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Form #: B -52 <br />7/18/91 <br />DEPARTMENT OF FINANCE <br />REQUEST FOR COUNCIL ACTION <br />DEPARTMENT: Environmental Management (DEM) DATE <br />STAFF CONTACT: Bobby Jean Leithead Todd PHONE <br />A. REQUEST: <br />February 23, 2015 <br />961 -8083 <br />Resolution authorizing the payment of funds of a later fiscal year and of a multi - fiscal year contract for <br />organic waste diversion operations in West Hawai'i and East Hawaii. <br />B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): <br />The current contract for greenwaste operations will expire on 12/31/15. The annual cost for this contract is <br />approximately $1,800,000. The Department of Environmental Management intends to issue a new <br />procurement to replace the current organic diversion contract when it expires. The operations will include <br />the East Hawaii Organics Facility and the West Hawaii Organics Facility. The Department intends to <br />continue providing green waste drop -off sites at county recycling and transfer stations for convenience of <br />residents, including Kailua -Kona. Through research of the industry, it has been determined that a multi -year <br />contract is necessary due to the high start-up and equipment costs. To enable return on investment a four <br />(4) year initial contract will provide the opportunity for cost - effective organics diversion, treatment of mulch for <br />invasive species and a compost demonstration project. A four (4) year term will also provide the County the <br />opportunity after the initial term to expand organic diversion programs to a composting operation that can <br />include other feedstocks like paper, food & compostable plastics. <br />SIGNED: DATE: February 23, 2015 <br />Department Head <br />