HomeMy WebLinkAboutCOM 1029.001 2012-2014 William P.Kenoi ,� � ��, BJ Leithead Todd
Mayor Director
•Walter K.M.Lau '' st' " John A.Medeiros
Managing Director Deputy Director
•(Iuunf3 of Aairet.t.t
DEPARTMENT OF ENVIRONMENTAL MANAGEMENT
345 Kekuantio`a Street,Suite 41 • Hilo,Hawaii 96720
(808)961-8083 • Fax(808)961-8086 o C)
http://www.hawanconnty.govjenvironmental-management/
f i
September 8, 2014 -TO
Council Chair J Yoshimoto
and Hawai'i County Council Members w
25 Aupuni Street m
Hilo, Hawai'i 96720
Re: Lono Kona Subdivision Sewer Improvement District-Amendment to Director's
Report
Dear Council Chair and Council Members:
Reference is made to the amended Director's Report (Communication No. 492.1) dated
December 11, 2013 (the "Director's Report") submitted by the undersigned in connection with
the proposed establishment of a Sewer Improvement District (the "Improvement District") to
fund the costs of a public sewer system (the "Improvements") for the Lono Kona Subdivision.
This letter is submitted to amend certain provisions of the Director's Report pertaining to the
assessment of properties within the Improvement District as described below.
Background
In accordance with Section 12-10(a) of the Hawai'i County Code 1983 (2005 Edition), as
amended, and Resolution No. 120-11 of the Hawai'i County Council (the "County"), the
Director's Report contained, among other things, information pertaining to the proposed
assessment of properties within the Improvement District in order to pay or reimburse the
County of Hawai'i (the "County") for the costs of the Improvements and/or the debt service on
bonds issued by the County to pay such costs (the "Bonds"). As described in Section 3 of the
Director's Report and in the Proposed Assessment Roll attached as Exhibit F thereto (the
"Proposed Assessment Roll"), the proposed assessments were based on the following findings
and determinations:
• That the Improvement District consists of 110 assessable properties representing 145
assessment units (i.e., subdivided parcels and condominium units);
• That the assessment units will be subject to assessment based on wastewater generation,
converted into single family equivalents ("SFEs"), estimated on the basis of their
existing uses or, in the case of vacant properties, their permitted uses under existing
zoning; O q� '
Comm. No
County of Hawaii is an Equal Opportunity Provider and Employer. /
Ref.To: COA-4'1
Ref. Date SEP 0 8 2n14
Council Chair J Yoshimoto
and Hawai'i County Council Members
September 8, 2014
Page 2
• That the estimated wastewater generation from the assessment units within the
Improvement District represent 247 SFEs;
• That the net cost of the Improvements is estimated to be $2,437,000 (i.e., $6,461,800
total cost less $4,024,800 USDA/RUS grant);
• That the assessments will be fixed at $9,868 per SFE (i.e., $2,437,000 net cost divided by
247 SFEs); and
• That the assessments, if paid in annual installments over the term to maturity of the
Bonds, including annual debt service and administrative costs, will equal $541 annually
per SFE.
Subsequent to the submission of the Director's Report, the County received certain information
indicating that the proposed assessment of certain properties within the Improvement District
may have been based on inaccurate information regarding the actual uses of such properties. In
view of such information, the County undertook a further review of the Proposed Assessment
Roll and proposed certain revisions based on this review. After property owners were afforded
an opportunity to review and comment on the proposed revisions, the revisions to the Proposed
Assessment Roll were finalized and incorporated into the amendments to the Director's Report
set forth below.
Another change to the Director's Report is the incorporation of HRS §46-74.1, HRS §46-74.2
and County Code §12-5, which exempts qualifying nonprofit organizations from the
improvement district assessments and shifts the assessment from the nonprofit organizations to
the County, together with the right of protest, unless and until such time as the organization sells
or leases its property to a person or entity that is not a qualifying nonprofit corporation.
Also contributing to the delay in submitting this change was the decision to wait for the receipt
of a Non-Development Pledge Agreement from the Laniakea Foundation. The Laniakea
Foundation had indicated that a filing of a conservation easement on their property was
forthcoming. Due to the significant effect the inclusion or exclusion of their assessment has on
the rest of the improvement district, a written indication of their intent was requested and
received from the Laniakea Foundation.
Finally, an alternate sewer line route was explored to exclude the commercial lots on the
southern border of the improvement district. A cost-benefit analysis did not provide a conclusive
case to change the original route.
Amendments to Director's Report
Based on the foregoing, the undersigned hereby adopts, and submits to the Council for approval,
the following amendments to the Director's Report:
County of Hawai'i is an Equal Opportunity Provider and Employer.
Council Chair J Yoshimoto
and Hawai'i County Council Members
September 8, 2014
Page 3
• The Proposed Assessment Roll is hereby amended and replaced in its entirety by the
Revised Assessment Roll included in Exhibit A hereto (the"Revised Assessment Roll");
• Although the total number of assessment units remain unchanged at 145 units, the total
number of SFEs apportioned among the assessment units within the Improvement
District is determined to be 268.1 (amended from 247), as set forth in the Revised
Assessment Roll;
• The assessments will be fixed at $9,090 per SFE (amended from $9,868 per SFE),
representing net cost of the Improvements (which remain unchanged at $2,437,000)
divided by 268.1 SFEs, as set forth on Table 1 included in Exhibit A hereto; and
• The assessments, if paid in annual installments over the term to maturity of the Bonds,
including annual debt service and administrative costs, will equal $498 annually per SFE
(amended from$541), as set forth on Table 2 included in Exhibit A hereto.
• Pursuant to HRS §46-74.1, §46-74.2, and County Code §12-5, the assessments for 10
properties owned by qualifying nonprofits will be paid for by the County. The total cost
is $294,525.56 ($16,134.10 annually) for 32.4 SFEs.
Should you have any questions or require any additional information, please contact Ms. Dora
Beck, P.E.,Wastewater Division Chief at 961-8513 or dbeck @co.hawaii.hi.us.
Sincerely,
,0,4
BJ Leithead odd
DIRECTOR
Attachment: Exhibit A (Revised Assessment Roll, Table 1—Fixed Assessment Calculation,
Table 2-Annual Assessment per SFE)
cc: Billy Kenoi, Mayor
Wally Lau, Managing Director
Randy Kurohara, Deputy Managing Director
Dora Beck,P.E., WWD Chief
County of Hawaii is an Equal Opportunity Provider and Employer.
Exhibit A
Lono Kona Sewer Improvement District
Revised Assessment Roll
Table 1. Fixed Assessment Calculation
Estimated
Fixed Annual
TMK/CPR Property Owner SFEs Assessment Assessment'
7-5-003-022-0001 CHURCH OF JESUS CHRIST LDS 8.5 $77,267.51' $4,232.72
7-5-003-022-0002 CHURCH OF JESUS CHRIST LDS 5.5 $49,996.63' $2,738.82
7-5-003-025-0000 THE SALVATION ARMY 6.2 $56,359.83' $3,087.39
7-5-003-026-0000 THE SALVATION ARMY 6.0 $54,541.77 $2,987.80
7-5-004-036-0000 L-T VENTURES LLC 0.0 $0.00 $0.00
7-5-004-047-0000 HWN REHABILITATION SERVICES 3.2 $29,326.42 $1,606.50
7-5-004-048-0000 KONA PROFESSIONAL BUILDING LLC 4.5 $40,984.15 $2,245.11
7-5-004-049-0000 YOUNG,ROBERT P TRUST 4.9 $44,516.40 $2,438.61
7-5-022-053-0001 ALAHOU LLC/etal 0.7 $6,363.21 $348.58
7-5-022-053-0002 ALAHOU LLC/etal 0.7 $6,363.21 $348.58
7-5-022-053-0003 ALAHOU LLC/etal 0.7 $6,363.21 $348.58
7-5-022-053-0004 ALAHOU LLC/etal 0.7 $6,363.21 $348.58
7-5-022-053-0005 ALAHOU LLC/etal 0.7 $6,363.21 $348.58
7-5-022-053-0006 ALAHOU LLC/etal 0.7 $6,363.21 $348.58
7-5-022-053-0007 ALAHOU LLC/etal 0.7 $6,363.21 $348.58
7-5-022-053-0008 ALAHOU LLC/etal 0.7 $6,363.21 $348.58
7-5-022-053-0009 ALAHOU LLC/etal 0.7 $6,363.21 $348.58
7-5-022-053-0010 ALAHOU LLC/etal 0.7 $6,363.21 $348.58
7-5-022-053-0011 ALAHOU LLC/etal 0.7 $6,363.21 $348.58
7-5-022-053-0012 ALAHOU LLC/etal 0.7 $6,363.21 $348.58
7-5-022-053-0013 ALAHOU LLC/etal 0.7 $6,363.21 $348.58
7-5-022-053-0014 ALAHOU LLC/etal rIIIIIIIIII 0.7 $6,363.21 $348.58
7-5-022-053-0015 ALAHOU LLC/etal 0.7 $6,363.21 $348.58
7-5-022-053-0016 ALAHOU LLC/etal I 0.7 $6,363.21 $348.58
7-5-022-053-0017 ALAHOU LLC 0.7 $6,363.21 $348.58
7-5-022-053-0018 ALAHOU LLC/etal 0.7 $6,363.21 $348.58
7-5-022-053-0019 ALAHOU LLC/etal 0.7 $6,363.21 $348.58
7-5-022-053-0020 ALAHOU LLC 0.7 $6,363.21 $348.58
7-5-022-053-0021 ALAHOU LLC 0.7 $6,363.21 $348.58
7-5-022-056-0000 NAGEL,BRUCE RAYMOND/etal 4.9 $44,542.45 $2,440.04
7-5-022-059-0000 NIU PIA LAND COMPANY LTD 0.0 $0.00 $0.00
7-5-022-060-0000 ALAHOU ASSOCIATES LLC 11.2 $101,811.31 $5,577.23
7-5-022-062-0000 AIU, ANDREW K/etal 4.9 $44,542.45 $2,440.04
7-5-022-063-0000 KANEKO,OSAMU/etal °%` 4.9 `'44,542.45 $2,440.04
7-5-022-064-0000 RUDOY,RAUL C TRST 5.6 $50,905.66 $2,788.61
7-5-022-069-0000 MACDONALDS PROPERTIES LLC 5.6 $50,905.66 $2,788.61
7-5-022-071-0000 LANIAKEA FOUNDATION /etal 1.0 $9,090.30 $497.97
7-5-022-076-0001 AU, GORDON S K TR/etal 0.7 $6,363.21 $348.58
7-5-022-076-0002 AU, GORDON S K TR/etal 0.7 $6,363.21 $348.58
7-5-022-076-0003 ROWE, DUANE ARTHUR 0.7 $6,363.21 $348.58
7-5-022-076-0004 CALLAN, TIMOTHY M 0.7 $6,363.21 $348.58
7-5-022-076-0005 CUNNINGHAM, FUMIKO/etal . 0.7 $6,363.21 $348.58
7-5-022-076-0006 HERRICK, LEO W/etal 0.7 $6,363.21 $348.58
7-5-022-076-0007 AU, GORDON S K TR/etal 0.7 $6,363.21 $348.58
7-5-022-076-0008 PALOLO CHINESE HOME INC 0.7 $6,363.21 $348.58
7-5-022-076-0009 MORES, HERBERT I /etal c ;` 0.7 $6,363.21 $348.58
7-5-022-076-0010 LEOPOLDINO, ROBERT C 0.7 $6,363.21 $348.58
7-5-022-076-0011 KNIPPERS,JOHN /etal illIllMillib 0.7 $6,363.21 $348.58
7-5-022-076-0012 JEFFREY, SCOTTJ /etal 0.7 $6,363.21 $348.58
7-5-022-078-0000 HAALILIO,WILLIAM P/etas 1.4 $12,726.41 $697.15
7-5-022-079-0000 CHUNG,EDWARD K III TR 2.0 $18,180.59 $995.93
7-5-022-080-0000 TAKUSHI,SHARON T/etal < ..,,, 1.4 $12,726.41 laiiiii,$697.15
7-5-022-081-0000 MENTAL HEALTH KOKUA 1.4 $12,726.41' $697.15
7-5-022-082-0000 BIG ISLAND RESIDENTIAL INCA .,. 1.4 $12,726.411111$697.15
7-5-022-083-0000 PATRICK,FAMILYTR 1.4 $12,726.41 $697.15
7-5-022-084-0000 HARRIS,JOE F TRST/etal $` 1.0 $9,090.30 $497.97
7-5-022-085-0000 GASPAR,EDWIN 1.4 $12,726.41 $697.15
7-5-022-086-0000 MCCASKILL,FAMILYTR 1.4 $12,726.41 $697.15
7-5-022-087-0000 KESHAP, AJAY 2.1 $19,089.62 $1,045.73
7-5-022-088-0000 SIMPSON, MICHAEL LEE/etal 2.0 $18,180.59 $995.93
7-5-022-089-0000 MANNING,JEROME 0/etal 1.4 $12,726.41 $697.15
7-5-022-090-0000 MANNING,JEROME 0/etal 1.4 $12,726.41 $697.15
7-5-022-091-0000 HARAGUCHI, ALVIN M 1.4 $12,726.41 $697.15
7-5-022-092-0000 CARMICHAEL,PAUL TR 1.0 $9,090.30 $497.97
7-5-022-093-0000 HARAGUCHI,ALVIN 2.0 $18,180.59 $995.93
7-5-022-094-0000 HIND DRIVE PROPERTIES LLC 111.111111111.0 $9,090.30 EllW497.97
7-5-022-095-0000 PETERSON,GREGORY/etal 2.0 $18,180.59 $995.93
7-5-022-096-0000 CASPELL,TRUST , " 1.4 $12,726.41 irr $697.15
7-5-022-097-0000 CIRIAKO, RAYMOND EDWIN /etal 1.4 $12,726.41 $697.15
7-5-022-098-0000 YOSHIMI, EVELYN TRST/etal 1.4 $12,726.41 $697.15
7-5-022-099-0000 AHUNA,HATTIE K TRUST 2.0 $18,180.59 $995.93
7-5-022-100-0000 KITCHEN,ROBERT T/etal. 'i 1.0 $9,090.30 $497.97
7-5-022-101-0000 BRECHER, SAUL & BISHNU 1.4 $12,726.41 $697.15
7-5-022-102-0000 WINETT, DAVID L ." 1.4 $12,726.41 $697.15
7-5-022-103-0000 PHAM, HANK/etal 2.0 $18,180.59 $995.93
7-5-022-104-0000 LAMAOKEOLA LLC 2.0 $18,180.59 $995.93
7-5-022-105-0000 DECKER,RICHARD A/AMY L TR 2.0 $18,180.59 $995.93
7-5-022-106-0000 US BANK NATIONAL ASSOCIATION TTEE 2.8 $25,452.83 $1,394.31
7-5-022-107-0000 POIRE,GORDON H K/etal 1.0 $9,090.30 $497.97
7-5-022-108-0000 COFFEY,ELMER L 1.4 $12,726.41 $697.15
7-5-022-109-0000 KONA KOKUA HOUSING INC 1.4 $12,726.41' $697.15
7-5-022-110-0001 RUPLEY, MYUNG SOOK HWANG/etal 0.7 $6,363.21 $348.58
7-5-022-110-0002 LAWRENCE, WILLIAM J 0.7 $5,965.67 $326.80
7-5-022-111-0000 UNIVERSITY OF THE NATIONS 2.0 $18,180.59' $995.93
7-5-022-112-0000 UNIVERSITY OF THE NATIONS 2.0 $18,180.59' $995.93
7-5-022-113-0000 UNIVERSITY OF THE NATIONS 2.0 $18,180.59' $995.93
7-5-022-114-0000 HSBC BANK USA N A TTEE 1.4 $12,726.41 $697.15
7-5-022-115-0000 DUNN,L A/GOODMAN,J L TR 5.6 $50,905.66 $2,788.61
7-5-022-116-0000 UNIVERSITY OF THE NATIONS 2.0 $18,180.59' $995.93
7-5-022-117-0000 WILSON,MICHAEL ALAN/etal 2.0 $18,180.59 $995.93
7-5-022-118-0000 OKANO,DAVID MASATO TR/etal 2.0 $18,180.59 $995.93
7-5-022-119-0000 OKANO,DAVID MASATO TR/etal 2.0 $18,180.59 $995.93
7-5-022-120-0000 MORI,SCOTT ALLEN 2.1 $19,089.62 $1,045.73
7-5-022-121-0000 SARADPON,EMMA M/etal 2.1 $19,089.62 $1,045.73
7-5-022-122-0000 SARADPON,EMMA 1.4 $12,726.41 $697.15
7-5-022-123-0000 LAO,MARIA ESTELA POLYANNA S/etal° 1.4 $12,726.41 $697.15
7-5-022-124-0000 BURGESS,AMELIA L K TR 1.0 $9,090.30 $497.97
7-5-022-125-0000 WALSH,MARY C TTEE 1.4 $12,726.41 $697.15
7-5-022-126-0000 CORSAIR,ROBERT 1.4 $12,726.41 $697.15
7-5-022-127-0000 DEMBLEWSKI,KENNETH E SR 1.4 $12,726.41 $697.15
7-5-022-129-0000 PATRICK,FAMILY TR 1.4 $12,726.41 $697.15
7-5-022-130-0000 CORSAIR,ROBERT 1.4 $12,726.41 $697.15
7-5-022-131-0000 URBAN,TANTE T JR 2.0 $18,180.59 $995.93
7-5-022-132-0000 TRANSFIGURACION,ANDRES/eta'°r: 2.1 $19,089.62 $1,045.73
7-5-022-133-0001 GALANTO, NESTOR/eta; 0.7 $6,363.21 $348.58
7-5-022-133-0002 SAGUN, ERANO B/etal ". .':' . 0.7 $6,363.21 $348.58
7-5-022-134-0000 TREDWAY, CAROL E 1.4 $12,726.41 $697.15
7-5-022-135-0000 ARMSTRONG, ROBERT H/etal 1.4 $12,726.41 $697.15
7-5-022-136-0000 MABUNI, MELVIN Y TR 1.0 $9,090.30 $497.97
7-5-022-137-0000 TEH, CHERYL 111111111111111P 1.0 $9,090.30 $497.97
7-5-022-138-0000 TAKAUYE, JAMES K TRUST/etal 1.0 $9,090.30 $497.97
7-5-022-139-0000 MABUNI, MELVIN YTR 1.4 $12,726.41 $697.15
7-5-022-140-0000 MERO, VALENTINE K JR 1.0 $9,090.30 $497.97
7-5-022-141-0000 BUTLER, LADONNA ANNE TRST 2.0 $18,180.59 $995.93
7-5-022-142-0000 JAZMIN,FAMILY TRST 5.6 $50,905.66 $2,788.61
7-5-022-143-0000 JAZMIN,FAMILY TRST 6.3 $57,268.86 $3,137.19
7-5-022-144-0000 UDANI, FREDITAS GUILLERMO 2.8 $25,452.83 $1,394.31
7-5-022-145-0000 SMITH, CAROLINE K/etal I 1.0 $9,090.30 $497.97
7-5-022-146-0000 PATEY, ROBERT WILLIAM 2.8 $25,452.83 $1,394.31
7-5-022-147-0000 TYLER,JOSEPH C JR PERS IN TR/etal 1.4 $12,726.41 $697.15
7-5-022-148-0000 HANSON,JEFFREY A 1.0 $9,090.30 $497.97
7-5-022-149-0000 PANG, FAMILY TR 1.0 $9,090.30 $497.97
7-5-022-150-0000 KAIMALINO TRST 2.0 $18,180.59 $995.93
7-5-022-151-0000 LI, MEI HUA 1.0 $9,090.30 $497.97
7-5-022-152-0000 GALANTO, NESTOR/etal 2.0 $18,180.59 $995.93
7-5-022-153-0000 OCHMANN, FRANK J JR/etal 1.0 $9,090.30 $497.97
7-5-022-154-0000 WONG, DAMIEN P 2.4 $21,816.71 $1,195.12
7-5-022-155-0000 ARNOLD, DOUGLAS G/etal - 1.4 $12,726.41 $697.15
7-5-022-156-0000 ARNOLD, DOUGLAS G etal 2.0 $18,180.59 $995.93
7-5-022-157-0000 ALAONAONA RENTALS LLC 2.0 $18,180.59 $995.93
7-5-022-158-0000 BAJADA, STEVEN 1.4 $12,726.41 $697.15
7-5-022-159-0000 TEAUPA, SALOTE TTEE 2.1 $19,089.62 $1,045.73
7-5-022-160-0001 AVERY,JESSE V 0.7 $6,363.21 $348.58
7-5-022-160-0002 RENAUD-KIM, IAN 0.7 $6,363.21 $348.58
7-5-022-161-0000 ALLENDE, RICHARD 1.4 $12,726.41 $697.15
7-5-022-162-0000 RANCOURT, STEVE L.. 2.0 $18,180.59 $995.93
7-5-022-163-0000 JADRAQUE, EUGENIO/etal 1.4 $12,726.41 $697.15
7-5-022-164-0000 BAXTER, WARNER D/etal 2.8 $25,452.83 $1,394.31
7-5-022-165-0000 HAMILTON, ROBERT G /etal 1.4 $12,726.41 $697.15
7-5-022-166-0000 HARAGUCHI, ALVIN/etal 1.4 $12,726.41 $697.15
7-5-022-167-0000 NOVOLODSKIY, YURIY V/etal 1.4 $12,726.41 $697.15
7-5-022-168-0000 AKERS, GERALD TR/etal 1.4 $12,726.41 $697.15
7-5-022-169-0000 MARK, GARY TRST/etal 1.0 $9,090.30 $497.97
7-5-022-170-0000 JAZM I N,FAM ILY TR 10.5 $95,448.11 $5,228.65
7-5-022-171-0000 JAZMIN,FAMILY TR 0.0 $0.00 $0.00
Total SFE 268.1 $2,437,000.00 $133,499.00
Assessment units 145.0
Properties owned by qualifying nonprofit corporations are exempt from assessments pursuant to HRS Sections 46-
74.1 and 46-74.2 and County Code Section 12-5. Under these sections,the County will be responsible for payment of
assessments on these properties unless and until they are sold or leased to parties which are not qualified for this
exemption.
2 Includes annual debt service payments and County administration costs.
Table 2.Annual Assessment Per SFE Calculation
Total Development Cost $ 6,461 800
Grant Amount $ 4,024,800
Fixed Assessment $ 2,437,000
Fixed Assessment per SFE: $ 9,090
Annual Assessment
Annual Debt Service $ 103,499
Annual Administrative Cost $ 30,000
Total Annual Cost $ 133,499
Annual Assessment per SFE $ 498