HomeMy WebLinkAboutREP FC 014 01/08/2013 (2012-2014) REPORT OF THE
COMMITTEE ON FINANCE
DATE: January 8, 2013 Re: Comm. No. 51/Bill No. 12
PLACE: Council Chambers
Hilo, Hawai`i
TIME: 2:40 p.m.
Council Chair and Members
Hawai`i County Council
Hilo, Hawai`i 96720
Committee on Finance, to which was referred Bill No. 12, reports as follows:
Bill No. 12, transmitted by Finance Director Nancy Crawford via Communication No. 51, dated
December 21, 2012, authorizes the Mayor of the County of Hawai`i to enter into an intergovernmental
agreement for a State Water Pollution Control Revolving Fund Loan (SRF) for wastewater public
improvement projects; and authorizing the issuance of$12 million General Obligation Bonds of the
County of Hawai`i for the purpose of financing the qualified Kealakehe Wastewater Treatment Plant
Aeration Upgrade and Sludge Removal Project.
The project was previously authorized for funding through County general obligation bonds under
Ordinance 09-154 in the amount of$10 million. This request will allow the County to take advantage of
the lower interest rates provided by the State Revolving Fund Loan Program, and increases the amount
to reflect the current cost estimate for this project.
Acting Director Dora Beck and Acting Wastewater Division Chief Lyle Hirota, from the Environmental
Management Department, appeared before Your Committee and provided detailed information
regarding this project. Ms. Beck noted a$250,000 per year energy savings benefit to the County of
Hawai`i.
Mr. Onishi questioned the lifespan of the Hilo Lagoon Centre. Mr. Hirota informed the Council of its
20-year plan.
Council Member Ford expressed support for the project. She stated that delaying large projects would
eventually cost the County more money.
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.
FC Report No. 14
FC-14 Page 2 January 8, 2013
Your Committee on Finance is in accord with the purpose and intent of Bill No. 51, and recommends its
passage on first reading
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AYES NOES A&E EX Respectfully submitted,
EOFF X
FORD X COMMITTEE ON FINANCE
ILAGAN X
KANUHA X
KERN X 7 ,
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Cf� J ONISHI X /L.)
POINDEXTER X VALERIE T. POINDEXTER, CHAIR
WILLE X FC REPORT NO.: 14
YOSHIMOTO x ADOPTED: JAN 2 3 2013