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HomeMy WebLinkAboutMIN AWEEMC 2019/03/12 2018-2020Committee on Agriculture, Water, Energy, and Environmental Management 3rd Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii March 12, 2019 CALL TO The regular meeting of the Committee on Agriculture, Water, Energy, ORDER: and Environmental Management was called to order at 1:02 p.m., in the Council Chambers, Hilo, by Mr. Herbert M. "Tim" Richards, III, Chair. ROLL CALL: Present: Mr. Herbert M. "Tim" Richards, III, Chair Mr. Matt Kaneali`i-Kleinfelder, Vice Chair Ms. Karen Eoff, Member Mr. Aaron S. Y. Chung, Member Ms. Maile Medeiros David, Member Ms. Ashley L. Kierkiewicz, Member Ms. Susan L. K. Lee Loy, Member Ms. Rebecca Villegas, Member Absent & Excused: Ms. Valerie Poindexter, Member STATEMENTS The Chair directed the Committee to proceed to the next order of business, FROM THE Statements from the Public on Agenda Items. PTTBLTC`, ON AGENDA ITEMS: The Chair called Thomas Yeh, representing RCFC Kaloko Heights, who registered to speak regarding Res. 86-19 (Comm. 148), and came forward when called. CHR. RICHARDS: Thank you, Mr. Yeh. Are there any other, did anybody walk in, in any of the remote sites to have public testimony? I'm seeing no one on the screen, and I have nothing further here. So thank you, I will close public testimony. Mr. Clerk, Order of Resolutions please, read in 86-19. COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. (There were none.) AWEEMC-3 March 12, 2019 ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. Res. 86-19: AUTHORIZES 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 IN ANE KEOHOKALOLE HIGHWAY The extension would provide service to the planned subdivisions Kaloko Heights Phases I and II, and the Hawaii Island Community Development's planned low income housing project, adjacent to the subject property, pursuant to Section 21-26.1, Hawaii County Code. The parcels are located on the north and south sides of Hina Lani Street. Reference: Comm. 148 Intr. by: Mr. Richards (B/R) Motion to Approve: Ms. Eoff moved to recommend passage of Res. 86-19 on first reading. Seconded by Ms. Kierkiewicz. CHR. RICHARDS: Any comments from my fellow colleagues? Okay, Council Woman Eof£ MS. EOFF: Mr. Chair, I would just like to say that it's a great opportunity that we have a developer who's going to be actually providing these community benefits. Not only the sewer line, but the affordable housing. So I feel very supportive of this project. I don't know all the details, and maybe we'll learn more today. But on the face and from what I've been told previously, I feel like this is something that we as community will benefit from. Thank you very much. CHR. RICHARDS: Thank you, Council Woman. Any other comments or questions? Council Woman Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair Richards. I just had a question for the applicant. Mr. Yeh, you mentioned that someone was part of your team leading the improvement district efforts, so I was wondering if he or she could come up and explain the process that was undertaken to engage community. I think it's just a very intriguing public private community partnership. But it requires extensive work, and so I just would love to learn all of your efforts involved to make that happen. (Note: At this time, Attorneys Thomas Yeh and Steven Menezes came forward to address to the members of the Committee.) MR. YEH: And again, this is Thomas Yeh here with me today is Steven Menezes. Just a little background before he launches into some of the questions you're asking. Steve was Corporation Counsel back in the 80's, also assisted with Page 2 AWEEMC-3 March 12, 2019 the TSA development's improvement district work, which included the lower sections of Hina Lani and waterline improvements along with some reservoirs. So the reason he's part of this team is, as we look forward Steve can kind of brief you a little bit on how this finance and fund is going to work. MR. MENEZES: Yes. Good afternoon Mr. Chairman and Council Members, I'm Steve Menezes and one of the attornies working on this project. What was the question? MS. KIERKIEWICZ: Thank you for being here. I was just wondering if you could walk us through the process of the improvement district you've created for this project. The method in which you engaged community, because my understanding is you need to reach out into the community and there's a certain percentage of folks that are impacted by this project that need to buy into it. I think it's like 60 percent or two-thirds, so just very interested in your process, how long it took, if you felt there were any challenges. MR. MENEZES: Okay, thank you. The improvement district process actually hasn't yet begun. The first step is—what we're here today for—is to obtain the County approval for the extension of the existing sewer line. We're going to get the improvement district process underway very soon. We've already had preliminary discussions with the Administration, with County's Bond Counsel, Brian Hirai in Honolulu, Corporation Counsel Office and so on. Now that's correct, this is true that we can have improvement district with 60 percent of the people who are going to be served approved, but there's also provision in the County Code, Chapter 12, Improvements by Assessments, that allows for a 100 percent district. In a case of a 100 percent district, which is what we're going to propose. The developer, essentially we own 100 percent of the land that's going to be assessed. We're going to pay for the entirety of the improvement district bonds once there issued. So there's no need to obtain support from others in the surrounding area, because they won't be assessed. The entire assessment will be on RCFC lands, which Tom pointed out earlier on the map that you have in front of you. So it won't be a 60 percent district, it's a 100 percent district. But to just answer the rest of your questions briefly. The process will start with the petition from our client, RCFC, for a 100 percent district. The petition will be presented to the County Council. The County Council will by resolution hopefully approve going forward with the improvement district. Then there's likely to be a number of resolutions along the way. There's the requirements in the County Code that the lands be appraised at twice of the amount of the bonds that are to be issued; things like that. There will probably be a least a handful of resolutions having to do with the improvement district along the way. We anticipate a process of possibly a year going through the County Council, before the bonds are issued. Page 3 AWEEMC-3 March 12, 2019 At the end of the process, the Council will enact an ordinance hopefully approving of the bond, approving the issuance of the bonds. At which time the County will issue the bonds, we will have an underwriter lined up already to purchase the bonds. It isn't something that's going to just go out, and hopefully somebody will buy $8 million worth of bonds. The cost of the sewer line is at the present time anticipated to be approximately $8 million. Cost likely to rise as plans are finalized and time goes on. So there'll be an underwriter prepared to buy the entire issue at the very end of the process when the County authorizes the issuance. The Council authorizes the issuance by way of improvement district ordinance. So that's kind of the process. There won't be a need for public hearings. Why? Because we're the only ones that are affected as far as having to—we pay the bonds. MR. YEH: And what if I could add too—basically HICDC's (Hawai`i Island Community Development Corporations) timeline, they want to try and be hooked up to the sewer line by summer or fall of 2021. So from a timeframe we're looking basically a little bit over two years from now, which is a relatively quick timeframe. But the first step to get there really is this approval of the sewer line extension. HICDC will hook up, they're not going to be a part of this improvement district, so their property is not going to get assessed. We've already conveyed the land to them, as well as water units. You know, interesting thing like you're asking about is, yes, it's a 100 percent which is the properties that are involved that we represent. But the downstream owners so to speak will benefit from that in the future. So for those reasons we think it's probably a good way to go for everybody. MR. MENEZES: And then of course the County has no financial obligation with respect to this, its all the cost of the improvement district are being born by the developer. If there's a default on the bonds, the County is not responsible. The lands are responsible. The lands are serving as a security for repayment of the bonds. CHR. RICHARDS: Thank you. Council Woman? MS. KIERKIEWICZ: Thank you, for being here and taking the time to explain, and I did want to note that the flowline is operating via gravity similar to the project that was recently completed on Oahu. The Kaneohe-Kailua gravity sewer tunnel, so it's great that we are taking advantage of that sort of natural asset to make this project happen. So thank you, Chair, I yield the floor. CHR. RICHARDS: Thank you. Before you run off, hang on. Any other questions for our people? Okay, thank you. Appreciate it, thank you. Thanks for coming before us today. Alright is there any other discussion that people would like to have concerning this resolution? Hearing none, I'll call for the question. All signify by saying "aye." Page 4 AWEEMC-3 March 12, 2019 Vote on Res.86-19: The motion to recommend adoption of Res. 86-19 was ,(Approved) carried by the following voice vote: Ayes: Committee Members Chung, David, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Villegas, and Chair Richards — 8. Noes: None. Absent: Committee Member Poindexter — 1. Excused: None. CHR. RICHARDS: So we can move it to Council with a positive recommendation. Clerk, is that the end of our agenda? BILLS FOR The Chair directed the Council to proceed to the next order of business, Bills ORDINANCES: for Ordinances. (There were none.) ADJOURN- There being no further business, at 1:15 p.m., Ms. Lee Loy moved to adjourn MENT: the meeting. Seconded by Ms. Kierkiewicz and carried by the following voice vote: Ayes: Committee Members Chung, David, Eoff, Kaneali`i-Kleinfelder, Lee Loy, Richards, Villegas, and Chair Kierkiewicz — 8. Noes: None. Absent: Committee Member Poindexter — 1. Excused: None. CHR. RICHARD S : Stand adjourned. Approved: r Mr. Herbert M. "TiV.ergy ichards, III, Chair Agriculture, Water, and Environmental Management Committee I fqn. L�1,'2*111 (Date) Page 5