COUNTY OF MAUI, BOARD OF WATER SUPPLY
RESOLUTION NO. 07 (1999)

APPROVING THE RECEIPT AND EXPENDITURE OF MONIES FOR
THE OLINDA WATER TREATMENT FACILITY (Project) FUNDED BY THE
SAFE DRINKING WATER STATE REVOLVING FUND; AND AUTHORIZING 
THE DIRECTOR OR DEPUTY DIRECTOR TO REDUCE OR REPLACE UP TO 
$4.1 MILLION, THE AMOUNT CURRENTLY ENCUMBERED BY CONTRACT, PLUS 
CHANGE ORDER AMENDMENTS IN THE FORM OF A LOAN AGREEMENT 
BETWEEN THE STATE OF HAWAII (State) AND
BOARD OF WATER SUPPLY, COUNTY OF MAUI (BWS)



	WHEREAS, the BWS adopted Resolution No. 21 (1998) on November 17, 1998 which 
authorized the Director or Deputy Director for the Board of Water Supply to request for 
and execute State loan/grant applications and agreements for the planning, design, and 
construction of certain drinking water treatment projects to achieve or maintain compliance 
with the Safe Drinking Water Act to be funded by the Safe Drinking Water State Revolving 
Loan Fund; and

	WHEREAS, pursuant to such authorization, the BWS may apply for loan and grant 
assistance for various drinking water treatment projects; and

	WHEREAS, the State Department of Health may execute a loan for the Project; and 
	
	WHEREAS, the BWS appropriated monies for all of such costs as encumbered, totaling 
$4,063,016 as follows: under Contract No. WC0049 in the amount of $248,021 on February 14, 
1996; under Contract No. WC0091 in the amount of$911,022 on May 30, 1997; under Contract No. 
WC1049 in the amount of $87,600 on May 22, 1997, under Contract No. WC2049 in the 
amount of $135,622 on December 10, 1997, under Contract No. WC0093 in the amount of $2,462,500 
on May 29, 1997; under Contract No. WC1093 in the amount of $69,429 on December 3, 1997; under 
Contract No. WC2093 in the amount of $148,822 on February 25, 1998; and the BWS has expended 
encumbered monies as progress payments for the Project; and

	WHEREAS, under the Constitution of the State of Hawaii, Hawaii Revised Statutes, 
and the Charter of the County, the Board may by resolution request and consent to the issuance 
of general obligation bonds of the County for constructing and acquiring capital improvements 
of the Department of Water Supply, and to pledge the revenues of the Department to the payment 
and security of such general obligation bonds; and

	WHEREAS, for the purpose of this Resolution, any loan from the State Safe Drinking Water 
Fund shall constitute a bond obligation of the BWS; therefore

	BE IT RESOLVED by the Board of Water Supply of the County of Maui, State of Hawaii:

1.  That the Director or Deputy Director for the Board of Water Supply is hereby
authorized to reduce or replace up to $4.1 million in funds advanced by the BWS 
to undertake the Project in the form of a loan agreement between the State Department 
of Health and the Board of Water Supply, County of Maui; and

2.  That the receipt and expenditure of loan monies from the Safe Drinking 
Water State Fund for the Project is hereby approved; and

3.  That the monies received as a loan be used to reduce or replace funds 
advanced by the BWS to undertake the Project; and

4.  That the monies received as a loan and the resulting debt service be included as a
part of the BWS debt service with annual payments budgeted according to the debt 
service schedule provided by the State of Hawaii; and

5.  That the funds borrowed by the Board are to be held to the same standards as
funds borrowed through the issuance of bonds; and

6.  That the Board further pledges its revenues as security for repayment of the loan,
plus interest; and

	BE IT FURTHER RESOLVED that this Resolution shall take effect upon the adoption thereof, 
and that the Secretary be directed to provide certified copies of this Resolution to the Director 
for the BWS, the BWS fiscal Officer, the Maui County Mayor and Council, and the Director of the State 
Department of Health.


Approved as to form and legality

Gary Zakian, Deputy Corporation Counsel 
County of Maui