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
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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.
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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.
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