HomeMy WebLinkAboutCOM 0491.002 1996-1998 u1 r~~ts
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DEPARTMENT OF WATER SUPPLY • COUNTY OF HAWAII
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25 AUPU NI STREET HILO, HAWAII 96720
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TELEPHONE (608) 961-6660 FAX (806) 961-8657
September 30, 1997
T0: Mr. Aaron S. Y. Chung, Chairman RECEIVED
and Members of the Committee on Finance ilme..._...._---_.,..y-By,._.._.__..-___.-.
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FROM: Milton D. Pavao, Manager Count' Coundl '
SUBJECT: COMMUNICATION #491 (BILL 142)
I am Milton D. Pavao, P.E., Manager of the Department of Water Supply of the County of Hawaii.
The Department of Water Supply. (DWS), is in support of Bill 142, dated September 9, 1997, an
ordinance bill authorizing the issuance of not to exceed 5775,600 principal amount of General
Obligation Bonds of the County of Hawaii. Proceeds will be used to finance a portion of the
water system improvements for the plantation camps of Ookala, Paauilo, and Paauhau. The
issuance will satisfy the final requirement of the USDA's loan-grant program whereby USDA will
make available 52.159,400 in grants to finance the balance of the water system improvements.
With the closure of the Hamakua Sugar Company, the Hamakua Housing Corporation was formed. One
of their tasks was to construct county dedicable water systems for Ookala. Paauilo, and Paauhau
plantation camps with the intent of dedicating the improvements to the DWS of the County of
Hawaii. Financial assistance for the improvements was available through the USDA's loan-grant
program. However, a condition of the loan-grant program was that the applicant had to be the
owner of the water system improvements. Since the DWS would be the eventual owner of the water
system improvements to be financed, the USDA considered the DWS the only allowable applicant
for the loan-grant program. The DWS was therefore approached and asked to assist the
communities of Ookala, Paauilo, and Paauhau in applying for the loan-grant program from USDA.
After discussions with Hamakua Housing Corporation and USDA, the DWS agreed to be the applicant
for the loan-grant program to ensure availability of funds from the USDA. Another requirement
of USDA was that the loan portion of the program be secured through the issuance of General
Obligation Bonds. Hence the resolution from the Water Commission and your consideration of the
proposed Bill 142. Through separate agreements with Hamakua Housing Corporation, the DWS will
be reimbursed for all associated costs of the bond issuance and repayments.
The DWS is pleased to be able to provide the assistance necessary to ensure the completion of
water system improvements for the benefit of the residents of the Ookala. Paauilo, and Paauhau
plantation camps. We therefore request and would appreciate your favorable consideration of
Bill 142.
Milton D. Pavao, P.E. ~xo, FN1~ Ur
Manager e_ F~-
Ref. 20:~
UI/af¢r brine pro~r¢ys 1bi, Date