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- t`_r _ ~ 2 - s. . SAY 0.-- - t r> 1 ~ ~~r~e va~re Energy f ; re tt~ext Gereradair May 2, 2005 Honorable Stacy K. Higa Chairperson Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 Re: Council Resolution No. 218-04; County of Hawaii Request for Proposal (RFP) No. 2146 Dear Chairperson Higa: Barlow Projects, Inc. ("Barlow")has been advised by the County's Director of Environmental Management that RFP No. 2146 will be cancelled. We are extremely concerned that cancellation of the RFP process at this point may make it even more difficult for the County to incorporate a safe, efficient and cost- effective means of reducing and disposing of its solid waste. Given the limited life of the Hilo Sanitary Landfill and the urgency recognized by the Council in its adoption of Resolution 218-04, we suggest that this Council encourage continued negotiations between the administration and all interested vendors to this RFP in order to resolve any differences, real or perceived, in arriving at an executed agreement by the July 31, 2005 deadline set out in the Resolution. Based on the feedback received from the Director in her April 29~' letter, it is our sincere belief that there may been some misunderstanding in the written communications between the County and the interested vendors. As an example, her letter indicates that Barlow failed to agree to provide the County with the $5,000,000 performance bond. However, in response to the County's request for written clarification on this matter, Barlow agreed to provide this security in its April 7, 2005 letter to the County Purchasing Agent: "As previously stated, Barlow will provide the County with any required security for the services provided by the privately owned and operated facility including the $5 Million performance bond requested by the County in the RFP. Barlow will either provide a surety bond for this amount or its performance will be 'otherwise secured in a manner satisfactory to the purchasing agency' as provided in HRS Section 103D-324. While the surety bond is one form of security that will be considered, Barlow must have the opportunity to pursue alternative forms of security such as Irrevocable Letters of Credit due to the volatility of the surety markets." We believe the Council's continued interest and participation can only help to secure the successful completion of this project. Therefore, we respectfully request that you schedule an update of the status of the Resolution and the subject RFP on the Council's agenda at its earliest possible meeting. 2000 Vermont Drive, Fort Collins, Colorado, USA PH: (970) 226-8557 FAX: (970) 226-8559 ~®mm. ~ WWW.BARLOWPROJECTS.COM Rif. T®: ~2~f. U~}005