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HomeMy WebLinkAboutCOM 0471.001 2010-2012DOMINIC YAGONG Council Chairperson Council District 1 December 9, 2011 Hawai`i County Council County of Hawai`i 25 Aupuni Street Hilo, Hawai`i 96720 To: Members of the Hawai`i County Council A`++ From: Skr Dominic Yagong, Chairperson Subject: Proposed Amendments to Bill No. 146; An Ordinance Amending Chapter 21, Article 5, Section 21 -37 and Section 21 -42 of the Hawai`i County Code 1983 (2005 Edition, as Amended), Relating to the Sewer Loan Connection Program Email: dyagong @co.hawaii.hi.us Phone: (808) 961 -8264 Fax: (808) 961 -8912 L7 ,o -9 Please find attached proposed amendments to Bill No. 146. The proposed amendments to Bill No. 146 are illustrated below by Ramseyer format (material to be deleted is bracketed and stricken through, material to be added is underscored). Section 21 -37, as provided in Bill No. 146, is amended as follows: "Section 21 -37. Findings and purpose. Section 21 -5, requires connection to the sewer of lots accessible to a sewer. The connection cost may be financially burdensome for many owners. Therefore, the council finds that, in order to assure that all possible lots are connected to the sewer to meet Federal and State requirements, it is in the public interest to create, in cooperation with a bank or other financial institution, a program by which the County of Hawai`i assists owners to connect to the sewer by guaranteeing loans for this purpose. The guaranteed loan program would allow the owner to get a County - guaranteed loan from the bank or other financial institution after it agrees that the County of Hawai`i shall place a lien on the property at the time the loan closes. The lien would be for the [hookup cost, interest,] loan amount and related fees and [lean] costs. The County of Hawai`i would guarantee the bank or other financial institution that it will pay the balance of the loan in full should the owner default on the loan. [If the owner cannot qualify for a loan, the County of Hawai`i will pay a contractor for the hookup, and charge the same interest rate as the bank or financial institution that handles the County guaranteed loan program.] This law shall cover the sewer connections which will be required in the following increments: Serving the Interests of the People of Our Island Hawai`i County Is An Equal Opportunity Provider And Employer Comm. No. 'i" 7 Ref. To: Co u / Ref. Date DEC " 9 2011 Waiakea Houselots 110 lots Waiakea Mill Pond 100 lots Ainako "A" 114 lots Kalaniana`ole Laterals 125 lots Ainako "B" 93 lots (Optional Hookups) 100 lots Ali`i Drive "A" — "F" 200 lots Honoka` a R99] 106 lots" A draft copy of Bill No. 146, Draft 2, is attached with these amendments incorporated therein. DY /bc Att. AN ORDINANCE AMENDING CHAPTER 21, ARTICLE 5, SECTION 21 -37 AND SECTION 21 -42 OF THE HAWAII COUNTY CODE 1983 (2005 EDITION, AS AMENDED), RELATING TO THE SEWER LOAN CONNECTION PROGRAM. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Purpose. The purpose of this ordinance is to: (a) clearly articulate that the sewer loan connection program is not restricted to residential dwellings; and (b) permit lot owners approved for the County Sewer Connection Loan Program to select their own contractors. SECTION 2. Chapter 21, article 5, section 21 -37 of the Hawaii County Code 1983 (2005 Edition, as amended) is amended to read as follows: "Section 21 -37. Findings and purpose. [Increasingly strict Federal and State government requirements springing from the Federal Water Pollution Control Act, P.L. 92 500, commonly called the Clean Water Act, have been a condition of receiving Federal construction grants for wastewater treatment facilities, has been mandated by the Environmental Protection Agency to construct sewer lines and laterals in Hilo problematic. The cost of connecting an existing house to the sewer can be very expensive and varies greatly with the geology (soil or rock), the elevation of the house in relation to the lateral, the distance from the house to the lateral, and the topography and improvements between the people on fixed incomes who may find it financially difficult or impossible to pay for the connection at an estimated cost ranging from $3,000 to over $30,000. Section 21 5, requires connection to the sewer of lots accessible to a sewer. Conditions of Federal Environmental Protection Agency grants for construction of wastewater facilities in Hilo and Kailua Kona also require the County of Hawaii to ensure full utilization of those facilities by mandating connection of existing houses to the sewer systems. For the Hilo wastewater treatment and conveyance project, Federal EPA Grant no. C150062 02, condition no. 14 of Grant amendment no. 1 requires the County of Hawaii to enforce the sewer use ordinance and require each and every existing dwelling or dwelling equivalent accessible to a sewer in Hilo to connect to the collection system. For the Kailua Kona Sewerage System, Federal EPA Grant no. C150080 06, condition no. 8 requires the County of Hawaii to assure the timely hookup of residences to collection sewers] Section 21 -5, requires connection to the sewer of lots accessible to a sewer. The connection cost may be financially burdensome for many owners. Therefore, the council finds that, in order to assure that all possible lots are connected to the sewer to meet Federal and State requirements, it is in the public interest to create, in cooperation with a bank or other financial institution, a program by which the County of Hawai`i assists owners to connect to the sewer by guaranteeing loans for this purpose. The guaranteed loan program would allow the owner to get a County - guaranteed loan from the bank or other financial institution after it agrees that the County of Hawai`i shall place a lien on the property at the time the loan closes. The lien would be for the [hookup cost, interest,] loan amount and related fees and [lean] costs. The County of Hawai`i would guarantee the bank or other financial institution that it will pay the balance of the loan in full should the owner default on the loan. [If the owner cannot qualify for a loan, the County of Hawai`i will pay a contractor the County guaranteed loan program.] This law shall cover the sewer connections which will be required in the following increments: Waiakea Houselots Waiakea Mill Pond Ainako "A" Kalaniana`ole Laterals Ainako "B" (Optional Hookups) Ali`i Drive "A" — "F" Honoka` a 110 lots 100 lots 114 lots 125 lots 93 lots 100 lots 200 lots [490] 106 lots" SECTION 3. Chapter 21, article 5, section 21 -42 of the Hawai`i County Code 1983 (2005 Edition, as amended) is repealed: "Section 21 -42. [Conncction ^ ntract.J Reserved. an estimate for the cost of connection for each property in the increment. (b) As a condition of selection by the County of a proposal, a contractor submitting a proposal shall agree to connect the property of any owner who becomes a guaranteed borrower to the sewer at the price estimated in the proposal. (c) The director shall inform the mayor and the County council of the selected proposal. contractor selected pursuant to this article. This shall be a condition of any loan guaranteed by the County of Hawai`i.]" SECTION 4. Severability. If any provision of this ordinance or the application thereof to any person or circumstance, is held invalid, such invalidity does not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application, and to this end, the provisions of this ordinance are to be severable. 2 SECTION 5. Material to be repealed is bracketed and stricken. Material to be added is underscored. In printing this ordinance, the brackets, bracketed and stricken material, and underscoring need not be included. SECTION 6. This ordinance shall take effect upon its approval. 3