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straddles the property line, but it runs along all the way down here. This is the gate, and this was <br />the first flag. And the road that we were on actually headed off in this direction here. The <br />drainage area is generally in this area here. You can see by the topo map and by what you saw <br />there, there is a ditch that runs along here, and then it transitions into this wide swale thats <br />basically created by the berm here. What we will be doing is, if this thing moves forward, there <br />will be a requirement that their civil engineer do a drainage study, and they will delineate the <br />precise boundaries of where the drainage area is. Once that happens, that area will be turned into <br />an easement and we will not be building any lots in that easement area. Right now we have a <br />revised tentative layout, like I said out there in the field. We are not sure how far makai we can <br />go with the lots. I think that will be defined by the drainage study. But right now our plan is <br />basically to keep the same configuration and develop it to the extent that we can. <br />None of the septic systems will be installed in the drainage area. For those of you who havent <br />gone through this process recently, the Department of Health requires that you do a percolation <br />testforeachsepticsystemthatyoudo;andthisinvolvespre-soakingthegroundactuallyfora <br />substantial period of time, and then you introduce additional water into it, and then they basically <br />judge how fast, or they measure in fact, how fast the water perks out. We have a sanitary <br />engineer doing that work for us right now. He should be getting his report into us any day soon. <br />But weve worked in similar soils; we know that it does percolate. And its, really the function <br />of that report is to size the leach field. But again nothing will be built without the Department of <br />Health permits. The 1,000-foot radius comes across here. The implication of that is that we will <br />not be able to put any septic system, leach fields, within this 1,000 feet. Its possible to build <br />within the 1,000 feet, but you cannot install a leach field within the 1,000 feet. So well be <br />avoiding that. <br />I think that the last physical issue really has to do with access. We dont know exactly how <br />many lots we are going to end up with, maybe between 20 and 25. And those lots actually have <br />access right here off the Mamalahoa Highway. What will happen, you know, once, if we were to <br />develop basically in this area, which path the residents will take we are not sure. But as the <br />Planning Directors letter indicates typical traffic generation from 30 homes would be something <br />like 21 trips during a peak hour. Again we dont know exactly which way theyre going to <br />travel. So whether they are going to come out on Kulaimano Road, come up Pepeekeo Street <br />and enter where the channelized intersection is, or come out where the easement is, we really <br />dont know. But what we do know is that this easement really provides access to a number of <br />lots that are generated down here. Right now our understanding is theres something like 150 <br />lots that were created down there over the past few years through consolidation and <br />resubdivision. And it seems to me that the impact of that, once it builds out, is probably much <br />more significant than our 20 or 25 lots. <br />Taka asked about whether the cost of infrastructure is going to be added on or passed on to the <br />home buyers. For our purposes, that will be the case. We need to basically recover cost that we <br />invest in the project, and so any additional cost is going to have to be passed on. For example, <br />there is a requirement, I think its Condition L, that we pay the impact fee, which is just over <br />10,000 dollars. <br />DOMINGO:Per unit? <br />7EXHIBIT A <br /> <br />