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REPORT. OF THE <br />COMMITTEE ON FINANCE <br />DATE:. February 15,, 2011 Re: Comm. No. 86/Res: No. 34 -11 <br />PLACE: Council Chambers <br />Hilo, Hawaii <br />TIME: 1:34 p.m. <br />Council Chair and Members <br />Hawaii County Council <br />Hilo, Hawaii 96720 <br />Your Committee on Finance, to which was referred Resolution No. 34 -11, reports as follows: <br />Resolution No 34 -11, transmitted by Director of Finance Nancy E. Crawford via <br />Communication No. 86, dated January 19 2011, authorizes the payment of funds of a later fiscal <br />year and of a multi - fiscal year contract for organic waste diversion and compost operations in <br />.West Hawaii and East Hawaii. <br />Your Committee was informed by Council Member Smart that she is recusing herself from <br />participating in this discussion and voting due to a conflict of interest. <br />Linda Peters, Recycling Coordinator for the Department of Environmental Management, <br />appeared before Your Committee and provided a PowerPoint presentation. She explained that. <br />establishing organics diversion sites and compost operations are necessary steps towards banning <br />organics from the landfill by 2012, as requested in the adopted Council Resolution No. 826 -08. <br />Furthermore, this is consistent with principles of zero waste in Council Resolution No. 356 -07, <br />and creates a compost'diversion plan described in the Integrated Resources and Solid Waste <br />Management Plan. Ms. Peters also informed Your Committee of the following: 1) privatization <br />for greenwaste operations date back to 1995, according to available records; 2) the department <br />also intends to continue providing greenwaste drop -off sites at recycling and transfer stations for' <br />the convenience of residents;. and 3) through research of the industry, they determined that a 10 <br />year contract is necessary to enable an adequate return on investment and attract qualified <br />contractors, providing for cost - effective organics diversion and compost operations. <br />Matt Pearson, Project Manager of Big Island EKO Systems appeared before Your Committee at <br />the request of Council Member Pete Hoffmann. As the current operator of the greenwaste <br />programs at the County of Hawaii landfills, Mr. Pierson expressed the importance that <br />prospective vendors cover and pay off their capital expenses within the term of the contract. <br />Furthermore, the length of contract is very important for interested bidders, due to significant <br />start-up costs. <br />Chair Ford relinquished the chair to Vice -Chair Yagong. <br />FC Report No. 28 <br />