We have started becoming more proactive. Uh I've looked into getting a plumber to come and inspect our pipes every 3 to four months. just give us run a snake down six drains every four months and there's enough drains around here that we can do that. But we've never done that at this point. We've always just waited until something broke. What if we got a little bit ahead of that? >> Yeah, that's good. >> SFB, the uh school facilities board, how many projects do we have? How many have we requested of them and how many have they fulfilled? if you can even answer that. >> Yes sir, I can. Um, currently there are the SFD Blue Ridge United uh Unified School District has a total of 41 projects in the SFD log. Currently, >> 26 of those are needing to be finished in one way or another before they move on to the other 18 of them.
Um and if you want to start the hearing, or if I can field any questions, or if Eric is here, he will be going through the resolutions for you to approve. Again, these resolutions are strictly for the formation, and Eric will do a much better job than I am of butchering the building corporation talk and the resolutions. This is not about the bond and the project. This is about the building corporation and our relationship with that building corporation to be able to fund the bond. >> Thank you, Mark. Um we'll now open the public hearing.
All right. Uh for the sake of calling you back up here, Deputy Superintendent, please make sure that your statements are factual. Uh because it's very frustrating to at least myself when I have questions. you make a statement and it is not true. Uh so let me just move on to my next point. Uh uh out of the $31 million, how many how much do you know how much money is school impact fees and how much is fair share? >> Yeah, 9 million in fair share balances and 22 million in impact fees. So it's a total of 31 million we're talking about. But again because there needs to be a constitutional nexus. It has to be narrowly tailored on where you spend it. Right? It has to be tailored for the Khali Alamada area. It has to be tailored for central Maui. Has to be said to pro city.
Uh these can range from a various sidewalk repair which maybe I may be removing out of the SFD just to kind of make things move faster and come back and address reprioritize what we have in the SFD. But as of this moment uh yes sir we have 41 total projects. Love to go over with any of them with you at any time. Yes sir. Uh, have they funded all 41? >> I do apologize. I really did mean to have that number for you. Um, to say what they have funded in the last three years and then five years. They have been funding majority of our requests. Um, that being said, of course, the funding takes several design phases, several this phase, and then there's a construction phase, and then there's the usual fun of trying to sort out the invoices and then getting the SFD to to actually award the money.
Um as I mentioned earlier, if anyone would like to speak, you can come up to the podium and ask any questions to you, Mark, or the board. Go on. Okay. All right. Um at this time, uh we will close this hearing. Um so, I'll ask um the board for a motion to close. >> I'll make that motion. >> Second. >> Motion and a second. All those in favor signify by saying I. >> I. Motion passes. Okay, we will now be voting on each resolution as it relates to the bond. Eric Long from Ice Miller will discuss each resolution individually. Eric, could you please summarize the first resolution, the resolution authorizing executive exec execution of lease. >> [laughter] >> Certainly. Thank you, President Armstrong, members of the Board of Administration. Um yes, once again, Eric Long with Ice Miller. It's my privilege to be here again this evening to um discuss, as Mr.
That's the challenges, right? Meaning the constitutional test of Nolan Dolan. So you don't go a follow of the US Supreme Court language and you use it properly for prek, charter or or new schools to increase capacity, not to improve, renovate or retrofit. It has to increase capacity because that's the exaction. >> Are you in favor of repealing the school impact fee? >> Yes. >> Okay. Uh >> my point is 20 years of nothing, no impact. >> Let's clean slate, figure something better. Yeah. spend what we have before we have to return it to the developers. We we figured out a way to to do that. It'll probably use for prek or charters, but we can spend that money, make it put it to some use, right? >> Okay. What about the old system, the fair share develop? >> I mean, we have to we could sweep that money and use it for the same use because it's for education, right?
Uh, so it is a longer drawn out process than I ever imagined when I started doing it. Um, but I am very excited for the way the SFD is now responding to us. Uh I actually have a very good relationship with Sean and uh we have been moving forward at a pace that we have not moved forward in quite a while. That's appreciated. Um I did have one more question about SFB and how like if you put a project in and it doesn't get funded within 12 months, does that stay in their uh their uh log or do you have to redo that every 12 months? >> No, sir. It stays in their log. In fact, that's mostly of what I'm cleaning up of the 24 project is I am cleaning up invoices for a water source heat pump from 2023 that this or that paperwork wasn't filed and then the money wasn't awarded to the district.
Ron mentioned, just the the lease agreement and the appropriation of bond proceeds, which must occur in the year in which you're going to issue bonds, which is why we're doing this in 2026, not last year when this project was um off the ground. So, the first resolution is um as President Armstrong mentioned, the resolution authorizing the execution of the lease. Um this is the agreement with the building corporation that allows for the repayment of the bonds through property taxes, um the same vehicle that we've utilized several times with the Cal County Central um in prior years through the building corporation financing process. >> Thank you, Eric. Could I have a motion to adopt the resolution authorizing exec exec execution of lease? I don't know why I'm struggling with that. Sorry. >> I'll make a motion. >> I'll second. >> I have a motion and a second.
>> I have a followup. Chairs, if I may, Mr. Fujitani has a question. Uh >> Mr. Fujitani, if the legislaturator's intent is to repeal these sections, sort of part two from last year, would SFA, if you were given that authority to do all these things, would you be able to execute? >> Again, we need the money to come to us first in our account and then we need approval from the legislature to spend to that ceiling. We need a leg, we need >> this is if you were given that mandate specifically, you would be able to do it. >> Yes. >> Okay. Thank you. Senator, >> thank you. Um, so Senator Ricky, for the school impact fees, um, the developer puts it into an account and is it only for certain schools in that district? >> Right. There's four impact districts. Leeward, Central, Khali, Al Moana, and West Hawaii.
And so, no sir, they stay in there until I cancel them or ask for them to be cancelled or whatnot or I >> fix them and close them. >> You've answered my questions. Does anybody else have questions? Michael Margaret, >> can you just name off a few of the major projects that they're involved in just so that we are so if we have some in mind that we know needed help? >> Yes, ma'am. And I will say that that list is far more extensive than my current members. >> I'm not going to hold you. >> Yeah, I'm not going to hold you to that. Just name off a few. So, some of the major ones are is yes, we are still at one of our board meetings, we talked about the SFD and the design for the elementary school roof was awarded. Um, it's still sitting there because we're waiting for the money.
All those in favor signify by saying I. >> I. >> Oppose? Motion passes. Eric, could you please summarize the additional appropriation resolution? >> Yes, the additional appropriation outlines the appropriation of funds received. So, at closing on the bond issue, um the school corporation made up with dollars on its side of the ledger pursuant to Indiana law to expend those proceeds, um we have to have an additional appropriation process. So, notice hearing um and a resolution again for any uh the proceeds of the bonds ended up on the school side of the ledger. Um obviously, with this uh being bond proceeds, it's going to be also, according to the resolution, placed in a specific construction account and spent only on the project. So, this is specifically for the bond proceeds. >> Thank you. Can I have a motion to adopt the additional appropriation resolution? >> I'll make a motion.
>> Okay. But it doesn't have to be for a new school. It could be to renovate older schools. >> Can't can't be for renovation. It has to increase capacity. So if you were to add capacity, Yes. >> Adding capacity to a current school, you could do that. >> Yes. >> Has any of that been done? >> No. >> Um, and one of the problems is that the Khali to the downtown or that area. A lot of the condos are coming up, but there's no need for new schools because the schools there, the growth isn't there as far as families, right? And so even though that area is getting the impact fees, we don't have new schools. But if if you folks get it and then you can we can do child care um preschools. Um >> yeah or charter capacity. >> Yes. >> Yeah. >> Yep.
We're waiting to go into construction. The pump house we are redoing. Uh, we are we've been living on a 1990s system where we have two huge white pressure tanks and we fill them with air and water and pressurize them. We're looking at redoing that. We're even possibly looking at making the well potable to save money for the district. There is We are looking into Let's see what are some of the other ones. The bigger ones that we've had was a lot of the fire alarms and the uh announcements speakers. We're cleaning that up. Um I'm sorry to say that. Yes, ma'am. Some of them are really failing, but there's a lot. How many >> from bleachers to sidewalks to floating the elementary? They're all over the place. Yes, ma'am. >> Do you think some of these major ones are going to get finished this year?
>> Second. >> I have a motion and a second. All those in favor signify by saying I. >> I. >> Opposed? Motion passes. Eric, could you please summarize the resolution assigning bids and contracts? >> Yeah, this is just kind of a reservation of rights resolution. So, the building corporation is going to be the issuer of the bonds and the holder of certain monies through a trust indenture. We will have a trustee bank who's a fiduciary. As a result, sometimes contractors find it more streamlined and easier to have their contracts directly with the building corporation. Some prefer to have it still through the school corporation. This just allows the school board to assign any such contracts pursuant to those projects to be directly with the building corporation if those contractors and you guys choose accordingly. Again, not a requirement, just a reservation of rights to allow you to do so.
>> So we need that flexibility. Yes. We need that flexibility. >> Yeah. But first we need the money transferred to us and then a legislative ceiling to spend the money >> to the OA said it's transferred. So >> we're going to follow up on that. >> Yep. >> Any further questions? Okay. Thank you so much. >> Thank you. We move to our next bill on this agenda. House Bill 2397H2 relating to school facilities. Transfer school impact fees from the Khi Alam Moana School Impact District to the school impact fees sub account of the school facilities special fund for the acquisition and renovation of one or more buildings in the downtown Honolulu area to develop and expand prek and charter school capacity. Our first testifier is the attorney general with comments. Afternoon again, Chair Chang, Chair Kim, the committee, Randall Watt, Deputy Attorney General Department. As further described in our written testimony, similar to the last bill to address those constitutional limitations, concerns talked about earlier about nexus and direct proportionality.
>> I am very confident. I I would like to say boldly that we will have a new pump house by the end of August is where I am working on that and having a brand new trustworthy system to supply drinking water to the district without worries. Uh that is one of my big ones right now. >> Yes. >> And that's >> uh we did just Thank you, sir. Thank you. Uh we just had the bleachers. The bleachers the football stadium bleachers. If you sat down on the wrong part of the bleachers, one of it might pop up a little bit or uh there was lots of safety issues. The handrails were a little shaky. Uh all of those have just been redone and re-safety been gone through. Uh so we now have that uh the bleachers inside the main gym on the visitors side. We want to take redo them and take down a couple rows so they don't encroach on the sports courts and the press tables without having a climbing apparatus at the top of the bleachers.
Again, just to allow some expediency for the spend down of the bond proceeds for the projects. >> Okay, thank you. Can I have a motion to adopt the resolution assigning bids and contracts? >> I'll make a motion. >> I'll second. >> I have a motion and a second. All I don't believe we need discussion. >> You can. If you want to discuss, discuss. You can discuss. >> Oh, okay. I thought you said we didn't need to. >> That was for the beginning and ending of the hearing. So, >> Oh, okay. I'm sorry. >> It's all right. >> I'm sorry. >> Okay. >> [laughter] >> Um, are there timelines associated with any of the either the adopted resolution or the approved supplement? Is there timelines or like draw points for the funding? >> Now, for that I would defer to our design and construction folks because from our perspective, we already have estimates for the projects.
We have recommended amendments to this bill and I'm available for questions. Thank you. Thank you. Um, school facilities authority in support. >> Yes. Rick, would you support this bill? >> Um, Hawaii State Public's Charter School Commission in support. >> Chang Kim committee Edno Executive Director Charter School Commission and we stand on our testimony in support >> and Johnny May Al Perry in opposition. Is there anyone else wishing to testify on House Bill 2397?
So, yes, ma'am. >> And coming back to the pump house project, if we can make when we talk about making some of these capital improvements to help out with our M budget so we can put more money back into the classrooms, if we can get our well, we're drawing water out of the same place that Arizona Water is um getting our water and selling to us. So if we can make our well potable here since we have water rights and that saves us tens of thousands of dollars that we can >> roughly about $80,000 a year sir >> that's more accurate that can be used for >> M. So that would save an M because that would come back in our water bill and then we could use once again put that type of money back in the classroom. So we appreciate u Mr. Bosley and the work that they've been doing on this and some of these pictures up here are >> yeah where to cooling tower cooling towers schools facilities board stuff.
And when we get to the bond closing, it's going to be and we could talk more about this. Uh Mr. Arman I talked before this meeting, um strategically, I I think there is discussion about doing the bond in more than one series so that you're only receiving proceeds as you see the need to draw them down. So, instead of just having one bond closing and getting all the bond proceeds and letting them sit there, um it's only going to be when you need the money. Um so, with that the timeline question I think that you're asking may involve um more directly looking at the spend down >> [clears throat] >> and a draw schedule from the construction perspective. From our perspective, the resolutions that we're passing tonight don't place any restrictions or put any guardrails around that. >> Now, I'll piggyback on that 24U. I've already begun conversations with Gorman Miller.