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Committee advances major Hilo wastewater rehab and $150 million bond package amid cost and oversight concerns
Summary
The Finance Committee advanced Bill 214 to increase the Kīlaʻo (Hilo) wastewater treatment rehabilitation appropriation and a companion bond authorization (Bill 215) that would add up to $150 million for multiple CIP needs; members pressed the administration on a prior bid that came in 70% over estimate, the project schedule tied to an EPA AOC and the need for stronger program management.
The Hawaii County Committee on Finance on Oct. 1 voted to forward to full council a set of measures to fund a large rehabilitation of the Kīlaʻo (Hilo) wastewater treatment plant and to authorize up to $150 million in general obligation bonds for that project and other capital improvements.
Environmental Management Director (speaker 11) told the committee the project’s initial bid in 2023 arrived about 70% over the county’s estimate, prompting a cancellation and a re‑scoping that combined two phases to attract additional bidders and lower price risk. "When we bid that project out, it came at $177,000,000 which [was] about 70% over the estimate," the director said, explaining the revised procurement produced more competitive bids and that the plan now consolidates components to avoid contractor finger‑pointing.
Business manager Robin Baumann said Bill 214 would increase the project appropriation and, together with prior authorizations and proposed future work, brings the county’s current project estimate to roughly $463,000,000 (this includes a possible additional $30 million of state SRF funding if available). Baumann framed the appropriation as covering planning, design, construction and construction‑engineering support. The administration said it has negotiated an agreement of compliance (AOC) with EPA and the Department of Health requiring construction to begin by Aug. 1, 2025 and estimating overall construction completion within 5–7 years and facility operation by mid‑2035.
Council members sought specifics on capacity, timing and oversight. The director said the design is permitted for 5 million gallons per day up to 13 million gallons per day (including infiltration and flow) and that the green phase (secondary treatment upgrades) was about 70% designed and will be bid early next year. Members expressed repeated concern about staffing and monitoring change orders over a multiyear construction period; one councilor said the county must provide sufficient project management and financial oversight to avoid cost escalation.
Bill 215, a companion bond ordinance that would authorize issuance of up to $150,000,000 in general obligation bonds for wastewater, parks, ADA projects, a temporary morgue and other county needs, was also advanced. Finance Director Diane Nakagawa and County Treasurer Chris Nakano told the committee the proposed authorization would raise authorized but unissued bonds to about 14.5% of the county’s guideline and increase projected debt service by an estimated $7–$10 million in coming years; Nakagawa said that projection has been incorporated into budget planning.
Council member Kimball publicly recused herself from decision‑making on the bond authorization due to a potential conflict. The committee voted to forward the measures to council with favorable recommendations; final bond authorization and appropriations will require council action and subsequent allotment and procurement steps.
