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Committee backs EPA deadline extensions for wastewater upgrades and cesspool closures, citing financial smoothing
Summary
The committee voted to forward two resolutions seeking deadline extensions with the U.S. EPA that shift multi-year wastewater and cesspool projects to reduce near-term spending spikes and ease debt-service pressure while DEM pursues interim repairs and regular reporting to council.
The Committee on Governmental Operations and External Affairs voted June 16 to forward two resolutions that amend Administrative Orders on Consent (AOC) with the U.S. Environmental Protection Agency, giving the county more time to complete multiple wastewater-treatment and large-capacity cesspool closure projects.
The measures request a five-year extension for Kula‘i Manu wastewater plant work and a three-year extension for the Papaiko project under Clean Water Act enforcement, and a separate two- and five-year extension for the Pahala and Na‘alehu cesspool-closure projects under the Safe Drinking Water Act. Deputy Corporation Counsel Diana Mellon Lacy told members the EPA has agreed to the revised deadlines and that the substantive terms of the AOCs otherwise remain unchanged.
Finance Director Diane Nakagawa presented an alternative capital-timing model that evens annual wastewater capital spending at roughly $100 million to $150 million rather than producing spikes up to about $260 million. Nakagawa said the adjusted schedule reduces projected debt service by about $10 million in some years but cautioned the exact savings depend on bond issuance timing, interest rates and project progress; she said the county will update the model as bids and schedules firm up.
Council members pressed DEM and finance staff on risk controls. DEM officials described interim operational repairs planned this fiscal year—vegetation and tree removal around sites, headworks repairs, replacement or repair of air lines that feed treatment tanks, and handrail and other safety fixes—funded out of repair budgets while larger construction is scheduled. DEM said the plants use long-standing activated-sludge technology and that changing core treatment technology would require major structural work.
Members also asked about change orders and accountability for consultants; finance said escalation for inflation was included in estimates but not a labeled change-order contingency line for every bid package. Nakagawa said the county will provide regular project-status and financial updates to council and intends to post more readable CIP graphics online; full integration into the county’s Connect system may take up to a year.
After discussion, the committee voted to forward both Resolution 5 9 2 and Resolution 5 9 3 to the full council with favorable recommendations (8 ayes, Councilmember Villegas excused). The committee record shows the EPA accepted the revised schedules but warned that longer extensions keep the county under the AOCs for a longer period.
