2019-10-23 Meeting Minutes (EMC)

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b. Discuss the costs, including interest charged, for the Kealakehe Wastewater Treatment Plant R-1 Upgrade Project. Chair Bennett asked the director to provide some guidance on how the cost statements are derived. Director Kucharski explained that the original published cost for the R-1 system was $54 million, which was the figure in the initial request for funds. The R-1 system was designed to be expandable, depending on demand. The original proposal was for the system to handle a million gallons per day, but if it is expanded to 5 million gallons per day, the cost goes way up. There are some activities included in the cost that are not directly related to R-1, and he is having the consultants pull those out. Additional expenses are related to the SAT design and the fact that all the water will be UV treated. He believes the revised cost will be about $75 million, and he will have a better cost estimate at the next meeting. Two funding sources are being looked at. The first is SRF funds, which have a very low interest rate. Repayment would come from the General Fund, not through the sewer rates, and would be on the capital investment. The other funding source is the Bureau of Reclamation. A $634,000 grant was received to do a technical and financial feasibility study. Once the study is submitted, they will be eligible for additional construction funds of up to $20 million or 25% of the construction cost. However, another EIS would need to be done. If they were to start construction without the grant, the project can be done sooner. If they go with the grant, construction will be delayed because of the need for an EIS, but the cost will be covered. He does not know how the dynamics will work out as far as cost mitigation. A $750,000 grant from the state was also received to deal with the double pipe system for the county regional park. This park may be the first in the state designed with a purple pipe and potable water system together. Director Kucharski also mentioned the high cost of construction in Hawaiʻi. For example, installing a sewer line normally costs about $1.8 million per mile in the County of Hawaiʻi, but for the Lono Kona area it is costing about $4 million per mile. The real cost will not be known until the project goes out to bid. Chair Bennett said the next agenda should include a discussion on alternatives to running sewer lines, given the high costs, as it may be economically unfeasible. The conversation needs to be started, as there are 50,000 cesspits on the island and providing sewers to all is not the solution. c. Discuss the “waste to energy” proposals being considered by the County Council. Chair Bennett said there have been many news reports recently on waste to energy, and he would like to hear the thoughts of the commissioners on this.