Shall the Authority Authorize a Transfer of $200,000Posted on Sep 1, 2017 in Main
STATE OF HAWAII
HAWAII COMMUNITY DEVELOPMENT AUTHORITY
Kakaako Community Development District
Honolulu, HI 96813
September 6, 2017
Chairperson and Members
Hawaii Community Development Authority
State of Hawaii
HCDA Board Members:
SUBJECT: Shall the Authority Authorize a Transfer of $200,000 from the Hawaii Community Development Revolving Fund, Improvement District Subaccount, to the Kalaeloa Community Development Revolving Fund, for the Removal of Materials Stockpiled at the Kalaeloa Heritage Park?
The Authority is being asked to authorize the Executive Director to transfer $200,000 from the Hawaii Community Development Revolving Fund (Improvement District Subaccount) to the Kalaeloa Community Development Revolving Fund to remove materials stockpiled at the Kalaeloa Heritage Park.
- Hawaii Revised Statutes (HRS) § 206E-6(g) District-wide improvement program, indicates that any surplus funds remaining after payment of bonds chargeable against such fund shall be credited to and become a part of the Hawaii community development revolving fund, and does not attach any explicit restrictions on these funds. The HCDA has not outstanding bonds, and as of July 31, 2017, approximately $4.5 million was available in this subaccount.
- HRS 206E-195(b) Kalaeloa community development revolving fund, mandates that moneys directed, allocated, or disbursed to the Kalaeloa community development district, for the administration and operation of the district, be deposited into this fund.
HCDA staff has been working with the Kalaeloa Heritage and Legacy Foundation (KHLF) to resolve a stockpile at the site of the Kalaeloa Heritage Park. On September 23, 2013, the HCDA received a Notice of Violation, NOV-09-085 and subsequent Notice of Order, NOO-262 dated December 19, 2013 from the City and County of Honolulu, Department of Planning Permitting (DPP). Further details about this stockpile is summarized in a timeline, included as Attachment 1. As landowner it is imperative that this matter is resolved timely, with a preference before its current stockpiling permit ends in May of 2018.
Relative to its remediation options the HCDA could pursue either off-site disposal of the materials or grading the material on-site, with any materials not suitable for grading hauled off- site for disposal.
Off-site disposal would require loading the material and hauling the material to an appropriate site for disposal. While it is the quickest method, it’s also the most costly with hauling and tipping fees. Cost savings could be realized by sifting the material into its components as tipping fees vary by material type. HCDA staff have discussed this option with an environmental consultant resulting in a cost estimate between $500,000 and $800,000
Grading the material on-site would also require separating the material to identify and layer the suitable grading material. It reduces costs as leaving the material on-site greatly reduces both hauling and tipping charges. A grading permit would be required which increases the amount of time needed to resolve the matter. HCDA staff have discussed this option with an environmental consultant resulting in a cost estimate between $225,000 and $400,000
On August 17, 2017, HCDA staff met with KHLF and a local developer in the process of doing site preparation work that is interested in the stockpiled material to fill voids on its site; including the boulders, concrete and asphalt chunks. The developer required that vegetation be removed from the stockpile and would not take any painted concrete or scrap metal. The developer has also agreed to waive its tipping fee. The developer has performed its own environmental testing of the material verifying that it is safe for their use.
KHLF has agreed to work to remove the vegetation, however materials must be loaded and delivered to the developer’s site, however does not have adequate funds to load and transport the material. The stockpile is approximately 2,259 cubic yards and is estimated to take between 100-150 loads to relocate and could be done in one week’s time for an estimated cost of $200,000.
The transfer of funds requested is to take advantage of this opportunity and ultimately resolve the outstanding violation. Time is of the essence as the developer’s interest in the material is limited to a two-month window which corresponds to its project timeline for site preparation.
To meet the developer’s timeline, HCDA staff will need to work efficiently as the services will need to time to procure the work and the awarded contractor will need time to mobilize.
At $200,000, the proposed remediation cost would be lower than the low-end cost estimate for off-site disposal of $500,000. The cost efficiencies are the result of:
- Waiver of tipping charges by the developer;
- Shorter hauling distance – estimate was based on a trip to the landfill, whereas the developer’s site is in Kapolei; and
- The developer is not requiring that the material be sorted, only picked.
The $200,000 cost estimate is also lower than on-site grading which could take as long as 18-months to complete after necessary permitting and procurement.
As there is some uncertainty as to the composition of the stockpile, there is uncertainty as to the volume of material that will be retained on-site. However as the estimate is based on moving the entire stockpile we believe the funds may be adequate for loading and hauling, exclusive of tipping fees required for the disposal of any remaining items.
As the Kalaeloa Community Development Revolving Fund does not have adequate funds after budgeted expenses, under HRS § 206E-196, funds would need to be transferred from the Hawaii Community Development Revolving Fund to cover these costs. Any excess funds available after the removal of the stockpiled material, or funds that are subsequently recaptured, would be returned to the Hawaii Community Development Revolving Fund.
Staff recommends approval to authorize the Executive Director to transfer $200,000 from the Hawaii Community Development Revolving Fund (Improvement District Subaccount) to the Kalaeloa Community Development Revolving Fund for the removal of stockpiled materials at the Kalaeloa Heritage Park site.
Aedward Los Banos
Administrative Services Officer
APPROVED FOR SUBMITTAL:
Jesse K. Souki, Executive Director
Hawaii Community Development Authority
Attachment 1 – Kalaeloa Heritage and Legacy Foundation Notice of Violation Timeline