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REPORT OF THE <br /> COMMITTEE ON FINANCE <br /> DATE: September 20, 2011 Re: Comm. No. 353/Res. No. 147-11 <br /> PLACE: Council Chambers <br /> Kona, Hawai`i <br /> TIME: 11:07 a.m. <br /> Council Chair and Members <br /> Hawai`i County Council <br /> Hilo, Hawai`i 96720 <br /> Your Committee on Finance, to which was referred Resolution No. 147-11, reports as follows: <br /> Resolution No. 147-11, transmitted by Finance Director Nancy Crawford via Communication <br /> No. 353, dated September 7, 2011, authorizes the payment of funds of a later fiscal year and of <br /> more than one fiscal year for a multi-year lease for two (2) fire apparatus (fire trucks) for the <br /> Hawaii Fire Department. The County of Hawai`i wishes to enter into a multi-year lease <br /> agreement for five (5) years, for two (2) fire apparatus (fire trucks) at a total cost not to exceed <br /> $23,500 per month or $282,000 annually. <br /> Deputy Director of Finance Deanna Sako and the Fire Department Accountant Robert Belcher <br /> appeared before Your Committee. <br /> Several Members of Your Committee expressed their support for leasing the two (2) fire <br /> apparatus; however, some members are concerned that the "not to exceed amount" stated in the <br /> resolution is too high and therefore inappropriate. Ms. Ford spoke against the resolution, stating <br /> that it is premature. She feels because the Hawaii Fire Department has not provided any <br /> specifications for the Request for Proposal for these apparatus, they are not clear what they are <br /> asking for nor on how much money they will need. She also requested Ms. Sako to clarify if <br /> purchasing fire apparatus is an allowed use for fair share funds. <br /> Members expressed the concern that if the "not to exceed amount" is at a higher level, then <br /> vendors will be encouraged to bid higher. Some members mentioned that perhaps the lease cost <br /> should be left out of the resolution as in previous practice. Ms. Sako informed Your Committee <br /> that the amount stated in the resolution is based on the best information possible, working with <br /> the Fire Department. Mr. Belcher confirmed this, and cited purchase prices for apparatus <br /> obtained in previous years. <br /> FC Report No. 117 <br />