REP FC 046 2017/10/03 (2016-2018)

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REPORT OF THE COMMITTEE ON FINANCE DATE: October 3,2017 Re: Comm.No. 468/Res.No. 310-17 PLACE: Council Chambers Hilo, Hawaii TIME: 1:00 p.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Finance,to which was referred Resolution No. 310-17,reports as follows: Resolution No. 310-17,transmitted by Finance Director Collins Tomei,via Communication No. 468 dated September 15, 2017, authorizes the payment of funds of a later fiscal year and of more than one fiscal year for a multi-year lease for five refuse trailers. This agreement authorizes the Mayor to enter into a new five-year lease agreement for five refuse trailers for the Department of Environmental Management, Solid Waste Division, at an approximate cost of$12,000 per month, needed to accommodate the additional hauling capacity required to transport waste to the West Hawaii Sanitary Landfill upon the closure of the South Hilo Sanitary Landfill. The County will own the equipment at the end of the lease. Council Member Dru Kanuha asked for confirmation that the five refuse trucks will be used when the Hilo landfill closes,and for a point of information,when the Hilo landfill closes, all of the trash generated on the east side will be hauled over to the west side. William Kucharski, Director of Environmental Management, responded that is correct and stated the anticipated closure will be in a year to eighteen months. Council Member Herbert M. Richards, III, questioned the terms of the lease. Deanna Sako, Finance Director, responded it is a financing lease and the trailers will be owned by the County at the end. The interest rate is approximately one to two percent and is a good financing option. Council Member Eileen O'Hara asked whether more trucks will be needed to haul the refuse. Greg Goodale, Solid Waste Division Chief,responded that each trailer is estimated to hold about twenty tons and that eight trailer loads would be on the max level, or high end, of what it would take to get the refuse from the East Hawaii to the West Hawaii landfill. Mr. Goodale stated that over time the tonnage may increase but they are looking at trying to divert instead of hauling refuse to West Hawaii and trying to do things like composting and recycle or reuse. Ms. O'Hara inquired of Mr. Kucharski the fact they were once thinking of hiring a geohydrologist to investigate the water and the well at Pu'uanahulu to allow it to be a potential site for a compost facility. Mr. Kucharski stated that they had a geohydrologist take a look at the formation and he could not find satisfactory fresh water,but are now in discussions with Waste Management to put in a reverse osmosis system to give enough water for operational needs at the landfill. FC Report No.46