HomeMy WebLinkAboutREP PWC 022 04/30/1985 1984-1988 REPORT OF THE
COMMITTEE ON PUBLIC WORKS
DATE: April 30, 1985
TIME: 9:30 a.m.
PLACE : Councilroom
GoM m. 0/
Chairman and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Public Works, to which was referred
Communication 131 and Resolution 50-85 relating to the creation of
an Improvement District for the Keaau Agricultural Lots Subdivision,
reports as follows:
Communication 131 is a transmittal letter which introduces to the
Public Works Committee a petition for the creation of an Improvement
District (Keaau Agricultural Lots Subdivision) and its accompanying
transmittal letter . Communication 131 summarizes the intent and
purpose of the proposed Improvement District and provides the
Committee guidance on the sequential steps of processing a petition
requesting the formation of an Improvement District from the owners
of 100 percent its assessable area .
The purpose of Resolution 50-85 is to acknowledge the filing of a
petition for an Improvement District by the owner of the proposed
Keaau Agricultural Lots Subdivision and to request, in accordance
with Chapter 12, Article 2, Section 12-10 of the Hawaii County Code,
that the Chief Engineer of the County of Hawaii conduct a
preliminary investigation and report to the Council concerning the
necessity and feasibility of the proposed district and of the
preliminary data submitted with the petition. The Chief Engineer is
also requested to obtain from the Department of Water Supply, for
inclusion as part of his report , an assessment of the proposed water
system to be a part of this Improvement District.
Your Committee has received testimony from the Administration which,
though receptive to the project, cautions the Council , based on its
preliminary review, that the project may not qualify for improvement
district funding if the appraised value of the land to be improved
is less than two times the estimated cost of the improvements .
Reservations on the impact of roll back taxes on the land and of the
size of the bond reserve fund were also submitted .
Your Committee has also considered the presentations of the Hawaiian
Trust Company, its attorney, and that of the Chairman of the
Management Committee for the Trust. Your Committee has been given a
history of the proposal and been advised that beneficiaries are
aware of the roll back taxes and the costs of each lot .
PWC REPORT No 22
ADOPTED : MAY 8 19$5
PWC- 22 Page 2 April 30, 1985
With respect to the size of the bond reserve fund, your Committee has
been advised that an additional $300 ,000 is being allocated in two
other funds for bond costs . Further , the Trust also has considerable
other assets which may be used to assist the beneficiaries in
carrying the improvement district.
Several suggestions and recommendations were also floored which could
enhance and improve the proposed district. These included:
1 ) the use of municipal bond insurance as an alternative to a
reserve fund;
2 ) the waiver of the redemption clause by the beneficiaries which
would make the issue more marketable;
3 ) the inclusion of a proviso to authorize the Council to hire bond
counsel; and
4) authorizing Council to negotiate with the beneficiaries on the
hiring of a financial advisor , if deemed necessary by the
beneficiaries and the Trust Company.
Your Committee has amended Resolution 50-85 to include language
authorizing Council to designate the financial consultant and the
bond counsel with respect to this proposed improvement district .
Your Committee on Public Works, having considered the testimonies
presented, concurs with the purpose of Resoluti.n 50-85 , as amended ,
and recommends its passage by the County Counci
l —
ME' K. LAI, CHAIRW0.4 .N
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• SSELL KOKUBUN, VICE CHAIRMAN FRANK DE LUZ, III, MEMBER
ja/(24 -4;TAKASHI DOMINGO, EMBER ROBERT HERKES, MEMBER
LA/GM/MKL