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05/01.97 18:99 $8089x96901 RECD HI STATE OF 002 r _ l United S4dra Rutal '`Room 711, Fcdernl Budding - Depanmen[ of Uli6lics 154 Waianunnue Avenue Agriculture Se[viea Hilo, Hawaii 96720 May 1, 1997 Ms. Donna Fay Kiyosaki Chief Engineel• County of Hawaii 25 Aupuni Street Hilo. ]}awaii 96720 Dear Ms. Kiyosaki: Subject: Papaikou Sewerage System Kaapoko Extension Since investigating issues raised by County Councilman Dominic Yagong, we have made a number of new discoveries. Therefore, we have reassessed our position on the proposed extension. Please dole the following: (l) The Cuunly must solicit bids for the proposed work for constructing the entire Kaapo]<o extension (beyond the "seven lots" Peter Boucher inquired about). All RUS contract provisions must be adhered to. You rrlus~ keep us informed of what your intentions are: sewer lines for seven lots per your last communication. or construction of the entire Kaapoko extension. (7.) T}le final Contract close-out should preferably occur by October 31, 1997, but in any case not later than January 31, 1998. In an independent discovery, our USDA Office of General Counsel in San Francisco advises that in the event 4Yillocks Construction becomes the low bidder, you must clarify whether or not liayor Yarnashiro is tied in with ownership of the company. Regulations prohibit bids fr•um the "governing body's officers, employees. a~ agents." ]f you have questions, please call Ted K. Matsuo, Rural Utilities Program Director, at (808) 933-3009. Sincerely, FRANCIS J. BLANCO State Director cc: Councilman Dominic Yagong /Rev. A6 u::.~~. I~~~ 11.11 Rural Utilities S<rvicc iv an Equal Opportunity Lender. Complain4 oC discriminotion should ba szne ~u: Seerowry oC Agri<ulwr:, Waxhington, D.C. 20250 )~lC Ke.,~,~ ~N.W_'., Nresen;~tl ttef. To: MAY t99F ~.et. iPace