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Home My WebLink AboutREP FC 284 04/18/2006 2004-2006 REPORT OF THE COMMITTEE ON FINANCE DATE: April 18, 2006 Re: Comm. No. 293/Res. No. 108-OS PLACE: Council Chambers TIME: 10:28 a.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Finance, to which was referred Resolution No. 108-05, reports as follows: Resolution No. 108-05, transmitted by Council Member Bob Jacobson, via Communication No. 293, dated May 23, 2005, authorizes the Mayor to enter into an agreement with C. Brewer & Company, Limited (Company), for the acceptance of the donation of land, which encompasses Na`alehu Park and Community Center and approximately $280,000 for a proposed wastewater sewer systems in Na`alehu and Pahala communities pursuant to Resolution No. 72-05. The donation of land consists of 6.409 acres and is identified by TMK: 3-9-5-021-023 for recreational purpose, and approximately $280,000 in an escrow account for the purpose of assisting in financing the cost of installing house sewer lateral connections to the proposed sewer systems. Also, C. Brewer & Company will have no further responsibility or liability in the implementation and completions of the wastewater sewer systems. The overall cost of the new Septic System is approximately $3,650,000 ($350,000 for design and $3,300,000 for construction) and would be financed through a grant from the Federal Government at 55% of the total cost and the State Revolving Fund at 45% of the total cost. The new septic systems will use the existing cesspools as seepage pits. Residents will be assessed a maintenance fee and the Department of Environmental Management will review the costs of maintenance for the new septic system and bring forth an equitable maintenance fee. The current cesspool system consist of one cesspool in Na`alehu servicing approximately 160 homes and two cesspools in Pahala servicing approximately 100 homes. It was noted that C. Brewer & Company, Ltd. may abandon the large capacity cesspools with 90 days notice, however the company would like to work it out with the residents. At the June 14, 2005, Committee on Finance meeting the committee approved a motion to postpone the Resolution to the next Committee on Finance meeting. The committee further requested that the Deputy County Clerk, William Smith draft the following amendments: 1. Page 2, Number 3. The County will utilize the funds placed in the escrow account by C. Brewer & Company, Limited to assist homeowners in financing the costs of installing house sewer lateral connections. The escrow fund shall be first applied to the total installation cost of the sewer lateral connections and the balance owing shall be prorated to each individual lot. 2. Add on Page 2, Number 5. The Company shall continue its maintenance of the existing cesspool system for up through twenty-four (24) months after the approval of the Resolution. FC REPORT NO. 284 Also in attendance was Mr. John Cross, Vice President of C. Brewer & Company, Ltd. and Dennis Tulang and Nelson Ho, Deputy Director of the Department of Environmental Management. At the July 6, 2005, Committee on Finance meeting, it was moved to postpone all communications and resolutions, not later than September 7, 2005 due to too many unanswered questions relating to cost and liability of the parties involved. Resolution No. 108-05, Draft 2 was referred to Your Committee, dated June 21, 2005, from Council Member Bob Jacobson. Draft 2 adds new language to Number 3, "The escrow fund shall be first applied to the total installation cost of the sewer lateral connections and the balance owing shall be prorated to each individual lot."; and adds "Number 5. C. Brewer & Company, Limited shall continue its maintenance of the existing cesspool system for twenty-four (24) months after the approval of this Resolution." Pursuant to Article XIII, Section 13-12 of the Hawaii County Charter, the Council, on behalf of the County, may accept gifts and donations of personal property and authorized the Department of Parks and Recreation to accept the donation of land. Your Committee on Finance is in accord with the purpose and intent of Resolution No. 108-05, as amended to Draft 2, and recommends its adoption. smc _ Aves noes A&e ex Respectfully submitted, ARAKAKI X HIGA x COMMITTEE ON FINANCE HOFFMANN X HOLSCHllH X , IKEDA X ~ ' ISBELL X G"1~---- JACOBSON X VIRG IA ISBELL, CHAIR PILAGO X FC REPORT NO. 284 SAFARIK X ADOPTED: OFFICE INFORMATION ONLY Meeting: May 2, 2006 -Council Meeting (36`h Session) Action: Filed Resolution 108-05, Draft 2 FC Report 284 transmitted the above resolution for approval. C-293.3/RESOLUTION 108-05, DRAFT 2/FC-284 Re: