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Form #: B-52 7/18/91 DEPARTMENT OF FINANCE REQUEST FOR COUNCIL ACTION DEPARTMENT: Dept of Environmental Management DATE: 5/23/14 STAFF CONTACT: Dora Beck PHONE: 961-8513 A. REQUEST: An Ordinance amending Ordinance 13-21 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$18,000,000 General Obligation Bonds of the County of Hawai'i for the purpose of financing the following project: Kealakehe Wastewater Treatment Plant Aeration Upgrade and Sludge Removal $18,000,000 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 is available for the Kealakehe Wastewater Treatment Plant (KWWTP) Aeration Upgrade and Sludge Removal project. An Interim SRF Loan agreement has been executed with the DOH for the KWWTP Aeration Upgrade and Sludge Removal project in the amount of$12,000,000 as authorized by Ordinance 13-21. This request is to increase the authorized amount to $18,000,000 to reflect the current cost estimate for this project. This request will allow us to take advantage of the lower interest rates provided by the State Revolving Fund Loan Program and includes the estimated construction cost plus ten percent for contingencies and a design allowance as allowed by the SRF program. In order to serve the growing population of West Hawai'i, the Kealakehe Wastewater Treatment Plant Aeration Upgrade is necessary to restore the plant's treatment capacity to original design capacity, comply with an existing DOH variance which allows discharge of total suspended solids above the original discharge concentration of 30 mg/I due to the presence of algae in the treatment lagoons, facilitate future upgrades of the facility to provide R-1 reuse water, and to reduce electricity costs at the facility. Sludge removal at the plant is also required to maintain and upgrade the plant capacity and allow for the successful implementation and performance of the aeration system upgrade. Construction bids for this project are currently being evaluated for award and construction is expected to begin in the first quarter of Fiscal Year 2014-2015. We respectfully request that this bill be waived from Committee and placed on the next Council agenda in order to expedite the availability of additional SRF funding for this project. SIGNED: � DATE: ,S/z Department Head