HomeMy WebLinkAboutREP AWEEMC 004 2019/03/12 2018-2020 REPORT OF THE
COMMITTEE ON AGRICULTURE,WATER,
ENERGY,AND ENVIRONMENTAL MANAGEMENT
DATE: March 12, 2019 Re: Comm. No. 148/Res.No. 86-19
PLACE: Council Chambers
Hilo, Hawai`i
TIME: 1:02 p.m.
Council Chair and Members
Hawai`i County Council
Hilo, Hawai`i 96720
Your Committee on Agriculture, Water, Energy, and Environmental Management, to which was
referred Resolution 86-19, reports as follows:
Resolution 86-19,transmitted by William A. Kucharski via Communication 148 dated
February 21, 2019, requests review and consideration of a resolution to Authorize the Extension
of the Public Sewer from a Planned Subdivision(Parcels 7-3-009:019, 057, 058, 060, 061, and
062)to the Existing Sewer Line Terminus on Ane Keohokalole Highway.
Public testimony was held with sole testifier Mr. Thomas Yeh addressing the Committee.
Mr. Yeh is one of the attorneys representing the applicant, RFCF Kaloko Heights, LLC, who is
the major project developer. Mr. Yeh identified Exhibit 2 within documentation in possession of
AWEEM Committee members, noting the RFCF project site as well as the 110-unit low income
rental housing project being developed by Hawai`i Island Community Development Corporation
(HICDC) are in same vicinity. The HICDC project was approved by Council in 2017. Once the
sewer line is extended and connected, it will be a benefit to the community as any downstream
owners will be able to connect to the sewer system. In addition, should the Department of
Environmental Management decide to create a new waste water treatment site on the north end
of Hina Lath, there will be a connector valve that can be utilized to service those north of the
project. Mr. Yeh identified HICDC project manager Keith Kato and Mr. Steven Menezes,
attorney for applicant also present and available to discuss further.
Motion to approve resolution and move on to Council with a positive recommendation was made
by Council Member Karen Eoff; Seconded by Council Member Kierkiewicz. Discussion was
made between Council Members and attorneys for the developer.
Council Member Karen Eoff shared that even without knowing all the specifics, it appears to be
a great opportunity to have a developer willing to provide necessary community benefits for
example, sewer line access and affordable housing at the same time.
Council Member Kierkiewcz inquired as to the Improvement District Process (IDP) and hoped
for an explanation by applicant as to what percentage of community needed to 'buy in', etcetera.
Attorney for applicant Steven Menezes replied to the question and shared that the IDP has not
AWEEMC Report No.: 4
AWEEMC-4 Page 2 March 12,2019
yet started; that the first step is the resolution before Council today to obtain approval from
County to allow an extension of the sewer line. Once this is approved,the IDP will begin,
however preliminary discussions with the Administration, the County of Hawai`i Bond Counsel,
Mr. Brian Hirae of Honolulu, and the Hawai`i County Corporation Counsel. He further stated
County
since the developers are the property owners,they will be compliant under Hawai`i Co ty
Code, Chapter 12, as 100 percent community buy-in. Developer owns 100 percent of the lands
to be assessed and will pay for all ID bonds so no approval is necessary from any other property
owner. Upon approval today, the IDP will start by a petition to be submitted by RFCF for a 100
percent IDP that will come before Council again for approval; upon approval of that process,
additional resolutions will need to be heard by Council before entire matter is completed, which
may include a year's worth of resolutions before final bonds are issued. At the very end of the
process, Council will enact an ordinance approving the issuance of bonds. County will issue the
bonds, underwriter(who is already in place)will buy bonds, which currently comes in at$8
million and increasing. No public hearing necessary as they are the only land owners affected.
County of Hawai`i will not have any financial obligations; all costs to be borne by developers.
In the event there is a default on the bonds, County of Hawai`i will not be responsible.
Attorney Tom Yeh added that HICDC's projected timeline to hook up would be Summer 2021
or Fall 2021. Once all approvals are in place, HICDC will hook up easily without having its
property assessed as all downstream owners will benefit from this project.
Council Member Kierkiewcz thanked the attorneys for their explanation, noting her appreciation
for the opportunity to have those downstream benefit; like the flow line via gravity at Kailua-
Kaneohe sewer tunnel on O`ahu.
Committee Chair Richards thanked the applicant and the attending attorneys for their presence
and explanation.
Your Committee on Agriculture, Water, Energy, and Environmental Management is in accord
with the purpose and intent of Resolution 86-19, and recommends its adoption.
db
AYES NOES ABS EX Respectfully submitted,
CHUNG X
DAVID X COMMITTEE ON AGRICULTURE, WATER,
EOFF X ENERGY,AND ENVIRONMENTAL
KANEALI`I-KLEINFELDER X MANAGEMENT
KIERKIEWICZ X
LEE LOY XI I
I
POINDEXTER X HERBERT M. "TIM"RICHARDS, III, CHAIR
RICHARDS X AWEEMC REPORT NO.: 4
VILLEGAS X ADOPTED: MAR 2 8 2019