HomeMy WebLinkAboutREP FC 362 10/30/2006 2004-2006 REPORT OF THE
COMMITTEE ON FINANCE
DATE: October 30, 2006 Re: Comm. No. 1145/Bill No. 358
PLACE: Council Chambers
TIME: 9:00 a.m.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill No. 358, reports as follows:
Bill No. 358, transmitted by Director of Finance William Takaba, via Communication No. 1145,
dated October 17, 2006, authorizes the issuance of up to $75 million in general obligation bonds
of the County of Hawaii for the purpose of funding all or a portion of the cost of various
improvement projects and refunding certain outstanding debt obligations of the County; fixing
the form, denominations, and certain other details of such bonds and providing for their sale to
the public; and authorizing the taking of other actions relating to the issuance and sale of the
bonds and the retirement of the bonds to be refunded.
The County currently has four lazge projects, the West Hawaii Civic Center, County Building
Repairs, Laiopua Connector Road, and ADA compliance, which require funding in the next three
months. The Administration also lists several existing projects which have used half of 2006A
Bond Issue. As the remaining 2006A Bond Issue has been allotted for other projects, funds are
intended to be used for these progressing projects as well.
Total bond authorization requested is $75,000,000, which includes an estimate of $1,000,000 for
bond issuance costs. Any realized savings on issuance costs will be applied to the projects.
West Hawaii Civic Center - $41,500,000
The project will provide a new 62,000 square foot office complex in North Kona to house a
majority of the existing County agencies currently renting or leasing office space at vazious
scattered locations. The County will be able to offer the residents of West Hawaii a centralized
complex where they can access governmental services. The West Hawaii Civic Center project
was appropriated by County Council for $42 million. This amount has not been previously
included in a bond authorization, and it is being requested at this time.
County Buildin¢ Repairs - $20,100,000
The project is necessary for the continued use of the facility. It will combine asbestos abatement,
roof repair, air conditioning system replacement, electrical upgrades, fire alarm and suppression
system, hurricane and seismic improvements, and office space enhancement, plus other
miscellaneous improvements. Accessibility requirements will also be addressed during the
project to insure compliance with Russell et al v. County of Hawaii. The project was
appropriated by County Council for $26 million. Funding of $5.5 million for the project was
anticipated in the 2006A bonds. We are currently requesting authorization to borrow $20.1
million to fund the remaining appropriation.
FC REPORT NO. 362
La`i`opua Connector Road - $9,700,000
This road will provide a needed connection between Kealakehe Parkway and Kealaka`a Street.
The connector road will provide an alternative route between Queen Ka`ahumanu Highway and
Palani Road and between the Kealakehe High School and Kealakehe Elementary/Intermediate
Schools, which will relieve congestion at the Palani Road and Queen Ka`ahumanu intersection.
Project estimates of $7.6 million have been appropriated for La`i`opua Connector Road. It is
anticipated that an additional $21 million will be required to complete the project. The total
amount of $9.7 million is requested in this bond authorization.
ADA Compliance - $2,700,000
The County is continuing with the on-going process of complying with accessibility obligations
as set forth in the consent decree filed in Russell et al v. County of Hawaii. Approximately $5.2
million is currently appropriated for various projects, which include roadway curb cuts, parks
and recreation facility access through removal of architectural barriers, and access improvements
at other County facilities.
Bill No. 358, Draft 2 was referred to Your Committee, dated October 25, 2006, from Director of
Finance William Takaba. Draft 2 was prepared by bond counsel to delete four of the bond issues
identified for potential refunding in the original bill. Council has previously authorized the
refunding of 1999A and 2001A issues in Ordinance 04-81, so they are removed from this bill.
Administration has also determined that 2004A and 2006A issues are not appropriate for
refunding at this time. The amount authorized for refunding and, therefore, the total amount of
the authorization has been decreased.
Total bond authorization is decreased to $110,000,000. Authorization for funding of projects
remains at $75,000,000 and the authorization for refunding is decreased to $35,000,000.
Your Committee on Finance is in accord with the purpose and intent of Bill No. 358, as amended
to Draft 2, and recommends it pass first reading.
smc
nvES NOES n&E Ex Respectfully submitted,
ARAKAKI X
HIGA X COMMITTEE ON FINANCE
HOFFMANN X
HOLSCHUH X
IKEDA X , '
ISBELL X
JACOBSON X VIRGI IA ISBELL, CHAIR
PILACO X ' FC REPORT NO. ~ 362
SAFARIK X ADOPTED: NOV I J LUUU