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~1~~ RcvrwvaNe fncvgy !or the Ner! Generation April 7, 2005 Bill Gray Purchasing Agent Purchasing Division Department of Finance County of Hawaii 25 Aupuni Street, Room l 18 Hilo, Hawaii 96720-4252 Subject: Barlow Response to County of Hawaii letter dated April 1, 2005 regarding answers to questions concerning our proposal for RFP No. 2146 Dear Mr. Gray, Barlow Projects has proposed a workable, proven, cost effective solution to the County of~ Hawaii's solid waste disposal crisis caused by the imminent closing of the South Hilo landfill. This proposed solution meets the intent of the spirit of the RFQ in almost every respect and offers the County a tipping fee for services in line with alternatives. Barlow does still wish to be considered for this project and we sincerely believe that a mutually beneficial deal could be negotiated with the County if given the opportunity. Following are our responses to the questions you faxed us on 4/1/05 regarding our answers to your questions about our proposal for County of Hawaii RFP No. 2 L46: Section I -Qualifying Items Ouestion 2: Performance Bond -Barlow has complied with the requirement that the facility be privately financed. As a result, ownership must be clearly defined for under IRS regulations and as this will be a privately financed and owned facility up until the time of transfer, we do not feel that the requirement for a Contract Performance and Payment Bond applies. 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. Bazlow 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 for 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 current volatility of the surety markets. Question 5: As stated above; Rarlnw is willing to work with the Co~:n!y ±o provide an alternate form of security, or the $5 Million Performance Bond requested by the County in the RFP. Barlow has strong financial backing and we are confident that, if given the chance, 2000 Vermont Drive, Fort Collins, Colorado, USA PH: (970) 226-8557 FAX: (970) 226-8559 Comm. No. Z ~ ~ u~wm~ aaei nwniznmr~rc rnn-i Ref. To: t0i0YN Re#. Uate~]AY 1 7 200 i i 1