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HomeMy WebLinkAbout2017-04-27 Letter to Kaiali'i Kahele & Chris Todd re East Hawaii Organics Facility Wil Okabe Managing Director Harry Kim Mayor Barbara J. Kossow Deputy Managing Director Office of the Mayor 25 Aupuni Street, Suite 2603 Hilo (808) 961-8211 Fax (808) 961-6553 KONA: 74-5044 Ane Keohokalole Hwy., Bldg. C Kailua- (808) 323-4444 Fax (808) 323-4440 April 27, 2017 i Kahele SENT VIA EMAIL & US MAIL Hawaii State Capitol, Room 213 senkahele@capitol.hawaii.gov Honolulu, HI 96813 Representative Chris Todd Hawaii State Capitol, Room 305 reptodd@capitol.hawaii.gov Honolulu, HI 96813 Dear Senator Kahele and Representative Todd, RE: East Hawaii Organics Facility Contract Termination Facility Contract Termination. Thank you for your expressed concern related to the Service Agreement for Organic Waste Diversion (Contract) and its effects on the people sooner. actions were done only after dedicated discussions with Department of Environmental Management (DEM) administration, Corporation Counsel Attorneys, and the DEM staff who participated in the development of the Contract, along with a careful review of the minutes of those meetings. Understanding that your letter was not directed to me for a response, I still wish to clarify some of your identified concerns: We look forward to your cooperation in locating an alternative site for the future Composting Facility. Under the terms of the Contract, the project was mandated to be in April 27, 2017 Page 2 I was aware that any contract modification related to site location, and the underlying entitlements and permitting, may take two to three years. The most prudent approach was to continue the mulching phase of the Contract, with a price adjusted for only mulching and enhanced mulching services, rather than continuing to incur the compost production costs as required under the Contract. I have always agreed with the benefits of mulching and enhanced mulching for the County. Although, any mulch or enhanced mulch would be distributed at no cost to our citizens, the same is not true for products from the composting facility. Under the sole property of Hawaiian Earth Recycling, LLC (HER), which HER has confirmed will be sold. Under the contract, HER has the right to charge for the mulch. I was aware that HER would have a right under the Contract to make a reimbursement claim based upon any proven expenditures. There were statements from HER regarding the possible filing of claims, none was filed. There were no statements made on possible litigation against the County by HER and none were filed. I strongly oppose the view that the termination notice of the contact may send the and decisions. To the contrary, the message is that the County erred and therefore was willing to take steps to correct that error with a good contract that prioritizes the lifestyles of its citizens, and also weighs the costs to its citizens. We are nearing a resolution of Please do not hesitate to call me for any clarification if needed. Thank you, HARRY KIM Mayor County of Hawai`i is an Equal Opportunity Provider and Employer.