HILO, Hawaii (AP) - Hawaiian Earth Recycling plans to seek more than $4 million to cover expenses incurred under its contract with Hawaii County regarding the county’s organic waste diversion program if Mayor Harry Kim terminates the agreement.
The company notified county officials about its plans in a letter sent Wednesday, The Hawaii Tribune-Herald reported (https://bit.ly/2mTxUqV).
Kim announced last month that the service agreement for mulching operations and construction of a $10 million composting facility would end June 30. He cited concerns about cost and logistical issues.
Kim had said the county would not have to pay a penalty to get out of the agreement early. But the contract, which went into effect in July, allows Hawaiian Earth Recycling to seek reimbursement for some of its expenses if the agreement is terminated.
Those costs could be substantial and could include lost profits if the county acted in bad faith, company Senior Vice President John Brigham warned in the letter.
Expenses the company wants to be reimbursed for include engineering, permitting, bonds, attorney fees and new equipment. Construction of the composting facility had not started.
Kim said he stands by his decision to cancel the agreement. “I firmly believe the action taken was absolutely the right thing to do for Hawaii County concerning waste management and finances and everything else connected to it,” he said.
The County Council will discuss the matter Tuesday when it reviews a request for proposals for a new contract to cover mulching operations.
If the county decides not to rescind Kim’s cancellation notice, it would need a new contract in place by July 1 for free mulch to continue to be available for residents.
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Information from: Hawaii Tribune-Herald, https://www.hawaiitribune-herald.com/
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