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Form B-52 7/18/91 DEPARTMENT OF FINANCE REQUEST FOR COUNCIL ACTION DEPARTMENT: Dept of Environmental Management DATE: 8/6/09 STAFF CONTACT: Dora Beck PHONE: 961-8513 A. REQUEST: An Ordinance authorizing the Mayor of the County of Hawai'i to enter into an intergovernmental agreement for a loan in the amount of $18,000,000 from the State Water Pollution Control Revolving Fund (SRF) loan program for wastewater public improvement projects; and authorizing the issuance of general obligation bonds of the County of Hawai'i for the purpose of financing qualified wastewater public improvements of the County of Hawai'i. Amend Ordinance 09-65, Capital Improvement Budget, to add a SRF appropriation for the following project: Queen Lili'uokalani Village LCC Replacement, for $18,000,000. Waive Finance Committee review and have this item heard at the 08/19/09 Council meeting so that bid notice publication for this project may meet the 8/31/09 deadline in order to stay qualified as a "back-up" project for ARRA funds administered under the SRF loan program. B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): The Queen Lili'uokalani Village Subdivision was constructed pursuant to Hawai'i Revised Statutes Section 46-15 by the County of Hawai'i who has been responsible for owning and maintaining the substandard wastewater collection system and thirty-two (32) large capacity cesspools (LCC) originally serving the subdivision since the 1970's. Under a Consent Agreement and Final Order (CAFO) with the U.S. Environmental Protection Agency, the County is required to replace the close the LCCs by June 1, 2010 and replace the existing system with an acceptable wastewater collection, treatment and disposal alternative. The County will fund the construction of a new replacement collection system that meets County standards within the subdivision. The new collection system construction will continue beyond the confines of the subdivision and be connected to the existing County sewer system where sewage will be conveyed to the Kealakehe Wastewater Treatment Plant. In addition, on the basis described in County of Hawai'i Resolution No. 615-08 the County will fund the replacement of sewer laterals at 182 residences plus the community center. Approximately 1.400 lineal feet of collection system line has already been installed under the Department of Public Works Palani Road Widening Project in efforts to reduce future traffic disruption and public safety issues at the Palioholo and Palani Street intersection. In response to prior inquiries for SRF funding, the State Department of Health indicated unavailable SRF funds until year 2010. In addition, the project readiness status at the time did not place this project as a primary to receive funds from the first round of ARRA funding. SIGNED: A j / DATE: 8-6-09 Department Head