HomeMy WebLinkAboutCOM 0717.034 2004-2006 O,~YY OF "~tY
~1~~~%~. Barbara Bell
Harry Kim Director
Mayor --n - ; ~ Nelson Ho
•rE of a~'~ Deputy Director
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DEPARTMENT OF ENVIRONMENTAL MANAGEMENT
25 Aupuni Street, Room 210 • Hilq Hawari 96720-4252
(808) 961-8083 • Fax (808) 961-8086
email: cohdem(a)co.hawaii hi us
March 31, 2006
Mr. Stacy Higa, Council Chair
And Members of the Committee on Finance
25 Aupuni Street
Hilo, HI 96720
RE: Operating and Capital Budgets and Program Review Day Three
Dear Mr. Higa and Committee Members,
This is to transmit answers (bolded) as requested in the memo of March 17, 2006 regarding the
Department of Environmental Management.
Environmental Management Administration
I . What vacant positions will not be filled in FY07?
We expect to fill all funded positions in FY06-07. We currently have the following
vacant positions in the Department's Administration:
Accountant I -This position is being filled by temporary appointment. A recruitment
is in progress.
Mechanical Engineer -This position is being filled by temporary assignment. A
recruitment is in progress.
Civil Engineer III - A recruitment is in progress.
Solid Waste Fund
2. What is the status of account receivables?
The receivables for the Solid Waste Division are in much better shape than they were
four years ago. The following is a summary of the Solid Waste receivables over the
last five years. 3 T
Comm. No.
Ref. To~~
Hawai ~i County is an equal opportunity provider and employer.
Ref. Date
/lid
To Date
FY OS-06 FY 04-OS FY 03-04 FY 02-03 FY O1-02
A/R Balance $1,572,769 $1,376,607 $1,498,037 $1,000,228 $1,159,347
Avg. Monthly Charges $ 734,704 $ 632,762 $ 450,923 $ 301,153 $ 283,840
A/R over 90 Days $ 447,669 $ 361,031 $ 321,046 $ 356,348 $ 541,403
Percentage over 90 Days 28% 26% 21% 36% 47%
Avg. Days in AB 71 69 81 118 120
We will continue to work to find new ways to improve collections and further reduce
balances over 90 days.
3. Why is it that when we increase employees, the Department's overtime increases
(5604.01.02])?
Although we have increased employees, we are still not at the desired level where there
are sufficient employees to do all the necessary work required. Therefore, employees
are requested to do more than their normal four 10-hour shifts. Keeping in mind that
the tonnages landfilled have risen 31% in the last three years, the workload has
increased dramatically for a variety of reasons which falls into four general areas:
a) Regulatory Compliance Issues -minimization of wind-blown litter by collecting is a
regulatory requirement. This was one item in our Consent Agreement with the
State at the South Hilo Sanitary Landfill. Now that we are at higher elevations, it is
even more difficult to control. Litter control fences have been requested and are
being procured. In the meantime, under the current permit, it is necessary to have
County of Hawaii employees working up and down the face of the landfill picking
up litter. Because there is no extra manpower to do this in the normal regular work
day, employees are brought in on their days off to provide this needed service.
b) Equipment & Facility Repairs -Many of the transfer stations are still unguarded
and are not gated. This allows anybody to throw trash down the chute. When the
chute is full, trash is dumped on the ground or back up out of the chute. We have
had to keep our transfer station attendants working after normal hours to do a late
push (operate the hydraulic cylinder in the transfer trailer) just before dark.
Gating more of the stations, with additional education to the public, may reduce this
need. When the trash is overloaded at a station, extra personnel are brought in to
clean up the trash which may require a backhoe and several men. They are called
in on an as-needed basis, from their days off, as the normally working crews are
already assigned to specific tasks that need to be accomplished. Employees are
utilized to make repairs to the transfer stations such as welding new chutes,
replacing guard rails and maintaining the hydraulic pumps.
c) Maintenance Equipment -There is no maintenance facility or crew to service the
vehicles. Overtime is utilized to bring back employees to take trailers and tractors
to the shop for repair, wash down prior to providing the necessary maintenance,
along with prepping and painting.
d) Overtime is used when employees are brought back after their normal shift to cover
for those who are taking annual leave, sick leave, comp time, etc. This is necessary
to keep the program moving as there are no extra employees to fill in for those who
are absent.
This fiscal year, we under budgeted for overtime. This request more accurately
budgets for this item in FY 06-07.
4. The Landfill OCE Rentals/Lease of Equipment expense increased by $188,500 to
$1,293,300. Are there any items not needed?
All items are needed. The FY 06-07 budget reflects scheduled payments on existing
leases and estimated lease payments on new leases. The budget includes only one piece
of additional equipment, a D8 dozer. The budgeted increase is primarily due to the
increased number of payments expected in FY 06-07 for equipment being ordered in
FY OS-06 with expected delivery in FY 06-07.
5. The Recycling Program County expenses (5610) increased by $248,003 (509,639) to
$3,953,753. Are all expenses needed, and which are new expenses?
Yes, all expenses are needed. The increases/decreases are as follows:
Salaries & Wages $ 6,109
Household Hazardous Waste $10,000
Bulky Goods Pick Up ($75,000)
Organics Diversion $350,000
Security Services $172,000
Glass Diversion Subsidy $50,330
TOTAL $509,639
The only new expense listed above is the Security Services that have been added for
transfer station redemption and recycling centers due to vandalism and theft.
6. Briefly explain the Department's request for seven new positions.
There are currently 21 transfer stations with 32 current transfer station attendant
employees. The requested 7 new transfer station attendant positions are the first phase
of the 14 requested. With 14 positions, we would have enough manpower (46 total
transfer station attendants which is 2/week/transfer station) to assign attendants to
specific transfer stations. We could then reduce the security guard services. If all the
transfer stations had security guard services, the cost would be around
$1,638,120/year. However, if 14 additional transfer station employees were added, we
could provide an increased level of service at less expense. The difference between
utilizing 44 security guards versus 14 additional county employees is the difference
between $1,638,120/year - $1,064,340/year, or a savings of $573,780/year, over
contracting for security guards at our transfer stations. County Transfer Station
attendants can provide many more services than the security guards. This reduces
duplication of some services and saves money. State Department of Health is requiring
certification from the County of Hawaii that we provide control and assurance that
what is placed in the landFill is appropriate. Ungated and unsecured transfer stations
do not provide that assurance. Gating and manning the stations with Solid Waste
employees instead of security guards does provide that regulatory assurance.
7. What vacant position will not be filled in FY07?
We expect to fill all funded positions in FY06-07. We currently have the following
vacant positions in the Solid Waste Division:
Eguiument Oaerator III (2 positions) - A recruitment is in progress.
Solid Waste Transfer Station Attendant - A recruitment is in progress.
Scale Attendant -This position is being filled by temporary assignments. A
recruitment is in progress.
8. What are the plans to repair facilities at the Landfill (5604.02.115/Facilities Repair
$300,000)?
This item was requested before Bi11244 (Solid Waste Fund Balance) was brought to
Council at the Finance Committee. The funding was to cover much needed repairs at
the Hilo Transfer Station. We subsequently expanded the scope and included the
funding in Bill 244. Should the Council approve our Solid Waste Fund Balance
request, this item can be deleted from the FY 06-07 Operations Budget.
9. What is the SHSL Equipment/Materials-New Cell Program (5604.02.115/$750,000)?
The South Hilo Sanitary Landfill (SHSL) New Cell Program is the name for the sliver
fill operations. This operation postpones the closure of the SHSL. Previous
operational expenses in the budget for SHSL were manpower, equipment lease
payments, repairs, fuel, maintenance, and contracted cover material. With the
construction of the sliver £?Il, which will prolong the life of the SHSL, avoid trucking to
West Hawaii, and comply with the anticipated permit regulatory requirements, there
are anticipated costs. This funding provides for the operations and maintenance that
will be required to develop the sliver fills on an ongoing basis. The development of the
sliver fill will require additional work beyond the current schedule of the staff. There
will be ongoing construction of the sliver fill in preparation for the placement of waste
which will require additional equipment and manpower (either additional positions or
existing manpower working overtime). Included in this request is funding for
additional rock cover, and appropriate stormwater drainage. When we know the
additional staff?ng needs, we will be coming forward with that request. All of the
above needs are part of this $750,000 item.
10. Why has the Security Services expense increased (5604.02.115/$750,000)? In FY 06,
$480,000 was budgeted.
The increase in Security Services expense is due to added security services and a 17%
increase in the rate we are now paying. Security service has been added at Honokaa,
Papaikou and Hilo. The hours of coverage have also increased from 10 to 12 hours per
day. The previous gap in coverage allowed small commercial haulers to utilize the
residential transfer stations illegally and since we do not have any enforcement
capabilities the additional guard coverage is necessary.
11. Briefly explain the Pu'uanahulu W. HI Landfill expense of Landfill Tonnage Costs for
$5,849,000 (5604.52.115).
The County owns the site of the West Hawaii Sanitary Landfill. The County has
contracted with Waste Management of Hawaii, Inc. for the construction and closure
of the West Hawaii Sanitary Landfill. Under the contract, Waste Management is
responsible for construction, cell preparation, monitoring, maintenance, closure and
post closure activities. County employees operate the face of the landfill. We currently
pay Waste Management $38.72 per ton of trash that goes into the landfill. We are
projected to place a little over 150,000 tons at the West Hawaii Sanitary Landfill this
year.
12. Capital Budget FY07-The West Hawaii Composting Facility is projected to cost
$1,500,000 and has a projected future operational cost of $250,000 per year. Is the
Department planning to take over the composting of green waste from its current vendor?
There are no present plans for the County to take over the composting of green waste
from its current vendor. The County currently has a 5-year price term agreement
with EKO. The experience gained during this period will help us to re-evaluate the
options as we come closer to term on this contract and decide whether or not it makes
economic sense to invest in the equipment (tub grinder, excavator, hauling truck, front
loaders) and new positions (Equipment Operators, Spotters and Compost Project
Manager) to conduct operations internally.
The future operational costs of $250,000 per year represents the additional operating
costs, net of the green waste tipping fee, that will be incurred when the composting
operations begin. Our current estimate is that this figure should really be $337,500.
The price paid per ton will increase by $22.50 (to $58.00), multiplied by an estimated
36,000 tons of green waste, less a tip fee of $18.75 per ton for approximately 70% of the
green waste which is estimated to be commercial. We will be submitting a revised
Financial Impact Statement with the May budget submittal.
13. Capital Budget FY07-The East Hawaii Fats, Oil and Grease (FOG) Facility is projected to
cost $300,000. Is the Department planning to take over the FOG disposal and recycling
program from its current vendor?
At present, the department is not planning to take over the FOG disposal and
recycling program. We currently pay $60/ton through our Diversion Grant program
for FOGS. When a collection site is constructed, we can either adjust the diversion
grant price (to account for less costs to get the FOGS to market) or go out to bid for a
vendor to operate the facility.
14. Is there a plan to reduce the Department's dependency on the General Fund?
The Solid Waste Fund is the only fund within the Department of Environmental
Management that currently receives any General Fund transfer. To reduce the strain
on the General Fund, Ordinance 03-102 was passed in 2003 to increase the tipping fees
by $10 per year for 5 years. The goal is to reduce to approximately 50% of the Solid
Waste budget. It has been a long standing policy that residents do not pay for use of
the County Transfer Stations and therefore the cost of providing those services are
covered by the General Fund.
15. What is the status of the waste reduction technology RFP?
The Stage 1 RFP proposals were due on March 20, 2006. The evaluation committee is
currently reviewing proposals while the consultants are working on the Stage 2 RFP.
Those proposals are scheduled to be due in late September or Early October, 2006. On
May 2, 2006 the consultants would like to present an update on the process, the time
lines and the short list of vendors.
16. What vacant positions will not be filled in FY 07?
Duplicate question. See #7.
Sewer Fund
17. What is the Fd Bal Res For Rep] Fund revenue account (3609.12/$2,498,451), and is it
adequate for the County's sewer system?
At this time we feel the reserve is adequate for the County's sewer system. The
Equipment Replacement Reserve fund balance is currently $4,161,196. Account
3609.12 represents the portion of this balance ($2,086,395) that is being requested for
use in FY06-07 operations. We will be making revisions to this account for the May
budget submittal which will reduce the requested amount for FY06-07.
Typically, larger projects of $1,000,000 or more qualify for the State Revolving Fund
loan process and are generally budgeted through the Capital Improvement Programs.
18. What is the status of account receivables?
The accounts receivable for Wastewater has improved during the current fiscal year,
primarily due to the successful collection on our largest delinquent account that was
paid in full. Ordinance No. OS-19 which went into effect on October 1, 2005, now
makes the property owners ultimately responsible for sewer fees. While it is too soon
to see any measurable results from this new ordinance, we do expect it to have positive
long term effects on the collection of sewer fees.
To Date
FY OS-06 FY 04-OS FY 03-04 FY 02-03 FY 01-02
A/R Balance $1,862,243 $2,018,039 $2,211,736 $2,272,735 $2,158,284
Avg. Monthly Charges $ 544,145 $ 538,824 $ 540,116 $ 551,990 $ 495,701
A/R Over 90 Days $ 965,442 $1,282,697 $1,139,556 $1,158,170 $1,033,447
Percentage over 90 Days 52% 64% 52% 51 % 48%
Avg. Days in A/R 112 128 136 135 131
19. Were there any sewer spills in FY05 and FY 06?
Two sewage spill incidents occurred during this reporting period.
1) February 23, 2005. A sewage spill of less than 100 gallons occurred at the Papaikou
Wastewater Treatment Plant which was caused by failure of supernatant pump
(liquid portion of digester). The spill was confined within facility and the pump
control was repaired.
2) May 24, 2005. A sewage spill of approximately 2,500 gallons occurred at the
Kealakehe Wastewater Treatment Plant which was caused by grease blockage at
diversion box. The spill was confined within the facility and portable pumps were
utilized to bypass the blocked area in order to minimize the extent of the spill. The
blockage was removed and regular inspections of the diversion boxes were added to
the maintenance schedule in order to prevent further occurrences.
One treatment plant bypass occurred during this reporting period:
1) February 4, 2006. A treatment plant bypass of approximately 184,521 gallons
occurred at the Hilo Wastewater Treatment Plant which was caused by a power
outage and failure of Effluent Facility flow meter to reset upon restoration of
electrical power. This resulted in a false signal to the chlorination system and shut-
down of the chlorination system. The flowmeter was replaced with a newer unit to
minimize the possibility of failure during electrical power outages. Shoreline
bacterial sampling was also conducted to verify no contamination of shoreline
waters and was found to be within normal limits and a press release was issued to
notify the public.
20. Are there any problems with the proposed Na'alehu and Pahala sewer systems?
Currently, preliminary engineering investigative work is still ongoing in efforts to
produce a final preliminary engineering report tentatively scheduled for completion in
June. Until this is accomplished, it would be difficult to identify all the problems
associated with the proposed sewer systems. However, it is suspected that a lava tube
exists on the Pahala side that would require re-siting of the septic tank and leach field.
This entails relocating the septic tank and leach field elsewhere on the property. Other
problems will be resolved as they occur. We will request Council's assistance in
addressing the need for establishing sewer rates for septic tank sewer system users.
For comparison purposes, the current monthly service rate for gang cesspools is $15
per month under HCC Section 21-36.1.
21. What vacant positions will not be filled in FY06?
We expect to Till all funded positions in FY06-07. We currently have the following
vacant positions in the Wastewater Division:
Wastewater Deputy Division Chief -This position is being reallocated to a Civil
Engineer IV. A recruitment will follow.
Assistant Wastewater Treatment Plant Operator - A recruitment is in progress.
Wastewater Treatment Plant Operator II -The division is requesting reallocation of
this position to Civil Engineer IV for Kona to respond to plan reviews and equipment
replacement projects. A recruitment will follow.
Wastewater Treatment Plant Operator III -A recruitment will be conducted after the
State performs its next certification exam in August, 2006.
Wastewater Pumpine Plant Operator -The division is requesting reallocation of this
position to Wastewater Treatment Plant Operator I. A recruitment will follow.
Mechanical Repairer -The division is requesting reallocation of this position to Sewer
Maintenance Repairer. A recruitment will follow.
Vehicle Disposal Fund
22. What is the status of the Derelict Vehicle Amnesty Pilot Program to remove up to two
vehicles on private property, and how much has it cost the County (5641.02.115/$200,000
and 5641.02.341 Towing/$1OQ000)?
Since the start of the Derelict Vehicle Amnesty Pilot Program on July 2, 2005, 230
applications have been requested; 94 applications have been received with requests to
remove 138 derelict vehicles. Of these requests, 14 vehicles have been removed from
West Hawaii and 28 vehicles have been removed from East Hawaii for a total of 42
vehicles removed. This has cost the County approximately $5,500 in towing costs and
$17,000 in scrap metal processing costs to date. A major impediment to the Amnesty
Program has been a lack of staff. We hope to remedy this in FY 06-07.
23. Why is there a need for an additional Dere]ict/Abandon Veh Coordinator? Why does that
employee need a new vehicle (5641.06.449/$35,000)?
The demand for services island-wide is more than one employee can perform. The
position is responsible for inspecting the vehicles and coordinating the removal of the
derelict/ abandoned vehicles with the tow companies. In order to provide services to
West Hawai i, the existing employee is spending four hours of a day in travel. The new
position will provide services to West Hawai i, reducing travel time, increasing the
number of hours interfacing with the residents, the police and tow company in the
region. the new vehicle will be used by the Derelict/ Abandoned Vehicle Coordinator
in Kona to perform the necessary inspection of vehicles and to perform outreach to the
residents. This will increase the efficiency of the program and enable the program
staff to remove more vehicles in a shorter period of time.
24. What is the New Auto Impound Facility Program (5641.02.115/$200,000)? Is the
Department planning to take over the Auto Impound and Recycling contract?
There is no Auto Impound contract. This is a contract for recycling of autos and other
vehicles that come to the scrap metal yard. See #25 for more information. This
funding is requested to construct a vehicle impound yard in an area close to the
existing scrap metal recycling yard as there is not a current impound area sufficient to
house the vehicles until they are claimed or sent to the scrap metal contractor. An
impound facility is required as part of the program in conjunction with the abandoned
vehicle program and in coordination with the Police Department.
25. Who is the current vendor for the removal of Derelict Vehicles, and how much does the
County pay for its services?
We currently have two price term agreements for the towing of abandoned and
derelict vehicles. Ken's Towing Service, Inc. provides services for Zone I at a base rate
of $35.00 for a standard vehicle, $65.00 for anon-standard vehicle, plus $2.00 per mile.
JTS Jobi'z Towing Service provides services for Zones II and III at a base rate of
$50.00 for a standard vehicle, $65.00 for anon-standard vehicle plus $3.00 per mile.
Additional charges may apply under certain circumstances for both contracts. (Zone
map enclosed.)
Our current vendor for the processing and removal of scrap metal is Big Island Scrap
Metal, LLC. The contracted price is $144.90 per ton and is tied to the scrap metal
market. We are currently paying an adjusted market price of $102.90 per ton.
If you have additional questions, please advise.
Sincerely,
i~~~
Bazbaza Bell
DIRECTOR
cc: Harry Kim, Mayor
Dixie Kaetsu, Managing Director
William Takaba, Finance Director
Gazy Takamura, Budget Administrator
enclosure
POLICE DISTRICTS
COUNTY OF HAWAII
KOHALA XAPAAU HONOPUE
NONOXAA
KAIOPAE
HAMAKUA
~ AUPASOESOE
NAIMEA
N.. HILO AKALAU
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SOUTH HILO XILO
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KONA ~
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~ CAPT. HANAIEI
COOK
AUHOU LANDING
KA'U
~ ® HAWAII VOLCANOES NATIONAL PARK
KAULANAMAUNA NAALENU
~ DISTRI^T STATIONS