HomeMy WebLinkAboutREP FC 336 09/23/2008 2006-2008REPORT OF THE
COMMITTEE ON FINANCE
DATE: September 23, 2008 Re: Comm. No. 1455/Bill No. 368
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. 368, reports as follows:
Bill No. 368, transmitted by Director of Finance William Takaba, via Communication No. 1455,
dated September 9, 2008, authorizes the Mayor of the County of Hawaii to enter into an
intergovernmental agreement for a State Water Pollution Control Revolving Fund Loan (SRF) of
$1,000,000 for the County's Komohana Heights Large Capacity Cesspool Replacement project;
and authorizing the issuance of general obligation bonds for the purpose of financing this
improvement project.
The U.S. Environmental Protection Agency (EPA), on December 7, 1999, had promulgated a
regulation prohibiting the construction of new large capacity cesspools, and a requirement that all
large capacity cesspools must be closed or upgraded to prevent the endangerment of underground
sources of drinking water.
The Komohana Heights Large Capacity Cesspool replacement project was initially approved by
the State of Hawaii Department of Health for a State Revolving Fund loan in the amount of $2
million, which was authorized by the County Council under Ordinance No. 03-155. The estimated
construction costs and requested State Revolving Funds for this project is $3 million. Due to the
cancellation of another project, the Department of Health was able to shift an additional $ I million
to the Komohana Heights project, bringing the approved funding level to $3 million. Approval of
this additional amount will bring the funding in line with the existing $3 million appropriation to
be funded by the State Revolving Fund.
Pursuant to the County Procedures Manual for Participation in the Hawaii State Revolving Fund
Loan Program, prepared by the Wastewater Branch of the Hawaii Department of Health in April
1994, part of the loan process requires a "resolution or ordinance passed by the County Council
which authorizes the SRF loan application and identifies the dedicated source(s) of revenue (i.e.,
general obligation bonds), which will fund the project and repayment of the loan with interest."
The Council's authorization of the issuance of general obligation bonds will serve as a pledge of
its general obligation authority as security for repayment of the loan and interest.
Comm. No. 1455
Bi11368
Page -2-
The County of Hawaii, pursuant to Section 342D-54, Hawaii Revised Statutes, has
submitted an application for a SRF Loan to the Director of the Department of Health, State of
Hawaii, to finance the construction of the wastewater projects as follows:
Project Amount
Komohana Heights LCC Replacement Project
Large Capacity Cesspool Conversion $3,000,000
Your Committee on Finance is in accord with the purpose and intent of Bill No. 368, and
recommends it pass first reading.
la
AYES NOES A&E EX
FORD X
HIGA X
HOFFMANN X
IKEDA X
JACOBSON X
NAEOLE X
PILAGO X
YAGONG X
YOSHIMOTO X
Respectfully submitted,
COMMITTEE ON FINANCE
DOMINIC Y
FC REPORq
ADOPTED: