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HomeMy WebLinkAboutCOM 0481.000 2008-2010 ~ZY Ory o?°•''' t4`+o Nancy E. Crawford William P. Kenoi 1lis, Director Mayor Deanna S. Sako •~r° Deputy Director +ri'ui County of Hawaii Finance Department 25 Aupuni Street, Room 118 • Hilo, Hawaii 96720 (808) 961-8234 Fax (808) 961-8248 0 c co August 6, 2009 J Yoshimoto, Council Chair and Members of the Hawai'i County Council Hawai'i County Council i .l 25 Aupuni Street' Hilo, Hawai'i 96720 c~ Re: Queen Lili`uokalani Village LCC Replacement Project The Queen Lili'uokalani Village Subdivision was constructed pursuant to Hawai'i Revised Statutes Section 46-15 by the County of Hawai'i (County), who has been responsible for owning and maintaining the substandard wastewater collection system and thirty-two (32) large capacity cesspools (LCC) originally serving the subdivision since the 1970's. Under a Consent Agreement and Final Order (CAFO) with the U.S. Environmental Protection Agency, the County is required to replace the LCCs, by June 1, 2010, with an acceptable wastewater collection, treatment and disposal alternative. The County will fund the construction of a new replacement collection system that meets County standards within the subdivision. The new collection system construction will continue beyond the confines of the subdivision and be connected to the existing County sewer system where sewage will be conveyed to the County's Kealakehe Wastewater Treatment Plant. We have been notified by the Department of Health that they will be able to provide $18,000,000 of State Revolving Funds (SRF) for the Queen Lili'uokalani Village Large Capacity Cesspool Replacement (QLVLCCR) project. Enclosed is a bill for an ordinance authorizing the Mayor to enter into an intergovernmental agreement for a State Water Pollution Control Revolving Fund Loan (SRF) of $18,000,000 for the County's QLVLCCR project; and authorizing the issuance of general obligation bonds for the purpose of financing this improvement project. ~a~ ?agt?3D} Comm. No. T Ref. To, LQL~.V~G1~~ Ref. Date AUG 0 7,'20(19 Hawaii County is an Equal Opportunity Provider and Employer J Yoshimoto, Council Chair and Members of the Hawai'i County Council Page 2 August 6, 2009 Pursuant to the County Procedures Manual for Participation in the Hawai'i State Revolving Fund Loan Program, prepared by the Wastewater Branch of the Hawai'i Department of Health in April 1994, part of the loan application 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. Also enclosed is a bill for an ordinance amending the Capital Budget by adding the Queen Lili'uokalani Village Large Capacity Cesspool Replacement (SRF funding) project into this fiscal year's Capital Budget. The Department of Environmental Management humbly request a waiver from the Finance Committee and to have these bills heard at the next Council meeting scheduled for August 19, 2009 so that bid notice publication for this project may meet the August 31, 2009 deadline, in order to stay qualified as a "backup" project for American Recovery and Reinvestment Act (ARRA) of 2009 portion of the Water Pollution Control Revolving Fund. Earlier this year, the County had included the QLVLCCR project on its list of projects eligible for ARRA funding. These bills will allow the QLVLCCR project to comply with the upcoming August 31, 2009 ARRA bid advertisement deadline, necessary to qualify for ARRA funding. As the QLVLCCR project is a backup ARRA project, it may only qualify for ARRA funds if another county fails to meet the specified ARRA deadlines and the State Department of Health transfers the funds from the failed project to other qualifying ARRA back-up projects. The State Department of Health has indicated that should funds become available due to ARRA wastewater projects failing to meet specified deadlines, it is anticipated that priority for distribution of available ARRA funds would be given to the QLVLCCR project and a Maui County back-up project. If there are any questions, please do not hesitate to contact the Department of Environmental Management Director, Lono Tyson, at 961-8083. b.Twford Director of Finance Enc. j cc: Environmental Mgt Form B-52 7/18/91 DEPARTMENT OF FINANCE REQUEST FOR COUNCIL ACTION DEPARTMENT: Dept of Environmental Management DATE: 8/6/09 STAFF CONTACT: Dora Beck PHONE: 961-8513 A. REQUEST: An Ordinance authorizing the Mayor of the County of Hawai'i to enter into an intergovernmental agreement for a loan in the amount of $18,000,000 from the State Water Pollution Control Revolving Fund (SRF) loan program for wastewater public improvement projects; and authorizing the issuance of general obligation bonds of the County of Hawai'i for the purpose of financing qualified wastewater public improvements of the County of Hawai'i. Amend Ordinance 09-65, Capital Improvement Budget, to add a SRF appropriation for the following project: Queen Lili'uokalani Village LCC Replacement, for $18,000,000. Waive Finance Committee review and have this item heard at the 08/19/09 Council meeting so that bid notice publication for this project may meet the 8/31/09 deadline in order to stay qualified as a "back-up" project for ARRA funds administered under the SRF loan program. B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): The Queen Lili'uokalani Village Subdivision was constructed pursuant to Hawai'i Revised Statutes Section 46-15 by the County of Hawai'i who has been responsible for owning and maintaining the substandard wastewater collection system and thirty-two (32) large capacity cesspools (LCC) originally serving the subdivision since the 1970's. Under a Consent Agreement and Final Order (CAFO) with the U.S. Environmental Protection Agency, the County is required to replace the close the LCCs by June 1, 2010 and replace the existing system with an acceptable wastewater collection, treatment and disposal alternative. The County will fund the construction of a new replacement collection system that meets County standards within the subdivision. The new collection system construction will continue beyond the confines of the subdivision and be connected to the existing County sewer system where sewage will be conveyed to the Kealakehe Wastewater Treatment Plant. In addition, on the basis described in County of Hawai'i Resolution No. 615-08 the County will fund the replacement of sewer laterals at 182 residences plus the community center. Approximately 1.400 lineal feet of collection system line has already been installed under the Department of Public Works Palani Road Widening Project in efforts to reduce future traffic disruption and public safety issues at the Palioholo and Palani Street intersection. In response to prior inquiries for SRF funding, the State Department of Health indicated unavailable SRF funds until year 2010. In addition, the project readiness status at the time did not place this project as a primary to receive funds from the first round of ARRA funding. 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G y G: u m O ? m o N i o Ou Z O? ` t c G O° a z G G z a Z Q~ ~ r O a f Z 7~ 6 N O 6 L V\` ^a Z O m V Y u N 6° O U 6 6' m w 0 ~ fL X a C LL w m O 0 a n ~ n L c u N n w ~ a m c O O Y 9_ Q O 6 U U C 'j O N m C N m n m m q C d O El O m m d m 2 ei m N n m N tpi v'1 V N e'I „I N M N N 6 J° U N N U V1 N u 1 V N JL- I l +Sv Of x,Y Dominic Yagong Phone: (808) 961-8538 Councilmember Fax: (808) 961-8912 District ofHamakua Email: dyagong@co.hawaii.hi. us ggr, pj•Mf~' HAWAII COUNTY COUNCIL County of Hawaii Hawaii County Building 25 Aupuni Street Hilo, Hawai 5 96720 August 7, 2009 J Yoshimoto, Council Chair Council Members Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 Re: Bill No. 129 AN ORDINANCE AUTHORIZING THE MAYOR OF THE COUNTY OF HAWAII TO ENTER INTO AN INTERGOVERNMENTAL AGREEMENT FOR A STATE WATER POLLUTION CONTROL REVOLVING FUND LOAN FOR WASTEWATER PUBLIC IMPROVEMENT PROJECTS; AND AUTHORIZING THE ISSUANCE OF $18,000,000 GENERAL OBLIGATION BONDS OF THE COUNTY OF HAWAII FOR THE PURPOSE OF FINANCING QUALIFIED WASTEWATER PUBLIC IMPROVEMENTS OF THE COUNTY OF HAWAII Bill No. 130 AN ORDINANCE AMENDING ORDINANCE NO. 09-65, AS AMENDED, RELATING TO PUBLIC IMPROVEMENTS AND FINANCING THEREOF FOR THE FISCAL YEAR JULY 1, 2009 TO JUNE 30, 2010 Pursuant to Section 2(g) of Rule 4 of the Rules of Procedure of the Council of the County of Hawaii, this written request is submitted with my approval that the above-referenced matter be waived from the Committee on Finance to the full Council for immediate action. In reviewing this matter, timely approval is crucial. It is therefore advantageous that approval is granted and the matter placed onto the next Council agenda for review. However, in the event this request is denied, for whatever reason, I understand the matter shall be referred to the Committee on Finance for placement on its future agenda. Sin rely, Dominic Yagong, Chair Committee on Financ Approval/Date/Waive to Council: Disapproved/Date/Refer to FC: ?J Yoshimoto, Chair J Yoshimoto, Chair U Hawaii County Council Hawaii County Council DY/bm