HomeMy WebLinkAboutCOM 0604.000 2004-2006 +tV or M4
Harry Kim •.~Y~ William Takaba
llaror U,recmr
• Nancy G Crawford
ey.; Uepun~ Director
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1 '
County of Hawaii
Finance Department
25 Aupuni SLreci_ Ronm 118 I IiloJ 12~~aii 96T_0
(808)961-8234 tax (RU819fi1-82aR
December 15, 2005
Stacy K. Higa, Chairman and
Members of the Hawaii County Council
Hawaii County Council
25 Aupuni Street
Hilo, Hawaii 96720
Re: Large Capacity Cesspool Conversions
The U.S. Environmental Protection Agency (EPA), on December 7, 1999, had promulgated a
regulation prohibiting the construction of new large capacity cesspools, and a requirement that
all large capacity cesspools must be closed or upgraded to prevent the endangerment of
underground sources of drinking water. The Department of Public Works has taken the lead
for the EPA mandate of large capacity cesspool replacement for County facilities. The results
from the first of five competitive bid packages, which was comprised of 17 of 103 cesspool
conversion sites, was $1,498,000 or 68% greater than the $890,000 engineer's estimate.
Bids of even higher percentage disparity from original estimates are anticipated as the pool of
available contractors to complete the remaining four (4) segments are drawn down. With the
current project appropriation balance at $7,050,000 and the revised engineer's estimate now
set at $12,500,000; an additional appropriation of $5,500,000 will be required to successfully
complete construction. These funds will come from the State Water Pollution Control
Revolving Fund (SRF) Loan.
Enclosed is a bill for an ordinance authorizing the Mayor to enter into an intergovernmental
agreement for a SRF loan for the County's Large Capacity Cesspool Conversion
(wastewater disposal improvement) project; and authorizing the issuance of general
obligation bonds for the purpose of financing this improvement project. Pursuant to the
County Procedures Manual for Participation in the Hawaii State Revolving Fund Loan
Program, prepared by the Wastewater Branch of the Hawaii Department of Health in April
1994, part of the loan application process requires a "resolution or ordinance passed by
the County Council which authorizes the SRF loan application and identifies the dedicated
source(s) of revenue (i.e., general obligation bonds) which will fund the project and
repayment of the loan with interest." The Council's authorization of the issuance of
general obligation bonds will serve as a pledge of its general obligation authority as
security for repayment of the loan and interest.
,L~iQQ,d 1A~IylaS~ Comm. Pto. (goy
Rif. To:_ r~['/+FL
Hewai'i County is an Equal Opportunity Provider and Employer Dafe ~L1~C 2 ~ j1LZiL
Stacy K. Higa, Chairman and
Members of the Hawaii County Council
Page 2
December 15, 2005
Also enclosed, is a bill for an ordinance adding the Large Capacity Cesspool Conversion
project for $5,500,000 into this fiscal year's Capital Budget.
If there are any questions, please do not hesitate to call the Department of Public Works.
~2-d~
William Ta ba
Director of Finance
APPROVED:
Harry Kim
Mayor
Enc.
cc: Public Works
Form B-52
7/ 18/91
DEPARTMENT OF FINANCE
REQUEST FOR COUNCIL ACTION
DEPARTMENT: Public Works DATE: December 9, 2005
STAFF CONTACT: David Yamamoto PHONE: 961-8466
A. REQUEST:
Amend Ordinance 05-87, the Capital Budget by adding an appropriation for:
Large Capacity Cesspool Conversions $ 5,500,000.00
An ordinance authorizing the County of Hawaii to enter into an intergovernmental agreement for a
State Water Pollution Control revolving Fund Loan; and authorizing the issuance of $5,500,000
general obligation bonds for the purpose of financing wastewater disposal improvements.
B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED):
The results from the first (1) of five (5) competitive bid packages which was comprised of 17 of the
103 cesspool conversion sites was $1,498,000 or 68% greater than the $890,000 engineer's estimate.
Bids of even higher percentage disparity from original estimates are anticipated as the pool of available
contractors to complete the remaining four (4) segments is drawn down.
The current total appropriation balance is $7,050,000. The total revised engineer's estimate is
$12,500,000. This request is for the additional $5,500,000 required to successfully complete
construction.
To complete the wastewater system upgrades and large capacity cesspool closures within the
November 1, 2006 EPA Consent Agreement Deadline, construction funding needs to be available no
later than February 2006.
SIGNED: G ~c~<-~-~~- DATE: /v~6~~~-
Department Head
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