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Home My WebLink AboutCOM 0062.003 1998-2000 V„t~ a M Phone: (808) 961-8264 DOMINIC YAGONG ~r Councilmembn ~ FAX: (808) 969-3291 .ia: r. j J},+ri oor~ H~~'~ CDU1V11 C~UIVCLU, i . ~ County of Hawaii Hawaii County Building 25 Aupuni Street - February 5, 1999 Hilo, Hawaii 96720 Mr. Jiro Sumada, Deputy Chief Engineer Department of Public Works 25 Aupuni Street Hilo, Hawaii 96720 Dear Mr. Sumach: In the ongoing effort on reviewing the Glass Recycling & Diversion program. I met with Mike Allen of Environmental Recycling of Hawaii regarding his operations. I am very concerned that the process that is being utilized does not take into consideration the weight of the pallets and boxes used to ship recycled glass. The way the program is being conducted currently, the County of Hawaii is crediting ERH for weight other than recycled glass, and this must be corrected. This observation was also brought out by the performance review conducted by the Legislative Auditor's office. Please determine whether or not recovery of overpayment should be conducted. I also would like you to clarify the de£mition of "end market." At this point in time, all of the glass that is being processed by ERH is presently being bought by Island Recycling on Oahu, who then ships the glass to the mainland for reuse. Does this meet the terms of the contract in terms of an off-island end market? I will be forwazding this letter to the Corporation Counsel for their perusal, and have them determine if any of the terms of the contract was violated, and legal action, if any, is wartartted in this situation. Thank you for your time, and I look forward to your response. Wa~est Aloha, - Dominic Yagong, Coun em er DY/lga ce: Richard Wurdeman, Corporation Counsel ` Connie Kiriu, L.eg Auditor Mike Allen, Environmental Recycling of Hawaii All Council Members 1 Comm. No. File No.___~_~ F Kef. To: ~WQL _ Se°. Date FEB 0 1999 DOMINIC YAGONG - Phone: (808) 961-8264 C~uncilmembn , ~ FAX: (808) 969-3291 ' C~U1Y11 C~U1Yl~~ County of Hawaii Hawaii County Building February 4, 1999 25 Aupuni Street Hilo, Hawaii 96720 Mr. Jiro Sumada, Deputy Chief Engineer Department of Public Works 25 Aupuni Street Hilo, HI 96720 Dear Mr. Sumada: For your perusal, we have attached Exhibit A, Stockpile Glass Weight Information and Exhibit B, Glass Recycling Diversion Program Quarterly Reports by contract with Recycling Systems Hawaii (RSH). Please be aware that there will be some adjustments to the numbers due to the following. 1. Screening and weighing debris from the glass stockpile located at the County Landfill. (Glass stockpile located at Business Services Hawaii contaminated with heavy vegetation, rocks, and debris). 2. Formulating credit for glass remaining at RSH and Business Services Hawaii as discussed with Mr. Bob Yanabu. We aze concerned about the preliminary numbers. Here is a brief synopsis of the physical glass stockpile inventory on hand (exhibit A), as well as information compiled from Glass Recycling contracts according to documentation provided by RSH to the Public Works Department for payment (exhibit B): 1. Total Weight Diverted: 5,130,1001bs. or 2565.05 tons t~nibi~e:i,~. i~~-ox. iv4s> 2. Total Weight Re-used: 2,622,340 lbs. or 1311.17 tons pan. is9r-o~. i9va> 3. Expected Stockpile Weight: 2,507,7601bs. or 1253.88 tons p.n. iv~7-oa. i~at - - 4. Total Weight of Physical Inventory: 1,294,2001bs. or 647.10 tons tExnron my:ioal mvanory) 5, Unaccounted Weight: 1,213,S601bs. or 606.78 tons 6. Stockpile per May 20, 1997 Memo 216,000 lbs. or 108.00 tons from Recycling Systems Hawaii: 7. Final Unaccounted Weight: * 1,429,5601bs, or 714.78 tons Adjustments forthcoming as stated above.) Mr. Jiro Sumada February 4, 1999 Page 2 of 3 Under contract number 96112 (1995-1996), RSH was not required to provide documentation showing glass tonnage processed or re-used. The documentation that was submitted by RSH showed that between July 1996 -December 1996, 690.45 tons of glass was diverted from the county landfill. This 690.45 tons IS NOT included in the unaccounted weight. According to a progress report letter dated May 20, 1996 from RSH, 108 tons was stockpile (and never used) for a mad demonstration for Public Works. This stockpile of 108 tons was inciuded and Factored in to the unaccounted weight. The numbers listed above come from documentation that is attached to the contracts of RSH at the Public Works Department. The numbers reflect quarterly contracts between the County of Hawaii and RSH between the periods of January 1997 to December 1998. The contract agreement covering this two year period required proof and documentation of glass re-use in order for the vendor to receive payment. The records cleazly show that this was not the case covering July 1997 through December 1998. This represents over $300,000 in payments (@ .08 cents Ib.) made while the condition of the contract was not fulfilled. Documentation under contract 97165 and 97194 (January 1997 to June 1997) provided by RSH shows that 100% of the 644.15 tons that RSH were paid for, was re-used by Hawaiian Cracked Glass. Is it possible for Hawaiian Cracked Glass to re-use 100% of the entire 644.15 tons during this six month period, when RSH was able to reuse only 634.19 tons in the year and a half that followed? Could it be that part of this tonnage was utilized at the Hawaiian Cracked Glass location for the roadway? If not, the department should inquire as to how this 644.15 tons was re-used and if a balance of this glass should be accounted for in the stockpile inventory. The Public Works Department is responsible for administering the Glass Recycling Diversion Program. Under the terms of the grant agreement with the state, the County is responsible for proper payments to the contractor in accordance with the terms of the contract. The data from the physical stockpile inventory, as well as information from the performance review conducted by the Legislative Auditor Department must be analyzed _ - very carefully. 0 0 Mr. Jiro Sumada February 4, 1999 Page 3 of 3 1. Please determine if any violation of the contract exists, particularly with respect to the legitimacy of the end market entity and the re -use of the glass. 2. Please determine whether overpayment, if any, to RSH must be recovered. 3. Please determine whether any county employee played a role in the failure of administering the contract, and what steps will be taken to insure adequate monitoring of the glass recycling program. 4. We will submit this information to Corporation Counsel for their perusal. I will request that they review the information and determine if the terms of contract was violated, and if legal action, if any, is warranted in this situation. I strongly feel that we should give RSH the benefit of the doubt, and allow them an opportunity to provide an explanation regarding the preliminary numbers. The same opportunity will be allowed for the Public Works Department. I will be placing the matter on an upcoming Public Works and Parks Committee, however, I will give your department time to discuss the matter with RSH. I assure you that we have not reached a conclusion on the matter, and we are hopeful that information brought forward would clarify the many concerns regarding this program. li W est Aloha, d'w 1% Dominic Yagong, Co 1 - i t. Hawai'i County Coun - DY:la CC: Richard Wurdeman, Corporation Counsel All Council Members Connie Kirin, Leg. Auditor Ms. Illinois Ululani Rosario, Recycling Systems Hawaii EXHIBTT KA" STOCKPILE GLASS PHYSICAL INVENTORY For: January 27, 1999 Time: Net Weight: Tons: Truck ID No. 9:17 a.m. 67,140 33.57 C/H 1645 10:40 a.m. 65,700 32.85 C/H 1645 12:03 p.m. 64,260 32.13 C/H 1645 12:53 p.m. 60,500 30.25 C/H 1645 1:55 p.m. 69,560 34.78 C/H 1645 For. January 28, 1999 Time: Net Weight: Tons: Truck ID No. 8:00 a.m. 63,540 31.77 C/H 1658 9:18 a.m. 72,540 36.27 C/H 1658 10:28 a.m. 60,660 30.33 C/H 1658 12:14 p.m. 53,900 26.95 C/H 1658 1:02 p.m. 68,160 34.08 C/H 1658 2:08 p.m. 57,200 28.60 C/H 1658 For: January 29, 1999 7:36 a.m. 21920 10.96 C/H1815 8:11 a.m. 18260 9.13 GHI815 9:04 a.m. 22900 11.45 C/H1815 9:49 a.m. 19960 9.98 C/H1815 10:37 a.m. 20860 10.43 C/H1815 11:22 a.m. 20240 10.12 C/H1815 7:40 a.m. 20700 10.35 C/H1566 - _ 8:19 a.m. 16940 8.47 C/H1566 9:15 a.m. 17560 8.78 C/H1566 9:55 a.m. 14000 9.50 C/H1566 10:41 a.m. 17440 8.72 C/H1566 1:01 p.m. 12200 6.10 C/HI566 ' 8:09 a.m. 51780 25.89 C/H 1658 7:43 am. 17680 8.84 C/H 1475 8:25 am. 16580 8.29 C/H 1475 9:36 am. 17920 8.96 C/H 1475 10:12 am. 16220 8.11 C/H 1475 10:46 am. 16080 8.04 C/H 1475 1:26 p.m. 16600 8.30 C/Ii 1475 7:52am. 45000 22.50 CH 1645 8:48 am. 32960 16.48 CH 1645 9:43 am. 43860 21.93 CH 1645 I0:34 am. 45280 22.64 CH 1645 11:08 am. 43100 21.55 C/H 1645 Gr~u?d Total: 1,294,200 647.10 0 O EXHIBIT `B" F Glass Recycling Diversion Program Vendor. Recycling Systems Hawaii Quarterly Reports by Contract Contract # I Month I Tons Diverted I Tons Re -Used I Tons Stockpile 96112 May 20, 1996 108.00 108.00 Memorandum N/A N/A 96112 July - Sept 1996 313.51 N/A 96112 Oct -Dec 1996 268.94 N/A 690.45 108.00 Totals: 97165 Jan -March 1997 365.46 0 97194 April - June 1997 • 365.46 Totals: \ 278.69 278.69 \ 0 644.15 644.15 Oct - Dec 1997 7 7 353.34 64.38 288.96 98077 Oct 98057 - Sept 1997 459.68 22.70 436.98 . 435.28 - 1 43 1814 98150 • Jan - March 1998 317.14 35.23 118.14 98222 April - June 1998 167 Totals: 1298.07 588.59 709.48 3.36 348.20 99028 July -Sept 1998 351.56 75 07 196.20 99064 Oct - Dec 1998 271.27 622.83 78.43 544.40. Totals: - Grand Total: Jan 1997 -Dec 1998 2565.05 1311.17 1253.88