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HomeMy WebLinkAboutREP PWC 277 09/29/1988 1984-1988 REPORT OF THE COMMITTEE ON PUBLIC WORKS DATE: September 29 , 1988 PLACE: Councilroom TIME: 9 : 00 a .m . Chairman and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Public Works to which was referred Communication 1750 and Resolution No . 480-88, reports as follows: The purpose of Resolution No . 480-88 is to authorize the County to grant a license to Pacific Waste Recovery Systems, Inc . and Waste Recovery System, Kona , which will allow those companies to enter the Hilo and Kailua landfills , as well as other County-owned areas , as may be deemed appropriate by the Chief Engineer , for the purpose of removing junked cars , scrap metal and other waste materials from those areas . The authorization cited in Resolution No . 480-88 is Section 2-111 of the Hawaii County Code 1983, relating to powers of Council , which states that the Council may, by resolution approved by a majority of its members , direct the finance director or chief engineer to dispose of real property by lease , license or permit . Your Committee has reviewed Communication No . 1750 from the Chief Engineer , which transmits Resolution No . 480-88 and states that the resolution will allow waste metal (junked cars ) removal at various locations around the County, including the Kailua and Hilo landfills and reclamation (mining ) of Kailua landfill to recover recyclable materials and to produce a compost soil amendment . Communication No . 1750 also states that proposals were received from four firms in March 1988 ; Waste Recovery Systems was selected for final negotiation; and the Department is prepared to execute contracts toward implementation. The main features of the contr..cts are as follows: Waste Metal Removal 1 . Contractor will use his equipment to crush , bale and transport junked cars and will store and market them. 2 . There is no cost to the County . 3. Both landfill sites will be cleared before other areas belonging to the County . 4. Contract duration is five years and is renewable by written agreement of both parties . PWC REPORT 277 PDOPTED : OCT 51988 PWC-277 Page 2 September 29, 1988 Landfill Reclamation Project 1 . Contractor will construct a portable facility at the Kailua landfill to separate mined refuse into glass , plastics , metals , papers and compost and then will store and market the separated refuse . 2. There is no cost to the County . 3. Unuseable landfills will be returned to developable lands . 4. Will allow for control of landfill fires . 5 . Contract duration is eight years . Your Committee considered Resolution No . 480-88 and Resolution 480-88 Draft 2, which was circulated at the meeting on August 30 , 1988 . Your Committee heard testimony from the Chief Engineer that he worked on the proposal to remove junked cars at the landfills and to extinguish fires at the Kailua landfill for two years and four months . In response to the Department of Public Works Requests for Proposals (RFP' s ) , four proposals were submitted by the following: 1 . John Zinc Co . for incineration at a cost of nearly 14 ,000 ,000 ; 2. Shane Rohan for a recycling project at a cost of 150 ,000 to 160 ,000 ; 3 . Western Waste Industries , a California Company that proposed taking over our landfill ; and 4 . Waste Recovery System, which involves removal of the junked cars and for mining the Kona landfill . The Chief Engineer testified that the RFP' s were not related to the initiative for waste to energy incineration [Resolution No . 330-87 ] and the Department of Public Works is proceeding with the feasibility study to see if incineration is workable within the County . The Chief Engineer explained that the purpose of Resolution 480-88 is to allow use of the land for more than one year and to allow Pacific Waste Recovery System and Waste Recovery System Kona the rights to the materials in the landfill as well as the junked cars . Your Committee heard a short presentation from Boyd Hansen, President of Waste Recovery System, who handed out brochures on the equipment he would use for the junk car removal . The portable equipment would allow the company to move to Hilo after completing junked car removal in Kona . He anticipated removing junked cars from around the island and possibly the State and other areas in the Pacific . He plans to compact the cars and sell them FOB from Kawaihae or Hilo to international jobbers . PWC-277 Page 3 September 29, 1988 Your Committee had concerns regarding handling of hazardous waste , what the County requires of the contractor , including liability insurance and bond amounts , fires , the public 's access to the Kailua landfill , and tipping fees . Mr . Hanson testified that his company 's employees are trained to identify hazardous waste . The Chief Engineer testified as follows : 1 . Any hazardous waste that is produced as a result of the contractor 's operation becomes the contractor 's responsibility ; however , if hazardous waste exists in the landfill , the County will take appropriate action . 2. Half a million dollars insurance is a minimum requirement with the County named as an additional insured in addition to defending the County of Hawaii and a hold harmless clause . 3 . The major County requirement is for the contractor to coordinate his work with the Department of Public Works and this will be reflected in the contracts by the wording "as mutually agreed on" to assure that the reclamation operations do not interfere with the Department ' s operation of the landfill and transfer station . 4 . The contractor will take care of the existing landfill , not the incoming waste stream, so that any fire that occurs in the newer portion of the landfill where the County will still be working would be the County 's responsibility . 5 . The public will be using the transfer station and that the contractor will be working from the back side of the landfill and there won 't be a mix or conflict of traffic movements at the landfill . 6 . Tipping fees are not in place now and the Department has no authority to assess tipping fees . The Chief Engineer also testified that the reclamation products would be separated and made into pellets which either could be marketed and landfilled, as they are highly compressed, or could be used for the generation of electricity at one of the burners currently in operation at Hamakua Sugar or HELCO. He stated that he is excited about the project in light of the EPA's latest declaration , which may be retroactive for existing landfills , and that this proposal would return landfills to developable lands , instead of unusable lands for 30 years . PWC-277 Page 4 Sepember 29, 1988 Two Committee members and the Committee Chairwoman stated that before the Committee approves any resolution authorizing the County to make an agreement , the Council must know what the contract will be . The Managing Director testified that the reason that the resolution is before the Committee is because the Council has the authority to dispose of or lease land for more than one year . He further testified that the Council could see the contracts after the negotiation with the contractor is completed and at that time the Council could approve the Mayor signing the contract or not . Your Committee Chairwoman stated that there are problems in the resolution and she asked Corporation Counsel to review the resolution , which was substantially changed in the form of Resolution 480-88 Draft 2 by deleting two "whereas " paragraphs and changing the designation of County owned area because the landfills are held by executive order . Boyd Hanson pointed out the site of a proposed butler building on a sketch of the 16-acre Kailua landfill and windrows of compost on five acres makai of the transfer station. In response to a Committee member who asked if the building would be left on the site , Mr . Hanson replied that it depends on what happens at the end of eight years and how the public feels about them . The Chief Engineer testified that once the contract is executed, it will take about eighteen months before the facility is completed and put into operation . After operation begins , the contractor would take whatever is in the landfill and the County would be responsible for the incoming waste stream. Members of your Committee expressed support for reclamation of the landfill and junked car removal , but expressed concerns regarding unavailability of the contracts , the total waste problem of West Hawaii and the lack of a plan or total program for total waste disposal in West Hawaii , lack of solid waste impact in the impact fee ordinance , and how the reclamation program ties in with the new and growing waste stream in West Hawaii . The Chief Engineer stated that the contract has been reviewed by all the parties who have to review it and it awaits execution on the approval of Resolution No . 480-88 . Your Committee Chairwoman recommended deferring action on Resolution No . 480-88. Your Committee concurred with the Chairwoman 's recommendation . Your Committee considered Resolution No . 480-88 again on September 29, 1988 . Copies of the contracts were circulated . • PWC-277 Page 5 September 29, 1988 Resolution No . 480-88 Draft 3 contains two "BE IT RESOLVED" paragraphs . The first "RESOLVED" authorizes the County to grant a license to Pacific Waste Recovery Systems , Inc . and to Waste Recovery System, Kona , which will allow those companies to enter upon County-owned , managed or controlled areas , as may be deemed appropriate by the chief engineer , for the purpose of removing junked cars , scrap metal and other waste materials from those areas . The second "RESOLVED" paragraph authorizes the County to enter into contracts , as reviewed by the Council , to accomplish the purposes mentioned in the first "BE IT RESOLVED" paragraph . Your Committee reviewed the contracts and Resolution No . 480-88 Draft 3 . Your Committee heard testimony from the Chief Engineer that the contracts have undergone three reviews by Corporation Counsel , the contractor and himself . The Chief Engineer recommended expediting the Kailua landfill reclamation and the removal and disposal of junked cars at Kailua and Hilo landfills by approval of Resolution No . 480-88 Draft 3. He also stated that proceeding with the reclamation of Kailua landfill will save the County 1600 ,000 in costs to close the Kailua landfill in conjunction with opening a new landfill at Puuanahulu in two and a half years and will save the cost of monitoring which would have been needed to comply with EPA Subtitle D requirements . Your Committee expressed concerns about the cost of the final landscaping of the Kailua landfill after reclamation . The Deputy Chief Engineer stated that the final cost will depend on the future use , such as a park , and should be less than $600 ,000 . The Chief Engineer and Boyd Hanson agreed with a Committee member that condition 2d under Services of the County on page 4 of the contracts could be eliminated . This condition provides that the County bear the cost of internal clerical work necessary for the County to administer the terms of the contract . Your Committee finds that the proposed dispositions of public property by license serves the public purpose . Your Committee Chairwoman recommended that the Committee approve Resolution No . 480-88 Draft 3 . Your Committee concurred with the Chairwoman ' s recommendation . PWC-277 Page 6 September 29, 1988 Your Committee on Public Works is in accord with the purpose of Resolution No . 480-88 Draft 3 and recommends - adoption by the County Council . ', M r• LE K. LAI, CHAI 'WOMAN • I / 1), if (ABSENT) •USSELL S. KOKUBUN, VICE CHR. FRANK DE LUZ III, MEMBER 1TAK SHI DOMI GO, ME BER SHERWOOD R. H. GREENWELL, MEMBE LA/TW