HomeMy WebLinkAboutCOM 1168.000 2006-2008
ir,or
Harry Kim c~ William Takaba
Mayor Director
.•M;. Nancy E. Crawford
h N~ Deputy Director
County of Hawaii
Finance Department
25 Aupuni Street, Room 118 • Hilo, Hawaii 96720
(808) 961-8234 • Fax (808) 961-8248
April 9, 2008
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The Honorable Pete Hoffmann, Chairman, and On -moo
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Members of the Hawaii County Council
333 Kilauea Avenue, Second Floor CD
Hilo, HI 96720
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RE: Bill for an Ordinance Authorizing the Issuance of General Obligation Wilds c n
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Attached for your consideration is a bill authorizing the issuance of up to $112 million in
general obligation bonds for the County of Hawaii. These funds will be used for a
variety of capital improvement projects that are currently under way. While there are a
large number of ongoing projects and more that are ready for planning, design or
construction, we recognize that this is a time for fiscal prudence. As a result, not all
department projects can be financed at this time.
Proiect Prioritization
The Finance Department has been working closely with those departments involved with
capital improvement projects over the last couple of years. Our goal is to provide funds
in a timely manner for prioritized projects as they develop and reach new contractual
phases. Both prioritization and project scheduling are constantly subject to change based
on various internal and external factors.
Prioritization of projects continues to be based on (1) addressing legal mandates, (2)
correcting major deficiencies or items critical for public safety and health, and (3)
addressing environmental concerns, operational efficiency and maintenance or
improvement of existing assets. As always, funding decisions are also determined by
project status and financing needs.
Use of Funds
We currently have identified 47 projects that will be requiring funds to encumber in
contracts within the next 9 months. These are listed in Exhibit A, attached. The listing
aZ$5~ Comm. No. /Al
Ref. To: FC-
Hawai'iCounty is an equal opportunityprovider and employer. Ref. Date APR 10 2008
The Honorable Pete Hoffmann, Chairman, and
Members of the Hawaii County Council
Page 2
April 9, 2008
is by prioritization category as explained above. In some cases the estimated amounts are
for the entire project, but in many cases we are providing the funding as the projects
progress, so additional funds will be requested in the future.
Three of the projects on the attached list were included in the 2007A bond authorization
request. ADA Compliance projects are ongoing and require additional funding each year.
The West Hawaii Civic Center project has completed the bid process and is ready to
execute a construction contract. Additional funding is requested due to a higher bid cost
than was originally estimated and because some funds intended for the project were used
to support necessary projects that were ready to go earlier in the year. The County
Building Repairs project did not require full funding as soon as anticipated and other high
priority projects moved more quickly than anticipated. Funds were used to keep
alternative projects moving and to expend the bond funds in a timely manner. As a
result, the project is again listed in this request.
Debt Service
The Department of Finance is considering alternatives to our historic method of selling
bonds to obtain funding prior to moving forward on projects and contracting with
professionals or going out to bid on construction. However, for purposes of analysis we
are assuming a traditional bond sale taking place shortly after Council authorization. If
the County sells bonds in the amount of $112 million, the estimated percentage of debt
service to total general expenditures will be less than 12.0%, assuming a 4.75% interest
rate. Exhibits B and C are debt service worksheets for your review.
Please contact departments directly for additional information on specific projects. If
there are any questions regarding the bonds, please do not hesitate to contact Mike
Okamoto at 961-8303 or Nancy Crawford at 961-8092. Thank you very much.
4
~MVilliam akaba
Director of Finance
APPRpO,V,(En/D:
4Harry Kim
Mayor
Attachments
Priority Listed Projects for Exhibit A
Bond Funds Request
Requested
Project Amount
PRIORITY 1 Addresses legal mandate
Project
ADA Compliance - P&R $2,000,000
ADA Curb Cuts $750,000
ADA Facilities - DPW $2,100,000
Honokaa LCC Replacement $695,000
Queen Liliuokalani LCC Replacement $631,000
Naalehu/Pahala LCC Replacement $850,000
DWS Water Connection Compliance $800,000
DWS Water Connection Backflow $500,000
$8,326,000
PRIORITY 2 Corrects major deficiency and/or are critical for
public safety or health
Project
County Building Repairs $23,000,000
West Hawaii Civic Center $17,100,000
Hazmat - P&R $500,000
Earthquake Repairs - P&R $1,000,000
Kealakehe WWTP Sludge Removal $4,000,000
N. Kona Sewer / Effluent Reuse $8,500,000
Haz. Mat. Abatement to Facilities $1,000,000
Keopu Heights Flood Channel $1,000,000
Pahoa Transfer Station $3,700,000
Police Microwave System $49,700
$59,849,700
PRIORITY 3 Addresses environmental/lifestyle
concerns/operational efficiency: and/or
maintains/improves existing assets
FIRE
Ranking Project
3-1 Makalei Fire Station $9,000,000
3-2 Fire Department Complex $8,600,000
3-3 Captain Cook Fire Station $690,000
$18,290,000
Page 1 of 2
Priority Listed Projects for ExhibitA
Bond Funds Request
Requested
Project Amount
POLICE
Ranking Project
3-1 Evidence Warehouse $1,100,000
3-2 Pahoa Police Station $3,800,000
3-3 Pahoa Police Station, Off-site Impr. $2,000,000
3-4 Capt. Cook Police Station $1,200,000
$8,100,000
P&R
Ranking Project
3-1 Repairs $1,000,000
3-2 Remove Hazardous Structures $500,000
3-3 Waimea Trails & Greenways $2,190,000
3-4 Alae Cemetery $250,000
3-5 Reed's Bay Beach Park $468,000
3-6 Waimea District Park $750,000
3-7 Hilo Bayfront Beach Park Design $500,000
3-8 Old Kona Airport Park MP $500,000
3-9 New HOVE Community Center $400,000
$6,558,000
PUBLIC WORKS
Ranking Project
3-1 Facilities R & M $1,000,000
3-2 Facilities Renovation $1,000,000
3-3 VRL Offices $1,000,000
3-4 Sand Gulch Road Access Redesign $400,000
3-5 Alii Parkway $1,000,000
3-6 Bridge Repairs Islandwide $500,000
3-7 Laaloa Avenue Extension $900,000
3-8 Lako Street Extension $1,000,000
3-9 West Hawai'i Traffic Baseyard $680,000
3-10 Ain Drive Signal Improvements $1,000,000
3-11 Kamanu St Extension (reimbursable) $1,400,000
$9,880,000
ENV. MGT.
Ranking Project
3-1 Rural Transfer Stations $35,000
3-2 S Kona/HOVE Transfer Stn/Recycling Cntr $550,000
$585,000
Total Project Estimates for Funding $111,588,700
Page 2 of 2
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Exhibit C
Debt Service Projection
Principal amount: 112,000,000
Interest rate: 4.75%
Year Payment Interest Principal Balance
112,000,000
1 5,320,000 5,320,000 - 112,000,000
2 9,079,577 5,320,000 3,759,577 108,240,423
3 9,079,577 5,141,420 3,938,157 104,302,265
4 9,079,577 4,954,358 4,125,220 100,177,045
5 9,079,577 4,758,410 4,321,168 95,855,877
6 9,079,577 4,553,154 4,526,423 91,329,454
7 9,079,577 4,338,149 4,741,428 86,588,026
8 9,079,577 4,112,931 4,966,646 81,621,380
9 9,079,577 3,877,016 5,202,562 76,418,818
10 9,079,577 3,629,894 5,449,684 70,969,134
11 9,079,577 3,371,034 5,708,544 65,260,590
12 9,079,577 3,099,878 5,979,699 59,280,891
13 9,079,577 2,815,842 6,263,735 53,017,156
14 9,079,577 2,518,315 6,561,263 46,455,893
15 9,079,577 2,206,655 6,872,923 39,582,971
16 9,079,577 1,880,191 7,199,386 32,383,585
17 9,079,577 1,538,220 7,541,357 24,842,227
18 9,079,577 1,180,006 7,899,572 16,942,656
19 9,079,577 804,776 8,274,801 8,667,854
20 9,079,577 411,723 8,667,854 0
177,831,972 65,831,972 112,000,000