2022 Report of the Cost of Government Commission

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company under this approach can take taxable depreciation on the assets and then the County buys it back at a greatly reduced price. Union employees continue to operate the old plant during construction and take classes and certifications to operate the new equipment. With further exploration, this is a handoff approach that may work within the Konno decision. For County facilities facing legal action because they use injection wells, water recycling may be the solution. At Kealakehe, for example, we could keep the existing R-2 facility in place under union employees but consider contracting out the service for the R-1 upgrade and pipeline distribution system. Revenue could then be generated from sales of recycled water where it displaces potable water. This idea is similar to what was done in `Ewa on Oahu. There are numerous examples and our permitted interaction group believes that the County needs to focus on "out of the box" solutions to address our crucial wastewater infrastructure needs and stop using Konno as an excuse for inaction. 13 2022 Cost of Govemment Commission —County of Hawai'i - Final Report