HomeMy WebLinkAboutCOM 0780.000 2010-2012 • .,, Nancy E.Crawford
William P. Kenoi , Director
Mayor + ,�•��%
• Deanna S. Sako
•ir .o! _• Deputy Director
County of Hawaii
Finance Department
25 Aupuni Street, Room 118 • Hilo,Hawaii 96720
(808)961-8234 • Fax(808)961-8248
July 13, 2012
Dominic Yagong, Council Chair and
Members of the Hawaii County Council
Hawaii County Council '
25 Aupuni Street -F
Hilo, Hawaii 96720
Re: Amending the Intergovernmental Agreement Ordinance
Enclosed is a bill for an ordinance that amends Ordinance 11-81 which authorizes the
issuance of general obligation bonds for financing wastewater public improvements. The
purpose of this measure is to increase the Ordinance's stated maximum principal allowed
for SRF funding in order to match the maximum eligible loan amount based upon the
awarded bid price which differs from the original estimates in the bond ordinance. These
changes are reflected in the Ordinance Title, Section 1, and in Exhibit A which has been
replaced with a new exhibit labeled as Exhibit A, Draft 2.
If there are any questions, please do not hesitate to call Robin Bauman of the Department
of Environmental Management at 981-8324.
-Nancy Crawford
Director of Finance
Enc.
( Bill 2.8o)
Comm. No. -78v
Ref. To: [�
Ref. Date JUL 1 3 2012 —
Hawaii County is an Equal Opportunity Provider and Employer
Form#: B-52
7/18/91
DEPARTMENT OF FINANCE
REQUEST FOR COUNCIL ACTION
DEPARTMENT: Dept of Environmental Management DATE: 7/10/12
STAFF CONTACT: Lyle Hirota PHONE: 961-8333
A. REQUEST:
An Ordinance amending Ordinance 11-81 authorizing the Mayor to enter into an intergovernmental
agreement for a State Water Pollution Control Revolving Fund Loan for Wastewater improvement projects
and authorizing the issuance of$9,822,000 General Obligation Bonds of the County of Hawaii for the
purpose of financing the following projects:
Kalaniana'ole Interceptor Sewer Rehabilitation Phase II $8,622,000
Kulaimano and Papa'ikou Dewatering $1,200,000
B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED):
The State Department of Health has indicated that funding through the State Water Pollution Control Revolving
Fund Loan Program is available for the Kalaniana'ole Interceptor Sewer Rehabilitation (KISR) Phase II project
and the Kulaimano and Papaikou Dewatering project. An Interim SRF Loan has been executed with the DOH
for the KISR project in the amount of$8,000,000 as authorized by Ordinance 11-81. A construction contract has
been awarded for this project in the amount of$7,491,861 with a Notice to Proceed date of June 25, 2012.
Based on the awarded bid price, the County is eligible for a maximum loan amount of$8,621,409 which includes
up to 10% for contingencies and a design allowance of$380,362. This request is to increase the authorized
amount for SRF funding for the KISR project by $622,000 to the maximum available loan amount in order to take
advantage of the lower interest rates should contingency items arise. This request includes no changes to the
Kulaimano and Papaikou Dewatering project.
The KISR project involves the rehabilitation of the existing Kalaniana'ole Avenue Interceptor from Kea'a St. to
Baker Avenue due to severe deterioration from sewer gases. The Kalaniana'ole Avenue Interceptor between
Kea'a St. and the Pua Sewage Pump Station (SPS) receives sewage from all areas of Hilo located North of
Kea'a St. Failure of the interceptor would result in a sewage spill of approximately 2.8 million gallons per day,
the majority of which would be discharged to the Wailoa River resulting in contamination of both the Wailoa
River and Hilo Bay. The interceptor between the Pua SPS and Baker Avenue services all areas east of the Pua
SPS and failure would result in a sewage spill to State Water on the order of approximately 500,000 gallons per
day to shoreline and anchialine ponds.
SIGNED: (. i /1 i r ' DATE:
Department Head
C:\Documents and Settings\rbauman.COUNTYOFHAWAII\Local Settings\Temporary Internet Files\OLK2E\B-52 Bond Ordinance Kal Ave 071012.doc