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COUNTY OF HAWAII <br /> Notes to the Basic Financial Statements <br /> June 30,2021 <br /> Kealakehe In October 1993,the County closed its Kealakehe landfill in Kona. Under state <br /> and federal requirements,the County would have to monitor and maintain this site for ten <br /> years from the closure date. However,the County anticipates monitoring and maintaining the <br /> site for thirty years because there is presently a subterranean fire which requires active <br /> management. The estimated cost of closure and postclosure is$16,600,000,based on what it <br /> would cost to perform the required closure and postclosure care in 2021. Actual costs may be <br /> higher due to inflation,changes in technology,or changes in regulations. Through <br /> June 30,2021, $9,099,000 was spent on closure and postclosure care of the landfill. <br /> The remaining estimated liability of$7,501,000 is included in the government-wide statement <br /> of net position. During the year ended June 30,2021, $97,000 was spent on closure of the <br /> landfill. The County is providing financial assurance for postclosure care and remediation <br /> through self insurance as explained below. <br /> Pu'uanahulu In May 1993,the County contracted with a private company to construct and <br /> operate a new landfill on County land at Pu'uanahulu in West Hawaii. The present contract <br /> calls for County employees to perform the daily operations of the landfill, and for the private <br /> company to retain the overall management as well as perform all construction work on the <br /> landfill cells. Under the terms of the contract,the County has no responsibility for <br /> remediation,closure or postclosure care. Accordingly,no liability for this landfill is included <br /> in the County's financial statements. <br /> Financial Assurance For fiscal year 2021,the County has provided for financial resources <br /> that will be available to provide for closure,postclosure care and remediation or containment <br /> of environmental hazards at the above landfills,except Pu'uanahulu. The Environmental <br /> Protection Agency's financial assurance rules include a local government financial test <br /> consisting of a financial component, a public notice component, and a recordkeeping <br /> component. Local governments are required to satisfy each of the three components to pass <br /> the annual test. Management believes that the County has satisfied each of the components of <br /> the local government financial assurance requirements. <br /> In fiscal year 2013,the County closed its two metal salvage facilities located near the Hilo and <br /> Kealakehe Transfer Stations. State law requires the County to perform necessary closure <br /> activities,including,but not limited to,the removal of all remaining solid waste and <br /> performing appropriate site assessments and remedial activities. The estimated liability of <br /> approximately$18,720,000 for the remediation costs associated with these closures is <br /> included in the County's financial statements and is based on closure plans prepared by a <br /> science and engineering consultant contracted by the County, and the current value of costs <br /> expected to be incurred. The liability could change over time due to inflation or deflation, <br /> changes in technology,or changes in laws and regulations governing the remediation effort. <br /> The County currently maintains and utilizes 7 underground fuel storage tanks to fuel both <br /> official and private vehicles that are used for County business. The tanks range in size from <br /> - 74 - <br />