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HomeMy WebLinkAboutREP FC 207 2024/10/01 2022-2024REPORT OF THE COMMITTEE ON FINANCE DATE: October 1, 2024 PLACE: Council Chambers Hilo, Hawaii TIME: 9:36 a.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Re: Comm. No. 1082/Bill No. 214 Your Committee on Finance, to which was referred Bill No. 214, reports as follows: Bill No. 214, transmitted by Director of Finance Diane Nakagawa via Communication No. 1082, dated September 19, 2024, amends Ordinance No. 24-33, as amended, relating to Public Improvements and Financing thereof for the fiscal year July 1, 2024 to June 30, 2025. This bill increases the Environmental Management Hilo Wastewater Treatment Plant Rehabilitation and Replacement project by $1.16 million, bringing the total appropriation to $226 million. Funds for this project shall be provided from the General Obligation Bonds, Capital Projects Fund — Fund Balance and/or other Sources and would be used to renovate the Hilo Wastewater Treatment Plant. Environmental Management Director Ramzi Mansour and Business Manager Robin Bauman provided an overview with a presentation on the Hilo Wastewater Treatment Plant Rehabilitation and Replacement Project. Committee Member Cindy Evans asked why the department did not have value engineering performed to have a sense of the costs. Mr. Mansour said the evaluation was difficult, as the value is based on who would bid, and there was only one bidder the first time. Ms. Evans then asked about the project timeline and whether the Council should fund the third phase now. Mr. Mansour said that the funding for the third phase would have to happen soon, since the deadline to start is August 2025. Committee Member Michelle Galimba asked if the project would increase capacity. Mr. Mansour elaborated on the capacity and said that the project would allow for more efficiency and would replace any broken or dysfunctional parts. Mr. Mansour then said that when the rehab project is finished, there would be more capacity, and the department would also ask the Council to amend the Code as it is very conservative currently. Committee Member Heather Kimball moved to enter into executive session to discuss duties and liabilities with Corporation Counsel Elizabeth Strance and Mr. Mansour. After the Committee was brought out of executive session, Ms. Kimball provided a brief overview of what was discussed. Ms. Evans then stated that her area of concern with the project is change orders and regular monitoring of the project. FC Report No. 207 FC-207 Page 2 October 1, 2024 Committee Member Ashley Kierkiewicz stated her reluctant support for the project, emphasizing a lack of transparency of costs to the County. Ms. Kierkiewicz stated that she wants the County to avoid an environmental disaster, but highlighted a need for a balance to the many needs of the County. Committee Member Rebecca Villegas voiced support for the measure, stating that any further delays may lead to additional costs. Ms. Villegas also emphasized that the health of reef ecosystems is dependent on wastewater efficiency. Mr. Mansour stated the project manager is currently Environmental Management Project Coordinator Mark Grant and the project consultant is Carollo Engineering. Mr. Mansour also stated that there is a staffing shortage, which is an urgent priority. Your Committee on Finance is in accord with the purpose and intent of Bill No. 214, and recommends its passage on first reading. 1kh AYES NOES ABS EX EVANS x GALINIBA x INABA x KAGIWADA X KANEALI'l-KLEIN FELDER x KIERKIEWICZ x KIMBALL x LEE LOY x VILLEGAS x Respectfully submitted, COMMITTEE ON FINANCE MAT lt-KANLE�AL 'I-KLEINFELDER, CHAIR