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HomeMy WebLinkAboutREP FC 019 2017/05/16 (2016-2018) REPORT OF THE COMMITTEE ON FINANCE DATE: May 16, 2017 Re: Comm. No. 274/Bill No. 32 PLACE: Council Chambers Hilo, Hawai`i TIME: 10:16 a.m. Council Chair and Members Hawai`i County Council Hilo, Hawai`i 96720 Your Committee on Finance, to which was referred Bill No. 32, reports as follows: Bill No. 32, transmitted by Finance Director Collins Tomei, via Communication No. 274 dated April 28, 2017, is for an ordinance authorizing the Mayor to enter into an intergovernmental agreement for a State Water Pollution Control Revolving Fund Loan for solid waste improvement projects; and authorizes the issuance of$20,000,000 of general obligation bonds of the County of Hawai`i for the purpose of financing the South Hilo Sanitary Landfill Final Closure project. This bill will allow funds to be used to satisfy closure requirements of the South Hilo Sanitary Landfill, to be repaid by the County over a 20-year term through the General Obligation Bond issuance. Final design for the closure is anticipated to be complete by the end of 2017. • Mr. Greg Goodale, Solid Waste Division Chief, walked the Council through the process and background of the South Hilo Sanitary Landfill Closure Project. Closure process has begun and Solid Waste has contracted with an engineering company to draft plans for the closure of the site. Once that is done, they will present the plan and work with the Department of Health (DOH) to make sure it is achievable and feasible according to the regulations that require the closure to be done within a certain timeframe and per engineering specifications. Once they have concurrence with the State, they will write the plans and specifications which will allow them to put it out for actual construction for final closure of the cap for the site. The purpose of bringing this before the Council is to secure funding through the clean water loan fund program, which will allow for the low interest loan, saving the County a significant amount of money. Mr. Goodale stated that the closure would not begin until after the plan is approved by DOH. The reason for the closure is the landfill is almost to the limit of the specific defined capacity. The State gave parameters which was established for South Hilo and it cannot go above a certain height reaching full capacity. He estimates that in 2 years, the site will be completely full. Council Member Eileen O'Hara questioned about potential underground fires once capped. Mr. Goodale responded it is very unlikely due to high precipitation in Hilo. Once capped, they will continue to monitor, due to state regulations, for at least 30 years. Depending on when the regulatory agency sees that the site has achieved all the parameters for becoming stable, it could well be extended past the 30 years. Most uses, once closed, have been very low impact. FC Report No. 19 FC-19 Page 2 May 16, 2017 Council Members expressed concerns over the number of loads that would be hauled over Saddle Road to Kona, once the South Hilo Landfill is full. They also expressed concerns over the dangerous conditions of the travel route and expressed that this was not a popular solution on the west side. Mr. Goodale estimated 8 loads per day depending on the composting programs. As far as the travel, Solid Waste looks at post accident conditions, how drivers are trained, how heavy the loads are, and equipment. Basic safety is always a concern. Council Member Valerie Poindexter posed the question of how Mr. Tomei came up with the $20,000,000 figure. Deanna Sako, Deputy Finance Director, responded that they went with the best estimates from the department knowing that Solid Waste is in the beginning stages. They want to ensure that the $20,000,000 does not go to another County and a requirement to apply for the loan is having an ordinance in place. This is only one piece of the puzzle. They still need to get the design, appropriations and other items done. They would like to get on the list and have the money held for the County in order to receive the low interest. Mr. Goodale stated that in order to move forward with the State Revolving Fund (SRF) Loan Program, they need concurrence from the Council and stated he believes it is one of the most economical ways for the County to get the project done. Council Member Susan Lee Loy stated it would help the Council to have historical data, specifically the cost for the closing of the Kona landfill, they can tack on years and growth and possibly get a better grip on a number that they can compare this project to. Mr. Goodale will provide the data to council, as far as costs for the Kona landfill, prior to the next meeting. Ms. Lee Loy asked about the monitoring devices and if it was a separate cost item. Mr. Goodale explained that the monitoring is part of the construction of the cap and would fall under operations and maintenance of their annual budget. Currently, they do ground water monitoring continually and also have landfill gas monitoring probes that are monitored for landfill gas migration. Upon monitoring, they may also need to install landfill gas vents. There are runoff channels and controls for storm runoff that needs to be monitored and maintained, and things that would have to be monitored, maintained, and evaluated regularly. Council Members expressed approval of moving it forward to Council but would like to see the historical data from the Kona landfill prior to proceeding. Pursuant to the County Procedures Manual for Participation in the Hawai`i State Revolving Fund Loan Program, prepared by the Wastewater Branch of the Hawai`i Department of Health in April 1994, part of the loan application process requires a "resolution or ordinance passed by the County Council which authorizes the SRF loan application and identifies the dedicated source(s) of revenue(i.e., general obligation bonds) which will fund the project and repayment of the loan with interest." The Council's authorization of the issuance of general obligation bonds will serve as a pledge of its general obligation authority as security for repayment of the loan and interest. FC-19 Page 3 May 16, 2017 Your Committee on Finance is in accord with thep �u ose and intent of Bill No. 32, and recommends its passage on first reading. dm AYES NOES ABS EX Respectfully submitted, CHUNG X DAVID x COMMITTEE ON FINANCE EOFF X KANUHA X LEE LOY X O'HARA X POINDEXTER X MAILE DAVID, CHAIR RICHARDS X FC REPORT NO.: 19 RUGGLES X ADOPTED: JUN 0 7 U 1 r