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Form #: B -52 <br />7/18/91 <br />DEPARTMENT OF FINANCE <br />REQUEST FOR COUNCIL ACTION <br />DEPARTMENT: Finance DATE: 12/28/2011 <br />STAFF CONTACT: Mike Okumoto PHONE: 933 -6240 <br />A. REQUEST: <br />A resolution authorizing the Mayor to enter into an agreement with the State of Hawaii, Department of Health <br />to accept a grant for $250,000 to reimburse certain eligible lot owners in Honokaa for their sewer connection <br />loan costs. <br />An amendment to Ordinance 11 -59, the operating budget for FY 2011 -12, by adding appropriations for: <br />Finance Dept., Treasury Div., Grants, Misc. Contracts 010.121.5124.20.115 $250,000 <br />State Grant Revenues 3305.75 $250,000 <br />B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): <br />The Department of Environmental has constructed and installed a sewer system in Honokaa in order to <br />close the large capacity cesspools located in the town. A mail survey has indicated that the majority of the <br />affected lot owners will be interested in some type of financing for the costs to connect to the sewer line. <br />The County is implementing the sewer connection loan program in Chapter 21 of Hawai'i County Code, <br />which provides a County guarantee to loans made by local financial institutions. To further assist the lot <br />owners financially, the County has applied for grant funds from the State Dept. of Health. In order to <br />safeguard the drinking water in Honokaa, a grant was approved to ensure maximum connection to the sewer <br />system for those lot owners that are directly above the Haina well. The grant prioritizes disbursement of grant <br />funds by need and will be administered by the Finance Department for those lot owners participating in the <br />sewer connection loan program. <br />SIGNED: <br />—e)rZt DATE: i11 t/ <br />Department Hod <br />