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Committee questions 37% contract increase for organics diversion; county pays toward 40,000-ton minimum
Summary
Council members probed a $5.3 million supplemental certification for the county’s organics contract, asking for penalty and tonnage breakdowns after staff said the county pays for a 40,000-ton annual minimum even when the contractor falls short.
KONA/HILO — Council members pressed county environmental staff on a sizable supplemental certification this week for the county’s organics contractor.
Robin Bauman, business manager with the Department of Environmental Management, told the Committee on Finance that a supplemental contract certification for fiscal year 25–26 increases costs associated with the county’s green-waste contract by about $5.3 million. "For the current fiscal year, the cost is approximately 5.3 million," Bauman said, explaining this covers operating costs for the East and West Hawaii Organics facilities and is calculated from a minimum annual tonnage multiplied by the current per-ton rate.
Council members asked how the contract’s minimum tonnage and penalties work. Bauman said the contract includes a 40,000-ton-per-year minimum; when the county falls short of that number it still pays the contractor for the 40,000 tons, effectively including the shortfall in the total cost. "We are obligated to process 40,000, provide 40,000 tons per year," Bauman said.
A council member suggested moving mulch from the west side to the east (using empty transport bins) could raise tonnage counts and reduce penalties. Bauman said mulch transfers to the east side occur “as needed” and that the operations of moving mulch are a county responsibility; she offered to provide additional details and year-to-year contract information on request.
Bauman said part of the original multi-year contract intended construction of an organics facility, but that portion of the project was suspended years ago; the supplemental certifies recurring annual operating costs instead. Council members asked for a breakdown showing how much the county is paying in penalties and how annual payments are calculated; Bauman agreed to follow up with the requested figures.
The committee moved to close the file on Communication 24.25 after the discussion.
