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HomeMy WebLinkAboutCOM 0159.144 2024-2026J.CounG± .ill 312� A Community Dedicated to Saving Puako Reef Return the reef to its historic 70% coral coverage from its existing 7%. PUAKO FOR www.Puako4reefs.org * Puako for Reefs Facebook REEFS Story map of Puako: Wahi Pana -A Sacred Place � c;a May 28, 2025 TO: HAWAI'I COUNTY COUNCIL CHAIR AND ALL MEMBERS RE: 2025-2026 CIP. BILL #32, DRAFT #2, COMMUNICATION #159.45 a� My name is Barbara Bell here representing Puako For Reefs, a non-profit community organi&tior�ZZX Thank you for allowing us to present more information in furtherance of the; CIP•budget reque`RSt fora revolving fund. This will expedite a sewer collection line along Puako Beach D"rive. We submitted more detailed testimony that we hope you will read, especially if you have questions about the vision. There are a few things I would like to highlight: 1. Puako For Reefs is an all -volunteer Board of Directors and steering committee. We have a fantastic group comprised of mostly newly retired professionals. Our 4 board members, and 8 person steering committee includes: • A former ED of the Nature Conservancy in Washington State, as well as an engineer who was actually in the astronaut program! • A Finance wiz with a day job doing affordable housing projects, mainly in Colorado. • You probably already know our Project Manager. His last job was as Managing Director of Hawaii County. • The Board of Director's includes 3 more engineers, one in water and wastewater systems, two incredible fundraisers, and other long-time Puako residents who are committed to keeping the reef from dissolving. 2. We are working with our third administration. When we met with the Mayor and his team we stressed that our goal is to have this project finished within his administration. 3. The community along Puako Beach has stepped in where the County could not due mainly to a backlog of projects. We are forging a new path, one that not only will help with this area of our island, but will help other communities with very similar situations —a private wastewater treatment plant that is closer than anything the county owns/operates. Connecting a public collection line to a private plant is not the format for many of our laws. So, we've gotten creative and found professionals who see the need and have the skills to move forward. We are dusting off tools in the County tool box, that have not been used at all, or significantly underused. We have a vision! 4. This is a process and creating the CFD requires a Council resolution to formally initiate it. Thank you very much for the opportunity to bring this to your attention. Barbara Bell for Puako for Reefs Board members as well as the many volunteersqmmJS Ref. To: C _ _ Ref. Date JUN �202.5 mmunity Dedicated to Saving Puako Reef eturn the reef to its historic 70% coral coverage from its existing 7%. PUAKO FOR www.Puak64reefs.org * Puako for Reefs Facebook REEFS Story map of Puako: Wahi Pana -A Sacred Place South Kohala Action Committee CIP Request for Community -Initiated Cesspool Closure Project Let Puakd be the model for how communities and government can work together to solve wastewater pollution, save reefs, and protect public health across Hawaii. Executive Summary At its meeting on May 15, 2025, the South Kohala Action Committee unanimously approved recommending a $1,000,000 CIP appropriation to support a community - initiated cesspool closure project. This CIP request would launch a revolving fund, administered by the Finance Department, to cover the costs required to establish a Community Facilities District (CFD) for a Puako sewer project. Once the CFD is in place, its bond issuance (or USDA loan/grant) would repay the fund, making capital available for other communities pursuing wastewater projects. While the revolving fund will ultimately serve multiple projects, Puako—identified as a Priority 1 area —would be its first and immediate use, with estimated pre -construction and CFD startup costs totaling $1 million. The Action Committee and the community based non-profit organization Puako for Reefs urge the County to act on this high -impact, cost -recoverable opportunity and approve this CIP request. Puako for Reefs (PFR) is an all -volunteer 501(c)(3) organization founded in 2023 to protect Puako reef. Prior to this, the community partnered with the non-profit CORAL, for nine years, to install a sewer system in Puako. But after the County reallocated $1.5M in state CIP funds which were dedicated to the Puako sewer project, residents formed PFR to more closely steer the project and outcomes on the reef. Its first mission: implement a sewer system to clean the reefs waters. Since its founding, PFR has raised over $250,000 from community members — on top of $2.5M donated by the community over the previous decade. PFR is led by a four -member board, a 10- member steering committee, and a highly engaged community. It is partnering closely with public and private partners and has hired experienced consultants in the areas of engineering, finance, legal and community engagement. - The Problem Puako reef is on the brink of collapse. Once vibrant with 70% coral cover, it now has just 7%—a 90% loss in 50 years. Scientists warn that if coverage drops below 5%, the reef may never recover, leading to irreversible ecological, economic, and cultural damage. Hawai`i's coral reefs are critical. They support over 7,000 species-25% found nowhere else —protect shorelines, provide food security, fuel tourism, and hold deep cultural importance. Puako Reef, fronting four of the island's largest resorts and a historic coastal community, is one of the most vital —and most threatened. Three main threats are accelerating its decline: • Polluted water from untreated wastewater from cesspools and outdated septic systems • Agricultural and flood runoff from upland gulches • Overfishing and weak marine enforcement While all of these must be addressed, scientists agree that wastewater is the most urgent. A study in Nature confirmed that nitrogen from human waste acts like fertilizer for invasive seaweed and algae, which smother coral and kills reefs. In 2019, UH-Hilo researchers found bacteria levels exceeding health standards at 81 % of Puako shoreline testing sites. Dye tests showed that pollution from cesspools, septic tanks, and even modern aerobic systems reached the reef in as little as 9 hours. Both NOAA and the State of Hawai'i identified Puako as one of the top two reefs in the state to save over a decade ago. But no action has followed, and scientists now estimate the reef will collapse within 10 years without immediate intervention. The root problem? Funding. Hawai'i faces a $2 billion cesspool crisis, with 83,000 cesspools-20% near the ocean —dumping 52 million gallons of raw sewage into groundwater daily. Hawaii county has almost 50,000 cesspools. The mandate to eliminate all cesspools by 2050 is unfunded and places a daunting burden on homeowners with estimated costs to install a modern septic system at $20,000 to $50,0000, with coastal homes falling in the higher end of that range. As UH-Hilo marine scientist and lead researcher in Puako, Tracy Weigner stated, "We know this is a problem. Everybody wants to solve it. But finding the money to make it happen is really challenging." The science is clear. The reefs value is undeniable. The solution exists. What's missing is the funding —and time is running out. The Solution A fully sewered system is the only viable fix. Twelve years ago, the Puako community refused to stand by as their reef died. They rose up —donating millions of personal dollars, forging partnerships with government agencies, nonprofits, engineers, and scientists —all united by a single goal: to save the reef. Together, they identified a modern sewer system as the only viable path to recovery. 2 PUAK6 FOR REEFS Yet even with a clear solution, one major obstacle remained: funding. If a sewer system cannot be developed that the community can afford, then it is not a workable solution. Community volunteers with PFR have been working to answer this one question: can a sewer system in Puako be built and operated that would cost homeowners less than converting to a new septic system (—$40,000) and which could spread the payments out over time to avoid the large upfront cost? Homeowners have opened their wallets and their hearts, personally investing in the future of the reef, for their families, for future generations, and for Hawaii. Achievements to date • $3M raised in donations from community members. • $1.5M state CIP funding awarded. o Later taken away and re -allocated by the county for the South Kohala Wastewater study. • Collaboration with three different county administrations • Two preliminary engineering studies completed. • Three wastewater studies completed: two by Hawaii County, one by State DOH funded by EPA. • Community support raised: February 2024, — 89% of homeowners supported a sewer system if affordable. • Partnerships secured: American Water at Mauna Lani and the County. • Two finalists for vendors for collection system identified. • Construction loan from USDA Rural Development Fund discussed. • Legal, technical, community outreach and financing consultants hired. The Puako community's journey with this project has seen triumphs and setbacks, but its commitment to restoring the reef remains strong. Volunteers and donors continue to lead the effort to clean coastal waters and revive the reefs health for all who depend on it. Through our work with partners, we have determined that an affordable sewer system can be built —if the community, State, County, and federal government work together. We've developed a viable technical and financial solution with broad support which can be utilized in communities throughout Hawai'i. Now we need active State and County collaboration to complete the Puako project and create a model for other communities to eliminate wastewater pollution, protect natural resources, and safeguard public health. Project Status & Design The Puako Sewer Project has completed its design and preliminary engineering through collaboration with Hawaii County, guidance from the South Kohala Wastewater Management Plan, input from University of Hawai'i and other scientists, and engineering consultants. Project costs are well understood, and equitable cost -sharing models are under review. Financing pathways are defined for the next phases. The most important design criteria for a Puako sewer system is that it is affordable for Puako community members. 3 FUAK6 FOR REEFS Wastewater Treatment System • Treatment Plant: Wastewater will be treated at the American Water facility at Mauna Lani Resort. A "Will Serve" letter is in development. • Collection System: A low-pressure system (Orenco or EOne) will connect each Puako lot, running along the county road, Puako Beach Drive, to the treatment plant via one of three routes under environmental/cultural review. Hawaii County will own and operate the main line; homeowners will maintain onsite components. Extra capacity is being designed into the system to allow for the eventual potential connection by homes in Wailea Bay, Wailea Bay state park, and Holoholokai beach park. Estimated Cost and financing Structure • Under development with finance experts, the Goodwin Consulting Group and Legal consultant attorney Bill Yuen, a partner in Dentons Law firm. • These numbers will be finalized after collaboration with the county departments of Planning, Finance and DEM, which has been authorized by the mayor in a meeting with him in January. Community Support • In February 2024, a community survey received a 60% response rate; 89% of respondents supported a sewer system if affordable. • Puako for Reefs (PFR) has conducted ongoing outreach through community meetings, quarterly newsletters, and neighbor engagement. • PFR is working with community engagement firm The Kalaimoku Group to help secure the required signatures: 25% to initiate a Community Facilities District (CFD) and 60% to approve it when presented to the County Council. Next steps County to establish the Wastewater Revolving Fund to allow the completion of the following steps on to path to creating a shovel ready project. • Work with the County to finalize the collection system design. • Complete the required final engineering, planning and permitting • Obtain 25% community signatures on a CFD initiation request • Finalize the financing numbers and mechanisms. • Secure loan with USDA • Secure a "will serve" letter with American Waters 0 PUAKO FOR REEFS Puako Sewer Project FAQ — May 2025 Who is Puako for Reefs (PFR, Puak64reefs.org)? PFR is an all -volunteer run 501(c)(3) nonprofit formed in 2023 to protect Puako reef. Until 2023, the community worked with a non- profit partner, CORAL, which did a great job. But after the $1.5M in state funding for the project was reallocated by the county, the community decided it was time to take more control of the project and the outcomes on the reef. Its first mission is implementing a sewer system, with plans to address other threats in the future. Since PFR's founding, it has raised over $250,000 for this project from community members; this is on top of the $2.5M the Puako community donated to the project in the previous 10 years. PFR has 4 members of the board of directors, 10 active members on a steering committee who work weekly and meet bi-weekly on this project, and a very active community who donate, participate, and give advice. Why a Sewer System? Why is a sewer system necessary in Puako instead of septic tanks or cesspools? Scientific studies confirm that wastewater must be removed from the reef area to prevent further damage. Puako homes sit at a low elevation (4-6 ft), and even modern septic systems cannot fully eliminate harmful nutrients, pharmaceuticals, and hormones. A 2019 dye -test study found that dye from various types of systems reached the reef within 9 to 72 hours. Only a centralized sewer system can effectively protect the reef. What does the County recommend? The County Wastewater Master Plan (AECOM 2024) recommends a low-pressure sewer line, owned by the County, connected to the American Water treatment plant near Mauna Lani. Will this help meet the 2050 mandate to eliminate cesspools? Yes. It directly supports compliance with state and federal requirements. Are there other solutions besides a sewer system? Alternative strategies like composting toilets and reduced water use exist, but they_are not practical at scale. Given modern water use expectations, a sewer system is the most effective long-term solution. How soon will the reef recover? While timelines vary, scientists from the Seattle Aquarium note similar reefs showed signs of recovery within 5 years after major stressors were removed. System Design & Operation Who will own and operate the system? • Treatment Facility: American Waters • Collection Line: Owned by Hawaii County • Home Connections: Maintained by each homeowner Who will build the system? Final contractor selection is pending. 5 PUAK6FOR REEFS How long will the project take? With a revolving fund in place by summer 2025 and CFD approval in early 2026, the project could be fully designed within 2 years and constructed within another 2. Financing How will the system be funded? Through a combination of a Hawaii county revolving fund for planning, a loan by the USDA for construction, and repayment through a Hawaii County Community Facilities District, and direct payments for individual waste treatments paid to the county and American Waters. What is a Community Facilities District (CFD)? A CFD is a financing tool (County Code Chapter 32) allowing infrastructure costs to be shared across property owners in a flexible and equitable way. Is a CFD appropriate for Puako? Yes. Puak6 for Reefs and the County agree it is the best model. What is a revolving loan fund? A fund, managed by the Finance Department of the County, to be used to cover the upfront planning and permitting costs required to establish a CFD. These costs include environmental and cultural impact studies, final project engineering, permitting, and construction bid and selection process. For this project, these costs will total approximately $1 M, which is far too much to ask any community to pay in advance. PFR will request funds for these work items from the revolving fund. Once the CFD is established, and the loan for the construction is secured (in this project's case, from the USDA Rural Development Fund), the funds will be immediately paid back into the revolving fund. The funds can then be used for another wastewater project in another community in Hawaii needing similar assistance. How much will it cost each homeowner? These exact numbers are under development but will fall into three categories. 1. Connection Fee: Targeted to match or be less than the cost of upgrading to an aerobic treatment unit (approx. $40,000) 2. Ongoing Costs: Includes county collection and American Waters treatment fees 3. Private Maintenance: Homeowner responsible for low -maintenance system components What if a homeowner cannot afford it? Roughly 15% of homeowners may face hardship. Various funding solutions are under exploration, including state programs and charitable contributions. How can this project help other island communities? In three ways 1. Puak6's wastewater situation mirrors that of many other Hawaii County communities'. The lessons learned from the twelve years of work by the Puako community can be passed on to help others proceed with efficiency. 2. The revolving fund can be used to cover the upfront costs of establishing a wastewater solution. 3. The County will have one successful implementation under its belt and be ready to serve other communities effectively. PUAKO FOR REEFS