REP FC 052 2016/03/01 (2014-2016)

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REPORT OF THE COMMITTEE ON FINANCE DATE: March 1, 2016 Re: Comm. No. 683/Res. No. 405-16 PLACE: Council Chambers Hilo, Hawai`i TIME: 2:25 p.m. Council Chair and Members Hawai`i County Council Hilo, Hawai`i 96720 Your Committee on Finance, to which was referred Resolution No. 405-16, reports as follows: Resolution No. 405-16, transmitted by Finance Director Deanna S. Sako, via Comm. No. 683, dated February 11, 2016, authorizes the payment of funds of a later fiscal year and of more than one fiscal year for a multi-year lease of nine pickup trucks for the Department of Environmental Management. This Resolution authorizes the Mayor to enter into a five-year lease agreement at an approximate cost of$600 per month, per vehicle. The County will own the vehicles at the end of the lease. Solid Waste Division Chief Greg Goodale came forward for questions and comments, then explained that all replacement vehicles are split between four base yards around the island, and that all equipment is tracked in terms of costs and repairs. He stated that the vehicles that are costing a lot to repair are the ones being replaced and that the replacements were put off for a couple of fiscal years and the replacements were reduced down to nine. In response to an inquiry from Council Member Dennis "Fresh" Onishi, Mr. Goodale explained that funds will be provided from the operating budget. He further explained that this was also budgeted for the past two budget cycles, however, the funds were diverted to other projects such as lava related expenses and that the County may have been reimbursed from FEMA for the lava expenses. The vote was taken on the motion to approve and passed with nine ayes. Pursuant to Section 10-11 of the Hawaii County Charter, any contract, lease or other obligation requiring the payment of funds from the appropriations of a later fiscal year or of more than one fiscal year shall be made or approved by resolution. FC Report No.: 52