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Home My WebLink AboutCOM 0917.000 2012-2014 OS... William P. Kenoi �.„ l;;; Nancy E.Director Mayor 't'£ Deanna S. Sako E Deputy Director • •* c►•N�.N County of Hawaii Finance Department 25 Aupuni Street, Room 2103 • Hilo,Hawai`i 96720 (808)961-8234 • Fax(808)961-8248 is O May 29, 2014 —4 J Yoshimoto, Council Chair and M rn Members of the Hawai`i County Council ;o Hawai`i County Council 25 Aupuni Street Hilo, Hawai`i 96720 Re: Amending Intergovernmental Agreement and Bond Authorization Ordinance 13-21 Enclosed is a bill for an ordinance that amends Ordinance 13-21 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 to meet the current cost estimate for the Kealakehe Wastewater Treatment Plant Aeration Upgrade project. 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. This request will allow the County to take advantage of the lower interest rates provided by the State Revolving Fund Loan Program, and includes the estimated construction cost plus ten percent for contingencies, and a design allowance as allowed by the SRF program. The Department of Environmental Management requests that this bill be waived from the Finance Committee and be placed on the June 18, 2014 Council Agenda in order to expedite the funding of this project. If there are any questions, please do not hesitate to call Robin Bauman of the Department of Environmental Management at 981-8324. 014ret Nancy Crawford Director of Finance Enc. <2 \ Comm. No. Ref.To: C4AA- 1A-)1 FC) Ref. Dote MAY 2 8 2014 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: 5/23/14 STAFF CONTACT: Dora Beck PHONE: 961-8513 A. REQUEST: An Ordinance amending Ordinance 13-21 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$18,000,000 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 $18,000,000 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 (KWWTP) Aeration Upgrade and Sludge Removal project. An Interim SRF Loan agreement has been executed with the DOH for the KWWTP Aeration Upgrade and Sludge Removal project in the amount of$12,000,000 as authorized by Ordinance 13-21. This request is to increase the authorized amount to $18,000,000 to reflect the current cost estimate for this project. This request will allow us to take advantage of the lower interest rates provided by the State Revolving Fund Loan Program and includes the estimated construction cost plus ten percent for contingencies and a design allowance as allowed by the SRF program. In order to serve the growing population of West Hawai'i, 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. Construction bids for this project are currently being evaluated for award and construction is expected to begin in the first quarter of Fiscal Year 2014-2015. We respectfully request that this bill be waived from Committee and placed on the next Council agenda in order to expedite the availability of additional SRF funding for this project. SIGNED: � DATE: ,S/z Department Head VALERIE T. POINDEXTER v o`".+t� KAREN EOFF Chairperson : , \�4,174 BRENDA FORD . �.:�•;,//, DRU KANUHA GREGGOR ILAGAN ZENDO KERN Vice Chair e,o��•�. DENNIS"FRESH"ONISHI MARGARET W1LLE J YOSHIMOTO HAWAII COUNTY COUNCIL County of Hawai`i Hawai`i County Building 25 Aupuni Street Hilo, Hawaii 96720 May 28, 2014 J Yoshimoto, Council Chair Hawai`i County Council 25 Aupuni Street Hilo, Hawai`i 96720 RE: Bill No. 262 : An Ordinance Amending Ordinance No. 13-21, Which Authorized the Mayor to Enter into an Intergovernmental Agreement for a State Water Pollution Control Revolving Fund Loan for Wastewater Public Improvement Projects and Authorized the Issuance of General Obligation Bonds for the Purpose of Financing Qualified Wastewater Public Improvements of the County of Hawai`i. Pursuant to Section 2(g) of Rule 4 of the Rules of Procedure of the Council of the County of Hawai`i, this written request is submitted with my approval that the above-referenced matter be waived from the Committee on Finance to the full Council for immediate action. In reviewing this matter, timely approval is crucial. It is therefore advantageous that approval is granted and the matter be placed onto the next Council agenda for review. However, in the event this request is denied, for whatever reason, I understand the matter shall be referred to the Committee on Finance for placement on its future agenda. Sincerely, 14—72424L &):ozle--1c,r4D Valerie T. Poindexter, Chair Committee on Finance Approved/Date/Waive to Council: Disapproved/Date/Refer to FC: J Yoshimoto, i1 Chair J Yoshimoto, Chairperson Hawai`i County Council Hawai`i County Council VP/sc Hai vai'i County is an Equal Opportunity Provider and Employer