§15-19-21  Initial procedure.  (a)  The authority shall commence the assessment area process by directing the executive director to investigate and report to the authority preliminary information and data concerning the public facilities to be proposed or improved, the general character and the extent of any improvement or improvements to be proposed, whether the improvement or improvements should be assessed on a frontage basis, or an area basis, or according to the real property tax assessment on the value of the land and improvements, or floor area ratio basis, whether it will be necessary to acquire any new land, the estimated cost of acquiring the land and the proportion of the cost which should be borne by the authority and the county, the materials recommended for the improvement or improvements, the boundary of the assessment area to be proposed, the various types of improvements and the costs to be assessed for each, the portion of the cost to be borne by the authority, the portion of the cost to be borne by the county in which the improvements are situated, and the portion of the cost to be specifically assessed against the real property specially benefited with the estimated total amount of assessment to be made against each property according to the method of assessment proposed, and furnish all available preliminary surveys, maps, plans, drawings and other data, details and specifications for the improvement or improvements and any other matter of details intended to apply thereto.
 (b) The authority may approve the undertaking of engineering design of these improvements at any time preceding or following the initiation of the assessment area procedure.
 (c) If the improvement or work proposed to be undertaken includes the construction or improvement of a water system or the laying or installation of conduits, pipes, hydrants or any appliance for supplying or distributing water, the executive director shall so inform the county board of water supply.  Should the county board of water supply agree to provide the authority with preliminary plans and estimates for the proposed water system, the executive director shall furnish the county board of water supply with the available information which will enable the county board of water supply to make its plans and estimates for the proposed water system.  The executive director shall incorporate the preliminary plans and estimates of the county board of water supply in his report to the authority.
 (d) The executive director shall furnish the county with information on the proposed improvements which will enable the county to provide input on the matter.  The executive director shall incorporate the county's recommendation in his report to the authority.
 (e) The authority may adopt the plans and estimates furnished by the county board of water supply which are incorporated as part of the executive director's report.
 (f) The authority shall, to the extent possible, notify all affected landowners of the information contained in the report.  County and state officials shall also be kept informed of the proposed improvements.  [Eff 9/17/84] (Auth:  HRS §§206E-4, 206E-6) (Imp:  HRS §§206E-4, 206E-6)
 

 §15-19-22  Public hearing.  (a)  After receipt of the executive director's report, the authority may act to propose the making of an improvement or improvements and creation of assessment areas based upon the information and data provided in the report.  Assessment area rules shall also be drafted incorporating the latest available data.  Public hearing on the assessment area rules may be held together with the hearing on creation of the assessment area.
 (b) Notice of public hearing shall comply with the requirements of chapter 91, HRS, and at least once in a daily newspaper of general circulation in the county and state in which improvements are proposed.  The notice shall contain a statement describing the proposed assessment area rules, including the description of the assessment area, the real property proposed to be assessed or acquired and the general details of the proposed improvement or improvements.  The notice shall also state the time, date and place of the public hearing wherein persons may object to and suggest modifications to the proposed improvement or improvements and where the reports and other data relating to the proposed assessment area or areas may be seen and examined prior to the hearing.
 (c) In addition to the notice requirement of subsection (b), notice by certified or registered mail with a request for a return receipt shall be given to the several owners and lessees on record at the county department of finance.  The notice shall be mailed to the address on record at the department and shall be sent no later than the date of notice of public hearing and shall state the time, date, and place of the hearing where persons may object to and suggest modifications to the proposed improvement or improvements and where reports and other data relating to the proposed assessment area or areas may be seen and examined prior to the hearing.
 (d) Rules required by this section shall define and establish the assessment area or areas, define the extent and describe the general details of the proposed improvement or improvements, describe each parcel of real property to be acquired, declare the part or portion of the cost of improvement or improvements to be borne by the authority, declare the part or portion of the cost of improvement or improvements to be borne by the county, declare the method of assessment, the portion of the cost of the improvement or improvements to be borne by the owners of real property, and the assessment on each lot.  [Eff 9/17/84, am 1/29/90] (Auth:  HRS §§206E-4, 206E-6) (Imp:  HRS §§206E-4, 206E-6)
 

 §15-19-23  Determination by the authority.  (a)  After holding the public hearing provided for in section 15-19-22, the authority shall determine whether or not the proposed improvement or improvements and the creation of the assessment area shall be made and, if made, whether the rules setting forth the details of the assessment program should be adopted.  A determination to proceed with the improvements shall require an affirmative vote of not less than two-thirds of all members to which the authority is entitled.
 (b) If the authority determines to proceed with the improvement or improvements, it shall adopt the rules as heard or with modifications and direct the executive director to prepare construction bid documents, including a map of the assessment area or areas showing the exact location of the proposed improvement or improvements together with final details, plans and specifications for the work in a form to call for and encourage competitive bidding, wherever feasible.  The description and definition herein required may be set forth expressly or be incorporated therein by referring to the data of the preliminary assessment area map and report or to the final engineering design report theretofore presented to the authority.
 (c) If the proposed improvement or improvements include the construction or improvement of a water system, the authority shall work with the county board of water supply and prepare final details, plans and specifications for adequate and appropriate conduits, pipes, hydrants and other appurtenances for a water system and shall, upon completion, make them available to the county board of water supply.  The map of the assessment area or areas showing the exact location of the proposed improvement or improvements, and the final details, plans and specifications of the authority and the county board of water supply shall be used as the basis for the calling for bids and awarding of contract.  [Eff 9/17/84] (Auth:  HRS §§206E-4, 206E-6) (Imp:  HRS §§206E-4, 206E-6)
 

 §15-19-24  Construction contract bids and conditional award.  (a)  The authority shall advertise for bids on the construction of the approved improvements.
 (b) The lowest responsible bidder shall be awarded a conditional contract, subject, however, to the holding of a public hearing on the final assessment area rules, approval by the authority and by the governor of the final assessment area rules, and the availability of sufficient funds.
 (c) Where improvements within an assessment area are divided into sections or portions for the purposes of calling for bids thereon, construction costs for said sections or portions may be consolidated for the purpose of determining assessments or expenses.  [Eff 9/17/84, am 11/1/85] (Auth:  HRS §§206E-4, 206E-6) (Imp:  HRS §§206E-4, 206E-6)
 

 §15-19-25  Hearing on final assessment area rules.  (a)  After the bid of the lowest responsible bidder has been received for the construction of the improvements, the authority shall hold a public hearing on the final assessment area rules.
 (b) Final assessment area rules shall incorporate data from the final assessment area report.  The rules shall include an assessment roll, a description of properties to be assessed including all data required in the application of the assessment formula, the amounts proposed to be assessed against the property in the benefited area or in the several subareas or zones thereof, if any, and a list of all owners and lessees on record with the county department of finance, of the land fronting upon the highway or highways or situated within the assessment area.
 (c) Public hearing notice shall be provided as required by chapter 91, HRS.  [Eff 9/17/84] (Auth:  HRS §§206E-4, 206E-6) (Imp:  HRS §§206E-4, 206E-6)
 

 §15-19-26  Hearing on individual assessments.  (a)  Prior to the award of the construction contract referred to in section 15-19-24 of this chapter, the authority shall afford landowners and lessees a hearing on the equity in the application of the assessment formula to individual lots.  The hearing may be combined with the hearing on the final assessment area rules.
 (b) The hearing held under this section shall satisfy the requirements of chapter 91, HRS.  [Eff 9/17/84] (Auth:  HRS §§206E-4, 206E-6) (Imp:  HRS §§206E-4, 206E-6)
 

 §15-19-27  Notice of improvement authorized.  (a)  After the bid of the lowest responsible bidder has been received for the construction of the improvements, and a hearing is held on the final assessment area rules, the authority shall thereupon give notice as to its decision on the rules.  Data regarding the total amount of the cost of the improvement or improvements based upon the bid of the lowest responsible and reliable bidder, the share per front foot or per square foot or real property tax assessment or per floor area ratio, as the case may be, proposed to be charged to the benefited area or subareas or zones, if any, and the assessment map, assessment roll and description of properties shall be made available for examination at the office of the authority during business hours.  [Eff 9/17/84] (Auth:  HRS §§206E-4, 206E-6) (Imp:  HRS §§206E-4, 206E-6)
 

 §15-19-28  Acquisition of land.  (a)  In the event the improvement or improvements proposed require the acquisition of any land therefor, the authority shall acquire the same before final award of the contract, either by deed, or other voluntary conveyance from the owners thereof, or it may, at its option, and in the name of the authority cause condemnation proceedings to be brought to acquire the same in like manner as by law provided or in like proceedings when brought by the State, and after the filing of the petition in the proceedings the final award of the contract may be made.  If the cost of acquiring the land exceeds the estimate, the authority may seek additional appropriations to provide for the excess cost.
 (b) Land acquired through condemnation shall be pursuant to chapter 101, HRS.  [Eff 9/17/84] (Auth:  HRS §§206E-4, 206E-6) (Imp:  HRS §§206E-4, 206E-6)
 

 §15-19-29  Compliance with community development district plan.  Notwithstanding any provision of this chapter to the contrary, improvements shall not be constructed under authority of this chapter unless the improvements conform to the community development district plan adopted for the assessment area.  [Eff 9/17/84] (Auth:  HRS §§206E-4, 206E-6) (Imp:  HRS §§206E-4, 206E-6)
 

 §15-19-30  Contract, bids, bonds.  (a)  All improvements made under the provisions of this chapter shall be constructed under contract let to the lowest possible and responsible bidder, after public advertisement by the authority in a newspaper of general circulation published in the county in which the improvements are proposed.  The authority may either let the work as an entire contract, or in its discretion, make one or more contracts separately for each assessment area or the various types of work to be performed, or the various public facility systems to be improved under one proceeding.  All bids shall be accompanied by a deposit of legal tender or by a certificate of deposit or certified check on a bank doing business within the State or a sufficient surety bond payable to and in favor of the authority under the terms and conditions as are determined by the authority.  The authority may, in its discretion, impose any other reasonable terms, conditions, and requirements relating to the letting of the contract.  No contract shall be made without a bond to the authority, for the faithful performance of the contract, under the terms and conditions as are determined by the authority.
 (b) The provisions of chapter 103, HRS, shall be applicable to all contracts entered pursuant to this chapter.  [Eff 9/17/84] (Auth:  HRS §§206E-4, 206E-6) (Imp:  HRS §§206E-4, 206E-6)
 

 §15-19-31  Inspection and use of improvements by the county.  The authority may request the county in which the improvements are situated to maintain an inspector over the work to see that the plans and specifications have been complied with.  After the work has been accepted by the county, the public facilities shall be a part of the county system, and shall at all times thereafter be used, operated, and maintained by the county as part of its system.  [Eff 9/17/84] (Auth:  HRS §§206E-4, 206E-6) (Imp:  HRS §§206E-4, 206E-6)
 

 §15-19-32  Water system, inspection and use of system by county board of water supply.  If an improvement or work includes the construction or improvement of a water system, the authority may request the county board of water supply to maintain an inspector over the work to see that the plans and specifications which it has furnished have been complied with.  After the work has been accepted, the water system, pipes, conduits, hydrants and other appurtenances for supplying or distributing water so installed shall constitute a part of the system of the county board of water supply and shall at all times thereafter be used, operated and maintained by it as a part of its system.  [Eff 9/17/84] (Auth:  HRS §§206E-4, 206E-6) (Imp:  HRS §§206E-4, 206E-6)
 

 §15-19-33  Reassessment on refunding.  (a)  In the event the authority makes a preliminary determination that it would be advantageous to the State, the authority, the property owners and the lessees within an assessment area for which assessment area bonds have been issued to proceed with a refunding of all or part of such assessment bonds, it shall direct the executive director to investigate and report to the authority preliminary information and data concerning such refunding, including the remaining costs of improvements specifically assessed against the real property specifically benefited and any additional costs related or incidental to effecting such refunding, with the estimated total amount of assessment to be made against each property after the refunding utilizing the same method of assessment applied upon the original assessment.
 (b) If such information and data reflect that such refunding would result in a decrease of the total amount of the installment payments then in effect within such assessment area for all assessments being paid in installments, the authority shall publish a notice of proposed refunding of assessment area bonds in a daily newspaper of general circulation in the county in which such assessment area is situated, such notice to include a description of the assessment area, the real property assessed or to be assessed, and a general description of the proposed refunding.  In addition to the publication of such notice, a copy of such notice shall be mailed by certified or registered mail with a request for a return receipt to the several owners and lessees on record at the county department of finance.
 (c) If the owners or lessees of at least 25 per cent of the real property within the assessment area to be assessed shall file a petition with the authority within 30 days of the date of mailing the notice referred to in subsection (b) above, requesting a public hearing on such refunding, or if such refunding would have the effect of causing an increase in the amount of the assessment then in effect for any property within the assessment area for which such refunding is proposed in any subsequent fiscal year, the authority shall hold a public hearing on the advisability of effecting such refunding.  Notice of public hearing shall be given in the same manner as required by Sec. 15-19-22, except the contents of such notice shall relate to the proposed refunding rather than improvements.
 (d) After any public hearing held pursuant to subsection (c) above, or if no petition is filed within the time permitted under subsection (c) above, the authority shall determine whether to proceed with the refunding.  [Eff 2/22/93] (Auth:  HRS §§206E-4, 206E-5, 206E-7) (Imp:  HRS §§206E-4, 206E-5, 206E-7)