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HomeMy WebLinkAboutCOM 0972.000 2008-2010 J ;, oc p,' ' �o. Vi' William T. Takaba ^ \ � li' . � � Managing Director William P. Kenoi •Etl��: ' �� �• • Mayor • Walter K.M. Lau • •r .q:' ��.• Deputy Managing Director rE of r un f of PC4.�.Vai I� l Mffirt of tip Atvor 25 Aupuni Street, Suite 2603 • Hilo, Hawai'i 96720 • (808) 961 -8211 • Fax (808) 961 -6553 KONA: 75 -5722 Hanama Place, Suite 102 • Kailua -Kona, Hawai'i 96740 (808) 327 -3602 • Fax (808) 326-5663 r c-D € "1 October 7, 2010 -- t The Honorable J Yoshimoto, Chairman, and Members of the Hawai`i County Council 25 Aupuni Street Hilo, Hawai'i 96720 RE: Bill for an Ordinance Authorizing the Issuance of General Obligation Bonds Attached for your consideration is a bill authorizing the issuance of up to $56,000,000 in general obligation bonds for the County of Hawai`i for capital improvement projects and includes $500,000 for bond issuance costs. This administration has pressed ahead with an array of County- financed construction and projects funded under the federal American Recovery and Reinvestment Act of 2009 to stimulate our construction industry and help put our residents back to work. The national recession and turmoil in the national financial markets have restricted private construction on our island, and we must advance new public projects to create construction jobs and help our working families. This also allows us to take advantage of declining bid prices as construction companies aggressively compete for work. We are able to quickly complete critically needed construction projects in this economic environment at less cost to the County taxpayers. These carefully selected projects will positively impact our communities by stimulating the economy, creating jobs and benefiting our youth and our most vulnerable residents. We sought projects that are "shovel ready" and can begin producing jobs quickly, or will create new opportunities for growth that will benefit our residents in the years ahead. For example, the Kapiolani Street Extension opens the door for major economic opportunities by encouraging the continued growth of the University of Hawaii at Hilo, which has emerged as a major economic engine in our County. This request also seeks to address critical needs in regions that have experienced rapid growth. It will upgrade infrastructure in West Hawaii by completing road projects such as a new mauka- makai connector road and other transportation projects to provide increased safety, efficiency and improved quality of life for the residents. In Lower Puna, the fastest growing area of the island, this bond authorization request would provide funds for a new park facility in one of our Come No. 17 Z <-131 I t 311 ) County of Hawai'i is an Equal Opportunity Provider and Employer. F G Ref. Tor Ref. Date. OCT 7 2010 Bond Authorization Request October 7, 2010 Page 2 most under - served communities. If we want our young people to develop into the future leaders of our community, we must provide them with mentoring and positive activities to occupy their time. We must provide them with recreational opportunities in their neighborhoods. This bond authorization also provides $500,000 in funding to begin engineering work on the critical Puna Makai Alternate Roadway as conceptually proposed in the Puna Community Development Plan of September 2008. Currently Lower Puna is accessed by a single State highway. The PMAR will connect Nanawale Estates and Hilo with a second major collector roadway that qualifies for federal funding assistance. The funding will provide an opportunity for the County to leverage its dollars in the construction of this vital alternate route for the safety and well -being of Lower Puna residents. Providing housing for our most vulnerable families is addressed through a request for funding for additional units in the Kaloko Housing project. This package also includes requests for projects to increase energy efficiency in County facilities to reduce our consumption of imported oil and reduce the cost to taxpayers. Also included in this bond authorization request are projects that protect public health and safety and are required under federal law, specifically installation of swimming pool drain covers and closure and remediation of the Kawaihae Housing facilities. The full list of projects with further details is attached. The County's debt service capacity has been analyzed to insure that we have the capacity to issue additional bonds up to the requested authorized amount. With this current request of $56,000,000 our debt service percentage would be approximately 14.1 %. This percentage is within the GFOA guideline that debt service expenditures should be below 15% of total expenditures each year. This administration's first bond request will fund projects that will stimulate our economy and improve the quality of life for residents, while maintaining a clear sense of our fiscal responsibilities to the citizens of the County of Hawai'i. I respectfully request the Council's approval of this bond request. Please contact departments directly for additional information on specific projects. If there are any questions regarding the bond authorization, please do not hesitate to contact Nancy Crawford at 961 -8234. Aloha, illiam P.�noi Mayor Attachments County of Hawaii is an Equal Opportunity Provider and Employer. PROJECT LISTING Kawaihae Housing Closure - $1,000,000 This project fulfills a federal requirement that the defunct housing site be returned to its original condition. Funding will provide for the removal of the units and transport to Puna, demolition of slabs, closure of cesspools and soil remediation. Kaloko Housing Project - $4,000,000 The Kaloko Housing Project creating 40 housing units is progressing on schedule and contemplates occupancy in November 2011. It will create a safe haven for the most vulnerable in our community. Several phases of the project are planned, and the requested funding will provide for site work and construction of 16 additional units. Pool Drainage Covers - $500,000 Seven of the County's swimming pools (Kohala, KCAC, Konawaena, Kawamoto, NAS, Pahoa and Pahala) have drains that require the installation of anti - vortex, anti - suction covers in order to comply with a federal mandate. These will eliminate the risk of persons being entrapped by the drains due to high rates of suction. Installation of the drain covers is another step in our on- going process of making improvements to maximize public safety. Hawaiian Paradise Park (HPP) -New Park Development - $5,500,000 This project takes advantage of land to be donated by the HPP Owners Association to provide recreational facilities for the under - served area of lower Puna, also the fastest growing area of the island. This will be the only public park between Keaau and Pahoa and will provide a safe place to pursue positive leisure activities that benefit seniors, children and the entire community. The 20 acre park site will include large grassed and fenced areas for ball parks, restroom facilities, a new 3 -court covered playcourt structure, parking lot with lighting, and onsite water storage tank for potable water to service the park. Kikala - Keokea New Park Development — $100,000 The project will provide initial momentum for much needed park facilities in the Kalapana area and leverage the energy of the volunteers who are working to make the park a reality. Funding will provide water service connection, and purchase of fill and topsoil for landscaping /lawn areas, grassing, and basecourse for temporary driveway and parking areas. Long range plans are for the development of a new public park site in the Kalapana area on a currently undeveloped 4+ acre parcel set aside by the State to the County for park and recreational purposes. The local residents of the area have united to work with the county on a community volunteer based park development effort. Project Listing Page 2 North Kohala Recreational Facilities Repair and Upgrade - $2,000,000 North Kohala has limited recreational facilities and these facilities are utilized by the whole community, providing the primary source of recreation and entertainment in the area. Upgrade of the existing facilities, such as Kamehameha Park and Keokea Beach Park will allow community members and visitors to enjoy the full range of use that the parks are intended to provide. Specific repairs and upgrades will include the pavilions and facilities at Keokea Beach Park (closed since October 6, 2006 Kiholo Bay earthquake), replacement of the existing condemned grandstand structure at Kamehameha Park (closed since October 6, 2006 Kiholo Bay Earthquake) with a new primary seating structure for the main ball fields, and various other projects to restore the usability and ensure longevity of recreational facilities in North Kohala for the benefit of the community. Banyan Beach Parking Lot - $300,000 This project will meet both recreational and public safety needs by providing much needed parking for one of the most popular beach parks along Ali'i Drive. Traffic congestion caused by the current lack of off - street parking creates a hazardous situation. In addition to providing off - street parking, the makai side of Ali'i drive will be designated "no- parking ", which will enhance pedestrian and bicyclist safety. The project will be ready for construction this month. Kapiolani Street Extension - $8,700,000 This project will improve traffic flow, support the growth of one of Hilo's greatest assets, the university campus, and provide significant economic stimulus to the local community and the County as a whole. This project will lay the groundwork for a new era of growth with UH Hilo by providing a connector road that will open up nearly 42 acres on land in urban Hilo for development of badly needed student housing. The single largest impediment to growth for UH Hilo is a lack of housing for out -of -state and local students, and yet the university owns land next to campus where this housing can be built. The Kapiolani Street extension will provide access to these lands while also providing a new two -lane transportation corridor that will ease traffic congestion. The road will include sidewalks and bikeways to accommodate and encourage alternative transportation modes. Puna Makai Alternate Roadway (PMAR) - $500,000 Lower Puna is the fastest growing area of the island and is accessed by a single State highway. The purpose of this allocation is to prepare a functional classification justification report (FCJR) to support the Puna Makai Alternate Roadway (PMAR) as conceptually proposed in the Puna Community Development Plan of September 2008. The PMAR is to connect Nanawale Estates and the City of Hilo with a second major collector roadway that qualifies for federal funding assistance. Funding will provide for the preliminary engineering necessary to meet FHWA application requirements and provide the opportunity to leverage County dollars in the construction of this vital alternate route. Project Listing Page 3 La' aloa Extension - $20,000,000 Additional mauka -makai connector roads are essential to improving traffic flow in the region, which in turn improves public safety and quality of life. This project will construct approximately 1,400 feet of new 60 foot wide road to extend the La'aloa Street from its present terminus to the Kuakini Highway. Construction also includes upgrading lower La'aloa Avenue thru White Sands Beach Estates Subdivision. The extension will provide a much needed mauka- makai connector road between Kuakini Highway and Ali'i Drive for the public health and safety when evacuation orders are issued and also provide for less traffic congestion on Ali'i Drive. The project will be ready to bid in January 2011. Energy Efficiency and Related Maintenance Upgrades (DPW) - $4,000,000 Energy audits conducted by the County's own "Green Team" have shown the benefits to be realized from reducing energy consumption and using alternative energy sources. This funding will allow upgrade of existing County of Hawaii facilities with energy conservation measures and renewable energy resources. County fire stations (Kailua -Kona, Keahou, Waikoloa, Kohala Coast, Hawaiian Paradise Park, Keaau), the Keaau police station, and South Hilo Baseyard facilities are slated for energy efficiency improvements. The installation of photovoltaic systems will, in the long term, reduce the County's energy bills and contribute to our island's energy sustainability. Waiohino Transfer Station - $8,800,000 Upgrade of this facility in Ka'u will provide a structurally stable transfer station and create a regional recycling center. Additionally, this project will create the only commercial drop -off site other than the County landfills. The long distance from lower Ka'u to either landfill constitutes a significant financial burden to commercial enterprises in the district. Creation of this regional facility will have both economic and environmental benefits. Waimea Recycle and Transfer Station Garage - $100,000 This high priority public safety project is needed to address high wind conditions blowing debris, damaging reusable items and causing closure of the redemption and reuse facilities. The new structure will withstand high wind conditions. In order to minimize the cost the design will be done in -house and the construction cost will be kept to a minimum.