HomeMy WebLinkAboutCOM 0051.000 2012-2014 _.-JMtY,os p-,
William P.Kenoi Nancy E. Crawford
Mayor 4�' 'A',W/
Director
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Deanna S. Sako
•+r:� a.•".�'�`_ Deputy Director
7TE os•M'�County of Hawaii
Finance Department
25 Aupuni Street,Suite 2103 • Hilo,Hawai`i 96720 —
(808)961-8234 • Fax(808)961-8569 s 7")
December 21, 2012
J Yoshimoto, Council Chair and
Members of the Hawai`i County Council
Hawai`i County Council ?
25 Aupuni Street
Hilo, Hawai`i 96720
Re: Wastewater Improvement Project
The State Department of Health has indicated that funding through the State Water Pollution
Control Revolving Fund Loan Program will be available for the following project:
Kealakehe Wastewater Treatment Plant Aeration Upgrade
and Sludge Removal: $12,000,000
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$12,000,000 and
authorizing the issuance of general obligation bonds for the purpose of financing this improvement
project.
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.
If there are any questions, please do not hesitate to call Lyle Hirota of the Department of
Environmental Management at 961-8333.
NA/gA44461
Nancy Crawford
Director of Finance
Enc. Comm. No.
Ref.To: PC.-
Ccc: Environmental Management Ref. Date C 2 4 2012
` 3I " fa) 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: 12/15/12
STAFF CONTACT: Lyle Hirota PHONE: 961-8333
A. REQUEST:
An Ordinance 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
$12,000,000 General Obligation Bonds of the County of Hawai'i for the purpose of financing the following
project:
Kealakehe Wastewater Treatment Plant Aeration Upgrade and Sludge Removal $12,000,000
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 Kealakehe Wastewater Treatment Plant Aeration Upgrade and Sludge
Removal project. This project was previously authorized for funding through County general obligation bonds
under Ordinance 09-154 in the amount of$10,000,000. This request will allow us to take advantage of the lower
interest rates provided by the State Revolving Fund Loan Program and also increases the amount to reflect the
current cost estimate for this project.
In order to serve the growing population of West Hawaii, the Kealakehe Wastewater Treatment Plant Aeration
Upgrade is necessary to restore the plant's treatment capacity to original design capacity, comply with an
existing DOH variance which allows discharge of total suspended solids above the original discharge
concentration of 30 mg/I due to the presence of algae in the treatment lagoons, facilitate future upgrades of the
facility to provide R-1 reuse water, and to reduce electricity costs at the facility. Sludge removal at the plant is
also required to maintain and upgrade the plant capacity and allow for the successful implementation and
performance of the aeration system upgrade. The design for this project is at 95 percent completion and the
construction is expected to begin in the second quarter of 2013.
SIGNED: /3 MLi� DATE: /�A,/ /Z
Department Head