REP FC 072 08/04/2009 2008-2010 - Laserfiche WebLink

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REPORT OF THE COMMITTEE ON FINANCE DATE: August 4, 2009 Re: Comm. No. 415/Res. No. 203-09 PLACE: Councilroom Ben Franklin Building, 2nd Floor Hilo, Hawaii TIME: 9:00 a.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Finance, to which was referred Resolution No. 203-09, reports as follows: Resolution No. 203-09, transmitted by Director of Finance Nancy Crawford, via Communication No. 415, dated June 22, 2009, authorizes the payment of funds of a later fiscal year and of more than one fiscal year for a multi-year lease for a copy machine. The Department of Parks and Recreation's Elderly Activities Division wishes to enter into a three-year lease contract for a copy machine. Funds would be budgeted in future fiscal years to cover the anticipated costs. Pursuant to Section 10-11 of the Hawaii County Charter, any contract, lease or other obligation requiring payment of funds from the appropriations of a later fiscal year must be approved by resolution. At the meeting of July 7, 2009, Ms. Ford requested the cost information for the lease. Further, she stated that she wants the departments to provide documentation for all future appropriations. Finance Director Nancy Crawford stated she did not have the cost information with her, but she could obtain it and forward it to members. Mr. Ford moved to postpone the measure until July 21, 2009, so that the information would be available. The motion was seconded by Mr. Yagong. Mr. Greenwell spoke against the postponement. The motion to postpone was carried. Items from all committee agendas for July 7, 2009 are being put to a re-vote due to issues of legality. At the meeting of August 4, 2009, Your Committee received Comm. 415.1 from Finance Director Nancy Crawford, dated July 20, 2009. In the letter, Ms. Crawford explains that the Purchasing Division will not proceed to obtain quotations and select a copier lease until the County Council has authorized the Administration to do so. Therefore, at the time the resolution is before the Council, the exact amount of the lease is not known. However, she did cite a cost range for similar lease quotations recently obtained. Councilmember Ford expressed her concern regarding leasing equipment without knowing the cost of the lease. She suggested having a written policy, as guidance, for leasing equipment with a smaller value. Ms. Crawford stated that the Administration never ties in a dollar amount into a lease for a relatively small amount of money. Councilmember Greenwell questioned whether it would be better to purchase the copier rather than paying for it over a period of time. Ms. Crawford replied that it would be more cost effective to lease a copier because it would include maintenance costs, toner, and service. She also indicated that a copier has a life of five years. FC Rept. No. 72