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<br />Mitchell D. RothGeorjean Adams <br />Mayor Chair <br /> <br />Ramzi I. Mansour Rick Gaffney <br />Director, Department of Vice Chair <br /> <br />Environmental Management <br />County of Hawai‘i <br />ENVIRONMENTAL MANAGEMENT COMMISSION <br />25 Aupuni Street •Hilo, Hawai‘i 96720 <br /> Ph: (808) 961-8083 · Fax: (808) 961-8086 <br />MEMORANDUM <br />DATE: April _, 2021 <br />TO:Maile David, Council Chair <br /> and Hawai‘i County Council Members <br /> <br />FROM:Georjean Adams, Chair <br /> Environmental Management Commission <br />RE:Wastewater Management Funding Consultation <br />The Environmental Management Commission (EMC) voted at its meeting on March 24, 2021 to <br />recommend the County Council bring in a financial consultantto present options for creating a <br />dedicated and sustainable funding source for wastewater operations maintenance and capital <br />coststhat strongly considers, among other options, enterprise funding and energy savings <br />performance contracts. <br />Environmental Management Director Ramzi Mansour has met several times withthe Council <br />and its RAWEEM and Finance Committees, as well as the EMC, making clear the critical need <br />for new and continuing funding to repair, maintain and improve the county’s wastewater <br />management operations.Director Mansour has recommended hiring a financial consultant <br />knowledgeable in environmental funding mechanisms, especially in establishing an Enterprise <br />Fund, to provide options on how to ensure adequate funding for daily and future safe wastewater <br />management.The EMC supports his recommendation. <br /> <br />A study of funding options is necessary as the current sewer fee mechanism and reliance on <br />shifting general fund priorities are insufficient. Grants may be sufficient to fund new capital <br />efforts, but are not sustainable enough for ongoing planning and operation support and present <br />their own timing issues.The EMC was impressed with the concept of an Enterprise Fund as it <br />focuses on a long-term planning process that includes preventative and ongoing maintenance, <br />staffing, training, and future needs, as well as financial reporting and auditing.From the <br />Bizfluent description of an Enterprise Fund (https://bizfluent.com/facts-7304143-government- <br />enterprise-fund-.html): <br />A government’s general fund is a pool of cash raised from taxes and can be spent <br />County of Hawai‘i is an Equal Opportunity Provider and Employer. <br />1 <br /> <br />