REP FC 039 2019/05/20 2018-2020 - Laserfiche WebLink

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REPORT OF THE COMMITTEE ON FINANCE DATE: May 20, 2019 Re: Comm. No. 287/Bill No. 70 PLACE: Council Chambers Hilo, Hawai`i TIME: 1:45 p.m. Council Chair and Members Hawai`i County Council Hilo, Hawai`i 96720 Your Committee on Finance, to which was referred Bill No. 70, reports as follows: Bill No. 70, transmitted by Finance Director Deanna Sako, via Communication No. 287 dated May 2, 2019, amends Ordinance No. 17-19,which amended Ordinance No. 12-129, which amended Ordinance No. 11-81, which authorized the Mayor to enter into an Intergovernmental Agreement for a State Water Pollution Control Revolving Fund Loan for Wastewater Public Improvement Projects and authorized the issuance of General Obligation Bonds for the purpose of financing qualified wastewater public improvements of the County of Hawai`i. This bill increases the original amount authorized from$2.7 to 7.5 million, and amends Exhibit A to add Hilo to the second project title, to read, "Kula`imano, Papa`ikou&Hilo Dewatering &Barminutor Replacement." The increase is due to updated cost estimates and anticipated contingencies. Hilo is added to reflect that certain equipment will be designated to the Hilo Wastewater Treatment Plant if necessary. Council Member Ashley Kierkiewicz asked William Kurcharski, Director of the Department of Environmental Management (DEM), why the need to increase the funds for the project. Director Kucharski explained that there was an initial estimate submitted in order to get something on the board so the design phase could move forward. DEM's contractor did the preliminary design, and at that point the contractor was able to get a better estimate of what would be necessary to complete the project. Council Member Susan Lee Loy questioned the process and stated it sounds like the County is purchasing a big band aid. Mr. Kucharski explained that there will be a dewatering system that can be used at these facilities which could also be used in Hilo in case of an emergency. Ms. Lee Loy inquired which facilities would this backup system work around the island. Mr. Kucharski commented that if it could be used on the Hilo facility, which is the largest facility, then it could probably be used on any of the facilities around the island. This will be a centrifuge so it can be moved. Council Member Herbert "Tim" Richards, III, asked why the contingency is needed. Mr. Kucharski stated that when dealing with really old facilities, once they go in and something else needs to be replaced requiring a change order, this is the contingency on the contract amount. Mr. Kucharski explained there might have been something that was not anticipated in the original design. FC Report No. 39 P