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Home My WebLink AboutCOM 0591.001 2012-2014 DRU MAMO KANUHA cro`N ' PHONE: (808)323-4267 Council Member FAX: (808)323-4786 •'�� %��:• EMAILdkanuha@co.hawaii.hi.us District;, Central Kona HAWAII COUNTY COUNCIL West Hawai`i Civic Center 74-5044 Ane Keohokalole Highway, Kailua-Kona, Hawaii 96740 Date: March 14, 2014 To: J Yoshimoto, Council Chair And Members of the Hawai`i County Council From: '"{Dru Mamo Kanuha District 7 Council Member Subject: Resolution No. 264-14 Proposing the Establishment of a Sewer System Improvement District for the Lono Kona Subdivision Attached please find a copy of the PowerPoint presentation to be presented at the March 18, 2014 Public Hearing regarding the above referenced matter. Mahalo. xc: Laura Murashige, Executive Assistant to the Chair Donna Goodenow, Council Services DK/lw Comm.No 591 l Ref.To: 1D COU�c// Ref. Date, MAR 1 8 2014 Hawai`i County is an Equal Opportunity Provider and Employer. Public Hearing, Kailua-Kona, March 18, 2014 Lono Kona Sewer ID Agenda • Welcome and Purpose of Meeting (5 minutes) • Who: Introductions and Roles (5 minutes) • What &Why: Project Description and Need (20 minutes) • Need to Sewer • Proposed Sewer System • Cost Estimate • Proposed Financing • Improvement District Process and Boundary • How Much: Preliminary Assessment (15 minutes) • Assessment Unit • Calculation Methodology • Preliminary Assessment Roll • Next Steps (5 minutes) • Question &Answer (3o minutes) Roles • County Council • Councilmember • County Clerk's Office • County Administration • Mayor's Office/Managing Director • Finance Department • Department of Environmental Management • USDA Rural Development • U.S. Environmental Protection Agency (EPA) • ConsultantTeam • Planner(PBR Hawaii) • Engineer(Belt Collins) • Special Tax Consultant (Goodwin Consulting Group) • Community Liaison 7 li Why Sewer? IMRPDSTATn MK Tx E mArrER OE •EMw AAtDD.xNMPPDDI.wTISEMTCRT A XIn VI aCRID.V�x n EqD w R" MITRATIvEOPDER PWR V a waste disposal site N u Groundwater contamination from Racil 9 74 14aeeN pmWSS m12Xs1 ncAtt r i & ._ A1iTB461tY gip ' Tue I.ulowM M gel° �� vaY Agmt 1..,� R' Aa m. ��W asNW, i. rvUUxitin MUS gravraf tlrc M'uu U•inrn la tYl NeW,.+U Inca��nM i.i,rvm,n Untreated waste from cesspools can • rt r « a ' ►` '' ,, n- EPA banned large contaminate �:" ,� �< �� capacity cesspools. groundwater and a _ * Several lots within nearshore waters a�� G such as Kailua Bay. t `,• "" a Lono Kona received .a. EPA citation notices. .\ yf B. ,P-Y. ' Y" 1 \41� 4 it County Council Resolution 120-11 • County Council directed DEM COUNC50FHAWAr, '! STATE OF HAW:AFI RFSOU'-LION NO 120 11 to initiate ID process for a ,.•:1a, IMPROVFMENIN TO Mt 1.0NO KONA MAMMON IN CORS, OF RAN AM FOR VII,sewer system °I `'°" "`°��`" ` • Property owners requested „and Council action due to EPA NORM.the I RIod Sulta Eq..IX ha, violation notices <Nfe.,ams+B 4:::aDa"aP r todeol `MR Rr 1ixr yvvutU..icxa cand...14.t.ttrsnmr aac:.oxnml eRe.aw....un ,.:MT..n,mfi,..anmr:w-wi.rc..oa townlpfulderr tea...Jan may be x.eAR.nm,R.mm:rar«.m:ax fu.a 4.10 t.•ma�1 L urcu IRE R0.111'l,e IRMA.rw rx nacciR Er..:r..crdBlwgveem iatma a 7...A.,RfRR m 9...,•MR, e,WO :aft i Olw ek n Metarxl III III Proposed Lono Kona Sewage System Lono Kona Sewer ID Boundary Map • All-gravity sewer system • 5,640 Lin. Ft., 8-inch PVC SDR-26 sewer pipe and fittings • 36o Lin. Ft., 10-inch PVC SDR-26 sewer pipe and fittings ' • deep sewer manholes 5.o'to 9.5' P • 4 Each, lined shallow drop sewer manholes io.o'to 14.99' deep 414\ • 1 Each, lined drop sewer manholes 15.00'to 20.00' deep • 110 Each, sewer lateral connection • Connection at Hualalai Road to North Kona sewer system treated at Kealakehe WWTP • Zo' wide easements over seven parcels to connect at Hualalai Road Legend Sind•-•amYy • Suer Manhole ..:.: O.p3ex Sewer-Ale 5 250 5. Apanrnen1 IC Sow,iery rx + I, Cnrnmercial Cher Estimated Development Costs : $6 . 5M Construction Costs Mobilization " $ 846,000 Demolition ; $ 1,500 $ 1,920,800 Paving Restoration $ 1,440000 Backfill of Lava Tubes $ 250,000 Hualalai Road Tie-In $ 50,000 Easement Costs r€ $ 200,000 Subtotal $ 4,708,300 Contingency(20%) . $ 941,700 Total Construction Cost $ 5,650,000 Other Costs Feasibility Study % $ 185,300 Design $ 285,000 Reserve Fund(Not Required)i ''' $ - Legal Fees $ 75,000 ID Formation $ 50,000 Misc %of Construction "' " (4 Cost) " $ 216,500 Total Other Costs $ 811,800 Total Development Cost , $ 6,461,800 Proposed Financing Total Development Cost $6,461,800 100% USDA Grant Amount $4,024,800 62% Loan Amount/ ID Fixed Assessment Cost'' $2,437,000 38% II� What is an Improvement District? • A type of public financing method to construct public improvements that specially benefit properties within defined boundaries • Ordinance creates district and sets assessment amount • Improvement district established unless >so% object • Once established, all owners within district are assessed • County collects assessment from property owners • Secured by lien on properties; similar to property tax Improvement District Process Phase 3: ID Phase 1: RD Ordinance & Application Loan Closing Hookup& Close Cesspool Phase 2: ID Phase 4: Feasibility& Construction Design Improvement District Process- Phases Complete Preliminary Engineering and Environmental Report Submit USDA loan/grant June 2012 application USDA review and approval September 2013 Feasibility Report to Council December 2013 7 Improvement District Process- Phase2 Council Res. No. 264-14:feasibility January 2014 finding;set public hearing Public hearing March 2014 Council Resolution: Define May 2014 boundary;authorize design Design& bid October 2014 1 Improvement District Process- Phase3 Set assessment roll December 2014 • January 2015 Ordinance Close loan April 2015 WI I Start June 2015 construction Improvement District Process- Phase4 Construct sewer 12 months system Start paying _ 6 months after construction starts assessments Hookup and close cesspool June 2016 Start paying sewer charge Proposed Method of Assessment • Assessment is proportional to the estimated wastewater generation • Step 1: Determine wastewater generation by land use • Per capita: 8o gpcd • Capita by land use: • Single Family Residential: 4 capita/unit • Double Family Residential: 2.8 capita/unit • Multiple Family Residential: 2.8 capita/unit • Village Commercial (CV-7.5): 40 capita/ac • Special uses (e.g., church, Salvation Army): based on number of church seats and uses (e.g., daycare, office) Proposed Method of Assessment (cont . ) • Step 2: Determine land use and number of units for each parcel • Developed parcels—number of units based on existing use • Vacant parcels—number of units based on zoning or known constraints (e.g., water commitments) ,7 '''. V40;0;,„, . 1 v IV " a .v- .wean I Proposed Method of Assessment (cont . ) • Step 3: Calculate the capita per parcel • [Number of units] x [capita/unit for applicable land use] • Step 4: Convert the capita/parcel to an equivalent unit • Common unit to compare different land uses= Single Family Equivalent (SFE) • Conversion to SFE= Capita per parcel + 4 (capita/SFD) • Step 4: Calculate the Cost per SFE • Cost/SFE=Total development costs _ Total SFE • Step 6: Calculate the Cost per Assessment Unit • Assessment= Cost per SFE x SFE per parcel • If parcel has condo units, divide Assessment per parcel by number of condo units Assessment Amount • Fixed assessment per SFE= Fixed Assessment Cost Loan portion of Total Total Development Cost $6,461,800 Development Cost = Total SFEs Agency Grant Amount $4,024,800 Loan Amount/Fixed Assessment Cost $2,437,000 • Assessment Roll lists number Fixed Assessment per SFE of SFEs per Assessment Unit Fixed Assessment Cost $2,437,000 Total SFEs 247 • Assessment Unit= a parcel or Fixed Assessment per SFE $9,868 condominium unit Payment Options • Option a.: Lump sum fixed Total Annual Cost assessment Annual Debt Service $103,499 Annual Administration Costs $30,000 • Option 2: Installments over 35 Total Annual Cost $133,499 years Annual Assessment per SFE Total Annual Cost $133,499 • Principal= fixed assessment per SFE Total SFEs 247 • Interest rate= 2.125% Annual Assessment per SFE $541 • Amortization= interest only 2 years, amortized remaining 33 years at $42.47/$1000 • Annual Assessment= Debt service + Administrative fees to cover County costs Assessment Examples Fixed Assessment per SFE $ 9,868 Annual Assessment per SFE $ 541 Total Annual Land Use SFE Assessment Assessment Single-Family Residence 1 $ 9,868 $ 541 Duplex 1.4 $ 13,815 $ 757 Apartment Condo 0.7 $ 6,908 $ 379 Total Costs to Landowner • Quarterly Improvement District Assessment • Monthly sewer charge ($27/month per residential unit) • Cost to close existing cesspool • Cost to connect Other Pay ment Considerations • Lien. A special assessment lien will be recorded on each property 3o days after the last publication of the assessment ordinance. • Prepayment (Lump Sum) Option. Before this 3o-day period ends, the property owner may pay off the assessment without a 3% prepayment penalty. • Default. Default occurs if the quarterly installment is unpaid 120 days after the due date. What are the next steps in the process? • For more information: • Council Resolutions and Director's Report (County website or call Clerk's Office) • Environmental Assessment (OEQC website) • Written objections— must be received by the close of this public hearing • Next Council meeting to consider Resolution to Define the Improvement District: Date TBD Questions?