The URL can be used to link to this page

Home My WebLink AboutCOM 1165.001 2016-2018 Harry Kim ' :,' j : William A.Kucharski Mayor ;.;,(\�:,;!:'�'// .; Director Wilfred M.Okabe ?' �'� - Diane A.Noda fOF Managing Director '" Deputy Director (gaunt of Rafilail DEPARTMENT OF ENVIRONMENTAL MANAGEMENT 345 Kekuanao'a Street,Suite 41• Hilo,Hawaii 96720 Ph:(808)961-8083• Fax:(808)961-8086 cohdem@co.hawaii.hi.us r http://www.hawaiicountv.gov/environmental-management/ November 15,2018 c,cD Mr. Stewart Maeda Office of the County Clerk County of Hawai`i ,�`'.. 25 Aupuni Street �, Hilo, Hawaii 96720 Re: PowerPoint Presentation for Bill 210 Hearing: November 19,2018 (Finance Committee) Dear Mr. Maeda: I am requesting to do a PowerPoint presentation before the Finance Committee on November 19, 2018,regarding Bill 210,which is for a proposed sewer rate increase. The PowerPoint has been electronically provided to your office. Thank you. Sincerely, William A. Kucharski Director WK:mef Comm. No. IIIcr 'I Ref. To: P 1FG Ref. Daie 1 'Z U 18 County of Hawaii is an Equal Opportunity Provider and Employer Department of Environmental Management Proposed Sewer Rate Increase Request 11/19/2018 Bill 210 1 Proposed Sewer Rate Increase • In 1998 the sewer discharge rate was set ata $25.00 fixed monthly fee and this rate was increased to $26.0o in Z000 and to $27.00 in Zoog. There have been no changes since Zoog. • This sewer rate is the lowest in the State of Hawaii • In 2o18-2019, Wastewater Division (WWD) Sewer Fund budgeted approximately $2 .9 million from the General Fund . • WWD is required by EPA to manage a "sustainable" operation, that is, it is supposed to pay its own way. 11/19/2018 Bill 210 2 Proposed Sewer Rate Increase • Proposed increase is spread over three (3) years, with the goal of reducing the General Fund payment to WWD from $2 .9million to so (zero) by FY Zozl-zo2z and increasing the ability to fund needed repairs and upgrades to our WWD facilities • The new rates are requested to be effective on March 1, Zolg • The new rates would remain the lowest in the State • The sewer rates do not cover infrastructure costs 11/19/2018 Bill 210 3 Proposed SRate Increase • Commercial and private rates would be increased • Residential : $27.00 to $39.00 (2019);$46.00 (2020);$52.00 (2021) • Gang Cesspools: $15.00 to unchanged ($15.00) (2019); $21.00 (2020)- $24.00 (2021) • Non-Residential/Commercial : $22.00 to $50.00 (2019); $59.00 (2020); $66.00 (2021) + water usage fee (after 1st 8,000 gallons) • water usage fees (sper s,000 gal): $4.05 to 66.05 (2019); $7.15 (2020); s8.00 (2021) • Septage ($ per Soo gal): $30.00 to $45.00 (2019); $55.00 (2020); $60.00 (2021) 11/19/2018 Bill 210 4 Existing Sewer Rates — Other Counties • O'ahu (example) • Single Family - Base $77.55/month plus $4.63/1,000 gal (zo% reduction for irrigation) • Non-City Water - Base $sso.89/month • Maui • Single Family - Base $31.58 plus $4.10 per i,000 gal water (ist 91000 gal) maximum charge - $68.48 • Non-City Water - $59.41 • Kaua 'i • Single Family - Base X60.08 (zoi4) 11/19/2018 Bill 210 5 Proposed SRate Increase • Total Anticipated Revenue Current Year 2019-2020 2020-2021 2021-2022 • Residential $4,114,040 $6,053,252 $7,149,372 s8,o82,672 • Non-Residential $3,070,056 $4,852,881 $5,733,803 $6,415,225 • Haulers $ 299,551 $ 378,549 $ 4411225 $ 492,136 • Additional revenue from Increase • Residential $1,9391212 $3,035,332 $3,968,632 • Non-Residential $1,782,825 $21663,747 $3,345,i69 • Haulers $ 78,998 $ 141,674 $ 192,585 • Total Additional Collected $3,8o1,035 $5,840,753 $7,5o6,386 11/19/2018 Bill 210 6 Uses of SRate Increase • Equipment Replacement Fund (ERF) goes from $500,000 to s1.3 million • Increase in ERF allows needed and unanticipated repairs to occur • Ten (zo) new positions needed to maintain and manage existing and new facilities. Manage new tasks, such as the RZfacility at Kealakehe, Asset Management System • Assumes annual increase in union wages • Increase does not cover new infrastructure (CIP) costs, nor does existing rate cover such expenditure • Remove General Fund subsidy over 3years 11/19/2018 Bill 210 7 Needs of Wastewater Division Needs of Wastewater Division • Repairs to aging infrastructure • Hilo Wastewater Treatment Facility (WWTF) repair/replace • Existing sewer systems, Hilo and Kona • Small isolated treatment systems may require modernization • Sewer Pump Stations (SPS) require replacement (e.g., Pua SPS and Kealakehe SPS) and renovation 11/19/2018 Bill 210 8 Needs of Wastewater Division • Cesspool closure needs • Hilo needs additional sewers to help homeowners close cesspools by the 205o deadline and to meet prior agreements with EPA • Kona needs sewers to help homeowners close cesspools by the 205o deadline and Kona is growing (additional WWTFs can be expected) • Distribution of Rz water will require new distribution systems, meters and reuse water equipment (not wastewater equipment) and independent staff 11/19/2018 Bill 210 9 Needs of Wastewater Division • All activities require personnel to design, manage and repair • Historically, WWD has been marginalized by lack of funding and personnel • Rate increase will not solve these deficiencies; however, it will start the process • US EPA-Funded Asset Management System (AMS) project (over s600,000) is ongoing • Deficiencies in personnel, system repairs, and equipment maintenance have been noted 11/19/2018 Bill 210 10