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The Project Area is a mix of single-family,duplex.apartment,vacant land,and commercial uses totaling <br /> approximately 43 acres(see EXHIBIT B). Most of the properties use cesspools with a few on septic <br /> systems. <br /> The Project will connect to and be part of the County's North Kona Sewer System that conveys the <br /> sewage to the Kealakehe Wastewater Treatment Plant. The Project will be installed entirely within the <br /> existing County road rights-of-way,with the exception of downstream segments that will require <br /> easements over private property to connect to the sewer main in Hualalai Road. <br /> B. Purpose and Need <br /> The tmtreated cesspool leachates have a high potential to contaminate grotmdwater,especially in the <br /> highly permeable lava rock substrate of this area. Because the Project Area is within the Department of <br /> Health's Critical Wastewater Disposal Area and less than a mile from the shoreline,there is a probability <br /> for contaminated groundwater to seep into the nearshore coastal waters. To stem further water quality <br /> degradation from cesspools,the U.S.Environmental Protection Agency(EPA)banned large capacity <br /> cesspools pursuant to the Underground Injection Control provisions of the Safe Drinking Water Act.' The <br /> U.S.Environmental Protection Agency(EPA)regulations required all large capacity cesspools to be <br /> replaced by an alternative wastewater system by April 5, 2005. EPA started issuing violation notices to <br /> property owners within the Project Area in 2010. Several property owners within the Project Area have <br /> received such violation notices from EPA. <br /> One means to comply with EPA is to replace the cesspool with an onsite septic system. However,the <br /> Project Area is a higher density urbanized area where the lot sizes generally do not have sufficient area for <br /> onsite disposal systems that require leach fields. Thus,a sewer system is the most cost-effective means to <br /> comply with EPA requirements. <br /> In new developments,the County requires the developer to install the sewer system where appropriate. In <br /> this case,the Project Area is an older subdivision pre-dating sewer requirements and now needs to retrofit <br /> a sewer system. The County's primary role in terms of providing sewer service is to provide the backbone <br /> components—the main transmission lines,pump stations for these main transmission lines,treatment <br /> plants and reuse/disposal systems. The local collection systems are the responsibility of the developer or <br /> property owners. However,for retrofit situations such as this Project,while government recognizes that <br /> property owners should pay for local collection systems,government can play a proactive role to organize <br /> the community,advance costs to mobilize the process,and seek subsidies as appropriate to ensure <br /> affordability. <br /> C. Project Financing <br /> The property owners connecting to the proposed sewer system will be responsible to pay for the Project <br /> development costs through the Improvement District assessments. To assist with the financing,the <br /> County applied to the U.S.Department of Agriculture(USDA)Rural Development,Rural Utilities Water <br /> 2 EPA defines a cesspool to be a"large-capacity cesspool"as follows: Residential multiple-dwelling,community, <br /> or regional systems(e.g.,townhouse complexes or apartment buildings)that dispose of sanitary waste,or Non- <br /> residential cesspools that have the capacity to serve 20 or more persons per day(e.g.,rest areas or churches)if the <br /> cesspools receive solely sanitary waste. <br /> LOYO KO A SEWER IMPROVEMENT DISTRKT <br /> DIREC`TOR'S REPORT <br />