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HomeMy WebLinkAboutREP FC 046 2017/10/03 (2016-2018) REPORT OF THE COMMITTEE ON FINANCE DATE: October 3,2017 Re: Comm.No. 468/Res.No. 310-17 PLACE: Council Chambers Hilo, Hawaii TIME: 1:00 p.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Finance,to which was referred Resolution No. 310-17,reports as follows: Resolution No. 310-17,transmitted by Finance Director Collins Tomei,via Communication No. 468 dated September 15, 2017, authorizes the payment of funds of a later fiscal year and of more than one fiscal year for a multi-year lease for five refuse trailers. This agreement authorizes the Mayor to enter into a new five-year lease agreement for five refuse trailers for the Department of Environmental Management, Solid Waste Division, at an approximate cost of$12,000 per month, needed to accommodate the additional hauling capacity required to transport waste to the West Hawaii Sanitary Landfill upon the closure of the South Hilo Sanitary Landfill. The County will own the equipment at the end of the lease. Council Member Dru Kanuha asked for confirmation that the five refuse trucks will be used when the Hilo landfill closes,and for a point of information,when the Hilo landfill closes, all of the trash generated on the east side will be hauled over to the west side. William Kucharski, Director of Environmental Management, responded that is correct and stated the anticipated closure will be in a year to eighteen months. Council Member Herbert M. Richards, III, questioned the terms of the lease. Deanna Sako, Finance Director, responded it is a financing lease and the trailers will be owned by the County at the end. The interest rate is approximately one to two percent and is a good financing option. Council Member Eileen O'Hara asked whether more trucks will be needed to haul the refuse. Greg Goodale, Solid Waste Division Chief,responded that each trailer is estimated to hold about twenty tons and that eight trailer loads would be on the max level, or high end, of what it would take to get the refuse from the East Hawaii to the West Hawaii landfill. Mr. Goodale stated that over time the tonnage may increase but they are looking at trying to divert instead of hauling refuse to West Hawaii and trying to do things like composting and recycle or reuse. Ms. O'Hara inquired of Mr. Kucharski the fact they were once thinking of hiring a geohydrologist to investigate the water and the well at Pu'uanahulu to allow it to be a potential site for a compost facility. Mr. Kucharski stated that they had a geohydrologist take a look at the formation and he could not find satisfactory fresh water,but are now in discussions with Waste Management to put in a reverse osmosis system to give enough water for operational needs at the landfill. FC Report No.46 FC-46 Page 2 October 3,2017 Council Member Karen Eoff inquired about the number of trips per day. Mr. Goodale confirmed eight trips per day and stated that they previously purchased three tractors and three trailers, so the request for these five trailers and tractors will round off to be eight,allowing some downtime for maintenance. In actuality,they expect to make more than one trip depending upon road conditions, and the ability for the truck to make a turnaround, if needed. There are a lot of factors that come into play on how quickly they can make the haul over Saddle Road. Council Chair Valerie Poindexter asked about the route they will be traveling because there are about five transfer stations between Hilo and Waimea. Will it go to Hilo,be put in the trucks, then taken over Saddle Road or would they go Hamakua way? This would be a concern with all the heavy trucks traveling over the bridges that are in desperate need of repair. Mr. Goodale stated,currently the only two loads coming back to Hilo are from Honomu and Papa`ikou and that would be one load per week. The gulches and narrow bridges are a concern that they are looking at. Mr. Goodale stated that with these additional five trailers and tractors it should be an adequate number, depending upon the amount of refuse coming in. Pursuant to Section 10-11 of the Hawai`i County Charter, "any contract, lease or other obligation requiring the payment of funds from the appropriations of a later fiscal year or of more than one fiscal year shall be made or approved by resolution." Your Committee on Finance is in accord with the purpose and intent of Resolution No. 310-17, and recommends its adoption. dm AYES NOES ABS EX Respectfully submitted, CHUNG X DAVID x COMMITTEE ON FINANCE EOFF X KANUHA X .400LEE LOY X O'HARA X J'r '=S�` POINDEXTER X MAILE DAVID, CHAIR RICHARDS X FC REPORT NO.: 46 RUGGLES X ADOPTED: OCT 1 8 2017