Hawaii County oversight committee hears wide-ranging update on EPA-mandated wastewater projects; council seeks cost and staffing details

HILO — At a January 16 committee meeting, the Hawaii County Communication Reports and Council Oversight Committee received a detailed briefing from the Department of Environmental Management on federally mandated wastewater projects tied to Environmental Protection Agency administrative orders, prompting council members to press for updated cost estimates, staffing plans and compliance paperwork.

Alan Fukumizu, a licensed wastewater operator and Unit 168 chief steward, opened public testimony by urging clearer operational readiness documentation. “EPA compliance isn't just about construction. It requires operational readiness, written SOPs, documented confined space classifications, integrated lockout tagout, and rescue planning that can be audited and produced on request,” Fukumizu said, and asked the committee to direct DEM to provide a date‑certain report with a complete confined‑space and lockout/tagout safety package and interim written directives governing entries until that package is complete.

The presentation that followed, led by Mark Grant, project coordinator for the wastewater division, covered a portfolio of projects: the Hilo Wastewater Treatment Plant rehabilitation (Phase 1) and a Phase 2 conversion to an activated‑sludge secondary treatment; the Pahala collection system and treatment plant procurement; Na'alehu large‑capacity cesspool closures; headworks and aeration rehabilitation projects at Kuleimanu and Papayco; force main work including the Pu'u alignment (design cost cited at $3,900,000); and the Hale Hala Wai force main replacement (construction contract awarded to Alpha Inc., $6,500,000, about 21% complete).

Grant described Phase 1 work at Hilo as replacing or rehabilitating headworks, primary sedimentation tanks, clarifiers, a chlorination building and adding a new anaerobic digester and solids‑handling/SCADA building; clearing and grubbing are complete and procurement is underway. He said Phase 2 design is at 100% pending final review and noted the AOC compliance due date for that work is June 30, 2035.

Council members repeatedly pressed DEM for current cost figures. DEM said earlier estimates are from 2024 and “a little out of date,” with one presenter citing an outdated ballpark of “plus or minus a $100,000,000.” Diane Nakagawa of the finance department told the committee that Hilo in particular is a major budget driver — “Hilo is 1 that we just need to watch even more carefully because it's $337,000,000” — and stressed the need to sequence projects and manage cash flow so multiple large contracts do not overlap unsafely.

Council members asked about sequencing, commissioning and permitting. Grant said new facilities will be sequenced with contractors, pre‑start checklists, functional testing (typically at least seven days) and an operating‑readiness period (about 30 days) before decommissioning old components. He said the phases can operate independently for permitting and that some Department of Health approvals and environmental assessments for Phase 2 are complete, but the building permit has not yet been submitted. For force main work tied to federal funding eligibility, Grant said DEM is pursuing Section 106 and Section 7 consultation and an environmental assessment exemption where appropriate to retain SRS funding eligibility.

Corporate counsel Diana Mellon Lacey told the council it is possible to request time extensions from EPA when circumstances change and a mitigation plan exists, but EPA may impose fines beginning the first day a deadline is missed. “We can request an extension if circumstances have changed… but it's ultimately up to the EPA,” Mellon Lacey said, adding that force majeure is harder to establish.

Personnel and training were another focus. Grant said DEM is conducting a staffing analysis for new facilities, will pursue operator training with HR and vendors, and will prepare updated operations and maintenance manuals. Acting regulatory administrator Kelly Hartman said DEM maintains spreadsheets of compliance and project milestones, meets regularly with corp counsel and finance, and files semiannual reports to EPA that can be posted or provided to the council.

Council members sought a consolidated spreadsheet showing each project’s status, anticipated construction end date and costs so the council can assess fiscal exposure during the upcoming budget season. Several members warned that the county must weigh these capital needs against other essential services.

After questions and follow‑up requests for updated cost and financing information, the committee voted to close the file on Communication 712. The motion passed with eight in favor and Council member Kanieli E. Kleinfeld excused. The committee requested DEM return with updated cost estimates, a project‑level timeline/spreadsheet and further details on staffing and compliance documentation.