park is turned over to the County. Design is anticipated to be completed in June 2006 and construction will take 6-9 months thereafter. In addition to repairs, the County faces urgent needs that require expansion of existing facilities or construction of replacement facilities. The following three projects have been initiated and are now in need of funding to continue. Aloe Cemetery - $1,000,000 The current cemetery is near capacity with less than a dozen formal plots left, and additional lands have been secured for its expansion. This project will involve the grading and grassing of the expansion area to make it suitable for continuation of burials. Department of Public Works, Engineering Division is currently preparing plans to develop this entire addition. The project is anticipated to commence construction in June 2006 Hilo Bayfront Beach Park Master Plan - $300,000 The project will cover design of master plan for the entire Hilo Bayfront Beach Park and include community input. It will address vehicle circulation, space planning of the site, design of new canoe halau facilities and park amenities and everything needed to create a functional and attractive beach park for canoe paddlers, picnickers, swimmers, water craft and the general public. The funds would be used immediately following availability for a consultant contract and the timeframe for expenditure would be 9-12 months thereafter. Pahoa Fire Station (New) - $300,000 The total estimated cost to build the new Pahoa Fire Station is $4.3 million dollars. This $300,000 represents the remaining funds needed for the project. The building plans are almost complete and this project will go out to bid in early 2006, with construction thereafter. The station will have three apparatus bays and will service the area for the next thirty years. New facilities to expand services and upgrade to modern standards are an essential component of providing quality service to meet the expanding needs of the County. Fire Administration Support Comdex - $2,500,000 The Fire Department is developing this complex to centralize all components of its administration, provide a secure emergency dispatching facility, and provide much needed training classrooms. The department has obtained afive-acre site (off the Mohouli extension) from the State and will use these funds for design, subdivision, environmental assessment, and related pre-construction cost. Kalaoa Fire Station - $2,150,000 This fire station is planned to service the residents of North Kona along Mamalahoa Highway (Hwy. l80). The funds are for construction of a station with two apparatus bays and will also be the "Hazmat" (hazardous materials) response unit for West Hawaii. The project is currently scheduled to go into construction before June 1, 2006. Microwave Tower Project - $460,000 These funds will cover previously-approved additional costs to complete the microwave system. This is an on-going project to upgrade communications island-wide. The project will greatly improve our communication infrastructure and bring the County into compliance with federal requirements to switch to a 6 GHz digital microwave system. After approximately 2 1/2 years of planning, environmental assessment, site acquisition and perniitting the new microwave system will become a reality in October, 2006. A burn-out period of 60 days will ensure reliability and continuity of the new system, and enable dispatching to be seamless and dependable. TrafTic safety remains a high priority for the County. While 2004A bond proceeds are funding a number of projects in the Kona area, there are additional projects that were already in place. For the following project the prior funding lapsed and we are asking that it be replaced with new bond proceeds. Palani Road Safet~~rovements - $1,359,000 The project will increase traffic safety and improve traffic flow through a busy section of Palani Road. After an exhaustive planning and design process the project is ready for construction. The eastern terminus of Kealakaa Street to intersect Palani Road at Palihiolo Street will be realigned to form a new intersection, and will include the following improvements: 1) a fully signalized system with left-turn pockets, 2) construction of a new 700 linear foot road segment of Kealakaa Street, 3) construction of concrete curb/gutter/sidewalks, retaining walls and guardrails, drainage improvements, utility relocation, and roadway signing and striping 4) necessary land acquisition. Construction is expected to begin February 2006 with a projected completion date in December 2006. DEPARTMENT OF WATER SUPPLY The Department of Water Supply is requesting a $25 million bond float for FY '06 to finance critically needed projects that will improve the water quality in Kailua-Kona and ensure ample water for development in South Hilo. The projects being considered, their need, scope, and implementation schedule are as follow: Palani Transmission Main & Appurtenances - $12,000,000 This project is a sorely needed to transmit water from the high level aquifers of exceptional quality along Mamalahoa Highway to Kailua-Kona. Presently, overpumping of the present sources at the Kahaluu Shaft and wells has compromised their water quality resulting in unpleasant tasting water in Kailua-Kona. This delivery of this high level water to Kailua Kona will reduce the dependence on the shaft and wells, thereby improving the water quality. Realizing the tremendous negative impact to the already congested Palani Road, this project proposes a corridor to the south of Palani Road in mostly private undeveloped property that extends from Mamalahoa Highway to the Liliuokalani Subdivision. Improvements proposed include approximately 12,500 feet of pipeline and two(2) 1.0 mg concrete reservoirs. Construction is anticipated to begin in 2007 and take approximately 2 years to complete. Waiaha Water System Improvements - $8,000,000 With the completion of the Waiaha Well, tapping the high level aquifer along Mamalahoa Highway, and a 2.0 mg tank, provides another source that will assist in improving the water quality in Kailua. This project, like the former one, is needed to convey water to the Kailua area. This project, along a private corridor adjacent and just to the south of Waiaha Stream, extends from Mamalahoa Highway to Hienaloli Road. Proposed improvements include approximately 11,000 feet of pipeline, and 0.3 and 1.0 mg concrete reservoirs. Construction is anticipated to begin in the later part of 2006 and be completed by 2008. Piihonua-Kukuau 2.0 m~ Reservoir & 16" Transmission Line - $5,000,000 This project is needed to upgrade the capacity of the water system serving the Sunrise Subdivision, UH-Hilo, lower Kaumana, and lower Waiakea Uka areas. When completed, it will provide water for further development in these areas. This project, beginning at the terminus of Haleloke Street, along Hokulani Street, thence cross country across the Alenaio Stream, and terminates at Kukuau Street. Improvements include approximately 12,000 feet of l6-inch waterline and a 2.0 mg concrete reservoir. Construction is scheduled to begin mid-2006 and take approximately one year to complete.