HomeMy WebLinkAboutCOM 0092.001 2006-2008
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l~i~ Barbara Bell
Director
Harry Kim
Mayor •r rte- Nelson Ho
•r''•"' Deputy Director
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DEPARTMENT OF ENVIRONMENTAL MANAGEMENT
25 Aupuni Street' Room 210 • Hilo, Hawaii 96720-0252
(808) 961-8083 • Fax (808) 961-8086
email cohdemla~co hawaii.hi.us
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February 12, 2007 ~ -rl
The Honorable Mayor Harry Kim - ca
The Honorable Pete Hoffmann, Chair w
And Members of the Hawaii County Council
25 Aupuni Street
Hilo, HI 96720
RE: COST OF GOVERNMENT REPORT
Deaz Mayor, Chairman and Council Members,
Upon review of the January 9, 2007 Cost of Government Report, we would like to offer the following
information and clarifications. Our comments follow the Background/Explanation and aze in bold print:
VII. ENVIRONMENTAL MANAGEMENT
A. Wastewater Division:
1. Recommend looking into developing more opporUnities in wastewater recycling,
primarily for environmental reasons, but also to generate revenue.
Background/Explanation: It was learned that only one entity, a golf course in Kona,
has contracted with the Wastewater Division to use the County's effluent. It is
believed that more entities could make use of the effluent, which can be recycled and
treated so that it is safe for human contact, for imgation purposes.
Comment: The County was negotiating with the private sector to upgrade the
recycled water to a higher quality and then execute a contract to use all of the
recycled water that could be produced in Kona (1.6 million gallons per day).
Unfortunately costs and time constraints ended those negotiations in December
2006.
Creating a distribution (transmission) system is key to developing more
opportunities to use recycled or reuse water. The department is
now implementing plans to design and construct a distribution system in
conjunction with the Phase II Widening of Queen Kaahumanu Highway state
project. The North Kona Sewer and Effluent Reuse Upgrade Project is now
going to the County Council for funding. The upgrade of the Kealakehe
Wastewater Treatment Plant process is estimated at $13.2 million and the total
cost for the recycled water system is estimated at $21.1 million.
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3. Recommend pursuing water turnroff approval for overdue sewer bills. (This would
require working with the Water Supply Department.)
Backeround/Explanation: The COGC was informed that on Oahu and Maui,
customers who are delinquent on paying their sewer bills may find their water being
shut off. It is believed that our Wastewater Division would be more successful in
collecting from its delinquent sewer customers if the customers were faced with their
water being fumed off. As it is now, the Wastewater Division has no leverage to
collect from delinquent customers.
Comment: The percentage of receivables over 90 days past due has increased
from 56% ($873,400) at the end of FY05-06 to 58% ($858,900) for the
Wastewater Division. The average number of days in accounts receivable has
decreased from 101 days at the end of FY05-06 to 83 days.
S. Recommend expanding programs to assist homeowners to connect to the sewer
system where it is available.
Background/Explanation: Although there is a sewer connection loan program
available to help with fmancing, there are still property owners who do not want to
connect to the sewer. The COGC wants homeowners to be made awaze of the loan
program and to be encouraged to hook up.
Comment: (HCC, Section 21 -Sewer Loan Program information is attached.)
B. Solid Waste Division:
1. Recommend that the Solid Waste Division receive clerical assistance.
Backaround/Explanation: At the time the COGC met with the Solid Waste Division
chief (on May 18, 2006), they were informed that it was aone-man office, with no
clerk or assistant to help with the filing, telephones, and other clerical matters.
Comment: An Administrative Assistant has since been hired to assist with
clerical matters.
2. Recommend that contract terms be lengthened to multi
year terms. This is
regarding vendor contracts, not employee contracts.
Background/Explanation: The Solid Wastes Division deals with many contracts.
Most are set up for six-month or one-year terms, which is not efficient. Because of
the short temLS, the County does not get competitive rates when the contracts go up
for bid, because the companies with the existing contracts are already geared up to do
it. In addition, dealing with the numerous contracts and keeping track of them takes
up a lot of the division head's time.
Comment: The length of contracts is flexible now. The divisionldepartment can
recommend making the contract multi-year. The Council's approval by
resolution is then needed for the mayor to enter into the multi-year contract.
5. Recommend that employees be subject to random drug testing, which is to include
current employees and not just new hires.
Backeround/Exmlanation: At the current time, drug testing is only allowed for new
employees coming into the County system. The employees of the Solid Waste
Division need to be drug-free, as they are driving lazge trucks on the highways,
putting the public as well as themselves at risk.
Comment: This is incorrect. Human Resources does administer to all CDL
Solid Waste Division drivers random drug tests per the Union contract, Section
63, Unit Ol Agreement entitled Commercial Motor Vehicle Alcohol and
Controlled Substance Test (intended to comply with the "DOT rules"), AND
federal rules (the official title is Omnibus Transportation Employee Testing Act
of 1991- summary can be found at www.dot/QOV/ost/dapcn. Both apply.
6. Recommend taking theabandoned/derelict vehicle program out of the Police
Department and placing it with the Department of Environmental Management
Backgxound/Exmlanation: The current system involves a police officer placing a
citation on an abandoned or derelict vehicle, dictating a report back at the station,
sending it to the word processing division for typing (which involves atwo-week
turnazound time), receiving the report back and proofreading and signing it, and then
transmitting the report to the DEM, which then contracts out the towing of the
vehicle. From the time a vehicle is cited to the time it is towed is substantial, and the
vehicle should be removed sooner. The role of the Police Department in writing a
report and having it type could be eliminated. Instead, a form to report an
abandoned/derelict vehicle could be made available to the public. This form would
include the description of the vehicle, its location, and other essential information.
The DEM could use the information from the form to hook up the vehicle. This
would cut out the delay of having an officer dictate a report, having it typed, going
back to the officer for proofreading and signing, going to the records division ,and
then finally going to the DEM. Details such as how DEM would verify the
information in the report forms would need to be worked out. The COGC was
informed that Oahu's Environmental Management Department handles the
abandoned/derelict vehicle program.
Comment: The current system as explained in the report has some inaccuracies.
The Police are involved when an abandoned/derelict vehicle is on a public road.
If the police determine the vehicle poses a hazard to the public rather than a
hazard to driving, they contact us for immediate removal. However, we
consistently receive the police reports well before the two week time frame as
noted in the report. The present law requires that the Police investigate
abandoned vehicles as criminal investigations and be carried out by law
enforcement officers. The police enter the license plate and/or vehicle
identification number (if available) through their computer system to determine
if the vehicle has been stolen or involved in a crime. The police are then able to
determine the last registered owner of the vehicle. The police currently follow
HRS 290-12 to report and/or cite an abandoned vehicle. The HRS currently
says that the vehicle must be marked as an abandoned vehicle and the owner
must be given 24 hours to remove the vehicle once tagged.
At this time, the police are essential in providing the current level of service.
The abandoned vehicle coordinators speak with the Traffic Services Section of
the Police Department daily to make sure they are receiving the most recent
abandoned vehicle reports.
>I
Oahu's Department of Finance, Division of Motor Vehicles and Licensing,
handles the abandonedfderelict as well as the periodic motor vehicle inspection
stations, not the Department of Environmental Management. The positions that
perform these services on Oahu are called Motor Vehicle Control Inspectors I
which are commissioned by the Police Department and have the authority to
investigate, cite and tow abandoned vehicles on public roads.
Thank you for allowing us the opportunity to respond to our portion of the report. If you require further
clarification, please don't hesitate to contact me.
Sincerehy,~
Barbara Bell
DIRECTOR
cc: Acct. N
Deputy Director
Personnel
SWD
WWD
' §2I-38 HAWAII COUNTY CODE
Section 21-3g. Defmitions.
For purposes of this article, the following words and phrases, unless the context otherwise requires, shall
be defined as indicated:
"Default" means the failure of a guazanteed borrower to make a required payment to a designated bank
within ninety days of the date upon which the payment is due as stated in the contract between a designated
bank and a guaranteed borrower.
"Designated bank" means any bank or financial institution approved by the director of finance pursuant to
this article to provide loans to owners who are required to connect property to sewers by section 21-5.
"Guaranteed borrower" means an owner who has executed the appropriate agreements with the County of
Hawaii required by this article and whose loan with a designated bank is guaranteed by the County of Hawaii
in accordance with this article.
"Increment" means any one of the planned sewer construction projects stated in section 21-37.
"Owner" means:
(1) A person or persons, including joint tenants, tenants in common, tenants by the entirety,
corporations, and partnerships who hold the fee title to real property which is required to be
connected to sewer ?ines pursuant to section 21-5; or
(2) A person or persons, including joint tenants, tenants in common, tenants by the entirety,
corporations and partnerships to whom has been entrusted pursuant to law the legal or equitable
titles to real property which is required to be connected to sewer lines pursuant to section 21-5, and
who are empowered to act as trustees of that real property for the benefit of another or others, or as
trustees of aself-trusted revocable living trust; or
(3) A person or persons who hold equitable title pursuant to an agreement of sale of real property which
is required to be connected to sewer lines pursuant to this chapter; or
(4) A person or persons who hold, under a lease for a term of five years or more for residential
purposes, real property which is required to be connected to sewer lines pursuant to this chapter.
"Self-directed revocable living trust" means a trust formed for the purpose of management and
administration of real property and in which the owner(s) of an interest in real property becomes settlor(s) and
trustee(s) of the trust by making said real property the trust res, and administering said property for the benefit
of the owner(s).
(1992, Ord. No. 92-136, sec. 1.)
Section 21-39. Sewer connection loan program.
(a) Before the director, pursuant to section 21-5, notifies property owners in an increment of the requirement
that they connect their properties to the sewer line, the drrector of finance shall be authorized to develop a
sewer connection loan program for the purpose of guaranteeing loans used to connect lots which are a
part of that increment to the sewer lines. The director of finance may consult with any banks or financial
institutions about participation in a program of loan guarantees for owners of properties who are required
to connect to sewers pursuant to section 21-5.
(b) After consultation, the drrector of finance shall designate one or more banks or financial institutions to
handle the County-guaranteed loan program. In designating a bank or financial institution, the director
shall consider the interest rates offered on the loans by the bank, the number of months and monthly
payments of the loan, and the willingness of the institution to make the same agreed-upon rate offered on
the County-guazanteed loans available to others borrowing money to pay for sewer hookup fees whose
loans are not guaranteed by the County of Hawaii. Any bank or financial institution which complies with
the terms of the loan program shall qualify as a designated bank.
21-14
SEWERS § 21-39
(c) The director of finance shall require that a designated bank agree that:
(I) The loan to a guaranteed borrower will be at a rate of interest and terms agreed upon at the
inception of the program for [hat increment;
(2) The loan will be guazanteed by the County of Hawaii;
(3) In the event that a guaranteed borrower fails to pay the required payment on the loan within ninety
days of the date upon which the payment is due, the loan shall be considered in default and the
designated bank shall immediately notify the director of finance of the County of Hawaii, as well
as the guaranteed borrower;
(4) In the event of a default of any guazanteed borrower, a designated bank shall accept payment in full
from the County of Hawaii as full satisfaction for the loan; and
(d) The director of finance shall inform the mayor and the County council of the names of banks and
financial institutions which aze designated banks, and shall provide them with copies of the agreement
negotiated with the designated banks and the conffact which the designated banks will execute with
guazanteed borrowers.
(1992, Ord. No. 92-136, sec. 1; Am. 2001, Ord. No. 01-108, sec. 1; Am. 2002, Ord. No. 02-66, sec. 17.)
Section 21-40. Loan application.
(a) Any owner who is required to connect such owner's property to a sewer pursuant to section 21-5, and
who has been rejected by any bank or financial institution for any type of a loan to pay for the sewer
connection, based on insufficient ability to repay said loan, may apply to a designated bank for a sewer
connection loan which is guaranteed by the County of Hawaii. Any application for a guaranteed loan
must be submitted to a designated bank no more than forty calendar days after the date of the notification
by the director requiring the owner to connect to the sewer.
(b) All such timely applications for guazanteed loans shall be sent by any receiving designated bank to the
director of finance. Any owner whose application for a sewer connection loan is referred to the director of
finance by a designated bank may participate in a loan guaranteed by the County of Hawaii and become
a guazanteed borrower. As conditions of participation, the applicant shall execute:
(1) A loan agreement with a designated bank, with the County of Hawaii as guarantor of the loan,
providing that:
(A) The money will be paid by the bank directly to the conffactor performing the connection; and
(B) In the event the guazanteed borrower faits to pay the required payment on the loan within
ninety days of the date upon which payment is due, the loan shall be considered in default and
the County of Hawaii will repay the loan in full to the designated bank, and will assume the
designated bank's status as creditor.
(2) An agreement with the County of Hawaii giving the County of Hawaii a lien on the property to be
connected. In situations in which the guaranteed borrower is a corporation or an owner holding
property in a trust other than aself-directed revocable living trust, the County of Hawaii shall
initiate foreclosure proceedings immediately upon default by the owner and payment by the County
of Hawaii. In situations in which the guazanteed borrower consists of two people holding as tenants
by the entirety, the County of Hawaii shall initiate foreclosure proceedings immediately upon the
death of the survivor of the tenancy by the entirety or upon the sale, exchange, transfer or forced
sale of the property. In all other situations, upon the death of the guaranteed borrower, or the sale,
exchange, transfer or forced sale of the property, or the death of the last surviving settlor of a
self-directed revocable living dust, foreclosure action shall be brought concerning any amounts
remaining on the amount owed to the County of Hawaii. Upon execution, the loan agreement and
the lien document shall be recorded at the bureau of conveyances.
21-15
T
21-40 HAWA1`1 COUNTY CODE
(c) For the protection of the interest of the County of Hawaii, a title search for any property upon which the
County of Hawaii will have a lien shall be conducted prior to execution of any agreements, and the cost
of the search shall be paid from the loan proceeds.
(1992, Ord. No. 92-136, sec. 1; Am. 2001, Ord. No. 01-108, sec. 1; Am. 2002, Ord. No. 02-66, sec. 18.)
Section 21-41. Default procedure.
In the event of a default, after the County of Hawaii has paid the designated bank or financial institution,
the director of finance shall have the discretion to negotiate with the guaranteed borrower a plan for repayment
of the loan to the County of Hawaii. In negotiating the loan repayment, the director of finance shall take into
consideration the following guidelines:
(a) In the event that the guaranteed borrower is capable of paying the monthly interest on the loan, the
repayment plan shall include a minimum monthly payment at least equal to the amount of monthly
interest, and at the same rate of interest charged by the designated bank.
(b) In the event that the guaranteed borrower is unable to pay an amount equal to the monthly interest, the
director of finance may negotiate a smaller monthly payment than the amount equal to the monthly
interest, provided that in every case the guaranteed borrower in default shall pay no less than $1 per
month.
(c) If no agreement on the plan for repayment is reached within ninety days of default, the County of Hawaii
shall immediately initiate foreclosure proceedings against the subject property.
(d) In the event that the guaranteed borrower is a corporation or is an owner holding property in a trust, then
the County of Hawaii shall initiate foreclosure proceedings immediately upon default by the owner and
payment of the loan by the County of Hawaii.
(e) In the event that the guaranteed borrower is an owner holding property in a self-duected revocable living
trust, or is any type of owner described in the definition of"owner," with the exception of those described
in section 21-41(d), then upon the death of the guaranteed borrower, or the sale, exchange, transfer,
forced sale of the property, or termination of a trust created pursuant to chapter 558, Hawaii Revised
Statutes, as amended, foreclosure action shall be brought concerning any amounts owed to the County of
Hawaii.
(t) In the event that the guaranteed borrowers are owners holding as tenants in the entirety, then upon the
death of the surviving spouse, or the sale, exchange, transfer or forced sale of the property, foreclosure
action shall be brought concerning any amounts owed to the County of Hawaii.
(1992, Ord. No. 92-136, sec. 1.)
Section 21-42. Connection contract.
(a) Prior to notification of the owners within an increment pursuant to section 21-5, the director shall
authorize a request for proposal for licensed contractors to connect all of the properties subject to
guaranteed loans. Such a proposal shall require the contractor to give the director an estimate for the cost
of connection for each property in the increment.
(b) As a condition of selection by the County of a proposal, a contractor submitting a proposal shall agree to
connect the property of any owner who becomes a guaranteed borrower to the sewer at the price
estimated in the proposal.
(c) The director shall infonn [he mayor and the County council of the selected proposal.
(d) All guaranteed borrowers shall have their properties connected to the sewer by the contractor selected
pursuant to this article. This shall be a condition of any loan guaranteed by the County of Hawaii.
(1992, Ord. No. 92-136, sec. 1; Am. 2001, Ord. No. 01-108, sec. 1; Am. 2002, Ord. No. 02-66, sec. 19.)
21-16
SEWERS § 21-43
Section 21-43. Nonqualifying applicants.
(a) Where an owner is unable to obtain a guazanteed loan from any designated bank, the County of Hawaii
shall contract with the contractor selected and approved pursuant to this article to connect the
nonqualifying applicant's premises to the sewer. The applicant shall execute an agreement with the
County of Hawaii giving the County of Hawaii a lien on [he property. This agreement shall be identical
to those executed between the County of Hawaii and the qualified, guaranteed borrowers.
(b) Upon connection of the nonqualifying applicant's premises to the sewer, the County of Hawaii shall
proceed in the same manner provided for in the event of a default on the loan.
(1992, Ord. No. 92-136, sec. 1.)
Section 21-44. Waiver of liability.
The contractor selected pursuant to [his article, as well as the guazanteed borrower shall execute
agreements with the County of Hawaii in which each of them agrees to defend, indemnify and hold harmless
the County of Hawaii in the event of any personal injury or property damage resulting from the connection of
the property to the sewer.
(1992, Ord. No. 92-136, sec. 1.)
Section 21-45. Reserve fund.
(a) For the purpose of payment of guazanteed loans in default, there shall be created a reserve fund, to be
(mown as the sewer connection reserve fund, which shall at all times be not less than fifteen percent of
the total amount of loans guazanteed and shall be funded by the general fund or other available sources. If
a guaranteed borrower defaults on a loan, the bank shall be paid from this reserve fund without further
council action. If this repayment of the loan causes the reserve fund to fall below fifteen percent of the
total amount of loans guazanteed, the director of finance will then submit to the council a bill for an
ordinance to transfer the moneyfrom [he general fund or other available sources if such a transfer is
necessary to maintain the required level of the fund. All interest generated by the fund shall be deposited
into the County of Hawaii general fund.
(b) At least once every three months the director of finance shall prepaze and submit to the council a report
on the status of the loan program, including but not limited to the following:
(1) The number of guaranteed loans outstanding;
(2) The total dollaz value of all guaranteed loans outstanding;
(3) The balance in the reserve fund; and
(4) The number of hookups to be required in the next increment.
(1992, Ord. No. 92-136, sec. 1.)
Section 21-46. Loan fund.
(a) For [he purpose of funding loans to owners under section 21-43, there shall be created a loan fund, to be
known as the sewer loan fund and which shall be funded by the general fund or other available sources.
(b) At least once every three months the director of fmance shall prepaze and submit to the council a report
on the status of the sewer loan fund, including but not limited to the following:
(1) The number of loans which the sewer loan fund is funding;
(2) The total dollar value of all such loans; and
(3) The balance available in the sewer loan fund.
(1992, Ord. No. 92-136, sec. 1.)
21-17