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Form #: B-52 <br /> 7/18/91 <br /> DEPARTMENT OF FINANCE <br /> REQUEST FOR COUNCIL ACTION <br /> DEPARTMENT: Dept of Environmental Management DATE: 7/10/12 <br /> STAFF CONTACT: Lyle Hirota PHONE: 961-8333 <br /> A. REQUEST: <br /> Request to amend Ordinance 12-87, Capital Improvement Budget, to include an appropriation for the <br /> following project: <br /> Kalaniana'ole Interceptor Sewer Rehabilitation Phase II —$622,000 from State Revolving Fund <br /> B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): <br /> The State Department of Health has indicated that funding through the State Water Pollution Control Revolving <br /> Fund Loan Program is available for the Kalaniana'ole Interceptor Sewer Rehabilitation Phase II project. An <br /> Interim SRF Loan has been executed with the DOH in the amount of$8,000,000 as authorized by Ordinance 11- <br /> 81. A construction contract has been awarded for this project in the amount of$7,491,861 with a Notice to <br /> Proceed date of June 25, 2012. Based on the awarded bid price, the County is eligible for a maximum loan <br /> amount of$8,621,409 which includes up to 10% for contingencies and a design allowance of$380,362. This <br /> request is to increase the appropriation for SRF funding for this project to the maximum available loan amount in <br /> order to take advantage of the lower interest rates should contingency items arise. <br /> This project involves the rehabilitation of the existing Kalaniana'ole Avenue Interceptor from Kea'a St. to Baker <br /> Avenue due to severe deterioration from sewer gases. The Kalaniana'ole Avenue Interceptor between Kea'a St. <br /> and the Pua Sewage Pump Station (SPS) receives sewage from all areas of Hilo located North of Kea'a St. <br /> Failure of the interceptor would result in a sewage spill of approximately 2.8 million gallons per day, the majority <br /> of which would be discharged to the Wailoa River resulting in contamination of both the Wailoa River and Hilo <br /> Bay. The interceptor between the Pua SPS and Keokea Loop road services all areas east of the Pua SPS and <br /> failure would result in a sewage spill to State Water on the order of approximately 500,000 gallons per day to <br /> shoreline and anchialine ponds. <br /> A Project Data/Financial Impact Statement is attached. <br /> SIGNED: DATE: �/tVlZ <br /> P <br /> De artment Head <br /> C:\Documents and Settings\rbauman.000NTYOFHAWAII\Local Settings\Temporary Internet Files\OLK2E\B-52-Request for Council Action-Ord KISR <br /> Ph 2 071012.doc <br />