HomeMy WebLinkAboutREP PEMC 019 08/31/2004 2002-2004KEPOR~I' OF THF, COMMITTEE
ON PARKS 8r ENVIRONMENTAL MANAGEMENT'
DA'I'G: August 31, 2001 RE: Comm. No. 731Bi11 312
PLACF,: Councilroom
"DIME: I:IS p.m.
Chair and Members
Hawaii County Council
I lilo. Ilawai'i 96720
Your Committee on Pm~ks and Gnvironmenlal Management, to which was referred Communication No. 731.
fiom Barbara Bcll, Director of P,nvironmental Management, dated August 12, 2004, reports as follows:
Communication No. 731 transmitted Bill 312, which changes the responsibility for the payment of sewer
fees Irom the customer identified by the Deparunent of Water Supply (DWS) to the property owners. 'fhe
Lm ironmental Management Commission believes that this is a fairness issue as well as an attempt to address
the issue of collecting wastewater service fees.
l he problems related to delinquent accounts were discussed with Wastewater Division Chief Peter Boucher.
Mr. Boucher noted that the main intent ofthc bill is to separate wastewater billings from the DWS hillings.
Since vvastcvvater billings for residential users arc flat rate hillings ($54 bimonthly) he pointed out that there
is no need to wait fix DWS hillings to process wastewater billings. The current wastewater billing process
causes col Iection prohlems. Estimates placed the number of delinquent accounts at d35, about 50% of them
residential accounts, with a total value of $1.3 million. This is a longstanding problem because the
department doesn't have the necessary tools (leverage -- to turn off service) to make customers pay for the
services Ihey receive. Collection agencies. loo, have not been entirely successful since they keep 40% of the
lees the} collect and they have displayed at times a tendency to exert minimal eflort in collections.
Council member J. Curtis Tyler, III noted that there is a need to notify landowners that this bill is being
considered because of the significant impact that this bill might cause, especially the issue of beingjointh~
and severally liable even when the landowners are not aware of any delinquency. He questioned the policy
that would hold a puhlic trust liable. He also noted that there was a similar bill in the past (Bill 25G);
however. Bill 2~6 was deferred in the Finance Conunittce.
PEMC REPORT NQ: 19
Council member Joe Reynolds asked if the collection issue could he addressed with the exercise of liens.
Assistant Corporation Counsel Bobby Jean Lcithead-~I odd remarked that the County does not have the
authority to place liens on property for water and sewer. To place a lien, the County would first have to go
to court and win a,judgement and then a lien could be sled. 'Che authority for the County to establish a lien
~uwld have io come from the state legislature.
Council member Mike Tulang spoke to Flat charges and the possibility, since the billings are flat rate and not
base on consumption, of quarterly hitting.
Peter Boucher, Wastewater Division Chief replied that monthly billings work best because keeping the time
period short is the hest way to try to keep receivables as current as possible. He also noted the need to
separate the wastewater billings from the DWS billings. He agreed to provide more information for the
Council for the nest meeting.
The motions to amend Bill 312 with Bill 312. Draft 2 (transmitted by Comm. No. 731.1) and Rill 312,
Draft 3 (transmitted by Comm. No. 73 I ?)were carried. Bill 312, Draft 2, amended the bill by updating the
language. Bill 312, Draft 3 made three significant changes: (I) The sentence regarding proration of billings
was rcnxwcd; (2) "sixty or more days overdue" was changed to past due to allow the division to begin
charging penalties and interest if not paid by the due date; (3) in Section 4, the due date was changed to
July I. 200 in order to give the accounting staff enough time to implement the new procedures.
Council member Tyler made a further motion to amend Section 21-32 (d) by adding when due and deleting
ns alTirmed by die record of votes of the members of Your Committee, Your Committee is in accord with
the intent and purpose of Bill 312, Draft 2, as amended, (to Draft 3), and as further amended Qo Draft 4).
Your conunittec recommends that it pass first reading.
NI
AYES NOES A&E EX
~. ARAK~KI X
CHUNG X
ELARIONOPP X
HOLSCHUII X
JACOHSON X
RISYNULDS X
SAFARIR X
fUL,~NG
~ ~~~
~ X
IY LI.R X
Respectfully submitted
COMMI"1"fEE ON PARKS R F,NVIROMENTAI.
MANAGEMENT
~~ ~
J PH ,
PEMC REPORT N ~-~~-~- ~- ~~19 _
ADOPTED: ^~~ V ~ ~~UJ