More money for mulch: New contract doubles diversion cost to county

HILO — The cost of Hawaii County’s organic waste diversion program doubled last year with the signing of a new contract that includes construction of a composting facility next to the Hilo landfill.

The contract with Hawaiian Earth Recycling requires the county to pay the same price for both the production of mulch from green waste and more nutrient-rich compost, which would be made from food scraps and other organic sources.

That price is $85.08 or $99.58 per ton, depending on whether it’s produced at the West Hawaii or East Hawaii solid waste facilities, up from $41.95 and $44.85 per ton.

The higher price went into effect last July 1, though compost, which would be sold by the contractor, won’t be available until the $10.5 million compost project is finished as early as 2018.

“It comes across as a high number,” said Greg Goodale, county solid waste division chief, referring to the new rates. “(But) it’s a lower cost than the cost to the county to put the same ton into the landfill.”

He said that amounts to about $135 and $140 per ton, when landfill monitoring, trucking and personnel costs are all included.

While the county is paying the higher price for mulch, which remains free to residents, Goodale said the contract requires the company to adopt an enhanced mulching process, which would kill invasive species.

That has yet to begin at the Hilo landfill, though it could be implemented in the next few months, he said.

Mulch would remain free for residents, but businesses would be required to pay a fee set by the contractor at that point, Goodale said.

In the July 2015 through June 30, 2016, fiscal year, the county paid $2.1 million for the mulching operations, according to the county Finance Department.

The county has paid $1.7 million since the new fiscal year started July 1.

The contract includes a minimum annual payment of $2.8 million before the composting facility is built and $4 million once it’s operational.

Goodale said the annual cost would likely be between $4 million and $5 million once compost is being made.

The project’s draft environmental assessment said the facility would process 28,000 tons of organic waste its first year in operation and ramp up to 35,000 tons by year 10.

Finalizing the report, required for construction to begin, is on hold while the new administration reviews the contract and sees if an alternative site is available. The Keaukaha-Panaewa Farmers Association is opposed to placing it next to the landfill, which is near their lots.

Mayor Harry Kim said he expects the review to finish this week. He said he has some initial concerns about the cost.

The company would initially cover the cost of construction. Once the county accepts the facility, it would pay the contractor $10.3 million, according to the contract.

Goodale said the county issued a request for proposals for the new contract but only received the response from Hawaiian Earth Recycling, a subsidiary of the previous mulch vendor.

The county wants to divert as much organic waste from the landfills as possible to help extend their life, but Goodale said the project would have a negligible impact on the Hilo landfill, which could be full in one-three years.

Once it’s full, the county plans to truck rubbish to the West Hawaii landfill, which could last about 40 more years, he said. The trucks would return with organic waste for the composting facility.

Goodale said he expects the composting operation, the first of its kind in the state, to be a success since residents and businesses are charged a lower fee for diverting organic waste. He said the compost would help local farmers.

“There’s an incentive to divert away from the landfill,” Goodale said.

But a proposed $50 million waste separation and aerobic digestion facility by BioEnergy Hawaii LLC in West Hawaii could affect those plans if constructed, since there might be less organic waste available for the county’s facility, he said.

Email Tom Callis at tcallis@hawaiitribune-herald.com.