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Form #: B-52 7/18/91 DEPARTMENT OF FINANCE REQUEST FOR COUNCIL ACTION DEPARTMENT: Dept of Environmental Management DATE: 7/7/11 STAFF CONTACT: Dora Beck PHONE: 961-8513 A. REQUEST: An Ordinance authorizing the Mayor to enter into an intergovernmental agreement for a State Water Pollution Control Revolving Fund Loan for Wastewater improvement projects and authorizing the issuance of $8,000,000 General Obligation Bonds of the County of Hawai'i for the purpose of financing the following project: Kalaniana'ole Interceptor Sewer Rehabilitation Phase II $8,000,000 B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): The State Department of Health has indicated that funding through the State Water Pollution Control Revolving Fund Loan Program will be available for the Kalaniana'ole Interceptor Sewer Rehabilitation Phase II project. This project is scheduled to start in the first quarter of FY11-12 and is included in the proposed FY11-12 Capital Improvement Program Budget. This project involves the rehabilitation of the existing Kalaniana'ole Avenue Interceptor from Kea'a St. to the end of Keokea Loop Road where it is severely deteriorated. The Kalaniana'ole Avenue Intereceptor between Kea'a St. and the Pua Sewage Pump Station (SPS) receives sewage from all areas of Hilo located North of Kea'a St. Failure of the interceptor would result in a sewage spill of approximately 2.8 million gallons per day, the majority of which would be discharged to the Wailoa River resulting in contamination of both the Wailoa River and Hilo Bay. The interceptor between the Pua SPS and Keokea Loop road services all areas east of the Pua SPS and failure would result in a sewage spill to State Water on the order of approximately 500,000 gallons per day to shoreline and anchialine ponds. SIGNED: • (/AA"Al-- \).eJl -0 DATE: 7)7) I Department Head