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Hawai‘i County is an equal opportunity provider and employer.
Harry Kim
Mayor
Dixie Kaetsu
Managing Director
Barbara Kossow
Deputy Managing Director
April 21, 2008
The Honorable Dominic Yagong, Chairperson, and Committee Members
Committee on Finance
Hawai‘i County Council
County of Hawai‘i
Hilo, Hawai‘i 96720
Re: Resolution 551-08 – Approval of Multi-Year Contract
Wheelabrator Proposal – Waste to Energy
Dear Chairperson Yagong and Council Members:
I would like to thank the County Council for its diligence in seeking public input by holding
public hearings on the Wheelabrator waste-to-energy proposal. The administration has also held
numerous community informational meetings to explain the proposal to the public. Presenters at
the community meetings tried to ensure that questions were answered as thoroughly and fairly as
possible. Like some members of the Council Council, attendees had many questions that
focused on the issues of cost and environment. As we know, specific questions on cost and
environment cannot be answered unless we proceed with the Wheelabrator contract.
I strongly urge you to approve Resolution 551-08, to allow the contract with Wheelabrator
to be executed, for the following reasons:
• Financial concerns: Upon signing the contract, Wheelabrator will proceed with the final
design so a firm design/build cost can be determined. This will address many of the
financial questions that cannot be answered without firm costs. This final design/build
cost will be available in six months (180 days), and the work to obtain the cost will be
borne entirely by Wheelabrator. After receiving the actual cost figures, the Council can
terminate the contract with no obligation.
• Environmental concerns: Upon execution of the contract, Wheelabrator will be required
to begin the lengthy Environmental Impact Statement (EIS) process. They will also be
required to begin work on an Environmental Analysis Report (EAR). This EAR will be
completed within nine months (270 days) and will provide an early report on the
anticipated environmental impacts of the waste-to-energy facility. The County
negotiated for this non-standard report to be done so we can have information on
environmental impacts as soon as possible, well before an EIS could be completed. After
completion of the EAR, the Council can terminate the contract with no obligation,
financial or otherwise. Note that all costs of this EAR will be borne by Wheelabrator.
• Electricity revenues: Execution of this contract will allow the County to go to the Public
Utilities Commission and begin negotiating with Hawai‘i Electric Light Company to get
a firm price on electricity revenues. This cannot be done without a contract in place.
This is another important piece of the overall financial picture for this project and is
necessary to answer the many questions that the Council and public have.
It has taken two years of hard work to get to this point in the procurement process where we have
a viable proposal on the table. In addition, we have spent a large amount of money on our
consultants to ensure that the County’s interests are well protected. Proceeding will give the
community additional opportunities to ask questions and review the project. I cannot see any
reason not to finish this process.
For these reasons, I strongly urge you to support Resolution 551-08 so that the contract with
Wheelabrator can be signed and work started to come up with definitive facts and numbers.
There is no risk to the County to proceed. The risk is all on Wheelabrator’s shoulders. The
Council will have multiple opportunities after final costs are known and environmental impacts
are studied to terminate the contract with no financial obligation. We owe it to the people of
Hawai‘i to find out all the facts before making a decision.
Thank you for your consideration, and thank you for your support.
Aloha,
Harry Kim
MAYOR