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HomeMy WebLinkAboutREP FC 057 2016/03/16 (2014-2016)REPORT OF THE COMMITTEE ON FINANCE, DATE: March 16, 2016 Re: Comm. No. 557/Res. No. 337-15 PLACE: Council Chambers Kona, Hawaii TIME: 10:45 a.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Finance, to which was referred Resolution No. 337-15, reports as follows: Resolution No. 337-15, transmitted by Council Member Dru Mamo Kanuha, via Communication No. 557 dated October 28, 2015, relates to a council initiated improvement district to the Nalani Street Subdivision, at Holualoa 4, North Kona, Hawaii, including improvement of the water distribution system to County standards, in accordance with Chapter 12 of the Hawaii County Code 1983 (2005 edition, as amended) relating to improvements by assessments. This resolution directs the Manager -Chief Engineer of the Department of Water Supply to prepare and submit a report containing information outlined in Chapter 12, of the Hawaii County Code, to initiate the establishment of a water system improvement district for the Nalani Street Subdivision. November 17, 2015: Mr. Kanuba moved to postpone this matter to the December 1, 2015, Finance Committee meeting due to an incorrect reference in the title of the resolution. The motion was voted on and approved with six ayes. Council Members Aaron Chung, Greggor (lagan, and Dennis "Fresh" Onishi were absent and excused. December 1, 2015: Mr. Kanuba moved to postpone this matter further to a meeting of the Finance Committee in Kona. the motion to postpone was voted on and approved with eight ayes. Council Member Dennis Onishi was absent and excused, having to attend a meeting of the National Association of Counties. March 16, 2016: Mr. Kanuha stated that this water situation was brought to his attention by the Nalani Street Association a few years ago. He explained that there are numerous houses using one water meter with water lines meandering through other properties, with only "word of mouth" agreements between each other for services. Mr. Kanuha also stated that there is a public safety concern in not having fire hydrants, and there are instances where water lines have been broken, with significant funds spent by individual homeowners. Manager -Chief Engineer Keith Okamoto, of the Department of Water Supply, explained that this situation was brought to his attention by Mr. Kanuha, the Nalani Street Association, and other FC Report No.: S7 FC -57 Page 2 March 16, 2016 individuals. He stated that successful water improvement districts have been completed in the recent past and that they have an understanding of what needs to be done here. Mr. Kanuha moved to amend this resolution with the contents of Communication 557.2. This amendment was introduced to remove an incorrect reference to Nalani Street "Subdivision" in the title of the resolution. He clarified that this area is a portion of the Sunset View Terrace subdivision. The vote was then taken on the amendment and passed with nine ayes. Mr. Kanuha further explained that there must be over 50% in agreement for this improvement district to be approved, and that this will be a long process in which the residents will have the opportunity to speak. Council Member Valerie Poindexter shared concerns about a resident testifier, Ms. Duffy, who spent a substantial amount of money on waterline equipment, and asked Mr. Okamoto to look into whether or not Ms. Duffy would have to contribute again. Mr. Okamoto replied that he would look into it. Council Member Aaron Chung asked if this improvement would be limited to water improvements and asked if the Department of Public Works would be involved. Mr. Roy Takemoto came forward, not in his capacity as a consultant, but as family of a resident in the proposed water improvement district. He stated that the improvement is for the waterline, and any other improvements such as paving over trenches, will be ancillary. He said that the Department of Public Works would not be involved for a water improvement district because in Chapter 12, the Department of Water Supply is designated as the lead. Council Member Margaret Wille expressed concerns that allowances should be given for people that have already paid considerable funds for waterlines prior to an improvement district being approved. Brad Elliott, a resident in the proposed improvement district, came forward and suggested allowing property tax relief on a depreciated value of the equipment purchased. Mr. Onishi suggested to Mr. Kanuha that he request his State Senator or Representative to create a capital improvement project for funds to help with the costs. Mr. Okamoto stated that a permanent water source is available for this project and the design is complete. He stated that they need agency permits which is primarily is the State Highways and they expect that in the summertime they can advertise for bids and make an award shortly thereafter. Mr. Okamoto responded to an inquiry from Mr. Chung, and explained that the Keauhou Aquifer application is still active and not yet resolved, and could have a negative impact as far as the Department of Water Supply not having the ability to install new meters. Council Member Maile David commented that she worked on a prior water improvement district where a USDA grant was received, and Mr. Okamoto responded affirmatively that there will be an opportunity to look into that, in this particular situation. FC -57 Page 3 March 16, 2016 Mr. Kanuha, in closing, stated that this resolution is the first step in the process and said that every effort will be made to obtain funding from state and federal sources. The vote was taken on the motion to approve this resolution as amended, and passed with nine ayes. Pursuant to Chapter 2, Article 2, Section 12-10 of the Hawaii County Code, for council initiated improvements by assessment, the Council shall, by resolution requiring not more than one reading for its adoption, direct the responsible director or manager to prepare and submit to the council a report containing information so indicated in Section 12-10(a)(1) through (8) of the Hawaii County Code. Your Committee on Finance is in accord with the purpose and intent of Resolution No. 337-15 as amended to Draft 2, and recommends its adoption. wb Respectfully submitted, COMMITTEE ON FINANCE KAREN EOFF, CHVR FC REPORT NO.: 57 ADOPTED: APR 0 6 2016 AYES NOES ABS EX CHUNG X DAVID X EOFF X ILAGAN X KANUHA X ONISHI X PALEKA X POINDEXTER X WILLE X Respectfully submitted, COMMITTEE ON FINANCE KAREN EOFF, CHVR FC REPORT NO.: 57 ADOPTED: APR 0 6 2016