HomeMy WebLinkAboutREP FC 380 07/06/1987 1984-1988 411 REPORT OF THE •
COMMITTEE ON FINANCE
Date: July 6 , 1987 Re: 'Comm. 1171
Place : Councilroom
Time: 10 :00 a.m.
Chairman and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance , to which was referred Bill 386 , reports
as follows:
The purpose of Bill 386 is to amend the Capital Budget for Fiscal
Year 1987-88 , by redesignating the funding source of the Hilo Ocean
Outfall Project to include the Fund Balance of the Bond Fund and the
Unallotted Funds for projects appropriated in Ordinance 87-31 .
Your committee heard from the Chief Engineer that this project is
part of the executed Environmental Protection Agency (EPA) ,
Department of Health (DOH) and the County of Hawaii (COH) Municipal
Compliance Plan for Hilo. The plan requires:
Project be advertised by May 15, 1987
Bids be opened by July 30 , 1987
Project be started by October 30 , 1987
Project completed by July 1, 1988
Penalties for non-compliance are a fine of $100 ,000 and a $1 ,000/day
fine until compliance is achieved. The Department of Public Works
is scheduled to open bids on July 30 , 1987 .
The 301 (h ) waiver application before the State would allow the
County to operate the sewer treatment plant at Keaukaha ®
Application was first applied for in September , 1979 and received a
response in the first quarter of 1986 requesting more information .
Without the approval of the waiver , the Environmental Protection
Agency will require the County to proceed with the development of a
secondary treatment facility .
Your committee expressed its concern that there are no assurances
that the waiver application will be approved even with the extension
of the outfall .
Your committee also expressed its concern that the extension of the
outfall may inhibit the design options available for a new secondary
treatment facility .
FC REPORT N0 , 380
ADOPTED : JUL 2 2 1987
--, - .
` 111 ill
FC- 380 Page 2 July 6 , 1987
The Chief Engineer explained that he considered the extension of the
outfall and the secondary treatment plant as two separate
considerations . The outfall extension request is meant to address
an immediate non-compliance penalty situation .
Upon questioning of the Chief Engineer , it was not clear that the
extension of the outfall was of such priority as the addendum to the
consent order seems to indicate that as long as the sewage discharge
are within acceptable effluent limits , to which your committee heard
that the County is in compliance, there may be a possibility that
the compliance may be deferred up to 79 months after the denial of
the 301 (h ) application . Under the foregoing, it seems that the
County does have some lead time in addressing its non-compliance
problem.
Funding for the outfall project is committed by the Federal agency
(75% ) and the State (10% ) . However , your committee expressed its
desire that alternative funds be sought , possibly the General Fund
Fund Balance . Taking of funds from existing projects should be a
last resort . The Director of Finance indicated that due to the
urgency of the situation, the intent was to utilize the available
project funds and as the fund balance is determined, that the
allotments would be restored .
Your committee recognizes the need to expedite the funding of the
Hilo Ocean Outfall project and is aware of the severity of the fines
for non-compliance .
Your committee generally agrees that Bill 386 should be approved on
first reading and placed in a position for final approval pending
the outcome of further correspondence with the Environmental
Protection Agency and the State Department of Health .
Your Committee on Finance recommends that Bill 386 be passed on
first reading. /`-
ilitAkiA.,-.4142—
FRANK DE LUZ III, CHAIRMAN
"•-• X%*s%-". '11A" '
LOR' INE R.1107 CHAKU-('OUYE V.C. i L. K. DAHLIERG MEMBER
(' 1'
TAKASH I MINGO, ye ►'c RUSSE - S. Ki. UB N, MEMBER
MERL' K. LAI, MEMB '- SP' NCER K. SCHUTTE, MEMBER
LA, AT