It looks like I forgot to have you update the connection references...
$kfm_db_host = $hostname_PowerCMSConnection;
$kfm_db_name = $database_PowerCMSConnection;
$kfm_db_username = $username_PowerCMSConnection;
$kfm_db_password = $password_PowerCMSConnection;
should be:
$kfm_db_host = $hostname_local;
$kfm_db_name = $database_local;
$kfm_db_username = $username_local;
$kfm_db_password = $password_local;