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STATE OF HAWAII <br />SCOPE OF SERVICES <br />Attachment - S1 <br />The United States Environmental Protection Agency has mandated that <br />the County of Hawaii close all of its large capacity cesspools. Using <br />funds from the American Reconstruction and Recovery Act ( "ARRA "), the <br />County of Hawaii ( "COUNTY ") was able to finance the cost of replacing <br />the large capacity cesspools with sewer lines in the town of Honokaa. <br />A sewer line was installed on Mamane Street in Honokaa, which is the <br />main thoroughfare through this town. Pursuant to Hawaii COUNTY Code <br />Section 21 -5, lots accessible to a sewer line must connect. The <br />Mamane Street is mostly a business district. These lot owners will be <br />required to reroute their sewer lines from the back of their lots to <br />the front. In most cases, they will need to break through concrete <br />sidewalks. Lot owners located below the sewer line will need to <br />install a pump which might require an upgrade of their electrical <br />system. The costs may run over $25,000. The cost of the hookup to <br />the COUNTY sewer line is the responsibility of the lot owner. <br />Many of the lot owners are small businesses. A survey mailed to the <br />affected lot owners found that 80% indicated that they need at least <br />partial financing. Of the lot owners applying for loans, it is <br />reasonable to assume that not all loan applications will be approved. <br />The connection cost will be a financial hardship for many of these lot <br />owners. <br />For this situation, the COUNTY has a financial assistance program (the <br />sewer loan connection program) whereby the COUNTY will guarantee <br />repayment of the loans made to lot owners (that are unable to qualify <br />for bank financing). The COUNTY will be modifying the loan program by <br />guaranteeing only those that have a good possibility of repaying the <br />loan. Therefore, not all loans requested that are declined by the <br />financial institutions will be guaranteed by the COUNTY. <br />Part of the area requiring connection to the Honokaa Sewer Project is <br />located within the Source Water /Wellhead Protection Area ( "WHPA ") for <br />the Hawaii Department of Water Supply's Haina Water System (identified <br />as Public Water System #161). The WHPA identifies the area around a <br />drinking water source where potential contaminating activities ( "PCA ") <br />may contaminate the water source. On -Site Disposal Systems ( "OSDS ") <br />including large capacity cesspools, cesspools, and septic systems are <br />identified by the Hawaii Source Water Assessment and Protection <br />Program as a PCA. <br />ADM. SERV. OFFICE LOG NO. 12 -044 <br />AG -011 Rev 07/28/2005 <br />1 <br />