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Finance committee backs $1.6 million‑per‑year construction management contract for Hilo wastewater plant (vote 5–2)
Summary
The committee forwarded Resolution 461‑26 authorizing a six‑year professional construction management agreement for Phase 1 of the Hilo Wastewater Treatment Plant upgrade, estimating $1.6 million per year and approving the motion on a 5–2 vote after extended questioning on scope, procurement and oversight.
The Hawaii County Finance Committee voted to forward Resolution 461‑26 with a favorable recommendation, authorizing a multi‑year contract to secure professional construction management services for Phase 1 of the Hilo Wastewater Treatment Plant rehabilitation. The resolution estimates $1,600,000 per year for construction management services on a six‑year term.
Mark Grant, project coordinator for the wastewater division, said the contracted services will provide on‑site construction management, daily inspections, monitoring of progress payments and specialty inspection services. He said the team expects three full‑time on‑site positions from the selected firm: a construction manager, a project engineer and a project inspector, with special inspections provided as needed.
Council members focused questions on scope and procurement. Several members pressed for clearer deliverables, not‑to‑exceed language, and a task matrix to reduce the risk of scope creep and future change orders. Grant said the $1.6 million figure is an estimate based on Department of Accounting and General Services (DAGS) professional‑services rates and that work could be scaled up or down; the department indicated the contract is intended as a lump sum covering routine overtime but that special inspectors from Oahu would have per‑diem costs.
Council members also asked why the county used the professional‑services procurement option rather than a full request for proposals. Staff said the county issued an expression of interest to pre‑listed professional service firms and ranked three qualified resumes, then negotiated with the top‑ranked firm under the professional‑services process.
On a roll call, the committee recorded five votes in favor and two opposed; the motion carries and the resolution will go to full council for final action.
Why it matters: The Hilo plant rehabilitation is a major capital project; the committee’s decision advances the procurement of outside construction management resources to support oversight of complex AOC‑related upgrades.
What’s next: The contract negotiation and final scope documents will proceed; council members requested additional scope‑of‑work detail, performance deliverables and follow‑up on not‑to‑exceed terms before final council consideration.
