HomeMy WebLinkAboutREP FC 212 01/04/2006 2004-2006 REPORT OF THF.
COMMITTEE ON FINANCE
DA'L'E: January 4, 2006 Re: Comm. No. 604Bi11 No. 194
PLACE: Council Chambers
T'IMF.: 10:03 a.in.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill No. 194, reports as follows:
Bill No. 194, transmitted jointly with Bill No. 195 by Director of Finance William Takaba, via Communication No.
604, dated December I5, 2005, authorizes the Mayor of the County of Hawaii to enter into an intergovernmental
agreement for a State Water Pollution Control Revolving Fund Loan (SRF) for wastewater public improvement
projects; and authorizes the issuance of $5,500,000 general obligation bonds of the County of Hawaii for the purpose
of financing qualified Wastewater Public Improvements of the County of Hawaii.
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 replacement of large capacity cesspools at County facilities. Results of the first five competitive
bid packages, which were for 17 of the 103 conversion sites, was 68 percent higher than the engineer's estimate. An
additional appropriation of $5,500,000 will be required ro bring the balance to the engineer's revised estimate of
$12.500,000. These funds will come from the State Water Pollution Control Revolving Fund (SRF) Loan.
Pursuant ro the County Procedures Manual for Participation in [he Hawaii State Revolving Fund Loan Program
prepared by the Wastewater Branch of the Hawaii Department of Health in April 1994, part of the loan 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.
I'he County of Hawaii, pursuant to Section 342D-54, Hawaii Revised Statutes, has submitted an application for a SRF
Loan to the Director of the Department of Health, State of Hawaii, to finance the construction of the wastewater
projects as follows:
Project Amount
Department gfPublic Works
Large Capacity Cesspool Conversions $5,500,000
Your Committee on Finance is in accord with the purpose and intent of Bill No. 194, and recommends it pass first
reading.
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,wrs NOES 1 n.~e Ex Respectfully submitted,
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ARAKAKI - X ~ _
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HICA X ~ COMMITTEE ON FINANCE
HOFF'MANN X
HOLSCHUH X _
IKEDA X I
JACOBSON _ x _ _ VIRG IA ISBELL, CHAIR
FIt,ACO _ _ _ X _ FC REPORT NO. 212
SAFARIK -I X ADOPTED: JANE