joenorm,
Your water problem is two fold - surface water and ground water. Since your house is on hillside, provides the area is predominately sandy soil, I don't think the latter is a thing to be concerned with, unless you dig a hole in the yard and see sitting/standing water in it. The water creeping through your crawl space and ponding, apparently is caused by surface water runoff. This problem will be gone, if you slope the fill, and either simply excavate a ditch, or embed a French drain, under your crawl space. Also, slop the ground, and check around the house to see whether there is any indication of movement - large cracks, stair landing is higher than your indoor floor... If nothing is find/suspicious, your foundation should be free of concern for a long time to come. Note, since you don't have basement, pump is not needed, unless you want to draw down the ground water as mentioned before.
Below is something I want to settle the misunderstanding between the geo heavy weights and the structural nuts. Please do not hesitate to correct me, as I like to advise people to keep foundation away from water, stay dry, if minimal effort and care can achieve it.
Can we put footing on saturated cohesive soil? Surely we can, Since cohesion c (Ø = 0) is the primary term in derivation of cohesive soil bearing strength, and the consideration of its use is as stated below.
The ultimate bearing capacity of saturated cohesive soils (clay and silt) with low permeability is most critical immediately after construction, before the excess porewater pressure has had time to dissipate i.e. undrained conditions. As time proceeds, consolidation occurs, the soil becomes stiffer and has more strength.
Unfortunately, for lightly build house without significant consolidation could occur, but with persistent presence of groundwater at/above the footing, will that anticipated "excess porewater pressure has had time to dissipate", and "becomes stiffer" to happen?
A study has shown the relationship between moisture content and cohesion for a cohesive soil (Kubishi clay):
Moisture Content (%) - Cohesion (kg/cm
2)
0.0 - 6.5
2.6 - 4.8
5.3 - 4.3
17.5 - 3.8
19.9 - 2.6
22.3 - 1.4
25.1 - 1.1
27.4 - 0.7
30.4 - 0.6
I don't see water is very kind. It can lift a footing, also can sink.