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HomeMy WebLinkAboutCOM 1193.002 2006-2008 ~tvw Harry Kim . Bruce C. McClure Mayor Director hew M?I Jiro A. Sumada (9IILt1tty of Anfutttit Deputy Director DEPARTMENT OF PUBLIC WORKS Aupuni Center 101 Pauahi Street, Suite 7. Hilo, Hawai'i 96720-4224 (808) 961-8321 - Fax (808) 961-8630 www.uo.hawaii.hi.us i) w June 4, 2008 Q'-) 1.7 The Honorable Pete Hoffmann, Chair and Member of the Hawaii County Council Hawaii County Council 333 Kilauea Avenue Ben Franklin Building, 2nd Floor Hilo, Hawaii 96720 Subject: Hawaii County Community Facilities District No. 2-2008 (Kamanu Street Extension) Pursuant to Resolution 629-08 of the Hawaii County Council, I have directed Goodwin Consulting Group, Inc., consultants to the County, to conduct a study of the proposed Community Facilities District No. 2-2008 (Kamanu Street Extension) and to prepare a report with respect to the proposed District in accordance with Section 32-21 of the Hawaii County Code. I am submitting herewith the report prepared by such consultants under my direction. If you have any questions, please feel free to contact me at 961-8324. &-E-CmcCLURE, P.E. Director Enclosure Gomrr6 Na ? Ref. Too Ref. Date .1-y_---- County of Hawaii is an Equal Opportunity Provider and Employer. GOODWIN CONSULTING GROUP HAWAII COUNTY COMMUNITY FACILITIES DISTRICT No. 2-2008 (KAMANU STREET EXTENSION) COMMUNITY FACILITIES DISTRICT REPORT 555 UNIVERSITY AVE, SUITE 280 • SACRAMENTO, CA 95825 PHONE: (916) 561-0890 • FAX.: (9161 561-0891 HAWAII COUNTY COMMUNITY FACILITIES DISTRICT NO. 2-2008 (KAMANU STREET EXTENSION) COMMUNITY FACILITIES DISTRICT REPORT CONTENTS Introduction A. Description of Facilities B. Cost Estimate C. Proposed Boundaries of the Community Facilities District Exhibit A - Description of the Proposed Facilities Exhibit B - Cost Estimate Exhibit C - Boundary Map HAWAII COUNTY COMMUNITY FACILITIES DISTRICT NO. 2-2009 (KAMANU STREET EXTENSION) INTRODUCTION. The Council (the "Council") of the County of Hawaii (the "County") did, pursuant to the provisions of Chapter 32 of the Hawaii County Code ("Chapter 32"), on June 3, 2008, adopt a resolution entitled, "Declaring the Intention of the County of Hawaii to Establish a Community Facilities District, Designated as Hawaii County Community Facilities District No. 2-2008 (Kaman Street Extension), to Authorize Funding for Prescribed Special Improvements, to Authorize Levy of a Special Tax, and to Authorize Issuance of Bonds Secured by Proceeds of the Special Tax" (the "Resolution of Intention"). In the Resolution of Intention, the Council expressly ordered the preparation of a written report required by Section 32-21 (the "Report") for the proposed Hawaii County Community Facilities District No. 2-2008 (Kaman Street Extension) (the "District'). The Resolution of Intention ordering the Report did direct that the Report generally contain the following: 1. A brief description of the facilities eligible to be funded by the District; and 2. An estimate of the fair and reasonable cost of providing the facilities, including the incidental expenses in connection therewith, including the costs of the proposed bond financing, any County administrative costs and all other related costs. For particulars, reference is made to the Resolution of Intention for the District, as previously approved and adopted by the Council. NOW, THEREFORE, Goodwin Consulting Group, Inc., an independent consultant under the direction of the Director of Public Works of the County, does hereby submit the following data: A. DESCRIPTION OF FACILITIES. A general description of the facilities that the County has determined to be adequate and eligible to be financed by the District are as shown in Exhibit "A" attached hereto and hereby made a part hereof. B. COST ESTIMATE. The cost estimate for the financing of the facilities is set forth in Exhibit "B" attached hereto and hereby made a part hereof. C. PROPOSED BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT. The proposed boundaries of the District are those properties and parcels in which special taxes may be levied to pay for the costs and expenses of the facilities. The proposed boundaries of the District are described in the map of the District on file with the Director of Finance of the County and are as shown in Exhibit "C" attached hereto and hereby make a part hereof. -2- EXHIBIT A HAWAII COUNTY COMMUNITY FACILITIES DISTRICT NO.2-2008 (KAMANU STREET EXTENSION) DESCRIPTION OF FACILITIES ELIGIBLE TO BE FUNDED BY THE DISTRICT AND PRIOR LIEN TO BE ELIMINATED BY THE DISTRICT FACILITIES The special improvements to be funded for the District shall include: 1. A 60-foot Roadway, with curbs, gutters and sidewalks; and 2. All related facilities and improvements, including grade adjustment (retaining) walls, a "ground bridge" over the finger of the burial cave extending through the Kamanu Street Right-of-Way, sewer lines, water mains, drainage facilities, street lights and overhead electrical, telephone and CATV lines. All of the special improvements to be funded will be owned by the County, except for certain non- governmental utility lines, consisting of overhead electrical, telephone and CATV lines. In addition, the special improvements identified above have been determined by the appropriate County staff to adequately meet the needs of the District for a minor arterial road and related facilities and improvements. OTHER The District may also finance any of the following: 1. Bond related expenses, including underwriter's discount, appraisal and absorption study costs, reserve fund, capitalized interest, bond and disclosure counsel fees and expenses, landowner counsel and consultant fees and expenses, financial advisor fees and expenses, special tax consultant fees and expenses, underwriter counsel fees and expenses, and all other incidental expenses. 2. Administrative fees of the County and the Bond trustee or fiscal agent related to the District and the Bonds. 3. Reimbursement of costs related to the formation of the District advanced by the County, any landowner in the District, or any party related to any of the foregoing, as well as reimbursement of any costs advanced by the County, any landowner in the District or any party related to any of the foregoing, for facilities, fees or other purposes or costs of the District. County staff has determined all of the above incidental expenses to be fair and reasonable. A-1 EXHIBIT B HAWAII COUNTY COMMUNITY FACILITIES DISTRICT NO. 2-2008 (KAMANU STREET EXTENSION) COST ESTIMATE 1. CONSTRUCTION OF FACILITIES $8,572,000 2. INCIDENTALS (a) Bond Reserve Fund' 1,099,000 (b) Bond Discount/Underwriter and Underwriter's Counsel Compensation' 371,000 (c) Capitalized Interest' 1,844,000 (d) Other Costs of Issuance4 384,000 (e) First Two Years of Administration Costs' 100,000 TOTAL BOND AMOUNT NEEDED $12,370,000 1 This is a fund in which bond proceeds are placed in reserve to be used to pay debt seance if special tax revenues are insufficient to satisfy the debt service requirements. 2 This amount includes costs associated with the sale of the bonds, specifically the underwriter, underwriter's counsel, and any original issue discount, if required, and is assumed to equal 3% of the estimated bond amount. 3 This amount will be used to pay interest on the bonds for approximately the first two years after issuance and will reduce the amount, if any, of special taxes that must be levied on taxable property within the District during that time. 4 Other costs of issuance include costs related to bond counsel, financial advisor, appraiser, special tax consultant, trustee, and County staff time, and other related costs of issuance to form the District and issue the bonds. 5 This amount will be used to fund administrative costs related to the District during the first two years after bonds have been issued. Administrative costs may include, but are not limited to, costs related to the special tax administrator, trustee, and County staff time. B-1 EXHIBIT C HAWAPI COUNTY COMMUNITY FACILITIES DISTRICT NO. 2-2008 (KAMANU STREET EXTENSION) BOUNDARY MAP C-1 INCLUDED IN CFD EXCLUDED FROM CFD RUN TAX. Wro USE uyr AREA (AI.] rtE37 TAU(. uw1) UN toi AREAOIC) , Q1 64)740&13 M0.L MIA 73.D0 6 (3)740&75 MC1FE) M74) 6200 0 (3)740&13 WC M MIA 43.235 7 (3)744&79 MO(O MtF 4200 Q (3) 744& 13 OPEN MA 64.517 0 (3) 740&74 M0.1a A3 12705 QI (3)7405:76 MO&M M1d 95.357 © (3)74-05:77 MC7020 M1-c HAD I i I I i i O 8 O 3 i I e c awU y Filed In the oTllce of the Director of Finance of the County of hlewaYl an April 23 , 2008 i I Director of Fin a of the County ~g PROPOSED BOUNDARIES OF EXHIBIT NOS" HAWAII COUNTY COMMUNITY FACILITIES DISTRICT NO. 2-2008 (KAMANU STREET EXTENSION) A Prepared b : Akinaka & Associates, Ltd. Consulting Engineers DAtg;Zm c2