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The contract,which is valid through 2036, guarantees Hawai`i Earth Recycling a minimum <br /> annual payment of 40,000 tons at approximately$105/ton. Further, each year the per ton price <br /> will be increased by adding the Consumer Price Index(CPI)through 2036. In other words, even <br /> if the County provided only 5,000 tons to HER, the County would still be required to pay the <br /> 40,000 ton minimum. The certified funds amount for this year's contract is $4,751,900. <br /> According to DEM, the County provides 30,000-32,000 tons of green waste each year to HER. <br /> That would mean at the current price, Hawai`i County would be paying 8,000 tons over what <br /> was received and processed and paying approximately$840,000 more than should be paid for <br /> services rendered. <br /> While mulch is better than nothing, it is extremely wasteful to taxpayers to pay for volumes of <br /> mulch that is not being produced. <br /> Wastewater Processing/Konno Decision Challenges <br /> PPP,particularly in regard to wastewater processing, water-recycling, and water treatment are <br /> areas where there may be an opportunity for private partnerships as well as networking between <br /> our County/State/Federal delegations to troubleshoot and rapidly address our island's crumbling <br /> wastewater infrastructure. <br /> DEM Director Ramzi Mansour has discussed this with the Mayor but still expressed hesitancy <br /> due to concerns surrounding the Konno Decision.Various groups have met with the Mayor and <br /> DEM, even on the day of our Zoom with Director Ramzi,but according to the administration <br /> there may be obstacles in the path forward that could get resolved by legislative amendments and <br /> union and political support. <br /> Our DEM Permitted Interaction Group has briefly explored the successes the City& County of <br /> Honolulu was able to achieve in their leverage of private public partnerships to address <br /> wastewater infrastructure upgrades needed, and we believe this is an area warranting more <br /> review by the administration and County Council members. Award winning projects that were <br /> done in spite of the Hawai`i Supreme Court decision in Konno that keeps coming up as a <br /> roadblock. Our committee recommends that our County look to the examples elsewhere in our <br /> State as Konno has a loophole that allows leeway if the focus is not on customary and historic <br /> services. Honolulu did a 12 million gallons per day(MGD) water recycling facility in 'Ewa as <br /> water recycling was not a historic service. The facility built with no taxpayers' dollars stood <br /> apart from the nearby Honouliuli Wastewater Treatment Plant(WWTP) and impacted no union <br /> jobs. At the Sand Island WWTP, they met consent decree requirements in partnership with <br /> Synagro Technologies Inc.,which put in a digester for solids management. A soil amendment <br /> product was produced for sale, which was not a customary or historic service. With Sand Island <br /> moving to full secondary under the consent decree, another digester is being installed to handle <br /> more volume. This resulted in no union lawsuit. <br /> Mayor Roth has been approached by a couple of wastewater companies with very large <br /> portfolios willing to invest in solutions for Hawai`i County. We should find a way to say yes <br /> while operating within the current confines and exemptions, if any exist, of the Konno decision. <br /> One option to explore is lease to purchase. Hilo needs a new treatment plant and modular design <br /> could eliminate the long procurement and design process while quickly bringing the plant into <br /> compliance. Average daily flows are only 2 MGD and modular can go up to 3 MGD. A private <br /> 12 <br /> 2022 Cost of Government Commission—County of Hawai'i -Final Report <br />